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Old 4th Jan 2009, 08:24
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Ryanair has lost it. Most money per seat comes from those who book at the very last minute. Just look at the prices for flying out in the morning of the first proper working day of the year. It shows a lack of high fares. The only ones flying are the ones paying less than £20/seat. The Q3 results are not going to be good but the outlook is going to be dreadful. The new planes coming have to go somewhere and MOL option of buying is way out of trouble is going wrong.
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Old 4th Jan 2009, 08:44
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Tomorrow we'll hear the Q3 results.
Given Q3 ended on 31st of December I'm happy to have a big bet that you won't get results until February.
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Old 4th Jan 2009, 09:13
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Originally Posted by racedo
Given Q3 ended on 31st of December I'm happy to have a big bet that you won't get results until February.
Oops, you are right, of course. Tomorrow just December traffic figures will be published, sorry.
Originally Posted by befree
the outlook is going to be dreadful. The new planes coming have to go somewhere and MOL option of buying is way out of trouble is going wrong.
To get going, FR has to fight for the passengers of the legacy carriers, no alternative in sight. The airline is, however, very ill prepared to it. All these neglected marketing tools are still not in use, the higher-priced connecting flights (to get a chance to compete) still missing. A very fast and radical switch of policies could still help, I guess, but the (right) decisions must be taken immediately.

Last edited by eu01; 4th Jan 2009 at 09:24.
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Old 4th Jan 2009, 10:22
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How much cash is Ryanair holding now.
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Old 4th Jan 2009, 12:56
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I highly doubt that Ryanair are going bankrupt anytime soon. From where I am from, Poland - Some people would run the length of the runway naked for a cheap ticket, when LOT charge the world for a fare to London, and Ryanair charge £50!!! Every Ryanair flight to/from Poland was FULL.

Nikolai.
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Old 4th Jan 2009, 13:12
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Cool

EBIT will undoubtedly be down for H2, but the Harp will continue unabated. In the current economic climate those that cut their cloth accordingly and have a strong financial background will survive. Their cost base and associated £cost/pax mile is the lowest in the Industry - MOL will ride out this storm.

If I was managing an airline right now, I'd sleep much better being a director in Ryanair than I would if I held the same position in WW or EZ.
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Old 4th Jan 2009, 13:17
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He looked ultra-slim -- some might say gaunt.
What a no-news tabloid article! It's all hearsay and speculation, and doesn't seem very independent in its analysis.
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Old 4th Jan 2009, 13:52
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Originally Posted by frnikolai
I highly doubt that Ryanair are going bankrupt anytime soon. From where I am from, Poland - Some people would run the length of the runway naked for a cheap ticket, when LOT charge the world for a fare to London, and Ryanair charge £50!!! Every Ryanair flight to/from Poland was FULL.
Nikolai! Ryanair are NOT going bankrupt anytime soon. However, the speed of their expansion will be dwarfed by the current economic situation and, in my opinion, they will have to pay for the one-sideness of the firm's marketing policy. People from Poland would run naked? Some of them, perhaps. But they are mostly poor people representing the working class (UK-PL routes). The carrier should try to address much broader spectrum of potential customers, to see some progress. Btw., even the Polish routes will suffer from the current economic downtrend.

Originally Posted by Stall-Warner
Their cost base and associated £cost/pax mile is the lowest in the Industry - MOL will ride out this storm.

If I was managing an airline right now, I'd sleep much better being a director in Ryanair than I would if I held the same position in WW or EZ.
True. Nevertheless the LF's and especially yields simply MUST be better. And again, the planes are coming.
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Old 4th Jan 2009, 13:56
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WW or EZ can return planes at the end of leases and slim but FR has lots more planes coming. it normaly sells on its planes to be used for the likes of BIMbaby. The downturn removed FRs option to sell planes at a profit after 3-5 years so MOL has a double hit. FR can fill the planes with loss making PAX for the whole year but it will take its toll on the airlines cash pile.

Look at the how it works FR sells 70 seats at £10, 70 seat at £20 and 10 seats at £100 and 10 seats at £200. 140 seat sold for £5100. If you lose 10 pax and pax pays 70 seats at £10, 70 seat at £20 and 10 seats at £100 the income is now only £3100.

looking at a few flights for travel tommorrow and it is the £200 seats that have gone. FR have to reduce capacity and that is very hard.
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Old 4th Jan 2009, 14:25
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Are you Polish? Well, I am and I have my little brother (8) and little sister (6) with my here in London, and for me to get to the UK with them - I would run naked.

Yes we are poor, and I hope you are not becoming insulting about classes and social status...

Ryanair will keep expanding, as people still need cheap flights - it is just going to change slightly.

If they introduced incentives for frequent flyers - then they would have more seats filled.

Easyjet probably will survive this Credit Cunch but, afterwards it may be too late. Ran out of reserves, no real low cost margins, driven too far away.

I think it will be just Ryanair, Lufthansa, Airfrance left afterwards. With the rest merged or bankrupt.

Ryanair just needs to be careful with extra charges, £50 for me to check in a bag when travelling with my younger siblings. £30 to pay with my Mastercard. = £80? That is just too much. I would pay £25 for the bag and £10 for the handling fee. But I have no choice, as even adding these extra charges - LOT are too expensive, likewise with Easyjet.

I think they are going to continue expanding and growing even in this difficult time.
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Old 4th Jan 2009, 14:26
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FR had 45 planes on lease as at last half year results.
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Old 4th Jan 2009, 16:10
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erm believe me easyjet has far less to worry about than ryanair!!!the big orange wont be going anywhere anytime soon
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Old 4th Jan 2009, 16:14
  #3193 (permalink)  
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FR get a lot more than just the £10 from the seat sale - and their financial model is likely to continue to work well during this deep recession. Of course they will not be immune and may have to get clever with some of the a/c but they have been very clever before.

If MoL's appearance really has changed that much in three months then it is unlikely to be stress about the EI situation as that takes longer to show through. Also, MoL has come through many stressful times in recent years. Time will tell if the paper is muck raking.
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Old 4th Jan 2009, 16:32
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Well, that's the picture of MOL (and his wife) taken just a week ago:

Kind of off-topic, but you can make your own conclusions.
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Old 4th Jan 2009, 16:33
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Maybe he just lost weight??? Has that not appeared to anyone? He might be working out???

Nikolai

P.S

Easyjet are smaller, less aircraft, higher margins, lower reserves = not the best mix for survivability?
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Old 4th Jan 2009, 16:42
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FR have to reduce capacity and that is very hard.
I bet they could continue the expansion at the present speed, but only under certain conditions. They have to get more passengers willing to pay more for the flights. Why not continue selling 70-80% of seats very cheaply, many people do need them, as affirmed above. But in order to serve the passengers in the vicinity of numerous minor airports in FR network, it's pointless to offer them just cheap point-to-point flights. These passengers are ready to pay almost the same amount of money they pay to LH, SAS, Air France just to be able to travel using more suitable and more diverse connections therefrom. But, of course, not limited just to a couple of selected destinations they are being offered. That's the Ryanair's chance (still unacknowledged by MOL). These pax are not so price-sensitive, they can fill some of the "free seats" paying reasonable money. For their sake it could become even acceptable to introduce FR connecting flights to Amadeus or alike (yes, paying the comissions) - in order to get them aboard.

As I said before, it would require re-modelling of the entire FR concept. But with the wise planning, it's possible. I've envisaged HHN as such a central airport where flights from every destination meet. Such a hub function would also improve the financial situation of the airport, the transferring passengers would provide money, the airport would not be forced to introduce any additional charges as it's probably going to happen now. Regrettably, HHN appears to be the next place for FR to burn the bridges. Quo vadis, Ryanair?

P.S. I know the opinions of many. It's not the FR model. MOL prefers just the simple cost-effective solutions, the frills like connecting flights do not fit at all. Maybe, but the limits of this system are now becoming more apparent than ever. The enterprise always has to be flexible and at times some very radical approaches are simply unavoidable.
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Old 4th Jan 2009, 17:36
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With the downfall of AZ, maybe FR could expand further in Bergamo (flights to Eastern Europe & Balkans, Greece, Turkey etc) - Could have an extra 3/4 aircraft there. Further expansion in EE with hub in either Poland or Riga, or with traditional 'sun' destinations.
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Old 6th Jan 2009, 15:13
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New Dublin to Bari route

Plus some old routes pushed out the booking engine

News - 2009-01-06 Ryanair
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Old 6th Jan 2009, 15:28
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Dublin to Bari is a one off for WC2010 qualifiers.
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Old 6th Jan 2009, 15:30
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Pax numbers in Dec were 4.37m up 11% v Dec 07, with load factor of 79% unchanged from 07 with total numbers for year of 57.7M a load factor of 81.5%.
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