Ryanair - 7
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Glad for Boeing - it felt very strange to see the sale of 737s being treated like the sale of a job-lot of fridges.
That said, I was strangely proud of Ryanair for boasting such an enormous order in such difficult times. I'm beginning wonder, however, if the order was just a bit of bravado.
That said, I was strangely proud of Ryanair for boasting such an enormous order in such difficult times. I'm beginning wonder, however, if the order was just a bit of bravado.
Join Date: Mar 2007
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I believe they do buy them through a secondary 'Ryanair' company but they sell them through the same. As I understand it they, to this point, have not made a loss on their aircraft re-sale relative to purchase price. Average fleet age is 2.8 years, they are still pretty new on re sale and he really did get a very good price for them just after 9/11 - something like a third of standard cost.
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Airbus won't stoop to bag MOL
Airbus appears uninterested in trying to step in, with Chief Operating Officer John Leahy telling Bloomberg: "I would have no problem selling aircraft to O'Leary at reasonable prices, but I have not seen anything reasonable from him."
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I'm truly amazed that Boeing have not properly screwed FR before now. If I didn't know any better, I'd say that FR are totally committed to 737/800's and any change would be so expensive it not be worth considering. Therefore if I was Boeing I'd price my product just a few pence less than the comparative Airbus product and have a party with the cash that would be generated. But there again, what do I know...
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Such bad grace. How many of you have had the means (not dreams) of buying 200 Boeings?
I don't fly with them myself, but I think I'll buy myself a present of a few more Ryanair shares for Christmas.
I don't fly with them myself, but I think I'll buy myself a present of a few more Ryanair shares for Christmas.
Join Date: Aug 2007
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How does that work then? You agree a price but then say, oh actually I want a bit more thrown in! What?
Join Date: Oct 2003
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This could be fun...
Boeing needs the order and sell aircraft in today's tough economic climate, but at the same time FR's leverage in shopping somewhere else (i.e. Airbus) is somewhat limited...
I seriously hope that Boeing won't budge.
p.s. as bit of a contrarian strategy, Boeing might actually prefer to weaken low-cost airlines a bit (by making them pay more for their aircraft) as this in turn will increase their operating costs and thus allows traditional airlines a better chance of earning money...to pay for 787's and 74-8's with a higher profit margin. Why subsidize the fox (selling aircraft at a loss/zero profit) that attacks the goose laying the golden eggs? Perhaps Airbus and Boeing have finally figured it out?
I seriously hope that Boeing won't budge.
p.s. as bit of a contrarian strategy, Boeing might actually prefer to weaken low-cost airlines a bit (by making them pay more for their aircraft) as this in turn will increase their operating costs and thus allows traditional airlines a better chance of earning money...to pay for 787's and 74-8's with a higher profit margin. Why subsidize the fox (selling aircraft at a loss/zero profit) that attacks the goose laying the golden eggs? Perhaps Airbus and Boeing have finally figured it out?
Join Date: Oct 2006
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Lleida airport
For those interested the new airport at Lleida (Lerida) is due to open for business on 17 January 2010 so I would think Ryanair are being ´paid` to operate their four weekly flights to get things moving so to speak.
This account of "buying them cheap to sell them on and make a profit" is rather overblown.
Ryanair have 203 737's in the fleet at the moment, with another 109 firmly ordered and still to come. They have only ever sold 25 737-800s, the oldest ones, beginning just over two years ago. These were the first 737-800s they bought, aircraft about 7 years old, and they are trickling out at about one a month, far less than their current delivery rate. There are a number of other carriers who do the same "rollover" of 7-year old aircraft. Most of the ex-Ryanair aircraft have moved on to third-world/Eastern European secondary carriers, who are unlikely to pay high prices for them. In fact Boeing must be doing quite well in supplying aftermarket spares and support for them.
The spartan interior spec that Ryanair adopted after the first few years of 737 deliveries (no seat pockets, no window blinds, etc) will make the more recent aircraft distinctly more difficult to move on secondhand compared to other sources, without the purchaser spending quite a bit on a cabin refurb, which will depress their value further.
No, Ryanair don't want a lot more aircraft, and they don't want to get into buying and selling en masse. Michael O'Leary said that if he couldn't agree a good deal he would reduce growth and return funds to the shareholders. My own hunch is that Bonderman has told him to do exactly this before it becomes more difficult for TPG to get back some of their investment, and the whole "another 200 aircraft, oh no, well we will just have to give the money back then, it's all Boeing's fault" is a cover story for this.
I hope Boeing didn't waste the time of their A-team on this "sales deal that never was".
Ryanair have 203 737's in the fleet at the moment, with another 109 firmly ordered and still to come. They have only ever sold 25 737-800s, the oldest ones, beginning just over two years ago. These were the first 737-800s they bought, aircraft about 7 years old, and they are trickling out at about one a month, far less than their current delivery rate. There are a number of other carriers who do the same "rollover" of 7-year old aircraft. Most of the ex-Ryanair aircraft have moved on to third-world/Eastern European secondary carriers, who are unlikely to pay high prices for them. In fact Boeing must be doing quite well in supplying aftermarket spares and support for them.
The spartan interior spec that Ryanair adopted after the first few years of 737 deliveries (no seat pockets, no window blinds, etc) will make the more recent aircraft distinctly more difficult to move on secondhand compared to other sources, without the purchaser spending quite a bit on a cabin refurb, which will depress their value further.
No, Ryanair don't want a lot more aircraft, and they don't want to get into buying and selling en masse. Michael O'Leary said that if he couldn't agree a good deal he would reduce growth and return funds to the shareholders. My own hunch is that Bonderman has told him to do exactly this before it becomes more difficult for TPG to get back some of their investment, and the whole "another 200 aircraft, oh no, well we will just have to give the money back then, it's all Boeing's fault" is a cover story for this.
I hope Boeing didn't waste the time of their A-team on this "sales deal that never was".
I hope that with RYR having said no to the original price, Boeing now up the price!
I don't dislike RYR for being successful, I just detest their arrogant attitude. Some may say that's what's needed to succeed. I don't believe so. Southwest Airlines have succeeded thirty odd years and they managed by being fiercely competitive but never arrogant.
I don't dislike RYR for being successful, I just detest their arrogant attitude. Some may say that's what's needed to succeed. I don't believe so. Southwest Airlines have succeeded thirty odd years and they managed by being fiercely competitive but never arrogant.
Join Date: Apr 2006
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2nd Based aircraft announced for BOH
RYANAIR ANNOUNCES 4 NEW ROUTES FROM BOURNEMOUTH
to Fuerteventura, Ibiza, Malta & Valencia From March ‘10
2 Aircraft, 650k Pax p.a. & 650 Jobs at Bournemouth
Ryanair, the world’s favourite airline, today (18th Dec) announced that it will add one new Boeing 737-800 aircraft (2 in total) and open four new routes (16 in total) from its Bournemouth base to Fuerteventura, Ibiza, Malta and Valencia from late March 2010. This brings Ryanair’s investment in Bournemouth to two aircraft worth over $140million.
These four new routes along with increased frequencies on three other routes to Alicante, Malaga and Palma will increase Ryanair’s annual traffic at Bournemouth to 650,000 p.a. which will sustain 650 local jobs.
To celebrate its further expansion at Bournemouth Ryanair is extending its 500,000 £5 January seat sale, for travel on Tuesdays, Wednesday and Thursdays, until midnight Sunday (20th Dec) on www.ryanair.com .
Speaking in Bournemouth today, Ryanair’s Lesley Kane said:
“Bournemouth today celebrates its 2nd Ryanair based aircraft, four new routes to Fuerteventura, Ibiza, Malta and Valencia and increased frequencies on three other routes to Alicante, Malaga and Palma from late March 2010. These new flights go on sale today and with 16 low fare routes from Bournemouth consumers/visitors can continue to beat the recession by choosing Ryanair’s lowest fares and guaranteed no fuel surcharges to exciting destinations all over Europe. Ryanair’s 650,000 passengers p.a. will sustain 650 local jobs in Bournemouth in 2010.
To celebrate these new aircraft and routes at Bournemouth, Ryanair is extending its 500,000 £5 January seat sale to midnight Sunday. Since seats at these crazy low prices will be snapped up quickly, we urge passengers to book them immediately on www.ryanair.com”.
New routes
Route
Begin
Freq (pw)
Fuerteventura
1st April
2pw
Ibiza
30th March
2pw
Malta
30th March
2pw
Valencia
2nd April
2pw
Increased frequencies
Route
Freq (pw)
Alicante
5pw
Malaga
5pw
Palma
4pw
to Fuerteventura, Ibiza, Malta & Valencia From March ‘10
2 Aircraft, 650k Pax p.a. & 650 Jobs at Bournemouth
Ryanair, the world’s favourite airline, today (18th Dec) announced that it will add one new Boeing 737-800 aircraft (2 in total) and open four new routes (16 in total) from its Bournemouth base to Fuerteventura, Ibiza, Malta and Valencia from late March 2010. This brings Ryanair’s investment in Bournemouth to two aircraft worth over $140million.
These four new routes along with increased frequencies on three other routes to Alicante, Malaga and Palma will increase Ryanair’s annual traffic at Bournemouth to 650,000 p.a. which will sustain 650 local jobs.
To celebrate its further expansion at Bournemouth Ryanair is extending its 500,000 £5 January seat sale, for travel on Tuesdays, Wednesday and Thursdays, until midnight Sunday (20th Dec) on www.ryanair.com .
Speaking in Bournemouth today, Ryanair’s Lesley Kane said:
“Bournemouth today celebrates its 2nd Ryanair based aircraft, four new routes to Fuerteventura, Ibiza, Malta and Valencia and increased frequencies on three other routes to Alicante, Malaga and Palma from late March 2010. These new flights go on sale today and with 16 low fare routes from Bournemouth consumers/visitors can continue to beat the recession by choosing Ryanair’s lowest fares and guaranteed no fuel surcharges to exciting destinations all over Europe. Ryanair’s 650,000 passengers p.a. will sustain 650 local jobs in Bournemouth in 2010.
To celebrate these new aircraft and routes at Bournemouth, Ryanair is extending its 500,000 £5 January seat sale to midnight Sunday. Since seats at these crazy low prices will be snapped up quickly, we urge passengers to book them immediately on www.ryanair.com”.
New routes
Route
Begin
Freq (pw)
Fuerteventura
1st April
2pw
Ibiza
30th March
2pw
Malta
30th March
2pw
Valencia
2nd April
2pw
Increased frequencies
Route
Freq (pw)
Alicante
5pw
Malaga
5pw
Palma
4pw
Join Date: Mar 2005
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The situation in Europe is different.
I think that well run low cost carriers, that is RYR, EZY and Air Berlin, have managed to umbalance the whole sector.
It's like the english longbows against the french armored knights in Crecy or Asincourt. They wiped out 90% of the french noblemen in a couple of battles.
The old airlines can't turn into low cost carriers, though they would love to. There is no way to fight back them. This umbalance is agravated by the lack of borders in the UE.
I wonder when will some balancing forces come into play. Years, decades...?
I think that well run low cost carriers, that is RYR, EZY and Air Berlin, have managed to umbalance the whole sector.
It's like the english longbows against the french armored knights in Crecy or Asincourt. They wiped out 90% of the french noblemen in a couple of battles.
The old airlines can't turn into low cost carriers, though they would love to. There is no way to fight back them. This umbalance is agravated by the lack of borders in the UE.
I wonder when will some balancing forces come into play. Years, decades...?
Join Date: Aug 2004
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Stockmarket likes end of rapid growth for FR
At some point everyone stops growing. The end of rapid growth at Ryanair marks a big change for FR that will be "grown up". If FR keept growing it would run out of pax to feed ever growing needs.
The shareprice is up 6% which shows the market think it is a good outcome. I think the killer to growth has been the need to reduce fares by 10% to fill up each 10% extra capacity.
Ryanair could no longer blackmail boeing or airports to do below cost deals.
other airlines could be helps by the end of aggressive growth of FR that often leads to massive job losses at other airlines.
The shareprice is up 6% which shows the market think it is a good outcome. I think the killer to growth has been the need to reduce fares by 10% to fill up each 10% extra capacity.
Ryanair could no longer blackmail boeing or airports to do below cost deals.
other airlines could be helps by the end of aggressive growth of FR that often leads to massive job losses at other airlines.
Join Date: Apr 2008
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Avman
This sort of assertion has been made several times on different forums but do you actually incontravertibly KNOW that Southwest haven't similarly "screwed" Boeing or,for that matter,airports which FR are frequently described as doing, 'cos I certainly don't?
This sort of assertion has been made several times on different forums but do you actually incontravertibly KNOW that Southwest haven't similarly "screwed" Boeing or,for that matter,airports which FR are frequently described as doing, 'cos I certainly don't?
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slowing growth, not stopping growth
We are still taking delivery of over 100 aircraft over the next three to four years we are not stopping growth, we are slowing it down. The % we grow will of course naturally slow as the baseline capacity rises.
Join Date: Jun 2009
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Well done Boeing. More and more Companies and Airports are standing up to RYR and their bully boy, I'm god's gift, you can have my business if I let you, arrogant tactics.
Aggressive business tactics apply to all successful companies. Do you go to the petrol station and negotiate the price, or accept BP's and Shell's arrogant tactics ??? What about banks ? Energy providers ? The list goes on...
"We raped them"
When Ryanair's charming little CEO appeared on TV crowing about how Ryanair had 'raped' Boeing with its last aircraft order, no doubt the word soon got back to ol' Bubba Boeing.
Who vowed "Next time you won't be so b£oody cocky".
Airbus have told Ryanair on many occasions that they won't get anything for less than anyone else - and appear to have done so once more. Now Boeing appears to have taken the 'Valued customer, but not that valuable really' approach as well. Good.
Tough luck MoL. If you're looking for sympathy, you'll find it in the dictionary - between $hit and syphilis.....
Incidentally, there are some cracking deals available on legacy carriers these days - just take a look around all the Internet websites!
Who vowed "Next time you won't be so b£oody cocky".
Airbus have told Ryanair on many occasions that they won't get anything for less than anyone else - and appear to have done so once more. Now Boeing appears to have taken the 'Valued customer, but not that valuable really' approach as well. Good.
Tough luck MoL. If you're looking for sympathy, you'll find it in the dictionary - between $hit and syphilis.....
Incidentally, there are some cracking deals available on legacy carriers these days - just take a look around all the Internet websites!