Ryanair threatens to take flight from Budapest

Chief executive of Ryanair, Michael O'Leary, has threatened to pull all his planes out of Budapest Airport if it does not lower its charges.

by Michael Northcott

The airline said it was considering pulling out of 10 routes out of Budapest as early as January 2013, and to scrap 110 flights per week unless the airport presented a ‘more competitive cost offer’.

O’Leary said at a press conference in Budapest: ‘The strange logic of Budapest and Hochtief [Germany co-owner of the airport] seems to be: ‘We have less traffic so we charge the existing traffic more’. That recipe is doomed to failure.’

Ryanair is known for holding airports to ransom over their charges by threatening to pull out, but this could be an unusual level of bluster, even for O’Leary. Only in February this year, his firm spend £220m setting up its base in Budapest in response to the collapse of Hungarian carrier Malev. Pulling out so soon after launching will make the whole episode a rather expensive one for an airline with such a tight margin.

Sign in to continue

Sign in

Trouble signing in?

Reset password: Click here

Email: mtsupport@haymarket.com

Call: 020 8267 8121

Register

FREE

  • Up to 3 free articles every 90 days
  • Free email bulletins

Register Now

Take a free trial

Get 30 days unrestricted access to:

  • All the latest news, trends, and developments.
  • Exclusive interviews with CEOs and thought-leaders
  • MT Classroom - giving you an academic grounding without expensive courses
  • Management Matters and other in-depth content.
  • Daily bulletins straight to your inbox

Take a free trial today