HomeAir LineJet2 threatens to freeze investments if Aena approves the 4% rate increase

Jet2 threatens to freeze investments if Aena approves the 4% rate increase

The airline has increased capacity by 10% for next summer. It also plans to raise it for the high season of 2025

Steve Heapy, CEO of Jet2.Pablo Monge

The Jet2 group, the main travel tour operator from the United Kingdom, is willing to continue growing in Spain, but requires stability so as not to slow down investments. “By the summer of 2024 we have 10% more capacity (in 2023 we will provide 3.5 million airline seats to fly to Spain). Another sign of confidence in the Spanish market is that we plan to increase the number of places by the summer of 2025,” he emphasizes. Steve Heapy, CEO of Jet2in an interview with Cinco Días, which took place just two days after the Minister of Industry and Tourism, Jordi Hereu, met with the two top managers of Ryanair and Jet2.

Heapy conveyed to Hereu his concern regarding the announced 4% increase in Aena rates and warned him about the impact it will have on the company’s investment decisions. “We have to ensure that Aena does not raise rates by 4%, because if it does it will have a harmful effect. The rate increase must be zero. It is very tempting when things are going well to try to take advantage of that situation by raising taxes,” says Heapy, who was surprised by Hereu’s enthusiasm. “He listened to everything we had to say and I think we are going to meet again soon to discuss how we can grow our operations in Spain. I will surely have new opportunities in the future to work with him.”

The British tour operator has contracts with 1,400 hotels in Spain

In any case, The CEO of Jet2 warned about a possible freeze of investments if the tax burden is finally raised. “We invest in those destinations that offer value for our clients. If a destination continues to increase prices and taxes, we will have to consider whether it is the best value for our customers’ money. In Spain alone we have contracts with 1,400 hotels, we operate in 13 airports, we have 740 flights a week and we have a staff of 2,000 employees.. The company is willing to continue investing as long as the investment conditions are appropriate.” Asked what they would be, Heapy pointed to the need to have a stable ecosystem to enhance growth. “This makes companies feel comfortable activating their investment plans. We do not want our investment capacity to fluctuate, with ups and downs every year. “Stability helps for growth.”

Among the destinations that will benefit the most from the increase in seats is The Canary Islands, which accumulate the highest capacity growth, with 13%, followed by Andalusia, the Valencian Community and Catalonia, with 9% each, and the Balearic Islands with 8%.. Faced with those who claim that the tourism boom in Spain is due to tourists borrowed from North African destinations affected by war conflicts in the Middle East, Heapy rejects that argument. “Spain is not benefiting from the evil of others. It is a destination that is being revalued and that travelers appreciate. Why aren’t they going to come back then?” Heapy was also very satisfied with the extension of the high season beyond the three summer months. “We have had longer seasons in a large part of the destinations.”

16,550 million invested to reduce emissions

Jet2.com, the airline of the British grouphas invested 18 billion dollars (16.55 billion euros) in the last ten years in its strategy aimed at having zero emissions in 2050. “A substantial part of that investment has been obtaining greener airplanes, which are 22% greener. more efficient when it comes to consuming fuel.” Heapy confirms that the company has ordered Airbus for 146 aircraft. “Around half of this will serve to replace our current fleet and the rest will cover the more than foreseeable growth in demand.” Another of the axes of the sustainability policy will be the construction of a biofuel plant in the North of England which will begin operating in 2027 and will serve to supply the fleet.

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Source: Cincodias



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