Ryanair pulls out of Greece's third-biggest airport over tax hike: 'Could be devastating for city'
Ryanair will close its base at Thessaloniki Airport, Greece, this winter and reduce the number of flights to and from the city after airport operator Fraport raised annual fees, a senior airline official said, according to Reuters.
Speaking to the press in Athens, Ryanair's chief commercial officer, Jason McGuinness, said there had been no progress in negotiations between the low-cost airline and Fraport, which has raised charges at a number of Greek airports.
“Fraport Greece has continued to increase fees, which are now 66% higher than pre-Covid levels,” McGuinness said.
Fraport Greece said any claims linking Ryanair's decision to airport taxes or the Airport Development Fee (ADF) imposed by the Greek state are completely unfounded.
“The decision to reduce winter operations at Makedonia Airport in Thessaloniki is solely related to Ryanair's commercial strategy, business model and profitability considerations,” Fraport said in a press release.
Ryanair will retire three aircraft based in Thessaloniki, and eliminate 500,000 seats and 10 routes this winter.
The Irish airline, Europe's largest by passenger numbers, has 95 operational hubs on the continent where it maintains its aircraft and crews. It also announced the closure of its Berlin base last month due to higher taxes and fees.
The departure of Ryanair could be “devastating” for Thessaloniki
McGuinness did not say whether the move would lead to layoffs among the 100 employees at the Thessaloniki base. Thessaloniki Airport is the third largest in Greece after Athens and Heraklion.
Capacity will also be reduced at Athens airport for the coming winter, resulting in a total loss of 700,000 seats and 12 routes across Greece.
Operations at Chania and Heraklion airports will also be suspended during the off-season months, McGuinness said.
The aircraft will be redeployed to Albania, Italy and Sweden, “where the airports have transferred savings from aviation taxes to their respective governments, leading to better connectivity, tourism and jobs this winter,” McGuinness said.
Ryanair's departure from Thessaloniki could be “devastating for the city”, he said, as the company secured 90% of its international capacity last year.
Greece, one of the world's leading summer destinations in the Mediterranean area, depends heavily on tourism. Greek media had predicted that Ryanair would close its Thessaloniki base, prompting municipal authorities to worry about the impact on jobs in the tourism sector.
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