Vienna Airport Advocates for Tax Reform Amid Airline Reductions

What's Happening?

Vienna Airport is advocating for a reform of Austria's aviation tax, which it claims places the airport at a competitive disadvantage in the region. This call for change comes as low-cost carriers like Wizz Air and Ryanair reduce their operations in Vienna. Wizz Air plans to close its Vienna base in two phases, starting with the withdrawal of two Airbus A320neos on October 26, 2025, and the remaining three by March 15, 2026. Ryanair is also scaling back, moving some operations to Bratislava, Slovakia. The aviation tax in Austria imposes a cost of €30 for flights under 350 km and €12 for longer flights, which Vienna Airport's joint CEO and COO, Julian Jäger, argues is a competitive disadvantage compared to neighboring countries like Hungary, the Czech Republic, and Slovakia, which have no such tax.

Why It's Important?

The reduction in operations by major low-cost carriers at Vienna Airport highlights the broader impact of aviation taxes on regional competitiveness. The airport's push for tax reform is significant as it seeks to maintain and grow its passenger traffic, which is expected to reach a record 32 million this year. The tax reform could potentially attract more airlines and routes, boosting the local economy and enhancing Vienna's position as a key European hub. The airport's strategy includes a €420 million terminal expansion, indicating a long-term commitment to growth despite current challenges. The outcome of this advocacy could influence aviation policy in Austria and potentially lead to similar reforms in other regions facing competitive pressures.

What's Next?

Vienna Airport plans to reduce its airline charges by about 4% next year to enhance its competitiveness. The airport is also undergoing significant infrastructure upgrades, with a new terminal expansion set to complete by 2027. This expansion will include new security facilities, retail and food spaces, and larger waiting areas. The airport's leadership remains optimistic about future growth, with expectations of increased long-haul capacity towards the U.S. and East Asia once current capacity issues are resolved. The response from the Austrian government to the airport's call for tax reform will be crucial in shaping the future operational landscape for Vienna Airport.