Ryanair - 6
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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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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.
Last edited by eu01; 4th Jan 2009 at 09:24.
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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.
Nikolai.
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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.
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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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.
True. Nevertheless the LF's and especially yields simply MUST be better. And again, the planes are coming.
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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.
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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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.
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.
Paxing All Over The World
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.
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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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?
Nikolai
P.S
Easyjet are smaller, less aircraft, higher margins, lower reserves = not the best mix for survivability?
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FR have to reduce capacity and that is very hard.
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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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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New Dublin to Bari route