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Ryanair - 9

Old 22nd Feb 2014, 17:23
  #1981 (permalink)  
 
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Refer to CAA

I would have thought that the Stansted authorities should have referred both Ryanair and Swissport to the CAA as not fit for purpose!
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Old 22nd Feb 2014, 18:11
  #1982 (permalink)  
 
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Not a chance. FR are STN's biggest customer by miles. Given how fickle FR are with their bases after a long history of leaving over relatively minor slights and charges, it would be suicide for STN to come down hard on FR
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Old 23rd Feb 2014, 09:01
  #1983 (permalink)  
 
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As has been mentioned elsewhere, the EU this week has made a decision as to what state-owned regional airports can or can't do with regards to Govt money subsidising airport operating losses and investments
EUROPA - PRESS RELEASES - Press release - Speech: Introductory remarks on new guidelines for state aid to airports and airlines
http://ec.europa.eu/competition/publ...014/002_en.pdf

Ryanair seems to fly to these airports more than most airlines. Anyone care to suggest how this will impact Ryanair's flying and business model ?
My guess is
- Most constrained airports - Charleroi, Beauvais and Bergamo
- Constrained but not quite so much - Eindhoven, Girona, Hahn and Skavsta

I'm sure the 10 year transition period for airports with between 700,000 and 3m pax will have an effect but I haven't figured out what it'll be exactly - probably incentivises managers at these airports to look at the following options:
a) go all out for high growth in the hope of making profits based on high pax volumes
b) raise airport charges to keep pax numbers at no more than 699k per year and avoid EU constraints
c) raise airport charges so that airlines are no longer subsidised by the taxpayer
Airports in this category might include some of:
Santander, Reus, Malmo, Goteborg (GSE only, not GOT), Kaunas, Memmingen, Baden-Baden, Weeze, Bremen, Trieste, Alghero, Trapani, Brindisi, Treviso, Knock, Prestwick

Additionally one needs to think about the stability of these rules and the capacity of elected politicians to influence these rules. Will these rules be fixed forever or is it more likely that in about 8 years time someone at EU will decide to alter them slightly based on a changed competitive environment within the airline industry ?

Of course, if an airport can bring in 5m passengers per year, it should be more than capable of running at a profit.

Anyone else have comments or insight on this ?

Last edited by davidjohnson6; 23rd Feb 2014 at 13:58.
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Old 23rd Feb 2014, 12:08
  #1984 (permalink)  
 
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Ryanair should consider a change in its policy concerning the connecting flights. Having so many small airports in the network they should provide all of them with regular (daily) morning- and evening flights to one selected bigger airport in Europe. These flights should be engineered to enable all possible connections thus binding numerous destinations in Europe. It would have true sense to many otherwise "dying" airfields, giving the local communities true reason to support Ryanair.
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Old 23rd Feb 2014, 23:49
  #1985 (permalink)  
 
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Many thanks to DJ6 for posting the links.

It's clear that a number of airports will never cover the operating costs and are within the catchment area of other airport that will, and without wishing in anyway to upset people who's passion is their local airport, do we really need DTV,BPL or Doncaster, like wise PIK ?

We are fortunate in the UK that most airports are privately run, but the recent trend of Scotland & Wales buying airports at PIK & CWL is worrying, more so for Scotland that has other airports in its catchment area

Many low cost airlines have been masterful at gaining maximum advantage from airports that have been willing to stump up cash to increase passenger numbers, but this often is short lived, I don't blame or criticises them for this, there are lots of places I would like to visit, but probably not go back to, Prestwick for one, Cardiff for another.

There is of course a need for airllinks to remote regions but these are not going to see easyJet or Raynair twice a day, maybe an Eastern service daily at best and these should be publicity funded if required to maintain the links.

10 years is way too long to get a grip of this, five would be generous, more EU fudge

Last edited by Facelookbovvered; 25th Feb 2014 at 06:42. Reason: typo
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Old 25th Feb 2014, 07:27
  #1986 (permalink)  
 
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Quote from MoL himself?
What was your worst travel experience?
Without a doubt, it was a trip to Bucharest back in the early days of Ryanair. Travelling in those Eastern Bloc countries before the fall of communism was an ordeal. You could only get in to Romania if you were travelling on business, and we were leasing a load of BAC-111s from the national airline, TAROM.
For some unexplained reason our flight was diverted to Timișoara and then… well, people talk about Ryanair’s customer service ethos, but this took the biscuit. We landed at midnight and were marched silently into the terminal building by machine gun-toting guards. They locked the doors, turned off the lights and left us there all night.
The following morning, without anyone telling us where we were going, we were marched onto a bus, then on to a train to endure a six-hour trip to Bucharest – itself a dreadful place to visit. Back then, all foreigners were put into the Intercontinental Hotel. In those days there were no lights, the food was atrocious, the beer even worse, and it was full of hookers and God knows what else.
I've never had a beer that was full of hookers!
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Old 25th Feb 2014, 08:56
  #1987 (permalink)  
 
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There a reason there is a '','' present, he's talking about Bucharest itself.
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Old 26th Feb 2014, 21:56
  #1988 (permalink)  
 
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Ryanair to fly passengers to US for under £10 - Telegraph

Michael O’Leary, the airline’s chief executive, told the Irish Hotels Federation conference in Meath yesterday that he would offer tickets to New York and Boston for €10 (£8.20). Flights back to Europe would cost €7.30.

However, he admitted that passengers would pay extra for everything from meals to baggage.

The flights would leave from up to 14 major European cities to 12-14 destinations in the US.
Been kissing the Blarney Stone, Michael? And yet ......... everything he's done so far has been successful if one measures passenger volumes rather than satisfaction as a measure of success, but sooner or later he's going to take a wrong turn, and this might be it. Or maybe it's just another publicity stunt.
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Old 26th Feb 2014, 22:13
  #1989 (permalink)  
 
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I could see it happening if the range on the 737 max is up to scratch. Feed everybody through Shannon on this side, pre clear them and fly them to less mainstream airports in the north eastern U.S.
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Old 27th Feb 2014, 00:38
  #1990 (permalink)  
 
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In 2007, MOL was talking about Ryanair flying from Europe to Islip on Long Island, close to NYC. That was almost 7 years ago. We've had a deep recession and FR have had ample chance to pick up widebody aircraft while other carriers were shrinking or going bust. As far as I can tell, FR have done very little to put Ryanatlantic into reality, besides talking in 2008 at a press conference about bl-w j-bs in business class.

I'll believe this when the aircraft order is confirmed.
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Old 27th Feb 2014, 05:35
  #1991 (permalink)  
 
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Davidjohnson6

I would have agreed with your comments about FR and it's transatlantic ambitions, but I think it's competitors dipping there toe in the water could force his hand, Norwegian for example ... They also have set up shop in Ireland to headquarter their long haul business, if they (however unlikely) decided to do a Dublin USA flight FR may feel compelled to respond. Moreover, if one if FRs lo cost competitors got long haul right and make it pay it could be a game changer.

Westjet coming across on a 737 may also show the potential . All that said MOL will watching with interest as to how Norwegian perform on these new routes . If FR wanted to enter this space the lead time is large for appropriate aircraft .... Unless of course it was 737 op to the cities on the Eastern Seaboard of the US ...
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Old 27th Feb 2014, 07:35
  #1992 (permalink)  
 
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Originally Posted by Capetonian View Post
Or maybe it's just another publicity stunt.
Surely not?

Perhaps closer to the truth, reported comments from about-to-retire Michael Cawley, speaking in Shannon yesterday:
At a Shannon Chamber of Commerce business breakfast at Dromoland Castle yesterday, Michael Cawley also poured cold water on the airline’s transatlantic plans and admitted that last year the airline “lost families in a big way” on its routes.

On press reports yesterday morning concerning Michael O’Leary talking about possible €10 Ryanair fares to the US, Mr Cawley said that his boss had given him ‘a hospital pass’ talking about the €10 fares to America.

Mr Cawley said: “I can say whatever I want because I’m leaving in four weeks' time, but the so-called ‘Ryanair transatlantic project’ is not something that sits within Ryanair as such.”

He said: “There is a business there of a low-cost option possible from many secondary airports around Europe.”

However, Mr Cawley identified challenges to Ryanair mounting any transatlantic business including immigration, licences and not having the advantage of a 25-minute turnaround time.

He said: “It is something that we haven’t worked on for a long time, it is something that is there. At some stage there was enthusiasm for it, but now we are so busy immersed in allocating the 175 new aircraft we have around Europe there is just no time for it.

Mr Cawley said that Ryanair’s transatlantic business “is something that is not imminent, but there is a business there we reckon
”.
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Old 27th Feb 2014, 18:06
  #1993 (permalink)  
 
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The US fares are completly a pipe dream. APD from the UK and Germany a big problem. Charges at JFK and BOS another. High fuel prices.

This would proabnly of being way more possible in 2006/7 but will never be in the future unless jets are staff are working for freshair.
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Old 27th Feb 2014, 18:34
  #1994 (permalink)  
 
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A real pity Michael Cawley is leaving, someone who seemed to have the common sense side in Ryanair.

What amuses me about MOL speaking about Transatlantic is his clear lack of knowledge in the area - He talks about LaGuardia being a secondary airport in NY and as if he can just launch services there? Does he understand how slot coordinated the States is even in regional airports? Rochester NY would be a secondary airport, and it has no where near the facilities.

As has been pointed out, its fiction and another grab for free press which ''qualified journalists'' are so willing to give him.
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Old 27th Feb 2014, 18:52
  #1995 (permalink)  
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Capetonian
... everything he's done so far has been successful if one measures passenger volumes rather than satisfaction as a measure of success, but sooner or later he's going to take a wrong turn, and this might be it. Or maybe it's just another publicity stunt.
Agreed. it's the nature of the highly adventurous and high achievers, that they often crash and burn at the end. Many examples abound but two usual ones are: The boxer who retires as world champ. but can't do without it and comes back - to get pummelled by the next guy in line. Politicians are another lot.

Many CEOs follow this path because they have always won before - so surely they're going to win this time?

MoL may very well win this one. I don't mind either way.
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Old 27th Feb 2014, 19:13
  #1996 (permalink)  
 
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Surely the key (and the profit) is interlining with their extensive European network?

NYC - Poznan, Warsaw, Triest, Rabat i dunno, the list is endless. If they took the flights through their hubs then that would work.

I suspect this is the reason they have suddenly become more friendly and are offering allocated seating etc.
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Old 27th Feb 2014, 19:23
  #1997 (permalink)  
 
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I suspect this is the reason they have suddenly become more friendly and are offering allocated seating etc.
They changed there model as a result of profit warnings and loosing key areas of market share.
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Old 27th Feb 2014, 19:31
  #1998 (permalink)  
 
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Surely the key (and the profit) is interlining with their extensive European network?
One of the principles of LCC is that they don't interline, for many reasons. I can't seem the moving in that direction, because if they did they would then have to charge the higher fares that interlining entails, and would thus lose their only competitive advantage, that of perceived value.

Apparently they have announced that they are looking at distribution via GDS channels (EZY have been doing so for a while), which would be another significant departure from the traditional LCC model. They would of course screw the segment fees down to the last fraction of a cent, and I feel sorry for any GDS account manager who has to deal with them.

Last edited by Capetonian; 27th Feb 2014 at 21:05.
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Old 28th Feb 2014, 07:40
  #1999 (permalink)  
 
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Ryanair to the US?

This has been mooted before but never came to anything.

Even with all the added extras, I struggle to see how this can work at such rock bottom prices. After all, the low cost model that works in Europe can't be copied to a long haul operation. There'll be no 25 minute turnarounds, keeping planes in the air & the aircraft, let's assume a 787, will come with a much heftier price tag than the 737 deal they did with Boeing. It's fair to assume they won't be going to JFK. EWR & LGA are also non starters so they'll presumably be looking for very secondary airports. Who knows where you might end up?

I'll believe it when I see it
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Old 28th Feb 2014, 08:18
  #2000 (permalink)  
 
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Definition of a millionare is a billionare who started an airline! It may be a move 2far for mol. Unless he buys and existing operator
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