On Radio 4`s Today programme Michael O`Leary said his airline had not been battered by the events last week in the US. The number of bookings remained the same, and was looking to continue offering low fare. Also reported on Ceefax. BBC2 page 203.
His fares are low. I`ve just booked a return flight from Stansted-Nimes for £2.89 plus tax. Total paid £20.18. There was flights to Dinard for wait for this...0.02p single! Checking to make sure the return was not over £50, that too was 0.02p. Flights for 4p! Fares was for flights departing next week.
This whole sorry affair will almost certainly come down to survival of the fittest. Whilst Ryanair is without doubt not the weakest in the sector their share price is still vastly overvalued hence MOL's very positive statements, you could call it ramping.
For their sake I hope I'm wrong but I cannot see any airline coming out of this completely unscathed, particuly when they have to start offering fares at these levels.
O'Leary was on "The Last Word" and RTE News this evening pushing the line that expansion, not retrenching was the way to go, pointing that US visitor falloff is inevitable and costly for Ireland Inc. and FR is best placed to replace them with Scandinavians, Italians etc.
It was also notable that he didn't explicitly apply the boot to EI despite hints from interviewers that he do so - VERY strange!
The problem with new routes from EIDW is that those of us who don't live in Dublin have to either get a train or fly EI/RE to connect. Therefore I, if flying FR, will still go via Stansted, where there's a better chance I might fly Go for the onward leg.
A NEW price war broke out yesterday between low-cost airlines Ryanair, easyJet and Go in a battle to woo back passengers in the aftermath of last week’s terrorist attacks on New York and Washington DC.
Ticket prices as low as £1 and £2 were offered as the no-frills airline operators slashed prices on scores of UK and European destinations, including Edinburgh, Glasgow, Aberdeen and Inverness.
Ryanair, Europe’s largest budget carrier, has cut the London to Glasgow service to just £1 with the return leg priced at £2. The single fare from Edinburgh to Dublin has ben sliced to just £15.
EasyJet hit back by announcing price cuts of up to 60 per cent on 150,000 seats.
Go, bought out earlier this year by chief executive Barbara Cassani and her management team from previous owner British Airways, immediately slashed prices on some routes by one-third.
Michael O’Leary, chairman of Dublin-based Ryanair, said that his airline was offering "fares from £1; every seat, every flight".
O’Leary said: "The only way to defeat terrorism here is not to be standing there whingeing with your aircraft on the ground looking for subsidies. It’s to get out there with lower fares and persuade people to travel more often."
O’Leary denied the price cuts were a panic response by budget airlines to a big drop in passenger numbers.
"We continue to take the same number of bookings per week as we did before the tragic event in the US last week," he said. "This week our [Ryanair] bookings are back to normal. They’re back to normal at slightly lower fares because we’ve opened up all the cheaper seats," he said.
Luton-based easyJet also said passengers numbers were holding up.
Go, the Stansted-based no-frills airline, said advanced bookings on its Edinburgh and Glasgow to Belfast or Dublin flights would be reduced to £25 return.
Its Edinburgh to Stansted or Bristol would now cost £30 return. Go flights from Stansted to Bilbao have been cut to £45. On destinations such as Bologna, Copenhagen, Milan, Munich and Venice prices have been slashed to £50 return.
The dogfight saw easyJet cut the cost of flights to and from Edinburgh, Glasgow and Belfast to £12.50 single, £25 return. The new Aberdeen-Luton fare has been set at £15 single. Flights from Luton airport to Barcelona are £20 single, and to Athens £25. Prices include tax, but are available only when booking through the internet. EasyJet’s new prices took effect from midnight last night.
The airline is also offering flights to Amsterdam from either Edinburgh or Glasgow for £15 single or £28.20 return. Its Luton to Inverness service will now cost £20 single, £35 return.
As share prices across Europe slid yesterday, airlines were hard hit, with Ryanair down 13.35 per cent and Easyjet’s down 7.4 per cent to 253.5p.
"We don’t spend five seconds a year worrying about where our share price is, whether it’s up or down," said O’Leary.
"We are not going to make anybody redundant... we are going to keep people flying and we are going to fly our way out of this thing."
Ian Watson Business Editor
(Iwatson@scotsman.com) Saturday, 22nd September 2001 The Scotsman
Call me stupid but what is the difference if you go down due to the lack of traffic or if you go down due to lack of yield? Me thinks Mr O'Leary needs his head examined for selling seats at those prices, how long can Ryanair last? I would be very worried.
Silly statement..!!! Did you not know that FR have been selling seats at those prices for a long long time now, and if you check the Financial Times today, you will see that Ryanair is the 2nd most valued European airline at todays prices...even ahead of BA, whats there to be worried about..?
I saw FR's ad to day with Kitchener pointing his finger & a comment about "Were not going to beat the terrorist"& "Lets fight back". O'Leary feels that pax in general outside the US are not afraid of flying, indeed he dismisses it as 'nonsense' and calls the management of EI and other large carriers crying out for handouts 'nancy boys' . He says this is not the time to be have the begging bowl out & crying out for subsidies " so they can flush more money down the toilet" nor is it the time for airlines to be acting llike the end of the world is nigh but to fight the ******s & keep bums on seats & aircraft flying, they don't make money sitting on thr ground. Indeed he is not going to let off any staff, he is taking delivery of 8 more aircraft & there selling seats like hotcakes
O'Leary I don't know about anyone else but I just luv you & don't mind the bleedin begrudgers cause I think you're great
Yes well lets not get carried away with the well worn marketing device of advertising ticket prices FROM 2p...
Its not the whole aircraft or obviously it couldn't work - less than £200 to get a 737-400 from GLA to STN. I think not.
Sooner or later somebody is going to set up a decent website that automatically collates the actual ticket price available for these tickets hour by hour. You will go to www.lowcostairlineticket.co.uk and in a snapshot table see what is really available.
The marketing device of selling the front row of seats for 2p will then be a little more redundant.