Ryanair pulls its daughter Lauda out of Vienna and rebuilds it in Malta. Operation is to be transferred to the new Lauda Europe in 2020.

In June 2019, Ryanair announced that it would have a daughter in Malta. Malta Air will grow from six to ten of its own aircraft in the coming years, it was said at the time. In addition, 50 aviators, previously registered in Germany, France and Italy, would be transferred to the new airline’s Air Operator Certificate (AOC).

That was an understatement. Around 120 Ryanair aircraft are currently registered with Malta Air. The German pilots are hired through the Maltese subsidiary.

Another daughter in Malta

And now Ryanair is moving more of its business to the low-tax island nation in the Mediterranean: the Austrian subsidiary Lauda moves to Malta. So far it is located in Vienna and is officially called Laudamotion GmbH.

Lauda Europe was founded in Malta for this purpose and will take over the business. The authorities there have already received an application for a new AOC under which Lauda’s Airbus A320 fleet will be operated in the future. This is evident from Lauda documents that are available from aeroTELEGRAPH.

Problem with Austria’s tax law

Lauda Europe is scheduled to be operational by November and Laudamotion will cease operations before the end of the year. In one of the documents, Lauda bosses Andreas Gruber and David O’Brien refer to Austrian tax law for reasons.

According to the managing directors, all crews would fall under this tax law, no matter where they are stationed. Lauda in Malta is more flexible. If you opened stations in Europe, employees would pay taxes in the countries in which they were stationed. This also applies to the employees currently stationed in Düsseldorf and Mallorca.

Employees should stay on board

The Lauda bosses write to their own crews that anyone who has agreed to the recently negotiated new contracts will be offered a job at Lauda Europe. The employees in the administration should also be given appropriate opportunities, reports the portal Aviation Net Online after a conversation with O’Brien. However, the head office will move to Malta and only a small branch will remain in Vienna.

Ryanair had already threatened Lauda’s withdrawal from Vienna in late May in the wage dispute with the Vida union. At the beginning of June there was an agreement.