Ryanair - 6
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Fuel costs at Ryanair
There is so much mention of higher fuel cost and reducing costs in the company over the coming months.
I am a fan of Ryanair, but i see the problem as being far greater than fuel cost. The recent €5 flight offer that has been extended (as they usually do-ie extend the flight offers), reads 100,000 seats at €5. It seems by Ryanair's standards a very long time to be still selling 100,000 seats at €5. Previously when a million seats went on for free they were gone so quick. Sounds to me that there is much softer demand for the same time of year when compared to last year, and in addition, they are probably not seeing anything near as big yield as usual.
Ryanair has huge no shows on Free flights so in net terms they are collecting taxes and charges many dont turn up and hence, no payment of taxes and charges to the government for these figures
It's time that Ryanair turned to brand and attempted to elevate the brand name, make flying fun ?
I mean Easyjet and Ryanair are so similar except Ryanair are lower cost, but Easyjet are a stronger brand name.What does anyone else think?
By the way does anyone know when Ryanair will be able to hedge again? or will it only be when the prices come down? Outlook seems poor in terms of fuel prices i understand.
I am a fan of Ryanair, but i see the problem as being far greater than fuel cost. The recent €5 flight offer that has been extended (as they usually do-ie extend the flight offers), reads 100,000 seats at €5. It seems by Ryanair's standards a very long time to be still selling 100,000 seats at €5. Previously when a million seats went on for free they were gone so quick. Sounds to me that there is much softer demand for the same time of year when compared to last year, and in addition, they are probably not seeing anything near as big yield as usual.
Ryanair has huge no shows on Free flights so in net terms they are collecting taxes and charges many dont turn up and hence, no payment of taxes and charges to the government for these figures
It's time that Ryanair turned to brand and attempted to elevate the brand name, make flying fun ?
I mean Easyjet and Ryanair are so similar except Ryanair are lower cost, but Easyjet are a stronger brand name.What does anyone else think?
By the way does anyone know when Ryanair will be able to hedge again? or will it only be when the prices come down? Outlook seems poor in terms of fuel prices i understand.
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Fleet
Are Ryanair putting the 7 grounded aircraft back into service from Stansted this summer or are they still keeping some grounded.Also any idea how many of their bases will have some aircraft grounded this winter?
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By the way does anyone know when Ryanair will be able to hedge again? or will it only be when the prices come down? Outlook seems poor in terms of fuel prices i understand.
http://uk.reuters.com/article/oilRpt...BrandChannel=0
Words from MO'L on February 4 ,2008:
"At our most optimistic, a combination of flat yields and $75 oil would see profits grow by 6% to approximately €500m, but at our most conservative, if forward oil prices remain at $85, and consumer sentiment/sterling weakness leads to a 5% reduction in yields, then profits in the coming year could fall by as much as 50% to as low as €235m (£175m)," he said.
http://www.guardian.co.uk/business/2...irlineindustry
So a drop in profit of 50 % if oil remains above $85. The current reality is $117 oil and a weak Sterling with 1.25 euro's. I'm very curious how this works out...
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Its all well and good for FR managment to bitch, moan and threaten to pull out of certain airports. Well go ahead then, pull out! Do it, leave the small airports because they too want to make a bit of money! So then when FR does pull out of these countries, where are they going to put the aircraft then?
How much more expansion is there in Europe? Are we nearing the stage that the FR growth has slowed down due to the amount of airports that either already deal with Ryanair, or those who dont want to deal with them? It will eventually get to the stage that airport managers will say no thanks ryanair! Then you might see them parking more than 20 aircraft in the winter.
Basically, you can bully someone for only so long before you end up on the losing end yourself. How long more can ryanair bully the european airports?
How much more expansion is there in Europe? Are we nearing the stage that the FR growth has slowed down due to the amount of airports that either already deal with Ryanair, or those who dont want to deal with them? It will eventually get to the stage that airport managers will say no thanks ryanair! Then you might see them parking more than 20 aircraft in the winter.
Basically, you can bully someone for only so long before you end up on the losing end yourself. How long more can ryanair bully the european airports?
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Ryanair seem attached to once-successful policy that hastened the firm's enormous growth when they were the first, dominant if not unique low cost carrier in Europe. But now the situation is quite different yet they are unable to change their image. "The majority of European airports compete to become Ryanair base." Not viable any more. It's a bluff, actually. "Ryanair urging", "Ryanair challenging", "Ryanair warning", "Ryanair threatening"... Be careful, it can fire back! FR is still mighty, but there are dark clouds gathering if their attitude remains unchanged.
I don't believe FR would completely ground those 20 planes. Frankly, it would be a defeat in my eyes, like they were admitting: "We are unable to fill our planes in spite of low prices." Why? The one-sidedness of the offer perhaps? The targeted consumers in short supply?
Obviously there are many ways to become more attractive, not only thanks to the low prices (albeit it's important too). By differentiating the offer perhaps? By addressing some other customer groups maybe (business people fly regardless of the unattractive weather, aren't they)? By being more friendly to the surrounding world? It could be the right time to re-think a few issues, don't you think?
I don't believe FR would completely ground those 20 planes. Frankly, it would be a defeat in my eyes, like they were admitting: "We are unable to fill our planes in spite of low prices." Why? The one-sidedness of the offer perhaps? The targeted consumers in short supply?
Obviously there are many ways to become more attractive, not only thanks to the low prices (albeit it's important too). By differentiating the offer perhaps? By addressing some other customer groups maybe (business people fly regardless of the unattractive weather, aren't they)? By being more friendly to the surrounding world? It could be the right time to re-think a few issues, don't you think?
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MOL too aggresive, huh? Well, he indeed might be, nevertheless he is perfectly right in many issues no matter how he expresses his anger in public. Look at small and ugly Tampere low-cost terminal. Welcome to Finland... not the best way to enter though. Its refurbishment from an old cargo building costed between 100.000-200.000 euros and was not made for any public money, yet the EU Commission still investigates it as an alleged State aid involving Ryanair. On the other side, Alitalia's very existance has been chronically dependent on State aid for years and AZ has just been given a next loan, the sum over a thousand times higher than the money involved in Tampere. Three hundred millions of euros which is perfectly ILLEGAL, will never be payed back, but it's DOOMED TO BE TOLERATED by EU (again and again). So, what's the proportion, where is the justice here?
Concerning these planes to be grounded. Are you out of ideas, Mr. O'Leary? Do you really think "no deal - no flights"? Having just an average agreement with Tampere and some spare aircrafts, is it impossible to use them? The profit can be achieved not only due to the "marketing support". Out-of-season flights e.g. ALC-TMP-ALC might well be worth trying. People normally pay 350-400 euros for return flights even amidst the winter. Sell your tickets for a half of the sum, it will be profitable for you even without anybody's help.
Btw. I do not concieve the routes from/to Finland as a solution to FR problems, not at all (too small population here). I just give the examples from the country I know, many more such opportunities exist in other countries as well, obviously.
Concerning these planes to be grounded. Are you out of ideas, Mr. O'Leary? Do you really think "no deal - no flights"? Having just an average agreement with Tampere and some spare aircrafts, is it impossible to use them? The profit can be achieved not only due to the "marketing support". Out-of-season flights e.g. ALC-TMP-ALC might well be worth trying. People normally pay 350-400 euros for return flights even amidst the winter. Sell your tickets for a half of the sum, it will be profitable for you even without anybody's help.
Btw. I do not concieve the routes from/to Finland as a solution to FR problems, not at all (too small population here). I just give the examples from the country I know, many more such opportunities exist in other countries as well, obviously.
Last edited by pee; 23rd Apr 2008 at 10:36.
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All of this fuss about parking 20 aircraft (a little over 10%) for a few months in winter.
Ryanair buy their aircraft cheap, fly the pants off them for five years and then sell them on for more than they paid for them.
They have recently struck a deal with a large number of pilots to take most of their leave in one whole block. this will be in the winter. So, pilots, and aircraft will work hard in the summer, and not so hard in the winter. This is normal airline practice, Ryanair have just put their stamp on it to make it work better for them!
Ryanair buy their aircraft cheap, fly the pants off them for five years and then sell them on for more than they paid for them.
They have recently struck a deal with a large number of pilots to take most of their leave in one whole block. this will be in the winter. So, pilots, and aircraft will work hard in the summer, and not so hard in the winter. This is normal airline practice, Ryanair have just put their stamp on it to make it work better for them!
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Parking aircraft - I doubt it!
Ryanair are due to operate about 175 aircraft this winter. The average fleet utilization of their fleet is 6.8 sectors/day, this equates to a fleet capacity of around 1190 sectors each day this winter.
To 'park 20 aircraft involves reducing the number of sectors by 20 (aircraft) x 6.8 (sectors) this equals 136 sectors per day.
1190 (fleet capacity) -136 (reduction) = 1054 sectors which is still 6 sectors per day per every one of the 175 aircraft!!
I confidently predict that Ryanair will not actually park any aircraft this winter, but will operate a 6 sector day through the winter for each of their 175 aircraft - of course the customary spares will sit on the ground at STN and DUB which they do anyway.
A 6 sector day is still way higher winter utilization than most airlines in Europe, and Ryanair will not have the profit drain of flying loss making routes.
... But Ryanair will have effectively 'parked' 20 aircraft and in the process frightened a lot of airports, suppliers and perhaps even staff into accepting the deals that the airline needs to keep the profits high.
Smart and ruthless airline management as usual. I bet the shareholders will love it.
I wonder what deal BA has negotiated with BAA over T5, they could learn some lessons from Ryanair I suspect.
FF
To 'park 20 aircraft involves reducing the number of sectors by 20 (aircraft) x 6.8 (sectors) this equals 136 sectors per day.
1190 (fleet capacity) -136 (reduction) = 1054 sectors which is still 6 sectors per day per every one of the 175 aircraft!!
I confidently predict that Ryanair will not actually park any aircraft this winter, but will operate a 6 sector day through the winter for each of their 175 aircraft - of course the customary spares will sit on the ground at STN and DUB which they do anyway.
A 6 sector day is still way higher winter utilization than most airlines in Europe, and Ryanair will not have the profit drain of flying loss making routes.
... But Ryanair will have effectively 'parked' 20 aircraft and in the process frightened a lot of airports, suppliers and perhaps even staff into accepting the deals that the airline needs to keep the profits high.
Smart and ruthless airline management as usual. I bet the shareholders will love it.
I wonder what deal BA has negotiated with BAA over T5, they could learn some lessons from Ryanair I suspect.
FF
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Well, here we go:
And the Commission says: "We have doubts about the nature of the measures and we want to have a better understanding of the details," (the Commission spokesman Michele Cercone today).
Ryanair, Europe’s largest low fares airline, today (24th April) called on the European Commission to stop a further €300m unlawful state aid for Alitalia. Alitalia has already received over €5bn in unlawful state aid, but the European Commission, as always in the case of flag carriers, turns a blind eye and does nothing. Without such illegal state aid, Alitalia which loses almost €1m a day would have gone bankrupt years ago.
Speaking today, Ryanair’s Jim Callaghan said:
“Alitalia’s latest €300m bailout makes a mockery of EU State Aid rules. Propping up an inefficient national airline, which would have gone bankrupt long ago is simply illegal. Continued unlawful subsidies are allowing Alitalia to ignore its debts and rack up losses with abandon.
“The European Commission’s repeated failure to enforce its own State Aid rules in the case of Alitalia provides more evidence that it applies one set of rules for rule breaking flag carrier airlines but another discriminatory set of rules for Ryanair. The Commission has still failed to take any action on Ryanair’s 3 year old state aid complaints about Alitalia, Air France, Lufthansa, Olympic and Volare however it is pursuing 7 baseless investigations about Ryanair’s open pro competitive deals at tiny regional European airports.
“We are again today calling on the Commission to stop ignoring this state aid scandal and start applying end its own state aid and competition rules fairly”.
Speaking today, Ryanair’s Jim Callaghan said:
“Alitalia’s latest €300m bailout makes a mockery of EU State Aid rules. Propping up an inefficient national airline, which would have gone bankrupt long ago is simply illegal. Continued unlawful subsidies are allowing Alitalia to ignore its debts and rack up losses with abandon.
“The European Commission’s repeated failure to enforce its own State Aid rules in the case of Alitalia provides more evidence that it applies one set of rules for rule breaking flag carrier airlines but another discriminatory set of rules for Ryanair. The Commission has still failed to take any action on Ryanair’s 3 year old state aid complaints about Alitalia, Air France, Lufthansa, Olympic and Volare however it is pursuing 7 baseless investigations about Ryanair’s open pro competitive deals at tiny regional European airports.
“We are again today calling on the Commission to stop ignoring this state aid scandal and start applying end its own state aid and competition rules fairly”.
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Ryanair Cabin baggage.
Can one of you regular Ryanair users help please. A lady with one piece of cabin luggage, is she allowed to carry a handbag as well or should it be inside the baggage.
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Interesting article about the value of ryanair:
"an investor could buy Ryanair for 70 percent of what they could earn from a break-up."
http://www.reuters.com/article/reute...BrandChannel=0
"an investor could buy Ryanair for 70 percent of what they could earn from a break-up."
http://www.reuters.com/article/reute...BrandChannel=0
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Hmm.....someone I was travelling with was stopped with a handbag and trolley bag and told to combine them. The rule is confusing to say the least. Ryanair crew members are now being urged to check at the gate the size and amount of luggage with the handling agents - pax can be refused travel if they break this rule....it's not clear enough as the terms and conditions state ONE piece of hand baggage.
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Superb article!
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quote
mms://a402.v266759.c26675.g.vm.akama...0e/ryanair.wma
If ever theres a reason not to fly ryanair, this must be it, surely to god the dont punish pax with that ????
Jeez its like a flying asda now!!!!!
mms://a402.v266759.c26675.g.vm.akama...0e/ryanair.wma
If ever theres a reason not to fly ryanair, this must be it, surely to god the dont punish pax with that ????
Jeez its like a flying asda now!!!!!