PPRuNe Forums - View Single Post - Ryanair getting out of Sweden?
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Old 15th Jul 2006, 13:35
  #19 (permalink)  
deice
 
Join Date: Dec 2004
Location: Sweden
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Mmm, yes, the business perspective of operating in the market that provides the highest margin is universal. I'm not arguing with that. Many companies operate in that fashion, and provided their product is cheap enough people have short memories.
I don't have hard facts but my belief is that traffic has not gone down due to the impending tax, yet, and we can't say for sure that it will until the time comes. What I'm arguing is that RYR with their low cost, low fares approach should be able to capitalize on such a tax because it hits other airlines even harder, they're already pressed and would need to make larger cuts into their own profit to maintain their passenger count.

It will be interesting to see the real effects, if indeed the tax is enforced.
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