Interesting article on FR in the August issue of
Business Plus Magazine (Ireland).
Some quotes;
Free Market defenders?
By affecting the role of persecuted underdog, O'Leary has managed to deflect attention from the fact that he is approaching monopoly status on many of his routes....a recession can give him the opportunity to build up this monoploy.
Pays his pilots well?
Mick O'Leary says;
Our staff have a five-year pay deal and share options and there are loads of pilots looking for work. So there is no pressure on wages here.
Doesn't receive handouts?
Through the US export bank which helps finance export sales for Boeing, Ryanair has access to funds at interest rates below 5%....In spite of occasional threats to pull out of Dublin (over landing charges) Ryanair has access to these funds because it is based here, in a country which does not manufacture civil aircraft. The Americans will not give the guarentees to 'manufacturing countries'.
Unlimited expansion and profitability?
In early July directors Declan Ryan and Cathal Ryan, sons of the airlines founder Tony Ryan, each sold 1,800,000 shares.....Thats hardly a vote of confidence in the company and it's no wonder that other brokers now hesitate about recommending Ryanair shares right now.
Fuure cost savings?
Although O'Leary's aggressive bragadocio may be irritating to some, it is all part of the rolling war on costs. The company has a continuing programme to achieve cost reductions and it tries to achieve victory on one front every year....One year..a squeeze on travel agents commissions. Then there may be contracting out of services to cut costs.
So who's for the chop next? See quote 2.
[ 28 July 2001: Message edited by: CaptSensible ]