Ryanair to Close Thessaloniki Base Over Fee Dispute

Key Announcement Summary

Ryanair has announced the closure of its operating base at Thessaloniki airport for the upcoming winter season. The airline cites a significant hike in airport fees by operator Fraport as the primary reason, leading to the cancellation of 10 routes and a reduction of 500,000 seats.

Overview of the Dispute

The decision follows failed negotiations between the low-cost carrier and Fraport. Ryanair's Chief Commercial Officer, Jason McGuinness, stated that airport charges have increased by 66% compared to pre-pandemic levels. However, Fraport Greece denies this claim, stating the closure is based on Ryanair's own commercial strategy and profitability models.

Economic and Tourism Impact

The closure will remove three aircraft from the base, potentially impacting 100 jobs and significantly affecting local tourism. Ryanair provided 90% of Thessaloniki's international flight capacity last year. The airline is also reducing capacity at Athens and suspending off-peak operations in Chania and Heraklion, resulting in a total loss of 700,000 seats across Greece.

Conclusion and Outlook

Ryanair plans to reallocate its aircraft to airports in Albania, Italy, and Sweden, which offer more favorable tax conditions. This move highlights a broader conflict between low-cost airlines and airport operators over rising costs, which could reshape regional air travel and tourism dependency in Europe.

FAQ

Q: Why is Ryanair closing its Thessaloniki base?
A: Ryanair states the closure is due to a 66% increase in airport charges by operator Fraport, a claim Fraport disputes.

Q: What is the direct impact on flights?
A: The closure will result in the loss of 500,000 seats and 10 routes from Thessaloniki this winter.

Source: Investing.com