Ryanair - 6
Join Date: Jan 2008
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Ryanair new charges = new evidence there yield will be very very low for the 2nd half year 2007... Bad news for the shareholders...
Of course, they are rubbish when they said that it is to encourage free on-line check-in
Increasing charges has a direct incidence on the bottom line as it is a very easy way to generate pure margin. No need for long studies or brain (as always), just be brutal!
According to me, it just shows that the company is currently in a bad shape and quiet "vulnerable" (what is doing easyJet???) with all their new crap bases (MAD, MRS, BRE, BHD, BOH)
Of course, they are rubbish when they said that it is to encourage free on-line check-in
Increasing charges has a direct incidence on the bottom line as it is a very easy way to generate pure margin. No need for long studies or brain (as always), just be brutal!
According to me, it just shows that the company is currently in a bad shape and quiet "vulnerable" (what is doing easyJet???) with all their new crap bases (MAD, MRS, BRE, BHD, BOH)
Some answers were that the company was in a good shape...
Shareholders who believed me would have save lots of money!
All there new bases are crap. Further, it is highly probable they will be condemned again for illegal state aid. They are coming in a time of optimization and I really think that they don't have the right people to manage it properly...
Join Date: Jan 2008
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Weaker sterling? Poor demand? So why you keep adding UK bases like Bournemouth for instance? Why do you want to dominate the UK and the Republic of Ireland markets and by doing so only lowering the yields there?
No brain is a possible answer
Join Date: Feb 2007
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Aerospace - please justify your continued assertion that Bournemouth is a "crap" base for Ryanair.
Ryanair have operated out of BOH for over 10 years and have a loyal existing customer base. The catchment area is wide stretching at least as far east as Portsmouth, north to Winchester and west to Exeter. This encompasses one of the wealthiest areas in the country outside of Greater London and possibly the Cheshire moneybelt. Many people with good disposable incomes for short leisure breaks, second homes abroad and a smaller market of potential business travellers.
It is a 2.5 hour journey to the nearest serious low cost alternative LGW with the only competition being the relatively expensive Flybe from Exeter and Southampton. Thomsonfly are allegedly unlikely to be operating a scheduled service from Bournemouth after this summer and Wizzair and Easy operate only a handful of routes between them so the opportunities are there for route expansion.
Yes there may have been more potentially lucrative bases further afield than BOH but Bournemouth is a solid and profitable airport for Ryanair and a realistic expansion of maybe 2 based aircraft with well chosen routes will always do well.
You can tell from my username I'm biased but tell me why Bournemouth is "crap" again?
Ryanair have operated out of BOH for over 10 years and have a loyal existing customer base. The catchment area is wide stretching at least as far east as Portsmouth, north to Winchester and west to Exeter. This encompasses one of the wealthiest areas in the country outside of Greater London and possibly the Cheshire moneybelt. Many people with good disposable incomes for short leisure breaks, second homes abroad and a smaller market of potential business travellers.
It is a 2.5 hour journey to the nearest serious low cost alternative LGW with the only competition being the relatively expensive Flybe from Exeter and Southampton. Thomsonfly are allegedly unlikely to be operating a scheduled service from Bournemouth after this summer and Wizzair and Easy operate only a handful of routes between them so the opportunities are there for route expansion.
Yes there may have been more potentially lucrative bases further afield than BOH but Bournemouth is a solid and profitable airport for Ryanair and a realistic expansion of maybe 2 based aircraft with well chosen routes will always do well.
You can tell from my username I'm biased but tell me why Bournemouth is "crap" again?
Join Date: May 2006
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With the change in rate from the pound to the euro only set to get worse ( Futures in the european markets are betting heavily around 1 GBP being 1.15 euros by year end ) it puts easyjet in the driving seat. I think also with the data from the US suggesting the recessions is getting softer than expected and OPEC not increasing output , fuel prices will stay high. The wind is changing. As an investor ill be putting the money on easyjet. I was curios more about the notion of fleet disposal. Thanks.
Join Date: Jan 2007
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Ryanair is a victim of they're own success. They have lowered the costs of air travel, taken on possibly every airline in the UK and Europe and now the low cost bubble is beginning to burst.
There is a plateau of growth for everything expansion wise and it cannot keep happening. Lower yields mean that they must slow down expansion and route duplication until they can achieve higher yields.
BUT, EUR35M is still a profit!
There is a plateau of growth for everything expansion wise and it cannot keep happening. Lower yields mean that they must slow down expansion and route duplication until they can achieve higher yields.
BUT, EUR35M is still a profit!
Join Date: Nov 2003
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Just wanted to comment on the 12.1m euro Net Profit on Disposal of 5 aircraft! Whilst it's difficult as I don't know what method and % depn RYR apply to their fixed assets, to make 2.42m euro profit on disposal per aircraft I would think they write off the bulk costs of their assets pretty quickly. With that in mind I wouldn't be worried about them. They do have to keep the NBV of their assets in check as overstating their balance sheet at year end can get them (and their accountants) into alot of trouble! The time to become concerned is when they start making massive losses on disposal which would point to them trying to artificailly sustain their share price for as long as possible by Overstating their assets and reducing the depn that gets put through the books so as to increase profit.
I know their are loads of other aspects to consider and we won't know the actual state of their accounts in detail until they are published in full in 2 years time. But...for the time being my point is DON'T worry about RYR, they ain't going anywhere and their finances indicate that. The disposal of assets doesn't neccisarily mean that they're in trouble and trust me, they will have enough retained profit to call up for some years to come before they run out of money!
Hope this serves to restore some confidence but only time will tell whats really going on.
Cheers
CS
Accountant about to turn Student Pilot
I know their are loads of other aspects to consider and we won't know the actual state of their accounts in detail until they are published in full in 2 years time. But...for the time being my point is DON'T worry about RYR, they ain't going anywhere and their finances indicate that. The disposal of assets doesn't neccisarily mean that they're in trouble and trust me, they will have enough retained profit to call up for some years to come before they run out of money!
Hope this serves to restore some confidence but only time will tell whats really going on.
Cheers
CS
Accountant about to turn Student Pilot
Join Date: Dec 2004
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Quote: 'The catchment area is wide stretching at least as far east as Portsmouth, north to Winchester and west to Exeter. This encompasses one of the wealthiest areas in the country outside of Greater London and possibly the Cheshire moneybelt. Many people with good disposable incomes for short leisure breaks, second homes abroad and a smaller market of potential business travellers.'
Most people I know in Devon would much rather drive to BRS. The road to BOH from the west is dire.
Most people I know in Devon would much rather drive to BRS. The road to BOH from the west is dire.
Join Date: Aug 2006
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Haven't read this thread for a while - good to read some lively comments!
Pee - Yes I understand your Finnish frustrations but it is a well known fact that FR will only fly from airports where a deal can be brokered that totally suits FR....if the price ain't right theres no way they will fly whatever the unserved market potential. Surely FR must have at least looked at Finland if it is that badly served by flights??
Aerospace - agreed FR are in for a tough time, aggressive expansion is now being subjected to higher than ever oil costs and the real possibility of a UK recession. First thing to go in the annual family budget well it aint gonna be the mortgage now is it more likely the mini break with FR to some Euro-unknownville...........but linked to my comments above all the 'crap' bases you mentioned have no doubt pretty much let in FR for free or at least hugely reduced fees for at least a few years in order to get flights to destinations no other airline would touch with a bargepole - so thats why they are flying from BOH etc. Having turned in a profit I still think they have the coffers to survive for a lot longer yet. But whether they continue to fly routes from nowhere to nowhere thats another story....
Pee - Yes I understand your Finnish frustrations but it is a well known fact that FR will only fly from airports where a deal can be brokered that totally suits FR....if the price ain't right theres no way they will fly whatever the unserved market potential. Surely FR must have at least looked at Finland if it is that badly served by flights??
Aerospace - agreed FR are in for a tough time, aggressive expansion is now being subjected to higher than ever oil costs and the real possibility of a UK recession. First thing to go in the annual family budget well it aint gonna be the mortgage now is it more likely the mini break with FR to some Euro-unknownville...........but linked to my comments above all the 'crap' bases you mentioned have no doubt pretty much let in FR for free or at least hugely reduced fees for at least a few years in order to get flights to destinations no other airline would touch with a bargepole - so thats why they are flying from BOH etc. Having turned in a profit I still think they have the coffers to survive for a lot longer yet. But whether they continue to fly routes from nowhere to nowhere thats another story....
Join Date: May 2005
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What's your idea of sanity? Dinosaur flag carriers with bloated costs charging high fares? Like Sabena, for example?
Sanity and Ryanair just don't go together I'm afraid.
Having worked for them I can say that it is certainly a disgraceful airline and it will have to change or dissapear in the mid term future.
There is no decency anywhere to be seen in Ryanair's managment. I feel sorry for those employees that can't afford to leave as quickly as they would like to but I feel even more sorrow for those employees which don't know any better and defend Ryanair's piracy. How blind...!
Join Date: Oct 2007
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I would think they write off the bulk costs of their assets pretty quickly.
Join Date: Feb 2007
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Devonair - agreed I was probably stretching the point including Exeter in the catchment area as the transport links are awful to the west of Bournemouth, far better links exist to the north and east. You are correct in pointing out that BRS is a better option for most of Devon.
However the fact that BRS takes almost as long to get to as LGW from the Dorset & West Hants conurbations is my point in arguing that there is untapped demand from BOH that Ryanair will hopefully take advantage of.
However the fact that BRS takes almost as long to get to as LGW from the Dorset & West Hants conurbations is my point in arguing that there is untapped demand from BOH that Ryanair will hopefully take advantage of.
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Dysag
I don't know why you want to drag the defunct SABENA into this, but no Dysag, I have no problem with locos as such. There are some good ones out there. RYR however, has brought the service element of the industry to an all time critically low, and for me, unacceptable level.
Join Date: Nov 2003
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Nothing wrong with understating your assets. If they have an aircraft on their books at 40m cost but the actual market value is 45m then there isn't an issue is there. RYR are quid's in and will make a 5m profit on disposal if they sell it. This is my point. The time to worry as an investor is when a company starts using a depn policy that writes off the asset over an unrealistically long period to reduce the annual hit on their P & L and thus resulting in an artificially high profit figure. The first tell tell sign of this would be when a PLC publishes its EOY accounts (which it is legally bound to do) and all of a sudden it turns out that the company has disposed off some assets in the year and made a massive loss on disposal. Infact, the tax man will then come knocking to ask whats been going on. Because companies are taxed on profit HMRC monitors yearly trends and would want to know why they are all of a sudden making such a big loss.
Join Date: Apr 2007
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Fuel accounts for approx 39% of Ryanairs ticket price at the current hedged price of $65. If the oil price continues to climb this figure can easily hit 75-80%. This situation is not a 'cyclical downturn', it might well be the first sign of a new era introduced by peak oil.
Join Date: Sep 2003
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nospeedrestriction9 "and now the low cost bubble is beginning to burst."
What do people mean when they say this?
The economy is reportedly on the slow down. It has nothing to do with Low Cost bubbles.
In a slowing economy all airline sectors will see a slow down in sales. Some airlines will go bankcrupt.
This has always happened, long before Southwest or Ryanair or even Sir Freddie came up with the "Low Cost" concept.
What is this "bubble" that Low Cost operators are supposedly in anyway?
What do people mean when they say this?
The economy is reportedly on the slow down. It has nothing to do with Low Cost bubbles.
In a slowing economy all airline sectors will see a slow down in sales. Some airlines will go bankcrupt.
This has always happened, long before Southwest or Ryanair or even Sir Freddie came up with the "Low Cost" concept.
What is this "bubble" that Low Cost operators are supposedly in anyway?
Scourge of Bad Airline Management!
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Well, well, well....
"The directors have decided, in the best interests of the company and its shareholders as a whole, to undertake a second buyback programme of up to €200m. At the current market price of €3.60 this equates to a buyback of approx. 3% of the company’s issued share capital." (Ryanair.com)
A nice saving of €30m then.....
"The directors have decided, in the best interests of the company and its shareholders as a whole, to undertake a second buyback programme of up to €200m. At the current market price of €3.60 this equates to a buyback of approx. 3% of the company’s issued share capital." (Ryanair.com)
A nice saving of €30m then.....
Join Date: Feb 2005
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Yes I understand your Finnish frustrations
On the other side, I know the Finnish people; how disbelieving, skeptic and slow to react we are. A few low-cost (and alike) carriers have already tried to start here: Germanwings, Sterling, Clickair, Volare. And they had to retreat pretty soon. As weird as it could be, so far only FR has been able to break this mistrust towards "cheap fliers" (especially foreign ones). Remember the start period some years ago? It was so difficult to fill planes even on the Stockholm route, it had to be discontinued. Nowadays however Ryanair flights to Germany, STN, DUB, BGY are having very good load factors. Now when O'Leary's firm broke this skepticism, people have really started to expect some new destinations, became more excited and what? Nothing happened. No development at all. MOL prefers rather to keep some routes elsewhere with LF's below 40%(!!!) selling them for cents with obvious losses, but fails to recognize the chances further away from his home castle. It is really disappointing, and in this context shouldn't I be frustrated a bit?
Join Date: Nov 2003
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Well done Michael O'Leary! 
I now await news of a large order of new 737's to respark investor confidence and shove the share prices back up and make 30m or more.
This man didn't become a millionaire by being silly did he!
I now await news of a large order of new 737's to respark investor confidence and shove the share prices back up and make 30m or more.
This man didn't become a millionaire by being silly did he!