2 new FR bases
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2 new FR bases
The Financial Times reported that FR are set to announce two new bases in the next few weeks.
Anyone got any ideas where???
Article below taken from FT.COM. New bases reported right at the bottom of the article.
Ryanair plays down prospect of price war
By Kevin Done, Aerospace Correspondent
Published: November 2 2004 07:59 | Last updated: November 2 2004 20:41
The share prices of Europe's leading low cost airlines rose sharply on Tuesday, as Ryanair signalled that the winter price war may be less fierce than previously forecast.
Michael O'Leary, Ryanair chief executive, said that based on "current financial booking trends" the airline had revised its guidance, although he warned that high oil prices could still force some carriers into bankruptcy.
Ryanair on Tuesday forecast a decline in yields or average fare levels of between five and 10 per cent instead of the 10 to 20 per cent previously predicted for the winter months from October to March.
Ryanair said its yields had declined by five per cent in the first half to the end of September, again less than originally feared.
The Ryanair share price closed 64 cents or 15.9 per cent higher at €4.67, while Easyjet closed 11p or 6.9 per cent higher at 170½p.
Investors were encouraged that Ryanair was able to announce record traffic volumes and profits for its first half with net profits rising by 18.5 per cent to a record €200.1m despite surging fuel costs and lower fares.
The Irish airline, probably the world's most profitable carrier, achieved a 27.8 per cent net margin in the first half from April to September, seasonally the strongest months when it earns the bulk of its profits.
Mr O'Leary warned that the airline would earn only a "tiny profit" in both the third and fourth quarters with a big fall in earnings in the current third quarter and little more than a breakeven for the whole of the second half.
Ryanair has none of its fuel requirements hedged as of this month. Mr O'Leary said that, if the benchmark Brent crude oil price remained at $50 a barrel for the remainder of the financial year to the end of March, it would add €55m to the airline's total budgeted costs.
Even with this added burden, he said the airline would still achieve a net margin of around 20 per cent for the full year with a net profit in the range of €200m to €215m, little changed from the €206.6m achieved last year.
Chris Avery, aviation analyst at JP Morgan, said the market reaction was "in response to the realisation that the low fare model is in no way damaged. Even at $50 [per barrel of] oil the company is still guiding to €200m net income...The winter yield environment is nothing like as bad as they have been saying."
Ryanair has eased its drive to reduce fares and intensify competition in order to compensate in part for the added costs it faces from the surge in the oil price.
Mr O'Leary said that Ryanair would remain unhedged until forward rates returned towards their previous "normal" levels.
The group remained "by some distance" the most profitable airline in Europe and could absorb much higher oil prices and still offer the lowest air fares.
Mr O'Leary warned that the high oil prices could still force the collapse of some carriers, however.
"Many of our competitor airlines who were losing money heroically, when fuel was $25 a barrel are doomed the longer it stays at $50. Our prediction of a bloodbath and airline casualties this winter may be accelerated by record high oil prices as well as by irrational competition."
In recent weeks the main casualty has been V-Bird, a small Dutch-owned carrier operating out of Düsseldorf-Niederrhein airport in Germany, which has ceased operations.
"We anticipate that there will be further airline casualties as the 'perfect storm' of declining fares and record high oil prices force loss-making carriers out of the industry," said Mr O'Leary.
In the first half Ryanair passenger volumes increased by 24 per cent from 11.3m to 14m - for the full year it forecasts a 19 per cent increase from 23.1m to 27.5m - while turnover rose by 21 per cent from €596m to €721m.
Ryanair continues to benefit from a big jump in ancillary revenues including commissions earned on internet travel insurance, hotel and car rental bookings with a rise in the six months of 42 per cent from €73m to €103m.
It has just started the introduction of a pay-to-view inflight entertainment system on some aircraft, and Mr O'Leary said that the airline hoped in the future to introduce inflight gambling as a new revenue stream.
Continuing "disciplined" route growth was central to the group's record earnings with 41 new routes opened during the summer season and better than expected results from its new bases at Barcelona-Gerona and Rome.
During the winter season Ryanair is adding three more aircraft to its London Luton base, two more in both Rome and Milan-Bergamo, and one more at each of its Frankfurt-Hahn, Glasgow-Prestwick and Stockholm-Skavsta bases.
Two new bases will be announced in coming weeks
Anyone got any ideas where???
Article below taken from FT.COM. New bases reported right at the bottom of the article.
Ryanair plays down prospect of price war
By Kevin Done, Aerospace Correspondent
Published: November 2 2004 07:59 | Last updated: November 2 2004 20:41
The share prices of Europe's leading low cost airlines rose sharply on Tuesday, as Ryanair signalled that the winter price war may be less fierce than previously forecast.
Michael O'Leary, Ryanair chief executive, said that based on "current financial booking trends" the airline had revised its guidance, although he warned that high oil prices could still force some carriers into bankruptcy.
Ryanair on Tuesday forecast a decline in yields or average fare levels of between five and 10 per cent instead of the 10 to 20 per cent previously predicted for the winter months from October to March.
Ryanair said its yields had declined by five per cent in the first half to the end of September, again less than originally feared.
The Ryanair share price closed 64 cents or 15.9 per cent higher at €4.67, while Easyjet closed 11p or 6.9 per cent higher at 170½p.
Investors were encouraged that Ryanair was able to announce record traffic volumes and profits for its first half with net profits rising by 18.5 per cent to a record €200.1m despite surging fuel costs and lower fares.
The Irish airline, probably the world's most profitable carrier, achieved a 27.8 per cent net margin in the first half from April to September, seasonally the strongest months when it earns the bulk of its profits.
Mr O'Leary warned that the airline would earn only a "tiny profit" in both the third and fourth quarters with a big fall in earnings in the current third quarter and little more than a breakeven for the whole of the second half.
Ryanair has none of its fuel requirements hedged as of this month. Mr O'Leary said that, if the benchmark Brent crude oil price remained at $50 a barrel for the remainder of the financial year to the end of March, it would add €55m to the airline's total budgeted costs.
Even with this added burden, he said the airline would still achieve a net margin of around 20 per cent for the full year with a net profit in the range of €200m to €215m, little changed from the €206.6m achieved last year.
Chris Avery, aviation analyst at JP Morgan, said the market reaction was "in response to the realisation that the low fare model is in no way damaged. Even at $50 [per barrel of] oil the company is still guiding to €200m net income...The winter yield environment is nothing like as bad as they have been saying."
Ryanair has eased its drive to reduce fares and intensify competition in order to compensate in part for the added costs it faces from the surge in the oil price.
Mr O'Leary said that Ryanair would remain unhedged until forward rates returned towards their previous "normal" levels.
The group remained "by some distance" the most profitable airline in Europe and could absorb much higher oil prices and still offer the lowest air fares.
Mr O'Leary warned that the high oil prices could still force the collapse of some carriers, however.
"Many of our competitor airlines who were losing money heroically, when fuel was $25 a barrel are doomed the longer it stays at $50. Our prediction of a bloodbath and airline casualties this winter may be accelerated by record high oil prices as well as by irrational competition."
In recent weeks the main casualty has been V-Bird, a small Dutch-owned carrier operating out of Düsseldorf-Niederrhein airport in Germany, which has ceased operations.
"We anticipate that there will be further airline casualties as the 'perfect storm' of declining fares and record high oil prices force loss-making carriers out of the industry," said Mr O'Leary.
In the first half Ryanair passenger volumes increased by 24 per cent from 11.3m to 14m - for the full year it forecasts a 19 per cent increase from 23.1m to 27.5m - while turnover rose by 21 per cent from €596m to €721m.
Ryanair continues to benefit from a big jump in ancillary revenues including commissions earned on internet travel insurance, hotel and car rental bookings with a rise in the six months of 42 per cent from €73m to €103m.
It has just started the introduction of a pay-to-view inflight entertainment system on some aircraft, and Mr O'Leary said that the airline hoped in the future to introduce inflight gambling as a new revenue stream.
Continuing "disciplined" route growth was central to the group's record earnings with 41 new routes opened during the summer season and better than expected results from its new bases at Barcelona-Gerona and Rome.
During the winter season Ryanair is adding three more aircraft to its London Luton base, two more in both Rome and Milan-Bergamo, and one more at each of its Frankfurt-Hahn, Glasgow-Prestwick and Stockholm-Skavsta bases.
Two new bases will be announced in coming weeks
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He has talked about a shortlist of 8-9.
Don't the MRS rumours relate to having a separate no-frills terminal there.
Apparently 2-3 on the shortlist are in the UK. Presumably, they will be "joining up the dots", rather than launching from places they've never previously touched?
This would put LPL, MME & especially EMA, which has otherwise been fairly stagnant of late in the run in the UK.
NRN would perhaps be a front runner on the European mainland after the hole left by V Bird. Technically, does BVA count as a base - 7 routes, but all from other bases? Would this be an outside runner after FR have made lots of complaints about high taxes in France, despite a clear need for this market to be opened up?
LBC is another with lots of routes in, which presumably could also stand as a base in its own right - fairly large catchment area running into Northern Denmark? TRF and GSE are similar in this manner - or would they go for a base in one of the accession states - currently, only Riga is really represented here. There must be much more room for them to grow in this area, especially as they expand their recruitment from these parts.
Don't the MRS rumours relate to having a separate no-frills terminal there.
Apparently 2-3 on the shortlist are in the UK. Presumably, they will be "joining up the dots", rather than launching from places they've never previously touched?
This would put LPL, MME & especially EMA, which has otherwise been fairly stagnant of late in the run in the UK.
NRN would perhaps be a front runner on the European mainland after the hole left by V Bird. Technically, does BVA count as a base - 7 routes, but all from other bases? Would this be an outside runner after FR have made lots of complaints about high taxes in France, despite a clear need for this market to be opened up?
LBC is another with lots of routes in, which presumably could also stand as a base in its own right - fairly large catchment area running into Northern Denmark? TRF and GSE are similar in this manner - or would they go for a base in one of the accession states - currently, only Riga is really represented here. There must be much more room for them to grow in this area, especially as they expand their recruitment from these parts.
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Interestingly, they chopped MST, have been trying to squeeze into RTM, but Basiqair got there first, and when GRO & CIA opened as new bases they immediately linked them up to EIN? With V-Bird dropping out of NRN, EIN links nicely between CRL & HHN. I would have expected NYO to have been served out of EIN as there is a strong Dutch Scandnavian association, socially, and in business.
If EIN was chosen it would make a big hole in EJ's crewing ranks.
If EIN was chosen it would make a big hole in EJ's crewing ranks.
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There's been a slight expansion this winter on the DUB-CWL route in that FR have provided a second rotation on Mondays and Fridays.
I suppose there is always the possibility that MOL might see a chance of having at go at easyJet at BRS if he did set up at CWL.
However, there is a recent thread on PPRuNe concerning 'rumours' that ThomsonFly are to start a base at CWL.
Mind you, about a year ago the BBC West trade and industry correspondent came on the telly one evening and confidently predicted that Ryanair were to expand their operations at BRS. Hasn't happened.
I suppose there is always the possibility that MOL might see a chance of having at go at easyJet at BRS if he did set up at CWL.
However, there is a recent thread on PPRuNe concerning 'rumours' that ThomsonFly are to start a base at CWL.
Mind you, about a year ago the BBC West trade and industry correspondent came on the telly one evening and confidently predicted that Ryanair were to expand their operations at BRS. Hasn't happened.
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I know that is off topic but I noted this while browsing
MADRID- Irish low-cost airline Ryanair is in talks to begin flights to an additional nine airports in Spain, El Pais reported Friday.
The Spanish daily, citing chairman Michael 0'Leary, said Ryanair already operates flights to eight airports in Spain, and soon will begin service to three others.
O'Leary told the newspaper that the budget carrier was eyeing about 80 new airports in total in Europe, including six in Italy and 17 in Germany, as part of its expansion programme. He did not provide further detail.
"There is in fact a long queue of airports which are after our flights," O'Leary said.
In Spain, Ryanair is due to begin flights to Zaragoza from 1 December, to Almeria from 19 January, and to Seville in February, according to the newspaper.
Iberia, the leading Spanish carrier, announced in mid-October that it may file a complaint against Ryanair at the European Commission on grounds that it has received illegal aid from regional governments in Spain.
MADRID- Irish low-cost airline Ryanair is in talks to begin flights to an additional nine airports in Spain, El Pais reported Friday.
The Spanish daily, citing chairman Michael 0'Leary, said Ryanair already operates flights to eight airports in Spain, and soon will begin service to three others.
O'Leary told the newspaper that the budget carrier was eyeing about 80 new airports in total in Europe, including six in Italy and 17 in Germany, as part of its expansion programme. He did not provide further detail.
"There is in fact a long queue of airports which are after our flights," O'Leary said.
In Spain, Ryanair is due to begin flights to Zaragoza from 1 December, to Almeria from 19 January, and to Seville in February, according to the newspaper.
Iberia, the leading Spanish carrier, announced in mid-October that it may file a complaint against Ryanair at the European Commission on grounds that it has received illegal aid from regional governments in Spain.
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FR is reportedly in discussion with Luton's operator TBI, to base an additional four aircraft at Luton by Summer 2005 - this would take the total to eight (1 + 3 [Jan 05] + 4 [post-Easter 05]).
Biggest headache for Luton would be stands to accommodate these extra four aircraft. However, TBI is evaluating all options.
Unfortunately, the simplest - pouring even more concrete than is presently being poured - requires planning permission from Luton Borough Council, not the most dynamic, helpful or forward-looking local authority in the UK.
Second biggest headache = road access, which at peak times is already woefully inadequate.
But with the relationship bewteen MoL and BAA Stansted at an all time low, maybe even these seemingly intractable obstacles will be overcome?
Biggest headache for Luton would be stands to accommodate these extra four aircraft. However, TBI is evaluating all options.
Unfortunately, the simplest - pouring even more concrete than is presently being poured - requires planning permission from Luton Borough Council, not the most dynamic, helpful or forward-looking local authority in the UK.
Second biggest headache = road access, which at peak times is already woefully inadequate.
But with the relationship bewteen MoL and BAA Stansted at an all time low, maybe even these seemingly intractable obstacles will be overcome?
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Cap670
From my sources I had heard that no additional ryan aircraft at LTN, above the four already announced, would occur until at least Nov 2005, when a further three based were under consideration. However, you may have heard differently. Either way, in these rapidly changing times, things are changing almost daily basis, so who knows. Certainly the spat with the BAA is annoying both parties, but ryan will continue to expand at STN much along the lines they have always planned.
Work is due to start in the spring on dualling the remainder of the road from the M1, right into the airport, which will help considerably when completed. Eastern access is poor and although plans are being considered to solve this, it is a huge, multi-million pound plan, which would probably involve cutting through green-belt land and in reality, is many years away, if ever it got approval. The best that can be expected on this side, are small tweaks here and there over the next 2/3 years.
Regarding the car parks, agreed, these are a a joke. Surely a fresh layer of tarmac over the whole area, getting rid of the stones and potholes, would be money very well spent. Customer satisfaction would improve 100% over night. With NCP now running the show for the next few years, this should happen. They are also commited to adding an extra 2000 spaces, possibly by a new multi-storey, who knows?. With 2005 looking to break the 9m pax barrier, something has got to happen and quick.
From my sources I had heard that no additional ryan aircraft at LTN, above the four already announced, would occur until at least Nov 2005, when a further three based were under consideration. However, you may have heard differently. Either way, in these rapidly changing times, things are changing almost daily basis, so who knows. Certainly the spat with the BAA is annoying both parties, but ryan will continue to expand at STN much along the lines they have always planned.
Work is due to start in the spring on dualling the remainder of the road from the M1, right into the airport, which will help considerably when completed. Eastern access is poor and although plans are being considered to solve this, it is a huge, multi-million pound plan, which would probably involve cutting through green-belt land and in reality, is many years away, if ever it got approval. The best that can be expected on this side, are small tweaks here and there over the next 2/3 years.
Regarding the car parks, agreed, these are a a joke. Surely a fresh layer of tarmac over the whole area, getting rid of the stones and potholes, would be money very well spent. Customer satisfaction would improve 100% over night. With NCP now running the show for the next few years, this should happen. They are also commited to adding an extra 2000 spaces, possibly by a new multi-storey, who knows?. With 2005 looking to break the 9m pax barrier, something has got to happen and quick.
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BLIMEY, ANOTHER 4!
Well the Ryans want to expand from Stansted, so it is quite possible that they move established routes from Essex into Bedfordshire just like the process they started with Dinard last month and will see 4 airframes based by Jan 05?
Well the Ryans want to expand from Stansted, so it is quite possible that they move established routes from Essex into Bedfordshire just like the process they started with Dinard last month and will see 4 airframes based by Jan 05?
Unfortunately, the simplest - pouring even more concrete than is presently being poured - requires planning permission from Luton Borough Council, not the most dynamic, helpful or forward-looking local authority in the UK.
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I think you will find that the council is very much pro airport
Come to think of it, what the heck is the Council doing with that £12M?? The town certainly doesn't look like its Council has a pot of gold!
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Buster
I think you are right. LTN is unlikely to see any totally new ryan destinations as these will almost certainly go to STN for start-up and qualify for 'new route discounts'. However, of the smaller, longer established routes that are about to loose discount status from the BAA, some of these could transfer to LTN, qualify for a discount here, and thus free up slots at STN for the new routes. Of course it also gives ryan another string in its bow as LTN is the only major airport in the London area not run by the BAA.
Off the subject I know, but worth a mention, it was reported in yesterday's Times that
"TUI, the German travel group, that owns Thomson Holidays, has confirmed plans to close its UK headquarters in Camden, North London, and move to new offices in Luton"
If this was discussed elsewhere, sorry. New offices - maybe Capability Green ?
I think you are right. LTN is unlikely to see any totally new ryan destinations as these will almost certainly go to STN for start-up and qualify for 'new route discounts'. However, of the smaller, longer established routes that are about to loose discount status from the BAA, some of these could transfer to LTN, qualify for a discount here, and thus free up slots at STN for the new routes. Of course it also gives ryan another string in its bow as LTN is the only major airport in the London area not run by the BAA.
Off the subject I know, but worth a mention, it was reported in yesterday's Times that
"TUI, the German travel group, that owns Thomson Holidays, has confirmed plans to close its UK headquarters in Camden, North London, and move to new offices in Luton"
If this was discussed elsewhere, sorry. New offices - maybe Capability Green ?
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FR I'm sure would wish to expand more at STN, problem is presently no spare dep slots available in morning peak so at present only way they can open new routes during morning dep peak is to transfer existing slots to nearby LTN or drop less profitable routes completely and replace with more profitable new destinations. If they continue to open new bases in Europe this means they can originate flights there and arrive/dep STN just after morning peak therefore continue expansion at STN without slot constraint. FR dispute with STN BAA I don't think is relevant as STN is by far their biggest base and therefore biggest profit maker.
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Musket, that assumes the yield will be very good with european early morning traffic inbound to Stansted for the Harps?
I would guess the yields would be greater for early morning departures and late evening arrivals using Stansted at the originating airport in the morning and the destination at night?
No smoke without fire?
I cannot remember the text in full, but the Times reported that Luton was to be the focus of Ryanair's future UK growth. That could be the addition of the extra 3 in Jan, or you could read it as, 'more to come'?
I read the article as the latter.
I would guess the yields would be greater for early morning departures and late evening arrivals using Stansted at the originating airport in the morning and the destination at night?
No smoke without fire?
I cannot remember the text in full, but the Times reported that Luton was to be the focus of Ryanair's future UK growth. That could be the addition of the extra 3 in Jan, or you could read it as, 'more to come'?
I read the article as the latter.