Ryanair could be impacted by move to end air subsidies by Poland president Karol Nawrocki

0
Karol Nawrocki President of Poland
Karol Nawrocki President of Poland

In a striking legislative debut, Polish President Karol Nawrocki has proposed a bill to prohibit local government subsidies for airline routes, a move that could reshape the operational landscape for Poland’s regional airports and impact the business models of airlines such as Ryanair and Wizz Air. 

Ryanair currently has 37pc market share in Poland and unspecified supports from airports in Bydgoszcz , Gdansk, Katowice, Krakow, Lodz, Lublin, Poznan, Rzeszow, Szczecin,  Warsaw Modlin and Wroclaw.

The initiative, embedded within the Act on Ensuring the Implementation of the Central Communication Port Investment, seeks to outlaw regional “promotion” agreements with airlines, which have long been a lifeline for smaller airports. These agreements, often used to circumvent European Union restrictions on direct airline subsidies, involvems of złotys paid to carriers like Ryanair for marketing local tourism in exchange for maintaining routes to low-demand destinations. The proposal, which includes the pivotal Article 6 banning such financial arrangements, has ignited fierce debate as Poland braces for the Aviation Market Congress in Warsaw on 11 September 2025, where industry stakeholders will scrutinise its implications.

See also  Delta latest airline to return to Tel Aviv

The bill’s introduction coincides with Poland’s ambitious Central Communication Port (CPK) project, a £36bn mega-airport and high-speed rail hub near Warsaw, designed to handle 34m passengers annually by 2032. Nawrocki argues that these subsidies distort fair competition and undermine the CPK’s strategic vision, which aims to position Poland as Europe’s commercial and transport hub. The government contends that regional airports’ reliance on these deals, costingms annually—such as the 14m złotys for the Warsaw-Zielona Góra route—jeopardises the national aviation strategy. Under EU law, direct subsidies are heavily restricted, limited to once every decade under strict conditions, prompting Polish regions to use promotional contracts as a workaround. The proposed ban would render such agreements invalid, potentially forcing airlines to abandon unprofitable routes to cities like Lublin, Rzeszów, and Bydgoszcz.

See also  Last of B737-8 MAX reactivated for delivery by Boeing at Moses Lake

Critics, particularly regional authorities and low-cost carriers, warn that the ban could sever vital connectivity for smaller cities, stifling tourism and economic growth. Marshal’s Offices in regions like Lubusz and Podkarpackie, which have leaned on these subsidies to sustain flights, face the prospect of reduced air links. Conversely, proponents argue that the CPK’s integrated rail and air network will better serve regional connectivity, reducing the need for subsidised routes. Nawrocki, speaking in Kalisz on 7 August, emphasised that the CPK project must benefit all of Poland, ensuring medium-sized towns like Włocławek and Łomża are not excluded. The bill also sets a 2032 completion deadline for the CPK, underscoring the president’s urgency to streamline national infrastructure investments.

See also  Copa Airlines may not convert options for fifteen B737-10s into firm orders

The proposal has strained relations with Prime Minister Donald Tusk’s pro-European coalition, which had previously scaled back the CPK’s rail components to prioritise demand-driven investments. Tusk has reminded Nawrocki that the government, not the presidency, holds primary authority over national affairs, highlighting constitutional limits to Nawrocki’s influence. As the bill awaits parliamentary debate, its passage could hinge on whether lawmakers view the subsidy ban as a necessary step toward fiscal discipline and EU compliance or a threat to regional economies. The outcome will shape Poland’s aviation future, balancing the promise of a world-class hub against the immediate needs of its smaller airports.

Share.

Comments are closed.