Milan Linate Airport (Photo: Jan Gruber).
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Ryanair gives up slots: an overview of the competition at Linate Airport

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The takeover of ITA Airways by the Lufthansa Group has revitalized competition in the European aviation market. A central element of this deal is the release of take-off and landing rights, so-called slots, at Milan Linate Airport.

These slots are particularly important as Linate is one of Italy's central airports and is a sought-after base for many airlines due to its proximity to Milan city centre. Surprisingly, however, Ryanair, Europe's leading low-cost airline, has shown no interest in these slots. But what does this mean for competition and which airline could step into this lucrative gap instead?

As part of its expansion, Lufthansa has taken over the Italian state carrier ITA Airways after it had stumbled financially in recent years. The EU Commission gave the green light for the takeover, but set clear conditions to ensure competition on the market. This includes Lufthansa having to give up 204 slots per week in summer and 192 in winter at Linate Airport. These slots include 15 take-offs and 15 landings per flight day and are primarily intended for flights to Lufthansa hubs such as Frankfurt, Munich and Brussels.

Ryanair’s withdrawal: “Unattractive conditions”

Ryanair, often known as an aggressive competitor, surprised many market observers when it announced that it had no interest in the vacant slots. According to Ryanair CEO Eddie Wilson, the slots are "conditional, untimely and too expensive". This statement sheds light on the challenges airlines face when competing for slots at busy airports.

The conditions that the EU antitrust authority has attached to the slots are intended to ensure that competition is maintained and that Lufthansa does not gain a monopoly on important routes. These include, for example, specifications as to which destinations must be served by the slots, which is less attractive for an airline like Ryanair, which relies more on cost-efficient and flexible route planning. The high costs of operating at Linate Airport also play a role, which is a decisive factor, especially for low-cost carriers like Ryanair.

Who benefits? Easyjet and Volotea as hot contenders

While Ryanair has decided not to use the slots, other airlines have expressed interest. Easyjet, which already has a strong presence in Milan, is one of the main contenders for the vacant take-off and landing rights. Easyjet could use the slots to further consolidate its position in Milan and at the same time represent direct competition to Lufthansa on connections to its hubs. According to media reports, Lufthansa could even support Easyjet with a wet lease arrangement in the first few months. With wet lease, one airline makes aircraft and crew available to another, which could make it easier for Easyjet to get into the new slots.

Volotea, a Spanish airline specializing in short-haul routes, is also being considered as a potential suitor. Volotea had originally speculated on slots in Madrid that would become available after a possible takeover of Air Europa by the International Airlines Group (IAG). However, since that deal has fallen through, Volotea could now shift its ambitions to Milan. The airline could use the slots to expand its presence in Italy and expand its route network.

Impact on the market

The reallocation of slots at Linate Airport has the potential to have a significant impact on the European airline market. By taking over the slots, Easyjet could further strengthen its position as one of the leading low-cost carriers in Europe and compete with Lufthansa on important routes. At the same time, smaller airlines such as Volotea could also benefit from the freed-up capacity and secure new market shares.

For passengers, this could lead to a wider choice of flight connections in the future and possibly also to cheaper prices as competition on routes to Frankfurt, Munich and Brussels becomes more intense. However, this will depend heavily on which airlines ultimately take over the slots and how they use them.

Ryanair's decision not to bid for the slots at Milan Linate Airport is a clear signal that competition for take-off and landing rights depends not only on the availability of slots, but also on the conditions and costs associated with them. While Ryanair leaves the market at Milan Linate to its competitors, airlines such as Easyjet and Volotea are ready to take advantage of the freed-up capacity and expand their presence in Italy. This could further boost competition in Europe and mean more options and potentially better prices for passengers in the future.

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