Originally Posted by
slip and turn
Oh C'mon, Dave, in this business, what the aircraft was doing and where it was when it wasn't flying is an extremely good indicator of time available and likely resources available in order to check it, and it is surely a valid question to ask whether if it is moved frequently between bases, systems are adequate for it to be consistently monitored and consistently pro-actively diagnosed and treated in the time available at the various locations they base it at?
Have you dipped into
Ryanair's last Annual Report? I find it an extremely good read. It is refreshingly open-minded about risks to the business associated with reliance upon external providers (outsourcing) and risks to good management associated with rapid growth.
See page 60 (
The Company is Dependent on External Service Providers):
"In addition, although Ryanair seeks to monitor the performance of external parties that provide passenger and aircraft handling services, the efficiency, timeliness, and quality of contract performance by external providers are largely beyond Ryanair’s direct control. Ryanair expects to be dependent on such outsourcing arrangements for the foreseeable future."
And page 58: (
The Company’s Growth May Expose it to Risks):
"The continued expansion of Ryanair’s fleet and operations combined with other factors, may also strain existing management resources and related operational, financial, management information and information technology systems. Expansion will generally require additional skilled personnel, equipment, facilities and systems. An inability to hire skilled personnel or to secure required equipment and facilities efficiently and in a cost-effective manner may adversely affect Ryanair’s ability to achieve its growth plans and sustain or increase its profitability".
Page 65 even goes as far as reminding:
Safety-Related Undertakings Could Affect the Company’s Results. Aviation authorities in Europe and the United States periodically require or suggest that airlines implement certain safety-related procedures on their aircraft. In recent years, the U.S. Federal Aviation Administration (the “FAA”) has required a number of such procedures with regard to Boeing 737-800 aircraft, including major modifications to implement changes to the take-off configuration warning lights, cabin pressurization system ...
Ryanair does not blind its investors. Let us not blind ourselves here.
This applies to most Airlines. If an airline lands at say Heathrow it is dependant largely on the ground services that that airlines contract. It has no direct say in how they are provided and the only alternative is to stop going there.