PPRuNe Forums - View Single Post - Ryanair - 2
Thread: Ryanair - 2
View Single Post
Old 18th Aug 2006, 16:14
  #144 (permalink)  
GreatCircle
 
Join Date: Jul 2006
Location: A normal Northern Land, with Uncle Sam's anarchy to the south...
Posts: 147
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by J.O.
Ryanair has built a business and revenue model on a given set of rules. Those rules have now been changed, and it's no doubt costing them money. Seems to me they're simply trying to get back what they once had. If they fail to win this fight, the passengers will simply be charged more for their checked bags.
Exactly. Low-cost operators in the cut-throat space have very different business dynamics they have to follow in order not to plunge into red ink.

Inevitably, EZY, FR and the like - I guess even Shamrock with their recent announcement on bag policy - if the current situation doesn't change will look to pass on costs to the customers - and then they find the business model that made them money is no longer tenable, and they are in the market space of more traditional carriers....

MoL might be bombastic, and not to everyone's taste (including mine) but he's out there, calling a spade a shovel. In his chair, I'd do the same...
GreatCircle is offline