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Ryanair getting out of Sweden?

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Old 12th Jun 2006, 10:27
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Angry Ryanair getting out of Sweden?

So it's time then. Completely disregarding the general opinion, our incompetent politicians have put in effect the environmental tax. We're still not sure when it will happen, but most of the companies have now halted expansions and/or are cutting back in Sweden. Ryanair have said that västerås lines will be cut back, and Skavsta is probably hanging by a thread. Flyme and Nordic are considering denmark and norway now and sturup will most likely end up firing hundreds of people because of lost business.
So come election day, you all know what to do. Vote BLUE and get these "#¤% fat bastard treehuggers out of office
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Old 12th Jun 2006, 16:00
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So when is the next election in Sweden?
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Old 12th Jun 2006, 19:12
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Angel

That's a lot of ifs, buts and maybes there Gnirren. Not sure when it will happen or what effect it will have, but huffing and puffing we must not forget.

Threats of moving business and jobs are common tactics used by businesses. They are rarely effectuated.

That low(cost) carriers wants it all for free, and some subsidies, is hardly news.
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Old 19th Jun 2006, 15:30
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This doesnt really cost the airlines any money, but the passengers.
What annoys me is that mp is allowed to run this contry by using their small amount of mandates and threaten the reddos.

Now, if the money gained on this taxscheme was used for developing a new more efficent way of travelling then fine, but its going to be spent on pocket money to our friends "without" work.
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Old 25th Jun 2006, 08:07
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I agree with you ther deuce19. Lets just hope this will not end up in what we see as worst case scenario with lost jobs and whatnot.

/LnS
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Old 11th Jul 2006, 17:00
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It has begun. October this year Ryan will no longer fly the Västerås routes, and other cutbacks are planned. Nice going, sweden...
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Old 11th Jul 2006, 22:31
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Ryanair's winter schedule

Ryanair are to withdraw 21 weekly flights to Sweden for the winter.
Ironically, they had been planning 12 new services until the new tax reared its ugly head.

http://www.thelocal.se/article.php?I...&date=20060711

Poor Västerås

And could Malmo's loss be Copenhagen's gain?
The Danish government are doing the exact opposite and reducing such taxes!
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Old 12th Jul 2006, 15:23
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Wait a minute. The tax hasn't been introduced yet. The government is waiting on the EU before they take the decision. Ryanair are simply playing another card, trying to make sure the decision doesn't come.
Besides, it sounds like they're taking a chance at dropping a few lines that may not be up to the margin they require (?).

I don't know if that's the case, but this whole business smells of games.
The VP of RA claimed their costs would increase. That's absolute crap and besides, if you're paying 10 quid to fly to london, I think you can afford the extra 7 for the environment. It's cheaper than the bloody cab ride to the town anyway!
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Old 13th Jul 2006, 08:50
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I dont think thats right.

Increased taxes will lead to less passengers in the end. If RYR has staffingproblems then they surely want to fly the most profitable route right?

Thus, withdraw the LTN-VST route which always was kind of depandant on seasons, and use the crew and aircraft and fly to Spain instead. LTN-MJV would do great as would any spanish route from the UK as the britons clearly never get enough sunshine.

Now it may partly be an excuse for poor loads but why would any airline want to fly a thinner route when they can operate a small gold mine?


duece
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Old 13th Jul 2006, 10:45
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Well, the plan before the tax came up was to expand in sweden and add 2 more aircraft to Skavsta so I seriously doubt that it's an excuse to get out.
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Old 13th Jul 2006, 11:37
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But
The purpose of the tax is to reduce market demand, leading to fewer flights, leading to lower greenhouse gas emissions.
So Ryanair's cutbacks are having exactly the effect that the Government hoped for.
If Ryanair really want to p1ss off the Swedish authorities, they should be increasing frequencies.
 
Old 13th Jul 2006, 11:43
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Yes, this is a tactic by Ryanair to get things done how they want. So maybe they would have reduced London to Malmo (for example) anyway, but they are right to use every opportunity to denounce this tax. It's their obligation as an airline!

There will still be the same amount of aircraft based in Skavsta so the staffing requirements in Sweden are practically the same.
It's aircraft that are coming from other bases such as Dublin and Prestwick that will be operating reduced services to Sweden. These aircraft WILL be put to other use, so the staffing requirement for them remains unchanged also.
i.e. To suggest that pulling out of Sweden is to mask understaffing is ridiculous. It's just not the situation.

And a 7 euro increase in the price of every ticket is WHOPPING! and would / will have a huge impact. I regularly fly from Ireland to Charelroi. Mostly I choose Shannon because my ticket typically costs 10 euro cheaper, due to differences in airport charges.

If you are organising a stag night or a golfing trip for a group, then you are going to price a whole series of potential destinations with cheap tickets. You'll be a whole lot less likely to choose Sweden because of the airfare.
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Old 13th Jul 2006, 20:18
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Sure, 7 quid is whopping if everyone charges 10 and you're the only one charging 17. But that's not the case. As far as I know RYR are the only ones flying that cheap, and we're talking dirt cheap, so I don't agree that it is a dramatic increase. Even if the ticket price is 100 euro, another 7 isn't exactly a show stopper. If it is, people need to rethink their lives.
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Old 14th Jul 2006, 11:40
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Deice

Well you may be right about that, but it will lead to a decrease of passengers and why fly them, routes when one can fly "thicker" routes to Spain?

You say that an extra £7 is nothing, and it isnt, but how about the next £7 and the next £7 and the next £7. If we accept this ridiculous tax now, we invite for them to keep introducing new taxes.

duece
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Old 14th Jul 2006, 14:07
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Duece,

Like you I don't agree with the tax, but considering it doesn't actually increase costs for the airlines, which is what they say, but will/can/might *when elephants dance naked on the moon* reduce their passenger count, I don't see how reducing traffic is the solution. Sounds like an opportunity to bail out and blame someone else.

I think it IS of importance to remember WHO it is that is pullling out. It isn't SAS, Nordic, Skyways, City, KLM, Finnair or anyone else. It's RYR and their tickets are so cheap it's embarrassing. This is a slight cost increment in total and I'm quite sure most of the folks flying RYR payed more for the ride to and from the airport than the ticket. Sure, it may go on and on ond on, but it's the exact same addition to everyone's tickets - regardless of airline. They're so cheap their market share should INCREASE if anything with everyone else being so much more expensive!

Can't really see their logic. Do they withdraw lines when the bus ticket fare to the airport increases? Taxi fares increase? These all add to the expense of the traveller and could potentially reduce RYRs passenger count. What's the difference?

My 2 cents.
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Old 14th Jul 2006, 18:01
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Hopefully Sweden will get the message loud and clear. Ryanair has much better routes available without hinderance like that. Once again it´s a poor passenger that pays the price....
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Old 14th Jul 2006, 20:30
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Ha! Fat chance!
They'll introduce the tax temporarily and 50 years from now we'll be wondering whatever happened to the term "temporary".
We've seen it all before countless times.

Don't care much for RYRs attitude none the less.
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Old 15th Jul 2006, 00:34
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It isnt really that hard, their logic is: we have got staff to fly X routes, lets fly X routes that are uninterfered with instead of flying some routes whom have regulations and fees placed upon them. Its really quite simple, doesnt matter if the price for a ticket is equal to a bus ride or equal to an own private jet. An increase in price for the customer will inevitably lead to a decline in demand for that particular product.

Airlines based in Sweden can´t really cut down and move capacity as it would mean a significant change to their main market whilst for airlines as FR its nothing except a moving capacity to more profitable markets.
FR is currently struggeling to staff their aircrafts and will therefore need the capacity at the right place at the right time, therefore they will want to move their airplanes (read crews) from routes such as VST and MMX.

It´s quite clear to me what they are thinking, and whilst you may not think its right, I belive its correct in a business perspective.

rant over

duece
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Old 15th Jul 2006, 13:35
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Mmm, yes, the business perspective of operating in the market that provides the highest margin is universal. I'm not arguing with that. Many companies operate in that fashion, and provided their product is cheap enough people have short memories.
I don't have hard facts but my belief is that traffic has not gone down due to the impending tax, yet, and we can't say for sure that it will until the time comes. What I'm arguing is that RYR with their low cost, low fares approach should be able to capitalize on such a tax because it hits other airlines even harder, they're already pressed and would need to make larger cuts into their own profit to maintain their passenger count.

It will be interesting to see the real effects, if indeed the tax is enforced.
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Old 15th Jul 2006, 14:52
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Indeed.

However I dont know how FRs profitmargin per average fare compares to SKs or FlyNordics?

I shall do some research and report back.

duece
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