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Old 10th Jul 2010, 06:16
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Racedo
What utter tosh, perhaps it has dawned on Ryanair that they have over expanded going into the down turn when most other airline have reduced capacity

It's a bit like Gordon Brown proclaiming an end to boom and bust!! FFS it didn't pan out that way!!

Ryanair can fill aircraft with people who are willing to pay £12 to fly Byceweeztorpgdanski but not people willing to pay enough to cover the costs when the route/launch aid money runs out

If you follow MOL regular spouting (which you seem to) then he does great in a down because people are looking for a cheap deal, trouble is it isn't that cheap any more unless you travel looking like someone from a Ray Meres program wearing all your clothes and a 40 pocket smugglers jacket, I'd rather stay at home !!

Still think of the money he will make by increasing baggage fee's in July&August to change peoples travel habits( but only in those two months)

It don't think pilots will be sleeping in Airport car parks they have to pay for them!!
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Old 10th Jul 2010, 16:43
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ASFKAP

Excellent post.

Ryanair business model is very disciplined. How come people dont realise that? And give us credit?
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Old 10th Jul 2010, 18:16
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Question Dublin, Cork, Shannon cuts

IN what area will the FR cuts be made in Dublin Cork and Shannon this winter?
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Old 10th Jul 2010, 20:54
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perhaps nothing more than "Thanks Scottish executive for building me a new maintenance centre. Now, give me another million or I'll drop my PIK routes."

Whats going on is classic Ryanair. Give me a discount, or i'll drop all my routes, and to show i'm serious...

Perhaps as a double bluff the airport should respond - if less than xx flights daily, then we will close the airport.
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Old 10th Jul 2010, 22:09
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Ryanair1, any idea whats happening at BHD? Its only a single a/c base so can't really be reduced any further. What about any summer routes? I assume another aircraft and UK routes is out of the question with the taxes situation?
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Old 11th Jul 2010, 02:55
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The travel tax is just a convenient smokescreen for Ryanair to blame their current woes on while carefully avoiding mention of the real cause of all their troubles.
What specifically are you referring to as woes? The fact that they are reducing overall UK capacity this winter? So what is actually the real cause of all their troubles? Enlighten us. Remember Ryanair exists to make a profit which they achieved in their last financial year (€319m after tax) and at present expect to do so again in the current year.

If you look at the Ryanair website you'll see they're expanding at LBA after announcing there would be no further expansion in the UK until the travel tax is abolished.....unless of course LBA is exempt from the travel tax.....
I think you'll find that it's more that they're just not contracting for the winter period. Sucked in once again by the Ryanair PR you so love to hate!
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Old 11th Jul 2010, 07:03
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ASFKAP - United states of Europe.

Very insular - bit of a comedian - very large chip.

MM
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Old 11th Jul 2010, 07:49
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So-called Travel Tax

I hope everybody has not forgotten that the tax or APD call it what you like is going up to 12 pounds in November and even more for worldwide and business class. I hear some charter airlines on long haul are withdrawing some of their premium class because passengers will not pay the increase. One easy solution - when going further afield interline to Amsterdam/Paris/Frankfurt/Madrid etc. and just pay 12 pounds.
The tax will not go because UK Limited is broke and the Government needs every penny it can get its hands on.
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Old 11th Jul 2010, 09:13
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Lets not forget that Germany is also adding a travel tax.

Economies that need tourism to survive, like spain and portugal will not add a tourism tax as they need as many passengers as they can get.

Countries that provide tourism, like Scandinavia, Germany, Belgium, UK & Ireland will have a travel tax.

Michael also calls it a tourist tax - to wind up the 'little people' perhaps?
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Old 11th Jul 2010, 10:29
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Countries that provide tourism, like Scandinavia, Germany, Belgium, UK & Ireland will have a travel tax.
These country are not only outbound tourism, there is also a lot of inbound tourism
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Old 11th Jul 2010, 10:48
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Thats callled immigration or economic migration - here !!

MM
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Old 11th Jul 2010, 15:58
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cesare - you are correct that places like Scandinavia and UK get a lot of ibound tourists. However, if the residents of a particular country spend more on holiday than inbound tourists, then the country as a whole is a net loser from tourism, and thus an aviation tax of (e.g.) EUR 15 will decrease the magnitude of the net loss to the country
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Old 11th Jul 2010, 16:04
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Regarding taxes it seems that Spain will intoduce a "tourist tax" for canarians flights (source local newspapers)
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Old 12th Jul 2010, 10:25
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ASFKAP, I mentioned the tax because that is why they say they are not expanding in the UK. If you look at the LBA base apart from Dublin there isn't a single UK/Ireland route - Ryanair are only interested in expanding into Europe and to countries who are making concessions on charges e.g. Spain, Portugal taxes etc. Like it or not, thats how its going. If they start increasing charges, he'll go elsewhere and so it continues. I know everyone on here would love to see Ryanair go bust or whatever else, but believe it or not there is great demand for alot of these services, especially inter-europe routes e.g. between France, Italy, Portugal etc where historically its been high fares and flag carriers.
The numbers of pax I have flown of late has been unbelievable, I can honestly say I haven't flown an aircraft with less than 120pax, I keep a record and the average is 162 (apart from 1 or 2) for at least the past 6 months. This is including a lot of 6 sector days. Obviously we dont know the yield on these but make no mistake - Like them or hate them, Ryanair is expanding and making serious amounts of cash! 319Million Eur is an incredible performance while getting 2/3 new planes a month and in the middle of a recession.
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Old 12th Jul 2010, 12:42
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"Remember Ryanair exists to make a profit which they achieved in their last financial year (€319m after tax) and at present expect to do so again in the current year."


you are right. But you know why? Because the oil price dropped, so they spend exactly 300 million euros LESS for fuel. Voila, there is they so called "profit". Revenue per passenger is declining, anc. revenue is declining, average ticket price is declining, crew salary is declining etc. So there is no real profit.
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Old 12th Jul 2010, 15:40
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I know everyone on here would love to see Ryanair go bust or whatever else


Don't talk nonsense, not "everyone" wants them to go bust!

Even if there are people who don't care much for MOL or Ryanair's practices / "public relations" etc, I think a lot of us would take no pleasure from seeing employees thrown on the dole.

Anyway, it is not very likely that Ryanair will go "bust", even in these difficult times.
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Old 12th Jul 2010, 16:36
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ASFKAP

The people running Ryanair are FAR too clever for you -
give it up and spend your time doing something better.
Your argument is unsustainable by the facts - so move
on - theres a good chap.

MM
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Old 12th Jul 2010, 16:52
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ASFKAP
The people running Ryanair are FAR too clever for you -
give it up and spend your time doing something better.
Your argument is unsustainable by the facts - so move
on - theres a good chap.
Dude what is your religious attachment to this outfit? Please try and understand the genuine criticism that people have here. They're actually NOT that clever in that they have little sophistication. If the market doesn't fit their B737-800 they bugger off. They are not nuanced, they are merely cash powerful. They can carry a vast volume of people but only by grinding their suppliers into the ground, our ability to fly at silly prices is paid for the people on the ground who work for this "company".

Tell me Mickey, once Ryanair have screwed over every airport in Europe and the intial discount deals run out and there's nowhere new to go, what next? Assume they'll all do a Valencia and come crawling back with more taxpayer subsidy? Look at what's happening in Bournemouth right now. That's not right in anyone's book, business or no business.

The reason I ask is that Ryanair have walked away from mature markets that they could not sustain. If they can't maintain a mature market once the initial period of freebies runs out, given the finite number of new desperate airports out here, what do you see as the medium term challenge to the business model that can't maintain a mature market without unrealistic discounts and subsidy?

I'm something of a Ryanair fan Mickey but you gotta engage in the argument here. The amount of chopping and changing isn't going to be sustainable once the market continues to mature.

Last edited by Skipness One Echo; 12th Jul 2010 at 17:37.
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Old 12th Jul 2010, 17:20
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you are right. But you know why? Because the oil price dropped, so they spend exactly 300 million euros LESS for fuel. Voila, there is they so called "profit". Revenue per passenger is declining, anc. revenue is declining, average ticket price is declining, crew salary is declining etc. So there is no real profit.
You do realise how idiotic thst is ?
You either make a profit or a loss, Ryanair made a substantial profit when pretty much rest of the industry was losing money./

Love to see you analysis of the airlines who made a loss even when fuel prices dropped.

Number of passengers in last financial year was up lets was it 7-8 million...........funny how you ignore that. Its strategy of holding down prices to grow volumes is pretty much standard in growing businesses but hey what do they know as they only make millions a year.
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Old 12th Jul 2010, 17:47
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Ryanair made a substantial profit when pretty much rest of the industry was losing money.
On the face of it's that's damned impressive. My question is to sustainability and just how much of Ryanair is underpinned by dimwit regional politicians p***ing someone elses money up a wall at Ryanair.

Look at Prestwick's new maintenance hangar. Basically the Scottish Government is bribing M'OL with my own money (!) When you're playing that kinda gane in the free market you gotta start asking soime serious questions.

Look at where Ryanair have been for a while and what's happening. I think the market is self correcting.

Dublin - mature market - little growth - "government's fault / DAA's fault"
Shannon - dumped - DAA's fault
Stansted - no growth - mature market - BAA's Fault / HMG's fault
Bournemouth - semi dumped
Manchester - mature market - wouldn't lube up for the Ryanair lovin' - semi-dumped -MAN PLC's fault

There's a pattern storing up trouble if you look close enough. The much vaunted economic benefits of Ryanair are just PR claptrap.

Look at Prestwick - reduced to bucket n spade traffic that GLA had years ago - city routes dumped.

Taking the UK and Ireland as a whole, we're caring less and less as the bluster has less and less impact on each iteration.

How much money do the above airports make out of Ryanair? Answer - virtually NONE. They have to allow the likes of WHSmith to charge the punters £££s for the basics once trapped airside to make back the money they lose on Ryanair ops. This is proving to be a sound business model for today but as to sustainable? I doubt that very much.
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