RyanairExpandsFrankfurtOperations,ChallengesLufthansa'sDominance

Irish budget airline Ryanair declared on Tuesday its intention to expand its operations at Frankfurt Airport, Germany’s major aviation hub. This move is expected to intensify competition with Lufthansa, the country’s flagship carrier, which holds a dominant position at the airport.

Michael O’Leary, Ryanair’s CEO, revealed during a press conference that the airline would introduce 20 new routes from Frankfurt to various popular European destinations for the winter 2017-18 season. Currently, Ryanair operates flights to Frankfurt-Hahn, located approximately 120 kilometers away from the city center.

This summer, for the first time, Ryanair will commence services from Frankfurt’s main airport following a partnership agreement with Fraport, the airport’s operating company. This strategic move has irked Lufthansa, which has long dominated traffic at Germany’s busiest airport.

During the winter, Ryanair plans to increase its fleet at Frankfurt from two to seven aircraft, adding flights to major capitals such as Rome, London, and Madrid, along with additional holiday destinations. The airline aims to attract around 2.0 million passengers annually through Frankfurt, with a significant portion being business travelers.

While expanding its footprint at Frankfurt, Ryanair does not intend to become a major player, with O’Leary stating that the airport will “never be a very large base for us.” He explained that Ryanair is not interested in competing with Lufthansa and its low-cost offshoot, Eurowings, for domestic German routes.

O’Leary forecasted that Ryanair’s maximum capacity at Frankfurt would involve 10 to 20 aircraft, serving 8 to 10 million passengers per year. However, he also issued a stark warning about the potential impact of Brexit on the aviation sector, emphasizing the uncertainty surrounding the UK’s departure from the EU’s common aviation area.

He criticized British ministers for lacking a clear plan post-Brexit, stating that without a swift agreement, “there could be no flights to or from the UK in March 2019,” when the two-year negotiation period concludes. Given that the UK represents a substantial market for Ryanair, contributing about one-quarter of its revenue, the airline has experienced declining profits due to the depreciation of the pound sterling following the Brexit referendum.

O’Leary concluded by predicting that the aviation landscape will undergo significant changes as Brexit approaches, hoping that the UK might reconsider its decision once the full economic implications become apparent.