Ryanair & Buzz

[Sagey]

Ryanair have said there will be considerable route cuts and job cuts in Buzz.

There argument to the Unions, if you don't accept it we will close Buzz down!

Sagey

[Alloy]

Ryanair ready to shut Buzz over labour practices
Tue February 4, 2003 06:15 AM ET
LONDON, Feb 4 (Reuters) - Fast-expanding Irish no-frills airline Ryanair Holdings Plc RYA.I RYA.L said on Tuesday it would close down its newly acquired rival Buzz if staff there did not agree to adopt its low-cost airline labour practices.
Chief Executive Michael O'Leary told an analysts' briefing that up to 100 jobs could go at Buzz, and that he expected the rest of the operator's work force would agree to Ryanair's way of working.

"What happens if it blows up in our face? We will close it down, but we will still have the slots," O'Leary said.



www.reuters.com/newsArticle.jhtml?type=topNews&storyID=2164282

[Stan Sted]

As well as alienating all staff at a superb little airline, this could also affect about 55,000 Buzz bookings from BOH and 200,000 from STN.

Hardly sound business sense to upset so many staff and customers in one hit and drive a quarter of a million puntersl to GoEasy in future.

[moku]

Just heard on the news that Buzz are now pulling out the BOH move.

[dundoniandean]

So basically, Ryanair bought Buzz for absolutely no other reason than to get the slots at STN. Not a bad price for so many slots. It seems to me that they had no other intention of doing anything but getting rid of the Buzz name completely anyway and simply using the (guaranteed) slots for Ryanair's future plans at STN. Didn't take them long did it?

Does anyone actually believe that Ryanair wanted the Buzz routes to fit into their own? If Ryanair wanted to operate the routes that Buzz operate, they would have done and would not have bothered if Buzz were on the route too. Ryanair's prices would have soon gotten rid of Buzz and Ryanair would then have the routes all to themselves. My bet is that almost all the Buzz routes, if not all, will be no longer in a very short period of time.

Very clever people.

[FlapsOne]

BBC teletext reports 20% job cuts!

Sympathies to all concerned.

[mcdonnellluke]

Hello
It seems astonishing to me that a new base that was looking forward to low cost operations has suddenly become an immediate casualty of the BUZZ-RYR takeover. Why has RYR totally axed BOH operations when it said only it would axe "expensive and lossmaking" routes-the BOH routes have not even started yet so it is difficult to judge if they are lossmaking or not also the bookings on some of the routes indicated that they where doing well. Also BOH is not an expensive major airport it is a regional airport that was looking forward to be a low cost base. If I did use BOH and was booked on a flight I would think this decision to be outragous-people who wave applied for jobs in the BOH area must be dissappointed as well.
Luke

[buffet]

lets hope JET2 use this opportunity.

[Orange In Cider]

Sympathies to all at Buzz if that is the way Ryanair are going to play things. There is no doubt MOL intends (as ever) to play hardball, though there may also be an element here (in what he has said) in forcing people to accept new working conditions if the fear of losing your job is the other alternative.

I've no doubt RYR will fully utilise the slots they have just bought, in which case most crews will presumably be assured of STN jobs in the future.

And what were KLM playing at giving it away at that price? Buzz may not have been worth a fortune, but the slots alone must have been worth more than that?!

[Chillyfly]

Having just seen an interview with MOL on News 24, I've come to the conclusion he really is the ugly, self publicising, mill owner of commercial aviation. I wholly sympathise with those who are currently at his mercy and wish you the best of luck in finding alternative employment. And one thought which has probably been aired before... It's fairly easy to announce record profits when your figures are based on endless growth and expansion. Sell tickets today for flights 6 months away, for which you have not yet incurred the costs of the expansion which will be required in order to operate said flights... Nothing expands forever.

[Flightmech]

Why on earth would the likes of Ryanair want Buzz's routes. They fly to mainline airports such as CDG,FRA,AMS etc. Not Ryanair style...who like to advertise these cities without the 2 hour bus/train ride. Sorry Buzz, as a regular user this is sad news. Any chance KLM UK may bring back the STN-AMS service if ryanair dump it????

[leftarmover]

STN-AMS route was not in the deal apparently, KLM still own the slots.

[bean_counter]

"Nothing expands forever"

too true - but they've got a long way to go yet. Large swathes of mainland Europe still untouched by lo-cost operators. UK market may be almost saturated (Ryan & Easy can't even give away all the seats in their winter promos). There will be many years of opportunities for them yet, and in the meantime they get to take out a minor competitor at an absolute snip and convert STN into a fortress by taking over the slots... which in turn forces Easy into LGW (more expensive ??, not sure). It's a great move.... KLM must have been desperate to get rid to accept such a low bid.

Southwest still growing after a couple of decades, suggests more than enough life left in Ryanair for some time to come, although it does raise an interesting point > we haven't yet hit a point where an established lo-cost operator is unable to continue growing at 'traditional' levels. What happens when that situation arises - we'll have to wait a long time to find out, but my guess is they turn into a new 'major' with all that entails.

[Yarpy]

Latest new from the Times on Ryanair and Buzz:

http://www.timesonline.co.uk/printFriendly/0,,1-5-566805,00.html

It is a fair guess that Ryanairs external business culture matches its own employment culture. Judging by their attitude to trade union negotiations their internal culture is pretty ruthless too:

Quote MOL "we are not going to hang around with extensive negotiations.”

I would argure that employees working practices, terms and conditions and morale are actually very important in an airline.

Lots of mergers and aquisitions actually fail because of lack of cultural synergy. Outright confontation is a novel tactic.

Perhaps Ryanair could better claim that they bought Buzz for the slots and maybe, just maybe, some jobs are open to Buzz people if they agree to do things the FR way.

[Goforfun]

"Transport & General Workers Union has welcomed the takeover of buzz"- Why??

Very sad for buzz. However, the slots at Stansted are becoming valuable- any one who flies in and out of STN will know how busy the place is at peak periods. It would nearly be worth shutting down buzz just to expand Ryanair's routes into them.

While people are running from the Orange sinking ship- I fear that the buzz people may step into their shoes- leaving easyJet once again- landing on it's feet.

Jet2- please come to Stansted!

[Maxclimb]

BOH is crying out for a low-cost operator, I, as a locally based pilot can assure you that if Ryanair do pull the plug a much better operator will move in.

[Departures Beckham]

Source: Ryanair's Website (http://www.ryanair.com/buzz.html)

Further to KLM’s announcement on Friday regarding the sale of buzz to Ryanair,an immediate decision has been made to cancel the buzz contract with Bournemouth Airport. As a result of this, all Buzz flights from Bournemouth, which were due to launch on 30 March 2003, have been taken off sale.
Ryanair Services from Bournemouth - Dublin/Bournemouth - Frankfurt(Hahn) and Bournemouth – Glasgow will operate as normal.
Customers holding Buzz reservations from Bournemouth will be up-dated on this website on 28th February regarding refunds and rebooking information.

If anyone reading this wants to apply for their refund now, Buzz's website says to call 0870 2407070.

[Pirate]

Could this be an opportunity for a Bournemouth-based operator? Buzz's spadework seems to have found a viable market share in this expanding and affluent catchment area. Go for it Bath Travel/European/Palmair.

[level254]

WAKEY WAKEY!!

MOL didn't want Buzz. He wanted the STN slots!!! And he bought them for an absolute song.

He already has ALL the 737-800's he needs to fill the slots.

He already has hundreds of pilots and cabin crew in training to fill the 800's.

He will close down Buzz operation in Endeavour House.

He is certainly NOT interested in expensive 146's

He 's also not interested in opening a base in BOH (yet). It doesn't fit with the current plan.

The boys and girls on the 737's MIGHT get offered an NG course IF they agree to the new employment contract RYR offers, which almost certainly will involve one stint for at least a year abroad in the new bases of Hahn, Charleroi, or Stockholm.

As for the cabin crew, how many are prepared to clean the aircraft on the turnaround I wonder? If they join, it will almost certainly be on a 1 year temporary contract as a junior, then sent abroad also.

If he keeps the 146's running, it is because he has had to, through a deal with KLM, but these will go back to KLM in a year's time (with or without crews??)

Wake up out there !! :rolleyes: :rolleyes:

This is a predatory takeover.

I doubt if ANYONE will survive this slaughter.

It is a sad day for all in Buzz.

But this is what Ryanair is doing across Europe.

It is murder out there...

[brabazon]

There is a similar post running in the Airlines & Airports Forum, is it worth merging them to avoid duplicating posts?

As for the 146s, their leases expire from 2004 onwards so they will I guess return to the BAe pool. While their seat mile costs are higher than a 737, especially the 737-800, I would hardly call them "fuel guzzlers" as has appeared in the press, possibly attributable to M O'L . They are not ideal for the type of operation which Ryanair flies, but they provided what seemed a cheap entry into the low cost business for klmuk- they were stuck with the aircraft so they might as well have used them.

[brownstar]

level 254 has it almost right in my opinion

i am sure that it is an uncertain time for all at Buzz. I would recon that the fact buzz have been bought by a company that has huge orders for aircraft should be seen as optomistic. the people required to operate these aircraft will have to come from somewhere so why not the people from Buzz. It is a different company culture for sure, however. The 146 has no future with ryanair, i would say that is almost fact, but there is only one reason that i can see that would prevent a buzz employee being taken on by the Ryan's, and that is an unwillingness to accept change. Don't let your union blow it for you. Remember Sabena, they voted for industrial action the day before they went bust !!
ps there are sabena guys at ryanair now, so why not buzz people too.

[mackey]

I would just like to say

"THANKYOU RYAN-AIR FOR SCREWING UP ALL THOSE JOB OPPITUNITIES THAT WERE GOING TO BE AVAILABLE AT BOURNEMOUTH.NO BUZZ MEANS NO NEW TERMINAL,NO NEW PASSENGERS AND NO EXTRA MONEY FOR THE AIRPORT TO EXPAND...GREAT!!NICE ONE!!"

I feel better know!

P.S Any other low-cost carriers are welcome to come to sunny Bournemouth.

[Orange In Cider]

Big jobs fair at STN today....largely populated by Buzz staff. Very sad.

Best of luck to you all.

[timzsta]

There was wasnt there Orange in Cider. And its location stuck at the back off the reception area at Enterprise House sugested it was rather hastily arranged (if you follow). And the HR people from the likes of Groundstar and Servisair appear more than happy to take on the Buzz staff. If you are a Buzz employee and you get offered a position at a time like this you are not going to say no are you.

Good luck to those of you at Buzz

[Jes]

Doesn't Ryanair operate from BOH?

Aren't the routes doing well?

Didn't Buzz announce a BOH-PIK route then drop it immediately Ryanair said it would operate the same route?

Isn't it clear that Buzz was financially unsustainable?

Isn't it obvious that Buzz is finished at BOH and that Ryanair will continue to expand, on its own terms?

[Hussar 54]

Great pity - used Buzz frequently and no complaints. Used Ryanair infrequently and more than enough complaints.

Whatever.....I am always left wondering quite how the Irish lot manage to accumulate such pax volumes with such an 'in yer face' attitude in what is such a strongly customer facing industry. Perhaps the rest of Ryanair's flight crews aren't quite in the same mould as their illustrious leader and this is what preserves the pax volumes ?

They must have something, after all, because one is left to wonder at the sometimes basic lack of common or business sense that I saw recently.

Was in and out of Gerona 05.02 and whilst having a cup of coffee waiting for the load which eventually showed up over two hours late ( thanks for nothing, Miguel Z. if you're reading ) saw the new Check-In Desk being constructed for Ryan's forthcoming Ops to the UK, Germany, and ( is it ? ) Belgium.

Anyway, on the half constructed counter, freely available for the approximately 50 pax per day who pass through there on a typical Frebruary day, were several 000's of the usual Ryan 'in yer face' bright blue and yellow single page fliers - put together with about as much class as someone advertising the opening of a new local Car Wash, and proudly announcing the new services' launch...

Six flights per day ( impressive opening ! ) with the departure / arrival times to the three destinations and guess what ?

That was it !

Absolutely nothing.....on either the the fliers or anywhere else informing prospective pax about the departure times for the return flights !

I know that Ryan always quote one way prices....are they now offering one way routes ?

Or is penny-pinching so endemic in this organisation that printing costs have to be kept to a minimum by having printing on only one side of the paper ?

Really, it stretches belief......

[sum41]

Its great to see the paddys do so well. Its a pity the brits are so
bitter towards MOL You have to take your hat off to a man
who has made a small airline into what is today.
As the saying goes ( YOU WILL NEVER BEAT THE IRISH)

[Barney Stubble]

Sum 41

You are wrong on 2 counts:

1. Rugby - just watch England romp home to the 6 nations crown once again! I reckon 40-10 against Ireland.

2. I and most other posters on this topic have plenty of respect for MOL's business acumen....but maybe not his people skills. Whether you need to make friends to succeed in business is a moot point though I suppose. This is not a bitter attitude, just an opinion contrary to yours perhaps.

Barney

[MarkD]

Barney

Ireland on paper are not better than England, but two years ago the "Slambusters" weren't either. The expressions on the faces of the England "Championship victors" were priceless.

Better end it there before this gets JetBlasted :D