Ryanair has announced the closure of its base at Billund Airport and the termination of all routes to and from Aalborg Airport, effective from the end of March. This decision comes in response to the Danish government’s introduction of a new aviation tax, which will add up to DKK 50 (less than 7 euros) to the price of every departing ticket starting in January 2025.
Impact on Billund and Aalborg
The closure of the Billund base will result in the loss of two stationed aircraft, equivalent to a €185 million investment. In total, Denmark will see a reduction of 1.7 million seats and the elimination of 32 routes. Ryanair has confirmed that affected employees at the Billund base will be offered similar positions at other bases within the airline’s network.
Ryanair’s response
Denmark’s post-pandemic air traffic has yet to fully recover, currently sitting at 95% of 2019 levels. Ryanair argues that the new aviation tax will further harm the country’s connectivity, particularly for regional airports outside of Copenhagen.
“This harmful aviation tax makes Denmark (especially regional Denmark) hopelessly uncompetitive compared to other EU countries, like Sweden, Hungary, and Italian regions, who are abolishing aviation taxes to stimulate traffic recovery and growth.” Ryanair stated.
Denmark’s perspective on the aviation tax
While Ryanair frames its decision as a response to an “uncompetitive” tax, the Danish government defends the levy as a necessary step towards sustainability. The tax is intended to discourage short-haul flights and encourage the use of more environmentally friendly transportation options, such as trains and buses. By introducing this measure, Denmark aligns itself with broader EU goals of reducing carbon emissions in the aviation sector.
Supporters of the tax argue that airline carriers must adapt to a changing regulatory landscape where sustainability takes precedence over unrestricted growth. The government’s stance suggests that such taxation is a fair approach to balancing economic and environmental concerns.
Future of low-cost air travel in Denmark
The withdrawal of Ryanair from these key regional airports raises concerns about the affordability and accessibility of air travel for Danish passengers, particularly those relying on low-cost options. However, this move also highlights the growing debate over the role of taxation in shaping sustainable air travel policies.
With the exit of Ryanair from Billund and Aalborg, it remains to be seen how other airlines will respond to the Danish aviation tax and whether alternative carriers will step in to fill the gap left by Ryanair’s departure.
