Ryanair to Close Berlin Base, Blaming German Aviation Tax Hike
Ryanair to Close Berlin Base Over German Tax Hike

Ryanair is to shut its Berlin operating base and cut its winter schedule to the German capital in half, blaming soaring aviation taxes in the country. The Irish budget carrier said its relocation of seven aircraft to other centres would reduce its Berlin passenger numbers from 4.5 million to 2.2 million a year, with flights in and out of the city served from October by planes based at other airports. Staff at the facility are being offered transfers to other European bases.

Ryanair CEO Criticizes German Aviation Policy

Eddie Wilson, the chief executive of Ryanair DAC, said at a press conference in Berlin that German aviation was ‘broken’. He stated: “German aviation is broken. The government admits that it is uncompetitive, yet there is no strategy to cut aviation taxes or high airport fees – despite Ryanair warning that Germany would lose traffic, connectivity, jobs and trade.” Wilson added that since 2019, Ryanair has been forced to close its bases in Frankfurt, Düsseldorf and Stuttgart, in addition to stopping all flights to Dresden, Leipzig and Dortmund. These closures have led to the loss of 13 aircraft from those bases.

Union Criticizes Ryanair's Profit-Driven Strategy

The German trade union Verdi criticised Ryanair’s plans as a “purely profit-oriented corporate strategy”. Dennis Dacke, the head of Verdi’s federal aviation division, said the airline’s employees had for too long been treated like “disposable commodities” while the company based its location decisions on short-term profit interests.

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Industry Turmoil Amid Rising Costs

The announcement of the withdrawal has come at a time when the airline industry is in turmoil as it wrestles with surging costs following the conflict in the Gulf. The price of jet fuel has more than doubled since the conflict began at the end of February. Penalties on airlines that cancel UK flights because of jet fuel shortages have been eased, and Ryanair’s boss, Michael O’Leary, has warned of having to cancel as much as 10% of late summer flights if shipping does not return to normal quickly. While many European airlines have hedged their fuel, locking in a purchase price for months or years ahead, the potential for future disruption was illustrated last week when American Airlines said the rising price of jet fuel would cost it another $4bn (£3.1bn) this year and would eradicate forecast profits.

Environmentalists See Opportunity for Rail

Environmentalists and rail enthusiasts quickly pointed out the opportunity the Ryanair decision might present for the rail industry to step up. Jon Worth, a European railway policy analyst, told the Guardian: “The demise of Ryanair at Berlin airport should mean an opportunity for more passengers to take trains to Berlin instead.” Berlin has direct trains to Amsterdam, Warsaw, Prague, Vienna, Berne, Stockholm and Paris. A new daytime service to Copenhagen starts this summer. With one change of train, Brussels, Bratislava, Budapest, Ljubljana and Zagreb are within reach of Germany’s capital. Worth said the railway’s reliability needed work and that trains were often more expensive than planes, “but there is an opportunity for the railway industry here, if they are ready to seize it”.

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