No-show pax should impose very little additional cost on Ryanair compared to no booking at all.
In terms of pure cost, I agree. But I dissagree if you also meant that free seats no show does not count them money. True, Ryanair won't pay taxes, so it doesn't cost them charges, but it may costs them a lot of revenue i.e. the cost of selling a free seat whereas they were abble to sell it at x€. By experience (I took ryanair more than 100 times, but not anymore over the last year), I saw plenty of flights that was sold out 1 week before the date of the flight, and at the end, they were plenty of no shows especially of free seats buyers, so the compagny lost many revenues opportunities. This is why I am saying that their revenue management systems are rubbishs. RM is to sell at the right price based on expecting final LF. This is not what is doing Ryanair.
Free seats are non sense economically. Virginblue you're right. Ryanair contract airport deals are clear: xm PAX per year vs. x€ per passenger. So in addition to waste revenue opportunities, free seats also cost them money because in the majority of the cases, I guess (not 100% sure of that) airport taxes they will to pay by PAX to the airport > airport subsidies per PAX
At the end, the only argument in favor of free seats is to show descent load factors to shareholders and third parties, but these load factors are totally artificials.
Historically, flown LFs were 6pp below booked LF. I guess the extra difference due to free seats are of between 1.5 and 2pp which represents around 70.000 of extra no shows per month. But as they don't publish anymore their flown load factor in their financial report....
Free seats is, among others I already talk about (non sense new bases, rubbish revenue management systems and strategy, lower fares from network carriers, aer lingus non sense shares acquisition strategy, huge turnover of their employees, relations with airports, european commission investigations, focusing on the uk whereas easyJet is very well established and the uk market in recession, in response of ryanair attacks, easyJet attack on some Ryanair good routes (such as Milan Rome) etc) why their yield AND load factor are deteriorating in huge proportion, whereas easyJet ones for example are both increasing and in very better shape than ryanair.
easyJet business model looks like a lot more robust and resilient to the crisis than ryanair one, and it looks like their greek main shareholders is the only person not aware of that
@gate22: there is zero chance that ryanair changes its branding. Ryanair is a very well brand, good positioning and above all, they will never spend 1c to consultant for that
@racedo: I rather think that VLC base performances were disspointing so they asked for extra funds, refused by VLC. You could believe ryanair statement, but personnally, knowing very well Ryanair attitud, I prefer to believe VLC airport arguments.