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Ryanair - 9

Old 30th Oct 2014, 10:28
  #2401 (permalink)  
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Greetings from Scandinavia! Well, Finland is certainly not the biggest nor the most centrally located country in the Northern Europe, but it does represent some very typical lifestyle features and common values for Scandinavians.

I have to agree, Ryanair has failed to impress here. For many years I've read the comments on travellers' discussion forums. Very cautious at the beginning, with some restrained optimism later on, for many of us Ryanair became acceptable, but most people never agreed with some customer relations policies and harsh rules. Travellers have barely accepted things like hidden fees and lack of "caregiving" and customer appreciation. Bear in mind that all Scandinavian countries are welfare states and people are used to be treated with more pronounced care. The mentality / delicacy issues used to be underestimated by MOL, now it takes its toll. In a somewhat paradoxical way the negative results are apparent now (with some delay) while many of the mentioned "nasty" policies are actually being reshaped nowadays.

Also in Finland Ryanair's activities have fallen quite dramatically. Former "hit" routes like HHN - TMP are suspended for the winter and next summer will run only twice a week. One more explanation: HHN used to be a popular transfer airport for Finnish passengers. With just two flights a week it is virtually impossible to plan any connecting flights (just another underestimated habit of FR pax).

I believe the carrier's imago will improve in the future and that will have a positive impact on Ryanair's returns. Finland still has one of the highest flight prices in Europe, look at Helsinki - Warsaw route for example. No competition, prices high. Some simple routes like this one could be very profitable.
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Old 30th Oct 2014, 11:59
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One question though, does anyone seriously expect that the ground handling dews at CPH will try to scupper FR plans, could FR self handle at CPH
They could and no doubt Unions will try and block but then again any Union activity that block aicraft in becomes a Police and Security matter.

Self handle easily possible and nowt the Unions could do about it.
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Old 30th Oct 2014, 12:02
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It's certainly true that not everything Ryanair have tried has worked in Scandinavia, but then route closures and base closures have also happened elsewhere in Europe. Overall, the growth still continues.

In 2012, Ryanair were forecasting 2.2 million passengers for Rygge for that year. The 2015 forecast is down to 1.35 million. Similarly Skavsta has a forecast of 1.1 million for next year, compared to over 2 million a few years ago, so those are pretty big cuts.
But Anna isn't that in keeping with many airports where there is initially high demand but then it falls to its own level.

In addition the shortage of aircraft during peak summer season meant that marginal routes got culled first rather than high frequency high yielding routes.
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Old 30th Oct 2014, 12:12
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Press conference in Rome in this moment, MOL is present.
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Old 30th Oct 2014, 13:41
  #2405 (permalink)  
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Welcome to Ryanair!
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Old 30th Oct 2014, 23:04
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isn't that in keeping with many airports where there is initially high demand but then it falls to its own level
Hi Racedo,
It's not the general pattern with Ryanair base airports, especially established ones like Skavsta and Rygge. They've been putting over 2 million passengers a year through Skavsta for a number of years now, so it seems strange to have cut back so much.

By contrast, many base airports have continued to grow year on year, although the recent fleet pressures have tempered this a little. Reductions are usually accompanied by press-releases about high charges or passenger taxes, but there's been none of this at either.

To me it suggests that Skavsta and Rygge haven't given Ryanair the highest yields and that the priorities lie with beefing up Stansted and setting up bases in primary airports. It will certainly be interesting to see how Copenhagen develops and whether MOL and co have anything else up their sleeves for next summer.
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Old 31st Oct 2014, 22:19
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To me it suggests that Skavsta and Rygge haven't given Ryanair the highest yields and that the priorities lie with beefing up Stansted and setting up bases in primary airports.

That would suggest a major shift in business model.The bullying of "in the middle of nowhere' airports to seduce them into believing they have a greater status than reality might be over. Will they be able to extract the same 'fire-sale' deal from the primary airports? If not will their pricing structure be viable?
Compare the airlines to the supermarkets. Lidl & Aldi are doing well, but they are in cheaper locations. If they move into the city centre they will reduce profits and have to cross subsidise from their out of town places. Will RYR do that or will they demand a certain profit from all their routes?
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Old 1st Nov 2014, 00:03
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Ryanair is not a tiny startup company, it is a large organisation with lots of people and has signed contracts with many other parties (eg airports, employees, handling agents, etc). Even with the most capable of management teams, it is very difficult to perform a major transformation of a business while remaining profitable and retaining operational effectiveness. Regardless of what MOL might want, there is only so much that can be changed about FR within a given timeframe.
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Old 1st Nov 2014, 00:53
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That would suggest a major shift in business model.The bullying of "in the middle of nowhere' airports to seduce them into believing they have a greater status than reality might be over. Will they be able to extract the same 'fire-sale' deal from the primary airports? If not will their pricing structure be viable?
Compare the airlines to the supermarkets. Lidl & Aldi are doing well, but they are in cheaper locations. If they move into the city centre they will reduce profits and have to cross subsidise from their out of town places. Will RYR do that or will they demand a certain profit from all their routes?
Why would they give on the business model that brings them success and try and do the major airport to major airport when they are the ones that in many airports across europe have developed a market which didn't exist.

Lets face it before Ryanair started flying to Carcassonne, who knew where it was and who flew there, same with many airports. Ask the tourist boss in the town what would happen if no flights to the airport.

Adding primary airports when you have another 100 plus aircraft coming makes business sense.
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Old 1st Nov 2014, 10:54
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The business model has not changed, just the strategy. The business model will always be fundamentally about low costs, speed and efficiency. It's exactly the same with EasyJet. It was inevitable that at some point Ryanair would need to break into primary airports in order to remain competitive, but can always maintain their exceptionally low cost base through the business model they have always adopted (or at least for a very long time).
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Old 3rd Nov 2014, 06:24
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Six month profit to end Sep up 32%. Well done.
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Old 3rd Nov 2014, 07:20
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H2 results: It pays to be nice to people

http://corporate.ryanair.com/docs/co...r_2015_doc.pdf

The numbers are pretty impressive:
  • Profit after tax up 32% to 795m
  • Full year profit forecast increased to 750-770m, so still expecting to lose up to 45m over the winter
  • Average H1 fare up 5% to 54
  • load factor up 4% points to 89%
  • 520m special dividend in Feb 2015
  • Winter capacity raised: Traffic will grow by 12% in Q3 and by 20% in Q4 - an extra 2.2m passengers
  • Average fares to fall 3% to 5% in Q3 and 6% to 10% in Q4
  • Unit costs flat for FY15
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Old 3rd Nov 2014, 14:06
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I went from Stansted to Biarritz recently, the flights were full and on time.

I'm starting to like Ryanair!
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Old 3rd Nov 2014, 14:29
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Does anyone know if Ryanair have finished loading their summer 2015 schedule from Bournemouth yet ?

At the moment there are still 7 destinations that are not bookable all of which saw good loads this year , although i am aware of the possibility that yield may come into factor here

With no concrete information about the Flybe programme from SOU i would have thought Ryanair woukd have jumped in quickly to increase certain routes from BOH but doesnt look like it at the moment
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Old 3rd Nov 2014, 17:03
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Decent set and with fuel prices heading downwards then second half could get interesting.
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Old 3rd Nov 2014, 19:04
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Up to 8 aircraft will be leased again for summer 15.

I went from Stansted to Biarritz recently, the flights were full and on time.
As opposed to empty and late a few months ago..., the nicer FR wouldn't of effected such a route in any shape!
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Old 9th Nov 2014, 09:31
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Morning.

Does anyone know of further release dates for Summer 2015 from LTN? Personally I'm looking at Alghero.
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Old 9th Nov 2014, 11:07
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Very unfortunately for several minor communities, the shift of routes to major airports continues. The next "victim" is Billund in Denmark. At least four routes will be dropped from next summer schedule, they will probably appear in Copenhagen. For now, the officially discontinued routes from BLL are:
BLL - FAO
BLL - ZAD
BLL - AHO
BLL - CFF
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Old 10th Nov 2014, 16:12
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Very likely (TBA tomorrow, if true) a next FR base will be created in Bratislava. That would be a wise decision imho, as the capital city of Slovakia is situated close enough to Vienna to serve as the old style Wien-Ost Flughafen at the same time. Anyway, some new routes to commence there.
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Old 10th Nov 2014, 16:27
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Very likely (TBA tomorrow, if true) a next FR base will be created in Bratislava.
If so then would be about time as should have been one years ago.
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