Irish LCC Ryanair has gained complete ownership of LaudaMotion with the acquisition of the 25% stake in the Austrian LCC held by its founder, former Formula 1 driver Niki Lauda.
The transaction was completed Dec. 31, 2018; Ryanair had previously acquired a 75% stake in LaudaMotion.
Lauda will remain as chairman of the subsidiary’s shareholders committee, Ryanair CEO Michael O’Leary told ATW in Vienna.
Lauda, founder of bankrupt airberlin subsidiary NIKI, retook ownership of NIKI in January 2018 and rebranded the carrier as LaudaMotion the following March. The airline had estimated losses of €140 million ($160 million) in its first year, and losses of €50 million are possible in 2019, O’Leary said.
“The target is to deliver 6 million passengers this year and not to break even. We will fund those losses,” he said. “This also depends on summer fares. But we also need better punctuality, which will again be difficult this year.”
In the summer, the carrier will operate 21 Airbus A320s and four Boeing 737-800s wet-leased from Ryanair, LaudaMotion CEO Andreas Gruber said.
By 2022 LaudaMotion expects to operate 40 A320s and carry 10 million passengers.
“We will invest as much money as it takes. We plan to become the second largest carrier in Vienna behind Austrian Airlines,” O’Leary said.
The airline is set to establish a base in Stuttgart, Germany, with three A320s operating to 19 destinations in 10 countries and has plans for more.
“In the coming weeks we are looking to establish new bases, each with three aircraft. This could be in Western Europe, like Portugal or Spain, as well in Eastern Europe, like Hungary, Poland or in the Baltics,” O’Leary said.
O’Leary sees growth opportunities in Europe as other airlines scale back, citing Norwegian’s plan to close crew bases in Italy and Spain.
“There are still slots available in Stuttgart [and] Norwegian will close bases in Rome, Palma de Mallorca, etc. We need to move quickly to take those slot opportunities as most of the airlines are cutting back growth plans,” O´Leary said. “Others shrink, we grow.”
LaudaMotion will meet with Airbus in early February to discuss aircraft orders, O’Leary said…
