Ryanair - 9
Joined: Sep 2002
Posts: 1,109
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From: Manchester
Not really. For a lengthy period of time time, Boeing were not willing to agree a follow-up B738 order with Ryanair on terms which made financial sense to management at the company. Under these circumstances, can it be classed as a 'pretty expensive cock-up' to walk away from the negotiating table? We cannot make a specific judgment from afar as we were not party to the figures discussed. However, as a general principle of management, overpaying your suppliers is not a good long-term strategy, especially for products with a very high unit cost. There is always a price above which it is better to walk away.
Ryanair will have carefully assessed the opportunity cost of delaying a follow-up order versus the potential profit to be derived from expedited fleet expansion. All the numbers will have been crunched, including those relating to fleet disposals. 'Growing like gangbusters' (to borrow a favourite MOL phrase) is not the only game in town. Waiting for the price to come to you can make alot of sense too. Keeping a leash on costs is just as important as growing the business. It is all about the bottom line in the end.
On the issue of short-term summer leases, Ryanair is not the first company to acknowledge the value of boosting peak period seat inventory which can be sold at a premium. When the leased units return to their parent company, Ryanair has no ongoing liability to manage this additional capacity on a permanent basis (through the low season). The strategy makes sense.
Ryanair will have carefully assessed the opportunity cost of delaying a follow-up order versus the potential profit to be derived from expedited fleet expansion. All the numbers will have been crunched, including those relating to fleet disposals. 'Growing like gangbusters' (to borrow a favourite MOL phrase) is not the only game in town. Waiting for the price to come to you can make alot of sense too. Keeping a leash on costs is just as important as growing the business. It is all about the bottom line in the end.
On the issue of short-term summer leases, Ryanair is not the first company to acknowledge the value of boosting peak period seat inventory which can be sold at a premium. When the leased units return to their parent company, Ryanair has no ongoing liability to manage this additional capacity on a permanent basis (through the low season). The strategy makes sense.
Last edited by Shed-on-a-Pole; 3rd May 2014 at 01:37.
Joined: Jun 2010
Posts: 2,350
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From: Dublin
Thanks Rutankrd.
So with less planes now than they had, all these new routes that been announced over the last 6 months haven't been expansion, and the usual FR pr machine has been glossing over all routes that had to be cut as a result?
Also, the fact they are having to lease so many aircraft after selling their own implies a pretty expensive cock up by management?
So with less planes now than they had, all these new routes that been announced over the last 6 months haven't been expansion, and the usual FR pr machine has been glossing over all routes that had to be cut as a result?
Also, the fact they are having to lease so many aircraft after selling their own implies a pretty expensive cock up by management?
They had signalled the aircraft situation well in advance however the 6 additional aircraft in Ireland were not part of the plans for the summer as the travel tax being scrapped in October was unexpected. Then you had the sudden changes in Italy in Feb which was just them taken market opportunities which arose.
Joined: Aug 2006
Posts: 970
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From: Europe
Ryanair urges Brussels Airlines to not accept money from the Belgian state plan for national airlines. The recent politically motivated effort to give a special incentive to the Belgian companies at BRU has sparked a fierce opposition of MOL, who called the scheme discriminatory. Is Ryanair being treated unfair? Well, the federal government has allocated an annual budget of € 19 million airport to cover the security costs at Brussels National to all airlines that carry annually over 400 thousand pax from/to Zaventem. However, in the next three years the money will be given only to the companies that met this criterion in 2012. As the result, the security costs' reimbursement will get only Thomas Cook, Brussels Airlines and Jetairfly, not FR.
Sources say Ryanair is one of the two companies that have already complained to the European Commission demanding an investigation into the matter.
Sources say Ryanair is one of the two companies that have already complained to the European Commission demanding an investigation into the matter.
Joined: Dec 2010
Posts: 1,168
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From: Ireland
If I'm not mistaken, were Ryanair not sued unsuccessfully by the EU for receiving state funds which would be for precisely the same reason above only that they were getting these funds from Regional Airport's who were addimately benefiting from the flights at the time? What kind of a double standard is going on here at all?
Joined: Nov 2008
Posts: 287
Likes: 7
From: Exit stage right.
Ryanair urges Brussels Airlines to not accept money from the Belgian state plan for national airlines. The recent politically motivated effort to give a special incentive to the Belgian companies at BRU has sparked a fierce opposition of MOL, who called the scheme discriminatory. Is Ryanair being treated unfair? Well, the federal government has allocated an annual budget of € 19 million airport to cover the security costs at Brussels National to all airlines that carry annually over 400 thousand pax from/to Zaventem. However, in the next three years the money will be given only to the companies that met this criterion in 2012. As the result, the security costs' reimbursement will get only Thomas Cook, Brussels Airlines and Jetairfly, not FR.
Joined: Mar 2013
Posts: 1,574
Likes: 52
From: UK
Intentionally ? You really do often have an unfortunate turn of phrase. If id meant that I would have said so. As you well know there had been suggestion that ops would be consolidated at EDI. You know otherwise ?
Joined: Aug 2002
Posts: 6,173
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From: London (Babylon-on-Thames)
I assume he means GLA, the most likely scenarios being :
1) RYANAIR launch GLA with a selection of routes with strong inbound tourism potential leaving PIK the low cost West Coast outbound sun holidays and a maintenance base.
2) RYANAIR open a base at GLA moving the whole ex-PIK operation into the old international pier at GLA. These stands have re-jigged to allow even more B737/A320 sized aircraft to be parked simultaneously. It's not yet on the published AIP but is clearly visible.
1) RYANAIR launch GLA with a selection of routes with strong inbound tourism potential leaving PIK the low cost West Coast outbound sun holidays and a maintenance base.
2) RYANAIR open a base at GLA moving the whole ex-PIK operation into the old international pier at GLA. These stands have re-jigged to allow even more B737/A320 sized aircraft to be parked simultaneously. It's not yet on the published AIP but is clearly visible.
Joined: Nov 2010
Posts: 261
Likes: 0
From: Scotland
FR at the old international pier at GLA? Can't see it as it is manic enough at present with EZY and LOG there at present. There may be more stands incorporated but as a passenger experience this pier is one of the worst I encounter. It would need considerable revamping to include FR. I can though see the odd inbound European city destination operating into and out from the new international pier at GLA so SOE's scenario 1 is not outwith the realms of fantasy.
Joined: Feb 2012
Posts: 351
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From: Crowle United Kingdom
With this Debate about PIK vs GLA. Makes one post the question. What if Ryanair being the smart kimd of guy he is. Decides to 'Split' Their offering and really stir up a hornets nest.
And I mean by Setting up For Example Ryanair Premium. This could target more business routes and perhaps airports that appeal to the business traveller but with a twist in the service side to still make all the money in sales
By offering a premium Cabin
Better seats. Wifi (free no faffing with logging into whatever).
Bring back the old fashioned Decent meals. Nicer service. Quiet adverts but offering premium products aimed at a business traveller.
Perhaps some clever database collating ticket info and offering directed sales at a pax via seat back infotainment.
These aircraft could have seat pitches adjusted and an inch or two more leg room.
But in True Irish style a very premium First class.
Prices would be much lower than Ba and as Ryr try to be on time and are plentiful it ought to be a winner.
Of course there would be a premium over flying standard Ryanair.
And as for Standard they could do an offer like Spend €100 Euro on duty free from the trolley you get a free ticket.
Then the op's plan to have some better destinations from GLA. And the Rest from PIK might work.
In fact I'm no fan of O leary but if anyone could pull it off I bet he could.
And I mean by Setting up For Example Ryanair Premium. This could target more business routes and perhaps airports that appeal to the business traveller but with a twist in the service side to still make all the money in sales
By offering a premium Cabin
Better seats. Wifi (free no faffing with logging into whatever).
Bring back the old fashioned Decent meals. Nicer service. Quiet adverts but offering premium products aimed at a business traveller.
Perhaps some clever database collating ticket info and offering directed sales at a pax via seat back infotainment.
These aircraft could have seat pitches adjusted and an inch or two more leg room.
But in True Irish style a very premium First class.
Prices would be much lower than Ba and as Ryr try to be on time and are plentiful it ought to be a winner.
Of course there would be a premium over flying standard Ryanair.
And as for Standard they could do an offer like Spend €100 Euro on duty free from the trolley you get a free ticket.
Then the op's plan to have some better destinations from GLA. And the Rest from PIK might work.
In fact I'm no fan of O leary but if anyone could pull it off I bet he could.
Joined: Jun 2011
Posts: 3
Likes: 0
From: London, UK & Europe
A Runyonesque Character
Joined: Apr 2004
Posts: 1,209
Likes: 2
From: The South of France ... Not
A new revenue stream for FR
In Belgium, it is compulsory to vote. And you can be summoned to spend half a day acting as polling officer.
At least ten people in Herzele, East Flanders, have gone so far as to book a flight to Italy with low-cost airline Ryanair in order to claim that they will be out of the country on election day and therefore unable to stand in as poll workers, according to Het Laatste Nieuws. Peace Judges have responded displeased and warn of prosecution.
