Ryanair's announcement is an unprecendented development in Lithuanian aviation history and could be a major economic boon.
KAUNAS, Lithuania — The expansion of foreign airlines into Lithuania following the collapse of flyLAL took a major turn Tuesday when Ryanair announced that it would start flying nine routes out of Kaunas in May.
The Irish budget airline is turning Kaunas into its 40th operational base, and will have two planes stationed there. The expansion will create 1,000 jobs. Ryanair flights to/from Kaunas were previously centered around British Isles and German destinations, but new routes will include more Continental destinations. On the list is Barcelona, Milan, Oslo, Paris, Tampere in addition to Berlin, Dusseldorf, Edinburgh and London’s Gatwick airport.
At a press conference in Kaunas Tuesday, Ryanair CEO Michael O’Leary said with his typical braggadocio that now local customers would have an alternative to airBaltic’s higher-priced fares. airBaltic has been steadily expanding their presence in Lithuania over the past few months. Meanwhile Ryanair announced a special week-long 5 pound (€5.70) ticket sale in conjunction with this announcement.
“Lithuanian consumers and visitors can beat the recession and escape airBaltic’s high fares by choosing Ryanair’s lowest fares and our no fuel surcharge guarantee to 18 exciting destinations all over Europe including Germany, Italy and Spain among others. Ryanair’s 1 million passengers will sustain up to 1,000 jobs at Kaunas Airport,” O’Leary told the press.
Bringing competitive back
The Lithuanian government lauded Ryanair’s €101 million investment in Kaunas, crediting it to their policy of lowering airport fees. Previously Lithuania’s airport fees, especially in Vilnius, were among the most expensive in Europe.
“Now the prices of the airports match what we and Ryanair want,” Lithuania Minister of Transport and Communications Eligijus Masiulis told the press. “On a European level, the establishment of the airlines base in Lithuania is good news for business and tourism. This is not the only new direct flights, but a major investment and new jobs for the Lithuanian people.”
Indeed, Ryanair’s investment could prove a boon for the country’s tourism industry beleaguered by the crisis and increased taxes. Lithuania has never had this many routes with a budget airline before.
