PPRuNe Forums - Ryanair-11

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On option 2, I would expect the point of import (and thus application of tarrifs) to be determined by the point of registration, not by the ultimate owner.

Can't see any of the regulatory authorities allowing long-term leasing of American registered a/c in these circumstances.

I'm not sure about the legalities of all this, but I believe that there are leased aircraft in operation in various jurisdictions which carry the registration prefix of the operator's home country, rather than that of the lessors? Of course, there are also many which do not, using registers such as VP- or EI-. One for the lawyers to clear up!

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Originally Posted by OzzyOzBorn (Post 11882376)

Just putting a question out there to the PPRuNe talent pool ... I don't purport to know the solution!

We know that MOL has been understandably voicing concerns over the potential impact of new US tariffs affecting aircraft orders and deliveries from Boeing. There have been suggestions that some early deliveries could be refused, in order to ensure that tariffs are not incurred. I've just been thinking about potential solutions to circumvent this problem; whether or not either of them would be in any way feasible is open to conjecture. Just putting some ideas out there to consider ways in which the impasse could be circumvented.

1) A wide-ranging new trade deal between the US and the UK was announced earlier this week. Would allocation of new B38M's to Ryanair UK (and delivering direct to them) bypass reciprocal tariffs imposed against the US by the EU? Would allocating these aircraft to the Ryanair UK subsidiary come with extra costs anyway, over and above what would be routinely anticipated? In the short term, the 15 Boeing 737-8AS units currently operating for Ryanair UK could be cascaded back to the EI-, SP-, 9H- fleets without tariffs to offset the first fifteen tariff-impacted deliveries?

2) Would it be an option to sell the outstanding B38M orders to a US leasing company with an agreement to lease them and buy them back at a later date (subject to tariff renegotiations at government level)? Do aircraft coming across from the US on lease themselves incur tariffs, even if the aircraft is not being purchased by an entity domiciled within the EU?

I don't know whether these options are feasible, or whether some of you can suggest better ideas (or further obstacles), but a solution which means no backlog of undeliverable Ryanair B38M's going to storage in a desert would be beneficial all round. Only competitors will benefit from a hamstrung Ryanair, unable to expand beyond it's present fleet size for months or years ahead.

Any thoughts?

1. It's not a wide ranging trade deal if you are referring to the agreement reported on the 8th May, it's just agreements to lower some of the tariffs Trump had put in place going into the USA.
But on your point the UK has no Customs Duty on any aircraft. The same with the EU currently so no issue.

The EU however are very active in pushing for retaliatory tariffs including on aircraft.

If, in theory the EU retaliated with tariffs on Boeing but the UK doesn't the tariff is specific to the named country (USA) so you can't bring goods in and bypass the tariff by routing the good via the UK.... same applies to older aircraft... so you can't transfer old stock without incurring the duty. Unless they specify that it is on new aircraft only.

2. If there were tariffs then the leasing agreement would attract the tariff and not the purchase cost/value of the aircraft. This gets a bit more complicated and difficult to explain on how you calculate the value.

The company who 'imports' will still have to pay the relevant tariffs and import VAT, now this could be the leasing company (owner) or the company leasing (hiring) of the aircraft.

Airbus got round tariffs in the USA a few years ago, when Airbus and Boeing were both accusing each other of subsidies, by building plant in the USA for A320s.

All in all though your question in the current situation where neither the UK or the EU have any tariffs on US aircraft is null and void, but it maybe interesting on what happens if they do implement retaliatory tariffs both here or in the EU. The question is how have Boeing sold the aircraft, what are the terms in the contract? Same with leasing companies!
Hope this answers your questions.

Surprised not to read anything online about Ryanair no longer accepting Revolut…unless I missed it?!
Flew with them today TLS>BHX and the cabin crew told me it was due to payment problems they have had with this payment method.
Unsure if it’s just UK flights or all Ryanair flights.

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Originally Posted by MANFAN (Post 11889630)

Most airlines don't allow the use of these onboard already - due to how easy it is to do fraudulent transactions in an offline environment on them.

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Originally Posted by MANFAN (Post 11889630)

Is it not due to the "payment type?" My Deutsche Bank Maestro debit card isn't accepted but my RBS Mastercard debit card is.

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Originally Posted by Lomon (Post 11890497)

Is it not due to the "payment type?" My Deutsche Bank Maestro debit card isn't accepted but my RBS Mastercard debit card is.

Maestro and Mastercard are different.
Maestro is a debit card with less functionality and was a 'junior' version, a bit like Visa electron. On top of that Maestro is now discontinued and those in circulation will be replaced as they expire.

I noticed that Ryanair currently has no bookable flights to or from Santander (SDR) for winter 2025/2026 from any of its bases. This is a significant shift given the airline’s historic presence there.

There’s some mention in the press of an ongoing dispute with Aena regarding airport charges, which reportedly led Ryanair to cut back operations at several Spanish airports. One source cited a 5% reduction at Santander specifically. But the fact that all routes appear to be removed for winter suggests something more drastic might be happening.

I’m not an expert in Ryanair’s usual playbook, but is this typical of how they negotiate with airport operators? Is this likely a temporary pressure tactic to get more favourable terms from Aena? Or are we now looking at a full-scale withdrawal from Santander?

Curious to hear what others think – anyone with past experience of Ryanair-Aena rows or similar pullbacks at other airports?

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Michael O’Leary to get €100m bonus under deal to keep him at Ryanair

Payout is criticised as ‘morally questionable’ and an inefficient way of sharing company wealth

The Guardian

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O’Leary will be given shares worth €111m (£93.5m) if he stays at the airline until the end of July 2028 because the company’s share price stayed above €21 for 28 days.

Gives a whole new meaning to '28 Days Later'.

All their staff, from admin to flight crew will be very pleased to hear that he is in line for this.

It's not a secret payoff - its been known for years- he's built the airline, he deserves the reward. Think of all the other airlines that have gone bust while he's been building RyanAir.

Sure they're not a touchy feely warm & cuddly outfit - but people have steady jobs in an expanding operation - which is NOT the default setting for the airline business

Given the scale of Ryanair's success, I'm surprised that MOL's compensation is as modest as this. Check out compensation in major companies across Europe and the US; many offer senior executives way more than this (including heavily loss-making ones).

Quote:

Originally Posted by OzzyOzBorn (Post 11892582)

These seem to be the numbers -

Quote:

The $108 million, if unlocked, will be in addition to O'Leary's pay.
In the past financial year, he was paid €925,000 ($991,572), which included a bonus component of €425,000.

Starting this year, his base salary will be €1.2 million ($1.3 million).

Which, I agree does not seem too much either - perhaps this is why he is doing better than some Water Company CEO in the long run ....

Well he knows in the long run he will make even more. O'Leary isn't going anywhere just yet.

The fascinating aspect of all these kind of payouts is that - they could the staff a 10% bonus and not notice it. Yet their built in 'have the piggest pile of cash' always wins.

Example from this time last year: Singapore Airlines [CNN]

Quote:

Hong Kong/New Delhi
CNN
—
Singapore Airlines is setting the bar high when it comes to bonus payouts.

The carrier will reward its employees with a bonus worth nearly eight months of salary, a person familiar with the matter told CNN on Friday. The person asked not to be named because the information was not intended to be made public.

Singapore Airlines did not respond to a request for comment.

On Wednesday, the company reported a record annual net profit of $1.98 billion in the 2023 to 2024 fiscal year.

“The demand for air travel remained buoyant” throughout the year boosted by a rebound in North Asia as China, Hong Kong, Japan and Taiwan fully reopened their borders after the pandemic, the airline said in its earnings statement.

Without MOL would RYANAIR be the massive success story it is today? providing employment for thousands of people all over Europe. Such people should be well rewarded in contrast to many CEO's who seem to receive rich rewards for failure.

"Without MOL would RYANAIR be the massive success story it is today?"

they'd be one of those long forgotten start-ups that occasionally appear in a question in the History thread.......................

I have no doubts about MoL and his truly transformative approach that has made FR the great success it is. He deserves to be a multi millionaire.
But they could STILL give everyone a bonus or an above average pay rise for all the hard work that they put in. There would STILL be enough millions for the top table. But I have lived long enough to understand the world...

Does Buzz operate a 24/7 service? For example, I noticed flights arriving into Kos from various airports in Poland at around 6am which departed Poland at 2/3.00am.

Yes, Buzz have charters in some polish bases.