According to reports from Die Presse, the airline warned that failure to scrap the levy could jeopardise a major planned investment.

The low-cost carrier said it is prepared to invest more than $1 billion in Austria and base 10 additional aircraft in Vienna, but only if the tax is fully eliminated. Ryanair argues that the current policy makes Austria less competitive compared to other European countries that have already reduced or abolished similar aviation taxes.

The airline has long criticised the levy, claiming it drives up operating costs and discourages growth. It also expressed frustration that the Austrian government is merely reviewing the tax rather than committing to its removal.

The ongoing dispute has already had tangible effects. Last autumn, Ryanair reduced capacity at Vienna Airport as part of its response to the policy. Meanwhile, rival carrier Wizz Air shut down its Vienna base on March 15, citing rising costs and market fees.

The situation highlights growing tension between airlines and governments across Europe, as carriers push for lower taxes to support expansion while policymakers balance fiscal and environmental considerations.