International

Laudamotion GmbH closes, Lauda Europe Ltd takes over

Austrian Ryanair subsidiary changes AOC. In the future you will be a Maltese airline.

The Ryanair subsidiary Lauda virtually changes citizenship because the company will be in the air with Maltese AOC and OL in the future. For this purpose, under the name Lauda Europe Ltd. founded a new airline that will take over the activities of the previous Laudamotion GmbH in 2020. CEO David O’Brien confirmed this in an interview with AviationNetOnline.

Today’s Laudamotion GmbH will issue its Austrian certificates and approvals after the completion of the construction of Lauda Europe Ltd. return and is then closed. The Maltese company will operate the Airbus fleet. This also means that OE registrations on the aircraft are replaced by 9H (Malta). The head office of the new Ryanair subsidiary will be located in the Maltese islands. The nominated persons (formerly postholders) will also work there. A small branch office remains in Austria, which will take care of some flight-related matters. This also means that administrative staff have the option to transfer to Lauda Europe Ltd. will give.

Lauda Europe Ltd. plans to carry out the first flight in November 2020. The managing directors David O’Brien and Andreas Gruber will in future operate both in Malta and in Schwechat and have their desks. David O’Brien emphasized that Lauda Europe Ltd. will take over the entire Airbus operation of today’s Laudamotion GmbH and today’s Austrian company will be closed after the transition process has been completed.

For the flying personnel, the change in the AOC means that those employees who have accepted the new Lauda collective agreement (Austria) have a new job at Lauda Europe Ltd. get offered. For legal reasons, OCC training for the new AOC must be carried out.

Lauda boss David O’Brien told AviationNetOnline that switching to a Maltese AOC has benefits for employees. In future, income taxes will be paid at the location of the respective base and no longer in Vienna. This has an impact in particular for the Düsseldorf base and in Palma de Mallorca, because these have so far paid their wage taxes in Austria. Due to the Maltese legal situation, social security contributions and taxes are not paid at the home base (in future Luqa), but at the respective location of the station (e.g. Düsseldorf, Vienna, Palma).

This would bring financial benefits for many employees and minimize the effort caused by so-called double taxation agreements. Lauda Europe Ltd. should grow again in the next few years and open new bases. David O’Brien does not look into the cards and points out that no short-term expansion steps are currently to be expected due to the COVID-19 situation. New bases will therefore be opened sooner in summer 2021, for example in Zadar. This base was canceled due to the Corona pandemic for 2020 and postponed to the coming year. The future Croatian employees would therefore pay their wage taxes not in Austria but in Croatia, which could be cheaper in individual cases.

When asked about the Stuttgart base, David O’Brien said that it is a pity that it has to be closed. He accused the pilots of living in an Air Berlin world and not realizing that Air Berlin no longer existed. Those routes that are profitable will be taken over by Ryanair from other bases. However, there was a clear cancellation for the Vienna-Stuttgart route. “Maybe we will resume it in a few years when Lufthansa is bankrupt again,” said O’Brien.

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