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Ryanair - 6

Old 11th Apr 2008, 21:55
  #1481 (permalink)  
 
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Chickens coming home to roost

MOL's model relies on opening up travel to those who previously wouldn't have travelled and not having competition on their routes. They are rapidly running out of "out of the way" places to go to, and are starting to face competition. Meanwhile, those who travel regularly would rather pay extra than be treated with contempt by MOL.

He has massively over-ordered planes and doesn't have enough people to fill them. It is the beginning of the end of Ryanair's ridiculous model of trying to build an airline whilst treating their customers like sh#t.

If MOL has found a new model which makes grounded airplanes profitable, he is about to become a billionaire.
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Old 11th Apr 2008, 22:18
  #1482 (permalink)  
F4F
 
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411A matter is most airlines this side of the pond are kinda afraid for this option. My previous told us that wet leasing was just too complicated...
Pity pity as it really makes sense (though not a Ryan slave, I'd love to spend the winter in the tropics )

live 2 fly 2 live
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Old 11th Apr 2008, 22:31
  #1483 (permalink)  
 
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As mere SLF I have to agree with Jimworcs, I only flew Ryanair once, but I swear I will never, ever go through that degrading experience again.
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Old 11th Apr 2008, 22:46
  #1484 (permalink)  
BarbiesBoyfriend
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My experience with FR mirrors alexgouks. I'll never fly with them again.

There must be millions of folk who feel the same way.

The transition from 'valued passenger' to 'persona non grata', was instantaneous in my own case.

As far as I'm concerned they can get it right up them!
 
Old 11th Apr 2008, 22:52
  #1485 (permalink)  
 
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Don't forget many of the new aircraft to be delivered this year are to replace the early 800's.
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Old 11th Apr 2008, 22:55
  #1486 (permalink)  
 
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Those early 800s will have to find a market

which might not be so easy
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Old 11th Apr 2008, 23:00
  #1487 (permalink)  
 
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Was reading an article about it last month, quite a few have already been placed (with some unsuspecting airlines)
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Old 12th Apr 2008, 07:00
  #1488 (permalink)  

Keeping Danny in Sandwiches
 
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I have always believed that a major part of the profitability of FR depended on the sale and leaseback of aircraft (have a look at the accounts), if that stops the profits dry up. Interesting times when leasing companies are having difficulty raising cash.
"Sub prime" is about to infect the airline industry and like house prices the profits of so many could actually be an illusion.

Remember the 1990's and a company called Guinness Peat.
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Old 12th Apr 2008, 07:07
  #1489 (permalink)  
 
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have heard from a few sources that it is very much a 'buyers market' for leasing aircraft at the moment. i.e lots and lots of aircraft chasing not very many buyers. I'm sure MOL could lease those aircraft out, but not for very much.

I agree that Ryanair could be in trouble. The mother of all economic downturns is coming and costs are rocketing. Ryanair, for all their faults, are a very low fares airline, but if you take away the low fares (rising fuel costs etc) then what do they have left as a unique selling point? nix, nada, niente.
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Old 12th Apr 2008, 07:11
  #1490 (permalink)  
 
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Guinness Peat = the late Tony Ryan, founder of Ryanair.
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Old 12th Apr 2008, 08:20
  #1491 (permalink)  
 
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So when does FR run out of it's hedged (cheaper) fuel?

Chips
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Old 12th Apr 2008, 08:22
  #1492 (permalink)  
 
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"Don't forget many of the new aircraft to be delivered this year are to replace the early 800's"

And

"which might not be so easy "

Which is not Ryanairs problem. Why not start a thread "Leasing Companies have a problem in moveing ex-Ryanair aircraft"! At the moment it's not a problem, it might well be in a month or so but the aircraft are moving on and still need crew, maintenance etc. All part of the deal that MoL signed upto in 2000

"So when does FR run out of it's hedged (cheaper) fuel?"
2 weeks ago.


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Old 12th Apr 2008, 09:25
  #1493 (permalink)  
 
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thanks m hinge,

Going to make things interesting. Leo HC will no doubt be around soon to tell us how this will work towards FR's advantage

Chips
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Old 12th Apr 2008, 09:59
  #1494 (permalink)  
 
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Could this be anything? Looking in the online check in destinations it is listing STN - Tenerife North, Clemont Ferrand (once flown) and Paris Beauvais. There are also the previously flown Malmo and Vitoria so could this just be a lack of updating, error or possibly some new routes?
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Old 12th Apr 2008, 10:28
  #1495 (permalink)  
 
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FR hedged fuel

FR was fully hedged at 63$/barrel average until end of March-08.

FR have stated they are unhedged for Q2 & Q3, and have 10% hedged for Q4 this year.

IATA March-08 Financial forecast for the industry as a whole makes grim reading (pdf) http://www.iata.org/NR/rdonlyres/DA8...ng_March08.pdf

Last edited by Heffer; 12th Apr 2008 at 10:41.
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Old 12th Apr 2008, 11:19
  #1496 (permalink)  
 
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In such circumstancies Ryanair's low fare level becomes disadvantagious if it still is to remain the main asset (some say the only one). The carrier has to compete on many different levels - other than price - to win. People love Ryanair just for those "free" flights, certainly not for passenger-friendliness. FR should have make friends for other reasons as well, why didn't they try to create a more positive general image of themselves? I mean everybody value your money at most, but many still try to suggest you are "precious" for other reasons as well. FR also should try to impress you with something other than just the price.
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Old 12th Apr 2008, 12:14
  #1497 (permalink)  
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Don't know why there are so many knockers out there on Ryanair.
Flew with them on Thursday from Cork to Dublin..it was cheaper than a train ticket, the Cork based crew were really friendly and they told me the return flight to Cork was full. There may be a few european airlines going to the wall in the forthcoming downturn but I'm sure Ryanair will only benefit from that.
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Old 12th Apr 2008, 14:57
  #1498 (permalink)  
 
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Ryanair's routes to France e.g. Rodez, Angouoleme, Dinard etc.

are often there to serve British second home owners. With the pound collapsing against the Euro it'll be increasingly difficult to pay the euro mortgage on French homes and I would suggest that very few people will be buying property abroad with one only getting about E1.20 to the pound. A significant part of the Ryanair customers will not be flying as much.
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Old 12th Apr 2008, 15:00
  #1499 (permalink)  
 
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BA are expected to make

700 million last year and 490 million next even with fuel at near $100 per barrel. not sure that constitutes a crisis.
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Old 12th Apr 2008, 15:33
  #1500 (permalink)  
 
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Thumbs down

they grounded one in Limoges already this year...a couple more and 2 billion in bank won t matter
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