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Old 21st Jan 2017, 11:27
  #34 (permalink)  
Capot
 
Join Date: May 2007
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Going back a bit in the thread......
I just don't understand the whole Ryanair, Easyjet business model.
OK, here's how a very senior Ryanair executive explained it to me in the chat after a meeting, when I said I just couldn't understand how they got a better average yield than most "legacy" airlines, on the routes on which they competed.

"It's simple," he said, "we sell 20% of the aircraft at silly prices that make everyone think we have cheaper fares than anyone else. We don't even budget for that income. We sell 70% at prices around £30 - £40 per sector (this was more than 10 years ago) and we make a reasonable profit on that. Then we sell the last 10%, if we can, as "last-minute" fares to people who need to travel urgently, at up to £200 per seat. That income is pure bunce on the bottom line."

At that time they got less, proportionately to the ticket income, from other sources such as catering, punitive "fees", "priority" boarding, hold baggage etc etc than they do now. But I bet that just contributes to the bunce.
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