Originally Posted by
befree
They have gone past the point were the model works. cuts in fares to generate more traffic is pulling the price down so far that you make less income by being bigger. If we pull out of downturn the oil price will rise and kill the airline. If we stay in a downturn the yeald will keep going down to keep new pax flying.
The downturn has given Ryanair kind of relief (extra-time) to re-think and re-shape its policies, its business model, if you wish. Without the present crisis (if it didn't come), the oil price would have made these low prices unsustainable by now. The business that bases all its policies upon low-fares only using no other arguments to maintain its popularity, becomes very vulnerable if it is forced to rise its prices (having no other bait for the customers). FR has been given the chance to re-organize the model. I do not see any changes, nothing new. Such a fact should be very worrying to those who do not relish the prospect of the carrier heading towards (big) trouble.