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Old 21st Jan 2015, 20:38
  #2126 (permalink)  
Cyrano
 
Join Date: Nov 1999
Location: Ireland
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Pretty simple strategy on Ryanair's part.
  • Scottish Government owns PIK.
  • Scottish Government is desperate for PIK to perform better.
  • Scottish Government has or will soon have power to cut APD.
  • Ryanair explicitly links APD removal to extra PIK flights, thus maximising chances that Scottish Government will cut APD.
  • Ryanair average yield lower than anyone else, so a cut to APD has a proportionately greater impact on Ryanair all-in prices than on any other airline's prices.
  • If APD is cut, Ryanair reaps the benefits across a wide range of destinations from GLA and EDI as well as PIK.
A couple of daily rotations from PIK to Belfast or Stansted seems like a modest price for Ryanair to pay to get that result.
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