Irish low-cost carrier Ryanair has confirmed its intention to raise its initial 24.9 percent stake in the Austrian carrier Laudamotion to 75 percent as soon as possible, subject to European regulatory approval.
In addition, Laudamotion and Ryanair have agreed an option that will allow the Irish carrier to buy the remainder, allowing it to take full ownership in four years.
With Austria becoming a rapidly expanding hub for Eastern Europe destinations, this move will see Ryanair secure a much-desired foothold.
To help Laudamotion cope with a recent rise in oil prices and become profitable, Ryanair has also confirmed a further investment in the Austrian carrier with an injection of €20 million (US$23.4 million), taking its overall investment to €120 million (US$140 million).
This Saturday Laudamotion will commence flights from Vienna, having begun with flights from Germany in March and Switzerland in April. While the intention is to have four planes stationed in Vienna during the summer, this number should double for the winter season. Ryanair has confirmed that its longer-term plans are to build up a base of 50 planes in the Austrian capital.
Currently, Lufthansa has 90 aircraft stationed in Vienna, while at its peak, and prior to its demise, Niki (now rebranded as Laudamotion), the subsidiary of Air Berlin, had 21 aircraft stationed there.Email Post to a Friend