Europe

Government may not stop until Ryanair leaves Hungary – here’s why

A Hungarian online media outlet that specializes in travel wrote that the Hungarian government is unlikely to stop until Irish low-cost airline Ryanair leaves Hungary. They suggested that the Orban regime’s attack on foreign airlines worked in favor of its Hungarian-owned competitor Wizz Air. Below you can read more about the issues that will affect millions of air passengers in the future.

Is the government trying to push Ryanair out of the market?

as we I have written Last weekend, Ireland’s biggest low-cost carrier Ryanair reacted harshly to an exit tax introduced by the Hungarian government. They closed 8 routes in Hungary because of the “ridiculous” new tax and added 7 in Hungary for flights to the Czech Republic, Poland, the UK and several other countries reachable from Budapest. We announced that we will reduce the frequency of the route.

Meanwhile, last Monday, the Hungarian customer protection authority fined Ryanair was sentenced to HUF 300,000,000 (EUR 765,000) for “misleading customers through unfair business practices”.

okostas.hu Said They received hundreds of comments suggesting that the Hungarian government tried to force Irish airlines out of the country in favor of Hungary’s Wizz Air. I was.

They write that all airlines operating in Hungary must pay the government’s new exit tax (“Excess Earnings Tax”). This affects most ultra-low cost companies such as Wizz Air and Ryanair. However, there is no difference in the monetary damages of taxes in this regard.

Communications war between government and Ryanair

The two companies mentioned above have long competed in the Hungarian market. Previously, Wizz Air had the larger market share, but this year it was taken over by Ryanair. This is because the Hungarian low-cost firm resumed services later than its Irish competitors after his last wave of COVID. But after Wizz Air’s return, Ryanair lost its edge.

Okoustas.hu wrote that Ryanair would openly criticize other countries’ governments’ decisions if they believed they were against their interests. But the Hungarian government is not used to such resistance. The administration therefore launched a counterattack and even fined Ryanair.

Meanwhile, other airlines have remained silent and opted to pay the extra costs to the government.While Wizz Air accepted the situation, only Ryanair opposed it. The case of Hungarian low-cost airlines is quite unique. Founded and owned by Hungarians. Moreover, its headquarters are in Hungary. They received many tasks from the government during the COVID-19 crisis.

Ryanair won’t give up market share

The non-EU cities to which Wizz Air is permitted to fly from Budapest are only determined by Hungarian government agencies. However, okosutas.hu writes that this does not mean that the government treats Hungarian airlines differently. Wizz Air strives to maintain good relations with governments of all countries. Just like any other multinational company.

The additional tax will hit both Wizz Air and Ryanair’s businesses. This is why some routes have had to be canceled or reduced. However, unlike Ryanair, the Hungarian airline has not enthusiastically communicated these decisions.

Ryanair and Wizz Air have 24 common routes. Interestingly, none of his eight routes, recently canceled by Ryanair, fell into this category. That means they don’t want to give up even if it’s a small market share.

sauce: okosutas.hu, DNH

https://dailynewshungary.com/government-may-not-stop-until-ryanair-leaves-hungary-here-is-why/ Government may not stop until Ryanair leaves Hungary – here’s why

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