Airlines Ryanair announces partnership with Laudamotion
The Low-Cost airline plans to acquire up to 75% of Laudamotion and will provide the airline with six aircraft for the upcoming Summer schedule.
Ryanair will help Laudamotion to grow at its Austrian base in Vienna. The binding agreement was signed between Ryanair and Niki Lauda, CEO of Laudamotion. The new agreement shows Niki Lauda´s strong interest in establishing a new Austrian 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.”
Ryanair said, that the deal is valued at approximately €50 Million. However, the airline will provide additional €50 Million for the first year as start-up capital. Profitability is expected by year three of operations.
The deal includes, that Ryanair will initially acquire a 24.9% stake in Laudamotion and will later rise its interest to up to 75%. Ryanair said, that this plan is still subject to EU competition approval.
Ryanair’s Michael O’Leary commented: "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 […].”
Ryanair will wet-lease six Boeing 737-800 to Laudamotion for the upcoming Summer flight schedule. With the aircraft being added to Laudamotion´s fleet, the operator can rely on 21 Airbus A319, A320, A321 and Boeing 737-800. Laudamotion plans to extend its fleet to 30 Airbus aircraft by 2021.
As the Austrian Start-Up explained earlier today, mainly holiday destinations to Spain and Greece will be offered during the Summer. From Vienna, the airline will fly to Palma de Mallorca, Malaga, Ibiza, Santorini, Crete and Kalamata.
Source © corporate.ryanair.com