Ryanair Announces New Portugal Routes, Criticizes Airport Capacity and TAP Privatization
The chief executive of Ryanair, Michael O’Leary, announced on Thursday the introduction of new routes in Portugal for the winter season, originating from Porto, Faro, and Funchal. The decision was accompanied by renewed criticism of the management of Lisbon's airport capacity and the proposed model for the privatization of the national airline, TAP Air Portugal. This announcement from the head of Europe's largest low-cost carrier highlights ongoing tensions within Portugal's aviation and tourism sectors, which are critical drivers of the national economy and real estate market.
In a press conference, O'Leary detailed that the new routes would enhance connectivity to northern Portugal, the Algarve region, and the island of Madeira, but pointedly excluded Lisbon from the expansion. According to the CEO, this omission is a direct result of statements from ANA, the national airport authority, which claims that Lisbon's Humberto Delgado Airport has reached its operational limit. O'Leary strongly contested this assessment, stating that substantial capacity could be unlocked by reallocating take-off and landing slots currently held by TAP but often left unused. "The capacity issue in Lisbon is artificial," O'Leary remarked. "It is a problem of inefficient slot management, not a lack of physical space. Granting these unused slots to airlines that will operate them would immediately increase traffic and competition."
The debate over Lisbon's airport infrastructure was another key focus of O'Leary's address. He expressed a clear preference for the Montijo airport project as a secondary facility for the capital, arguing it represents a more pragmatic and faster solution than the greenfield development proposed for Alcochete. "The Montijo solution could be operational far more quickly, providing the much-needed capacity that Lisbon is currently lacking," he explained. "Continued delays on this decision are costing Portugal significant tourism revenue and hindering economic growth." This stance puts pressure on the government to accelerate a decision that has been pending for years, affecting long-term planning for businesses and investors in the Lisbon metropolitan area.
Regarding the sale of TAP Air Portugal, O'Leary advocated for a complete privatization, arguing against the government retaining a controlling interest. He referenced the precedent of other major European flag carriers, which he noted have become more efficient and competitive following full sales to private groups. "The Portuguese government should pursue a 100% sale of TAP. This is the proven model for creating a sustainable, competitive airline that serves the country's interests without being a burden on taxpayers," he stated. The structure of the TAP sale remains a topic of intense political and economic debate within Portugal.
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The new flight connections to Porto, Faro, and Funchal are expected to be welcomed by the local tourism and hospitality sectors, which rely heavily on international visitors. Increased flight frequency and new origin cities can directly stimulate demand for short-term rentals and holiday homes, particularly in the Algarve and Madeira, which are prime markets for foreign property investment. The expansion also reinforces Porto's growing status as a major European city break destination and business hub.
Industry observers note that while the new routes are a positive development, O'Leary's pointed comments underscore the significant structural challenges facing Portugal's aviation infrastructure. The resolution of the Lisbon airport bottleneck is seen as essential for the country to fully capitalize on its tourism potential and maintain its attractiveness for international investment. The government has yet to issue a formal response to the Ryanair CEO's latest remarks.
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