Ryanair - 6

[vkid]

" I think the Irish Govt may have to look at this quickly and seriously."

You'd think, but if recent performances by the 2 Brians are anything to go by, i wouldnt expect much change. Clueless springs to mind!

[Lord Lardy]

Its a very clear drop the 10 Euro tax or lose the jobs......can't be any clearer than that.

Given the other job losses at SRT plus the reporting of very high unemployment I think the Irish Govt may have to look at this quickly and seriously.

Dangerous brinkmanship.

There are plenty of other airlines out there who will be willing to take up the routes and fill the gap in employment. Ryanair are not the be all and end all thankfully. There won't be any climbdown on this one by the government. The SRT situation is a completely different issue and whether there is a climbdown or not has nothing to do with this so called tax.

[Sikpupi]

Jaysus...between the Civil Servants saying they're discriminated against, the Farmers saying they have been short changes, the Teachers saying why us..... and now MOL thinks that the €10 is coming out of his pocket. Wow...how does a Minister get it so wrong!!! And all the time .. the BAnks are getting away scott-free (and getting a payrise to boot)

On the back of a fag-packet:- How much Revenue will this €10 bring into the exchequer??? €150 Million??? Surely our Tourist Industry is worth investing in and a Direct Tax like this is not good news. Again - a badly thought tax for the fact that it is not applicable to Ferries and Sea Traffic. He can only keep dipping into the tourist Well for so long and on top of bad weather, bad roads, high restaurant prices, dear beer, questionable value for money accommodation - this is all we need to attract tourists ANOTHER €10 PLEASE.


He will have mnore problems on his hands if we continue to have a fall in visitor numbers. There is a domino effect here and a fall in numbers = fall in hotel beds = fall in dining out = fall in employment = fall in taxes = = I don't need to go on.

Ohhh Caithlin mi bhuireen ...what has this government done to you!!!

[45989]

Racedo.
Dump any shares or options quickly

S**t = Fan

[racedo]

45989 - Thanks you for your concern.

Have got no shares or options in FR.

More into property via Auctions, returns are way much better, got nice 3 bed where mortgage less now than cost of a free flight x2 with FR, incl priority boarding, checking 2 bags and using MC to pay.......yup less than £50. Just wish I had a load like that.

[Gold Rivet]

You'll be sorry!

[MAN777]

Sikpupi

You have hit the nail on the head,

This is my view and probably the view of many UK residents

My funds are tight and casual trips are now quite rare, when I do travel, I go to where my money gets me the best value. Ireland has been an expensive place to visit for a few years now but I still came because I thought Ireland was a stunningly location. It still is a stunning place but that can now longer compensate for the expense of everything there, the Euro exchange rate is detering us from visiting, not just Ireland but all euro using countries.

The last thing we Britons want is yet more taxes to pay !

BUT inversely the UK is a bargain place to visit for all you Irish, so is 10 euros a big price to pay for locals coming out of the country ?

[turas]

I can't see Cork-Carcassonne getting the chop -- fares are sky high and it must be a real cash cow for Ryanair. I could see Liverpool or Gatwick going before Carcassonne. Maybe Dublin could be scaled back, now that Aer Arann have partially retreated.

[Based]

There are plenty of other airlines out there who will be willing to take up the routes and fill the gap in employment. Ryanair are not the be all and end all thankfully.

Lord Lardy, correct me if I'm wrong but your comments seem to be made purely in spite of Ryanair rather than based on any genuine beliefs. Ryanair are clearly cutting marginal routes in this announcement which are quite unlikely to be filled by other airlines, largely due to the fact that they are indeed marginal! Whether me or you like it or not they have the lowest cost base in the industry, combine that with their aggressive approach to achieving reduced costs at airports/obtaining marketing support and you've an unlikely scenario of other airlines filling their place on the routes they have dropped - unless, which I'm guessing not, you'd like other airlines to mimic their approach? Take Leeds for example, do you really expect another airline to replace their one summer daily reduction on the Dublin - Leeds route? I'd happily be proved wrong but I suspect it's more likely that you should get real.

[Cyrano]

Originally Posted by Based

Take Leeds for example, do you really expect another airline to replace their one summer daily reduction on the Dublin - Leeds route?

Actually, yes, I'd think it'd be quite feasible. Yes, Ryanair have the lowest cost base and the most aggressive marketing, so perhaps no-one else could get as many passengers as they could. But (and I'm just using Leeds as a random example) there must still be some passengers who want to travel between Dublin and Leeds and are prepared to pay slightly higher average fares than were on offer with Ryanair. Not enough to achieve a decent load factor on a 737-300, say, but perhaps enough for a Q400, or an ATR72. Just because a route is marginal on a 189-seater doesn't mean it's marginal on a smaller aircraft.

An example would be Dublin-Cardiff. Ryanair pulled off the route a couple of years back (to the sound of champagne corks in the CWL boardroom) and Aer Arann took it on. It's obviously worked out well enough for RE that they are still operating it - I'm sure the total passenger numbers are lower than with Ryanair, and quite possibly the average yield is higher, but the route is still there for the passengers who are prepared to pay a bit more.

C.

[Lord Lardy]

Lord Lardy, correct me if I'm wrong but your comments seem to be made purely in spite of Ryanair rather than based on any genuine beliefs. Ryanair are clearly cutting marginal routes in this announcement which are quite unlikely to be filled by other airlines, largely due to the fact that they are indeed marginal! Whether me or you like it or not they have the lowest cost base in the industry, combine that with their aggressive approach to achieving reduced costs at airports/obtaining marketing support and you've an unlikely scenario of other airlines filling their place on the routes they have dropped - unless, which I'm guessing not, you'd like other airlines to mimic their approach? Take Leeds for example, do you really expect another airline to replace their one summer daily reduction on the Dublin - Leeds route? I'd happily be proved wrong but I suspect it's more likely that you should get real.

With the greatest of respect Based, if you look at the Ryanair website, some of the listed flights that are due for reduction are Manchester, Leeds and the airport they call Barcelona which is Girona. Now, based on the fact that the 10 euro tax is on flights over a certain distance, two of these in fact fall under the lower bracket, so passengers will not be paying a full 10 euro departure tax to either Manchester or Leeds. Manchester is already served by both Aer Lingus and Ryanair. Load factors on the Aer Lingus twice daily Barcelona flights have always been good, with generous yield now that Clickair, the only direct competition to the same airport pulled off the route. Many of the seats and in turn alot of the generated yield on the Barcelona route coming during the summer season are from presold tickets to the 'Travel Department' company who themselves sell these seats as part of their Mediterranian cruises to the general public. If demand requires it a mid morning Aer Lingus rotation could be increased, or indeed Clickair may in fact review the route again.

A reduction in capacity by Ryanair on the Manchester route can be offset by an increase by Aer Lingus should they so choose, but the route itself is serviced far too much at the moment, especially when you consider Ryanair themselves fly to Liverpool which is only up the motorway. Regardless of the tax, one if not both of these airlines would have reduced their service on it anyway.

As a sidenote, Recently Ryanair pulled their services away from Blackpool and cited charges and fees etc as the reason for doing so. The usual spin of lost tourism by Ryanair etc ensued. Aer Arann picked up the route and by all accounts seems to be doing quite well on it. There is nothing to suggest they or Flybe won't do the same with a suitably timed Leeds-Bradford rotation with a more suitable smaller aircraft, which operate well on routes where as you say yourself the margins are tight.

As you see, my comments are not made in spite of Ryanair as you suggest. I would suggest that the routes mentioned are loss makers as they stand now and by simply blaming others it is an easy way of pulling off the route whilst at the same time gaining maximum free publicity for the airline. I can't knock them for that. For me I simply see the wood from the trees. The big picture, if you read between the lines is that attack on the DAA charges. The DAA stand to gain nothing by the tax. However as they were mentioned yesterday as part of the reason, it's quite clear that they can use these route closures as a means of raising public awareness to support dropping these charges. Again, I wouldn't knock them for this.

However, I have to admit I laughed yesterday whilst listening to the Ryanair communications spokesman on NEWSTALK FM. He was spouting all sorts of impressive figures and percentages to the interviewer, about how this has increased by 'x' percent and that their fares have decreased by 'y' amount. However, when asked a simple question whether his quoted average Ryanair fare included taxes, his answer was - I'm not sure, I'll have to get back to you on that, an answer coming straight from page 1 of Sarah Palin's memoirs. It obviously wasn't written down on the notepad in front of him. As you can see it dosen't take much to amuse me.

[en2r]

I can't see Cork-Carcassonne getting the chop -- fares are sky high and it must be a real cash cow for Ryanair. I could see Liverpool or Gatwick going before Carcassonne. Maybe Dublin could be scaled back, now that Aer Arann have partially retreated.

I can't see Gatwick getting the chop. As far as I know, Cork-Gatwick is Ryanair's most profitable route out of Cork. Also if they pulled off the route, Aer Lingus would probably replace them straight away, given their Gatwick expansion. (Theres been rumours of late that Aer Lingus might launch Cork-Gatwick even with Ryanair still on the route!). I can't see Ryanair handing a profitable route to Aer Lingus on a plate.

I can't see any reduction on Cork-Liverpool since Liverpool is less than 300km from Dublin and hence only attracts a €2 levy. Perhaps the 5th Cork-Dublin rotation could be pulled (this is currently operated by a Dublin based aircraft) but since Cork-Dublin is also only liable for a €2 levy, they can't exactly blame the levy for any reduction.

[Based]

I take the Cardiff and Blackpool points but these are cases were Ryanair has abandoned those airports completely and are, I agree, probably more suited to a smaller aircraft serving them anyway. If Clickair tried to return on the Barcelona route or Flybe on Leeds, Ryanair would immediately increase their frequencies again so it's a totally different scenario. Actually Leeds is probably the most unfortunate UK airport affected by the Irish tax as it falls just outside the €2 bracket and is subject to the €10 tax.

Ryanair will have selected to cut marginal routes for them where they don't expect to see a reaction of increased competition. Yes, they may have had to be cut from the summer schedule anyway but surely you can accept how a €10 increase in charges will accelerate this given the amount of taxes and charges they already absorb in their free/€5/€10 offers already.

[JDB1052]

Where's the beef?

This is more a way of reducing costs coming into a bleak summer without admitting that high frequency 190 seat 737s just does not work in a recession. Demand is down, so no need for frequency as the days of "we will build it and they will come" are well and truely gone. Answer - chop the network, cut costs and blame it on anything but the business model.

Why did they reduce Manchester "because of the 10 Euro tax" when it is only liable for the 2 Euro tax level being within 300km of Dublin? Other reductions on Leeds, Newcastle, Barcelona etc. but I cannot see how these all add up to four full aircraft, unless this is against some as-yet unpublished plan they had in a drawer somewhere.

Go to Dublin in July and count them in at night - 2 to 1 there will be 22 coming home to roost.

Smoke and mirrors, smoke and mirrors.

[Charlie Roy]

Ryanair will have selected to cut marginal routes for them where they don't expect to see a reaction of increased competition.

Exactly. If Ryanair cut/reduce Kerry to Hahn, no other airline will ever introduce a Kerry to Germany route.

[ssflyer]

Sorry,late on this thread (been faffing in ME).
What is happening with routes/aircraft at BHX and GIR??

[eu01]

Originally Posted by JDB1052

This is more a way of reducing costs coming into a bleak summer without admitting that high frequency 190 seat 737s just does not work in a recession. Demand is down, so no need for frequency as the days of "we will build it and they will come" are well and truely gone. Answer - chop the network, cut costs and blame it on anything but the business model.

Agree. The Ryanair's fault is the resistance of their very own business model to the unavoidable changes. The "high frequency 190 seat 737s" could still work on some ailing routes, but under a few conditions. Like this one: apart from selling the "free flights" in the point-to-point system, the rest of seats ought to be filled by selling much more expensive connecting flights serving the locals (paying "normal" fares in return for a better service). Some other issues I've already discussed before. The FR business model's rigidity and its barrenness combined with the stubborn attitude of the management results in... well, just what we see right now. The development close to negative.

An other matter; the news spotted today on the net (here).

The City of Lappeenranta and Finland’s Civil Aviation Administration – Finavia – have reached agreement on plans for the development of the Lappeenranta Airport. Fly Lappeenranta and Finavia have agreed to set up a joint limited liability company to manage the airport’s commercial operations.

Air traffic control and maintenance operations will remain the responsibility of Finavia. The goal of the new arrangement is to increase passenger traffic through the Lappeenranta airport and to open up new air routes from the south eastern [Finnish] city.

The holding company will be able to charge more flexible aircraft turnaround fees, to help position Lappeenranta as an attractive hub for budget airlines.
The low-cost Irish airline Ryanair has consistently ignored Lappeenranta as a possible stopover because of its high berthing fees. However the company has expressed interest in offering direct flights from Lappeenranta to (...) Weeze.

Proximity to St. Petersburg a Plus
“Lappeenranta’s proximity to St. Petersburg has also made it an attractive stopover option for the budget flyers,” said Finavia CEO Samuli Haapasalo.
A survey conducted last autumn for Finavia by Tampere University of Technology revealed that the population within the range of Lappeenranta airport would be enough to serve the budget airlines. About 5 million residents live within a 200 mile radius of the airport, including residents of St. Petersburg.

Currently a significant number of Russian airline passengers connect to Ryanair flights from Riga, which is served by daily bus trips from St. Petersburg and Moscow. A similar number of Easyjet passengers arriving in Tallin, continue on to St. Petersburg by bus.

Don't want to sound conceited, but... I've already claimed (much earlier) precisely the same.

[ara01jbb]

Was making some searches this morning to book a flight over to BHD in March. Delighted with the £0.01 fares...



Guess they're being subsidised by Easyjet and Jet2 who are advertising with Google Ads on FR's own website...

[pee]

Lappeenranta

Harnessing my secondary-school level knowledge of Russian, I'll try to translate you the Russian newspaper's opinion about Lappeenranta plans:

Лаппеенранта, несомненно, сможет стать привлекательным аэрпортом для петербуржцев, так как расположена всего в 220 км от Петербурга, тогда как до Хельсинки ехать в два раза дальше. А доступность шенгенской визы для жителей Северо-Запада России сделает этот путь еще более привлекательным. Если бюджетные авиалинии начнут осваивать аэропорт Лаппеенранты, то он может составить конкуренцию петербургскому аэропорту "Пулково" в сегменте дешевых перелетов.

Lappeenranta could certainly become an attractive airport for Petersburgers, as it is situated just 220 km from St. Petersburg, while the distance to Helsinki is twice as much. And the availability of a Schengen visa for residents of the North-West Russia will make this journey even more attractive. If the budget airlines will start to use Lappeenranta airport, it can compete with Petersburg airport "Pulkovo" in the segment of cheap flights.

Frankly, I'm looking at these plans somewhat indifferently now. Until recently I was trying to promote Ryanair and defend it in some situations when the angered passengers argued against it. But enough is enough. Once again, so blithely and on a very short notice they have reduced the STN-TMP flights (thousands of tickets sold) from daily to just 3/weekly. So many pax have the hotel bookings already payed for, some have the connecting flights they are unable to use any more. By reading the travel forums one can become pretty devastated indeed. Everything has its limit, including patience. Maybe in Russia FR would find less demanding customers, I don't know, but right now many in Finland is completely fed up with this attitude. Not a very good assets for a future development, I'm afraid.

[INKJET]

What a fantastic deal

busy fools make no money!!

Take it whilst you can, just be sure not buy anthing at PIK that isnt in your hand luggage, other wise a packet of crisps will cost you thirty quid as a second bag!! but seriously i look forward to the day when we all will be able to fly anywhere for just 1p, Thank you dear lord and Master MOL, not sure Greenpeace will share my joy tho