DUBLIN- Europe’s low-cost carrier Ryanair (FR) has initiated legal action against the Irish Aviation Authority (IAA) over the newly imposed passenger cap at Dublin Airport (DUB), the Sunday Business Post reports.
The airline claims this restriction will cost them €50 Million ($54 Million) in revenue and lead to 90 job cuts during the next summer season.
Ryanair on Dublin Airport Cap
The IAA has set a seasonal limit of 25.2 million passengers for summer 2025 to ensure compliance with the overall annual cap of 32 million. Ryanair argues that this cap will have far-reaching consequences beyond their immediate operations.
According to Ryanair, the restrictions will make it unfeasible to introduce more fuel-efficient aircraft to Dublin Airport. The airline further estimates that the wider Irish economy could suffer a €125 million loss due to reduced activity resulting from these limitations.
Eoin Kealy, Ryanair’s director of competition and regulatory affairs, has filed an affidavit as part of the legal challenge. In the document, Kealy asserts that the summer cap is “unlawful” and will severely impair Ryanair’s ability to maintain its current routes.
Kealy warns that if the restrictions remain in place, Ryanair risks losing existing slots and may be forced to withdraw from additional slots in future seasons.
He emphasizes that failing to overturn the summer restrictions will inflict a “very significant financial, operational and reputational impact on Ryanair in summer 2025 and beyond.”
German Flight Cuts
Ryanair announces plans to cease operations at Dortmund, Dresden, and Leipzig airports starting summer 2025. The Irish budget airline attributes this decision to escalating taxes and fees in Germany.
The carrier will also implement significant flight reductions, cutting services by 60% in Hamburg and 20% in Berlin. These changes align with Ryanair’s previously announced strategy in August.
Michael O’Leary’s Ryanair plans a substantial downsizing of its German operations in 2025. The airline will eliminate 1.8 million seats and discontinue 22 routes, impacting destinations such as Dresden and Hamburg.
Ryanair DAC CEO Eddie Wilson criticized Germany’s approach to airport growth in an interview with Deutsche Welle. Wilson expressed Ryanair’s willingness to expand in Germany but pointed to rising air travel taxes, security costs, and airport fees as key factors driving the airline to relocate capacity to other EU countries.
While Ryanair has not specified potential job losses, it acknowledges the likely ripple effects on workers and the hospitality industry. Germany’s national carrier, Lufthansa, has also experienced reduced air traffic due to these new measures.
Ryanair, Europe’s largest airline by passenger numbers, has a history of confronting challenges to its business model. Earlier this year, the carrier successfully sued travel agents like Booking.com and Kayak for removing its flights from their platforms.
Despite the post-pandemic recovery in travel demand, Ryanair faces challenges with price-sensitive passengers who are delaying their bookings.
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