Why do EU airlines have multiple subsidaries?

[FinsburyPark]

I have a question?

Why do EU airlines have multiple subsidaries. I thought that aviation cabotage rules applied for EU registered airlines. For example an Airline registered in Malta can fly between Romania and Cyrpus.

We see it a lot

For example
Ryanair (Ireland)
Buzz (Poland) (which is effectively Ryanair Poland)
Lauda (Malta)
Ryanair Malta (Malta)

Then you have
Wizz Air (Hungary)
Wizz Air Malta (Malta).

It makes sense to me why there is a UK offshoot as the UK is outside of the EU's regulatory framework as the UK CAA is no longer part of EASA post Brexit, but why all the EU subsidaries when in theory, one should be enough.

Ryanair, easyJet and Wizz Air all have UK subsidaries to cover this need.

Its obvious to me that there must be a logical answer, but without asking, I could not work it out on my own

 

[ABB125]

Perhaps there are tax benefits to being registered in a particular country?

 

[signed]

Yes, a lot of tax benefits (especially in Malta, where non-resident companies have basically a 5% effective business tax rate and only on Maltese income, non-Maltese income isn't taxed) and lesser working laws in some countries for domestic companies.

 

[island]

As well, it can be advantageous to operate from countries with lower minimum wages and less stringent employment laws.

 

[The exile]

I have a question?

Why do EU airlines have multiple subsidaries. I thought that aviation cabotage rules applied for EU registered airlines. For example an Airline registered in Malta can fly between Romania and Cyrpus.

We see it a lot

For example
Ryanair (Ireland)
Buzz (Poland) (which is effectively Ryanair Poland)
Lauda (Malta)
Ryanair Malta (Malta)

Then you have
Wizz Air (Hungary)
Wizz Air Malta (Malta).

It makes sense to me why there is a UK offshoot as the UK is outside of the EU's regulatory framework as the UK CAA is no longer part of EASA post Brexit, but why all the EU subsidaries when in theory, one should be enough.

Ryanair, easyJet and Wizz Air all have UK subsidaries to cover this need.

Its obvious to me that there must be a logical answer, but without asking, I could not work it out on my own

Lauda and Buzz (?) were separate airlines that Ryanair have gobbled up, so there may be advantages in keeping them separate - even if it’s only so they can be more easily sold on / shut down.

 

[island]

Lauda and Buzz (?) were separate airlines that Ryanair have gobbled up, so there may be advantages in keeping them separate - even if it’s only so they can be more easily sold on / shut down.

That's not actually correct. Ryanair did acquire airlines by those names, but then closed them down. Buzz (airline code UK), a British airline was closed down in 2004 and Lauda (OE) an Austrian airline was closed down in 2020. The current airline called Lauda Europe (LW) is a brand new airline Ryanair created in Malta in 2020, and the current airline called Buzz (RR) is a Polish airline founded in 2018 and previously named Ryanair Sun. Though they share names, they're legally separate entities.

 

[The exile]

That's not actually correct. Ryanair did acquire airlines by those names, but then closed them down. Buzz (airline code UK), a British airline was closed down in 2004 and Lauda (OE) an Austrian airline was closed down in 2020. The current airline called Lauda Europe (LW) is a brand new airline Ryanair created in Malta in 2020, and the current airline called Buzz (RR) is a Polish airline founded in 2018 and previously named Ryanair Sun. Though they share names, they're legally separate entities.

OK - I stand corrected.