Ryanair’s accelerated growth in Italy shows the success of its hard-ball game over tax hikes

Ryanair’s accelerated growth in Italy shows the success of its hard-ball game over tax hikes

8-Sep-2016

Not for the first time, Ryanair has won in a game of hard ball. It has a long history of forcing others to do business on its own terms – otherwise it will go elsewhere. After Italy increased municipal taxes on air traffic in Jan-2016, Ryanair decided to close its bases at Alghero in Sardinia and Pescara on Italy’s Adriatic coast, and to withdraw from Crotone in the south of the country from Oct-2016. It had also planned to close 16 routes this coming winter.

Ryanair now says that it will accelerate its growth plans in Italy, allocating a further 10 new aircraft to the country. This was prompted by the Italian government’s decision to reverse the tax increase from 1-Sep-2016. It may also have been facilitated by Ryanair’s plans to reduce its UK growth after the Brexit vote.

Ryanair announced on 17-Aug-2016 that it will launch 44 new routes in Italy next year. It plans 21 new routes at airports in Rome and Milan and 23 at regional airports in Italy. Ryanair expects that it will increase its passenger numbers in Italy by 10% to 35 million in 2017 as a result of this expansion. Already the biggest airline by seats in Italy, Ryanair looks set to extend its lead. [1901 words]

Unlock the following content in this report:

Subheadings:

  • New growth agreement with Pescara
  • Ryanair is number one in Italy
  • Ryanair’s seat numbers in Italy have tripled since 2007
  • Ryanair has 24% of seats in Italy in 12M to end summer 2016, vs 9% in 2007
  • Italy is now neck-and-neck with UK as Ryanair’s biggest country
  • Ryanair has almost as many routes in Italy as Alitalia, easyJet and Vueling combined
  • Ryanair’s 27 airports in Italy: a number matched by Alitalia
  • Ryanair has a strong presence across Italy
  • Ryanair’s focus serves it well

Graphs and data:

  • Italy: leading airlines by seats (system-wide), 5-Sep-2016 to 11-Sep-2016
  • Total seats (one way) in Italy for selected airlines: 2007 to 2016
  • Share of seats (one way) in Italy for selected airlines: 2007 to 2016
  • Ryanair: top 10 countries by seats (system-wide): 5-Sep-2016 to 11-Sep-2016
  • Number of Italian routes operated by leading airlines in Italy: summer 2016 and winter 2016/2017
  • Number of Italian airports served by leading airlines in Italy: summer 2016 and winter 2016/2017
  • Ryanair airports in Italy by seats 5-Sep-2016 to 11-Sep-2016

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