Aviation news analysis
50 SKY SHADES - World aviation news

Ryanair To Partner With Niki Lauda To Develop LaudaMotion Airline In Austria

Download: Printable PDF Date: 20 Mar 2018 10:00 category:
Publisher:
Ryanair To Partner With Niki Lauda To Develop LaudaMotion Airline In Austria - Airlines publisher
Tatjana Obrazcova
Country: Austria Aircraft: Airplanes

Ryanair Holdings Plc today (20 Mar) announced that it has entered into a binding agreement with Mr Niki Lauda to support his plan to develop and grow LaudaMotion GmbH, an Austrian Airline based in Vienna.

LaudaMotion is an Austrian AOC holder owned by Niki Lauda, which has recently acquired many of the assets, including A320 aircraft, of the former Niki Airline, and will shortly start a range of scheduled and charter services from Germany, Austria and Switzerland primarily to Mediterranean leisure destinations.

Under this agreement Ryanair will acquire an initial 24.9% stake in LaudaMotion and this will rise as soon as possible to 75% subject to EU Competition approval. Niki Lauda will chair the Board of the airline and oversee the implementation of his strategy to build a successful Austrian low fares airline. Ryanair will provide financial and management support to LaudaMotion as well as 6 wet-lease aircraft for S2018 to enable LaudaMotion to complete an extensive 21 aircraft flying program.

The cost of this 75% investment in LaudaMotion (if approved by the EU) will be less than €50m although Ryanair will provide an additional €50m for year 1 start up and operating costs. Both Mr Lauda and Ryanair will work with the existing management team of LaudaMotion and expect the airline to reach profitability by year 3 of operations if their plan to grow the business to a fleet of at least 30 Airbus aircraft is successful.

This partnership provides job security, career opportunities and growth in employment in all activities of LaudaMotion, such as cockpit and cabin crew, maintenance and administration, and will allow consumers and visitors to benefit from strong competition, leading to more choices and lower fares.

Ryanair’s Michael O’Leary said:

“We look forward to working in partnership with Niki Lauda to successfully develop his vision for a successful Austrian low fares airline to service the schedule and charter markets. The LaudaMotion AOC will support a fleet of Airbus aircraft which is something we have hoped to develop within the Ryanair Group for some years.

LaudaMotion will benefit from this partnership between Niki Lauda and Ryanair. With access to the Ryanair fleet and financial resources, LaudaMotion will now grow more rapidly, as it seeks to compete in a market which is dominated by Lufthansa’s high airfares with its Swiss and Austrian subsidiaries.

This LaudaMotion partnership is good news for Austrian and German consumers/visitors who can now look forward to real competition, more choice and lower fares. It is also great news for LaudaMotion’s people who can look forward to improved job security and more promotional opportunities in Vienna and other bases as we work with Niki Lauda and his team to accelerate growth of LaudaMotion – Austria’s low fares airline.”

Niki Lauda, Chairman of LaudaMotion said:

“I have always stood up for competition and have opposed monopolies. Therefore I am thrilled that in the partnership with Ryanair, LaudaMotion will be able to establish itself as a strong competitor and to grow quickly and sustainably. A new player in the aviation market is born and I am looking forward to offering our passengers an extensive route portfolio at competitive air fares.”

Image result for Ryanair To Partner With Niki Lauda To Develop LaudaMotion Airline In Austria



Loading comments for Ryanair To Partner With Niki Lauda To Develop LaudaMotion Airline In Austria...


Recommended

Ryanair Record London S19 Schedule Launched

23 New Routes (180 Total), 26m Customers P.A. (Up 5%) Ryanair, Europe’s No.1 airline, today (12 Sep) launched its biggest ever London S 2019 schedule, with 23 new routes (over 180 in total),...

Christian Scherer appointed Airbus Chief Commercial Officer

Airbus SE (stock exchange symbol: AIR) has appointed Christian Scherer, 56, Chief Commercial Officer (CCO), replacing Eric Schulz, who has decided to leave the company for personal reasons. Christian...

First Delta Air Lines A220-100 rolls out of painting hangar in Mirabel

Delta Air Lines` first Airbus A220-100 was introduced this week after rolling out of the painting hangar at the A220 final assembly line in Mirabel, Québec. Delta will be the first U.S. airline...

Pilatus Hands Over the First PC-24 to Jetfly

Jetfly, a fractional ownership operator, took delivery of its first Super Versatile Jet during a handover ceremony on 17 September 2018. The PC-24 with serial number 111 is the first of four Super Ver...

Silk Way West Airlines increases flights to Chinese city of Zhengzhou

Azerbaijani cargo air carrier Silk Way West Airlines increases the number of flights to China. The number of Baku-Zhengzhou flights will be increased from four to six times a week. The appropria...