• Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
  • Advertising Disclosure
Live and Let's Fly
  • Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
  • Advertising Disclosure
Home  >  Lufthansa • Ryanair  >  Ryanair Vows To Fight “Illegal Subsidy” For Lufthansa
LufthansaRyanair

Ryanair Vows To Fight “Illegal Subsidy” For Lufthansa

Matthew Klint Posted onMay 27, 2020 5 Comments

Never one to shy away from controversy, Ryanair CEO Michael O’Leary is on the warpath after Lufthansa and Germany reached an agreement on a €9 billion aid package. Calling the aid an “illegal subsidy”, Ryanair has vowed to fight it.

Ryanair Condemns Lufthansa Aid Package From Germany

Ryanair argues the aid package will “tighten Lufthansa’s monopoly grip” over Germany to the detriment of other carriers and consumers.

O’Leary minces no words:

“Lufthansa is addicted to State Aid. Whenever there is a crisis, Lufthansa’s first reflex is to put its hand in the German Government’s pocket. While most other EU airlines can survive on just payroll support schemes (for which we are extremely grateful), Lufthansa claims it needs another €9 billion from the German Government, €1 billion from the Swiss Government, €800 million from the Austrian Government, and €500 million from the Belgian Government as it stumbles around Europe sucking up as much State Aid as it can possibly gather.

“How can airlines like Ryanair, EasyJet and Laudamotion be expected to compete with Lufthansa in the short haul market to and from Germany, now that it has €9 billion worth of German Government subsidies to allow it to engage in below cost selling or buy up even more competition for the next number of years.

“It is deeply ironic that the German Government, which lectures all other EU countries about respecting EU rules, has no difficulty breaking the State Aid rules when it comes to Lufthansa. It waved through Lufthansa’s purchase of Air Berlin two years ago, which gave Lufthansa a monopoly in the German domestic market, and now when Lufthansa claims it needs even more State subsidies, the German Government writes a cheque for €9 billion, at a time when its competitors Ryanair, EasyJet, BA, among others, do not need such State subsidies to survive.

“The German Government continues to ignore EU rules when it suits them to subsidize large German companies, but then lectures every other EU Government about respecting the rules when they ignore them.

“Ryanair will appeal against this latest example of illegal State Aid to Lufthansa, which will massively distort competition and level playing field into provision of flights to and from Germany for the next five years.”

You might say his words were even tempered from what he said a few weeks ago:

“Lufthansa is like a crack cocaine junkie looking for state aid. They’re already getting huge payroll support from the Germany government. What do you need more state aid for?

“We don’t have many other costs at the moment because we’re all grounded. They see this as an opportunity to get one last huge quantity of state aid so they can go around and buy up everyone when this is all over.”

CONCLUSION

As amusing as it is, I’m not a fan of O’Leary’s style. Still, he makes several solid arguments above, particularly the favored (near sacrosanct) status Lufthansa enjoys in Germany. I’m not sure Ryanair’s protests will yield the results he wants, but I look forward to Germany’s defense.


> Read More: Germany Will Control 20% Of Lufthansa Group In Exchange For €9 Billion Bailout


Previous Article Why Is This Attractive Couple Suing Hilton?
Next Article Wow: Lufthansa Board Rejects German Bailout

About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

Related Posts

  • Ryanair Twitter

    Ryanair Savagely Trolls Passenger On Twitter

    March 20, 2023
  • Qatar Airways CEO Lufthansa

    Qatar Airways CEO Offers To Point Out Lufthansa’s “Mistakes”

    March 8, 2023
  • Lufthansa Diverts Turbulence

    Chaos: Lufthansa Flight Diverts To Washington, DC After Horrific Turbulence

    March 3, 2023

5 Comments

  1. WR2 Reply
    May 27, 2020 at 10:13 am

    The EU has been making up their rules as they go along for a long time, and applying them selectively, or even retroactively. With all the billions in fines against US companies (the only ones they ever fine), you’d think they’d have the money to actually defend themselves. Nope.

  2. Stuart Reply
    May 27, 2020 at 10:16 am

    I tend to agree with him.

    I’m not sure how difficult slots are to get in places like FRA, MUC, ZRH, or VIE. But seems like LH should have been made to sell some of their slots off to raise cash and assure competition going forward in exchange for this subsidy.

    • Matthew Reply
      May 27, 2020 at 10:29 am

      Did you see my latest post? You were quite prophetic today!

      • Stuart Reply
        May 27, 2020 at 10:37 am

        LOL! Well, I guess common sense rules the day after all. If Delta announces a new Cargo/Logistics division I will really be on a roll!

  3. Andy K Reply
    May 27, 2020 at 2:19 pm

    I don’t think he is right to compare a short-haul LCC business with a legacy carrier that flies all around the world. Further, we all know that Ryanair relies on underpaying their staff and using geo-arbitrage to provide a lower-cost service (using folks from Belarus to staff flights from Germany). I think we can agree that Lufthansa becoming more like Ryanair would be a net negative for Germany, the EU, and the flying public.

Leave a Reply

Cancel reply

Search

Recent Posts

  • United Airlines Adds Château d’Esclans Rosé Wine To Polaris Business Class March 23, 2023
  • United Airlines 737-700 Business Class Review
    Review: United Airlines 737-700 Business Class March 22, 2023
  • Southwest Airlines Helicopter
    Southwest Airlines Flight Nearly Collides With Helicopter March 22, 2023
  • Copa Club Bogota Review
    Review: Copa Club Bogota (BOG) March 22, 2023

Categories

Popular Posts

  • American Airlines unaccompanied Minor Predator
    American Airlines Flight Attendant Freaks Out After Man Offers His First Class Seat To Child February 25, 2023
  • Kayleigh Scott United Airlines
    The Tragic Death Of A United Airlines Flight Attendant March 21, 2023
  • United Airlines Domestic First Class Menu
    United Airlines Refreshes Domestic First Class Menu February 28, 2023
  • Southwest Airlines Wife Slap
    Enraged Husband Attacks Man On Southwest Airlines Flight After He Bumps Wife March 8, 2023

Archives

March 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Feb    

As seen on:

live_and_lets_fly

The new United Polaris Lounge at Washington Dulles The new United Polaris Lounge at Washington Dulles is the most beautiful of all Polaris Lounges. Stay tuned for a detailed look and many more photos on the blog tomorrow. Well done @united.
@malaysiaairlines just announced it would retire i @malaysiaairlines just announced it would retire its A380 fleet. While not surprising, it is sad to see the growing list of carriers retiring this superjumbo jet. On Malaysia Airlines, I flew the #A380 once from Kuala Lumpur (KUL) to London (LHR) and had the entire first class cabin to myself (full review on the blog). It was a beautiful flight that I will always remember.
Welcome to @fly_bur @aveloair! I am so excited tha Welcome to @fly_bur @aveloair! I am so excited that a new carrier, Avelo, has launched, especially from an airport just 12 minutes from my home!
I greatly miss the @lufthansa #747-8 at @flylaxair I greatly miss the @lufthansa #747-8 at @flylaxairport. Hopefully this summer it will return.

.
.
.
.
#Lufthansa #FirstClass #747 #747-8 #StarAlliance #Miles #Points
I recently spent a weekend at the @ventanabigsur. I recently spent a weekend at the @ventanabigsur. This is not only a lovely, all-inclusive resort, but one of the best properties to use your @hyatt World of Hyatt points.
.
.
.
.
#Hyatt #BigSur #California #WorldofHyatt #CA-1 #Points #Hotels
In terms of a spacious first class product, the @E In terms of a spacious first class product, the @Emirates suite on a 777-300ER is hard to beat. My preference is Suite 2K.

.
.
.
.
#Emirates #777 #firstclass
Nearly five years ago, I took a “break” from I Nearly five years ago, I took a “break” from Instagram ahead of the birth of my first child. Goodness, how time flies. While I’ve enjoyed catching up on others over the years, now it is time for me to return to Instagram. In this first post, I highlight two joys in my life, my two children, whom I trust will grow up to be prolific travelers that circumnavigate the globe as ambassadors of love and respect.

.
.
.
.
.

#travel #airplanes #airlines #miles #points #familytravel #human #integrity #honor
United Airlines' new Polaris seat is a huge improv United Airlines' new Polaris seat is a huge improvement over UA's current business class seat. Check out my blog at liveandletsfly.com for 70+ photos of how @united is transforming its entire business class experience starting this December!
The perfect @flysas name tag for #Longyearben! The perfect @flysas name tag for #Longyearben!
Spotted four #polarbear outside of #longyearbyen - Spotted four #polarbear outside of #longyearbyen -- oh, and I love 40°F summer weather!
One of the best crews I have ever had the pleasure One of the best crews I have ever had the pleasure of flying with in all my years of flying. Thank you @flysas SK940 on 11 Aug 2016
Next stop ARN! But dear @flysas , next time if I a Next stop ARN! But dear @flysas , next time if I assign a window seat months in advance, don't move me to a center seat "for my convenience" with no way to get my original seat back... 😞
Ready for #PIA from #MAN to #JFK -- we will be rac Ready for #PIA from #MAN to #JFK -- we will be racing the #Delta flight to JFK at the gate next to us, which also departs at 12:45p. With @onemileatatime
Another room with a beautiful view... #hyattregenc Another room with a beautiful view... #hyattregencycasablanca #cassablanca #hyatt
Enjoying #shanghai with @onemileatatime from the i Enjoying #shanghai with @onemileatatime from the inside of the @grandhyatt_shanghai ... It is 40°C outside! 😓
From my front gate to my boarding gate in 15 minut From my front gate to my boarding gate in 15 minutes flat. I ❤️ #bur #burbankairport
@malaysiaairlines #747 out of retirement and in se @malaysiaairlines #747 out of retirement and in service at #kul -- beautiful livery!
View from my 61st floor room at the beautiful bran View from my 61st floor room at the beautiful brand new @parkhyattguangzhou -- look for a full review coming soon on the blog #hyatt #parkhyatt #guangzhou #parkhyattguangzhou
Will miss the @united #globalfirstlounge at #ord, Will miss the @united #globalfirstlounge at #ord, which closes tomorrow and the Queen of the Skies #747 which will be retired in 2018.
The colonial #architecture of #mumbai is stunning. The colonial #architecture of #mumbai is stunning. If you're ever here, get up at 5am and have a walk around the city before it gets busy. You can hear the birds instead of honking horns.
Load More... Follow on Instagram
facebook twitter instagram rss

This site is for entertainment purposes only. The owner of this site is not an investment advisor, financial planner, nor legal or tax professional and articles here are of an opinion and general nature and should not be relied upon for individual circumstances.

 

Advertiser Disclosure: Some links to credit cards and other products on this website will earn an affiliate commission. Outside of banner ads published through the Boarding Area network, this compensation does not impact how and where products appear on this site. While we do try to list all the best miles and points deals, the site does not include all card companies or credit card offers available in the marketplace. Please view our advertising policy page for additional details about our partners.

 

Editorial Disclosure: The editorial content on this page is not provided by any entity mentioned herein. Opinions expressed here are the author's alone, and have not been reviewed, approved or otherwise endorsed by any of these entities.