Ryanair opening base in Denmark and Sweden
 

Luftfart.nu and google translate Ryanair is setting up two new bases in Denmark and Sweden and thus goes directly after the customers that SAS needs in the future. This is how it sounds from Sydbank's equity analyst, Jacob Pedersen, who believes that SAS may need a commercial rethinking of how the company should make money.

From October, Ryanair will set up bases in Billund and Stockholm Arlanda and add a total of 47 new routes from the two bases. Although Ryanair's customer group is basically the leisure travelers, while SAS goes after the business travelers, the news about the bases is bad news for SAS, says Jacob Pedersen, who analyzes aviation based on the stock market for Sydbank.

"The offensive that Ryanair is now launching is a frontal attack on SAS 'home ground. There will be fewer business travelers in the future, and this will hurt the network companies that make a living from them. Ryanair has put the punch in, and it puts maximum pressure on SAS, which has become more dependent on leisure travelers. SAS will need an adjustment of the product and the business, ”says Jacob Pedersen.Sydbank's calculations, there will be 20-25 per cent fewer business travelers in the future, and this will cost SAS revenues of approx. 5-8 billion SEK annually. SAS therefore needs more leisure travelers to make a profit.

“The network companies have the advantage that business travelers will pay more, but corona means that there are fewer business travelers, and then companies like SAS must have leisure travelers at the back. The fewer business travelers are going to make a huge hole. Ryanair can see that, and they are now coming at a pace that leaves no room for the network companies to attract the leisure travelers. ”

Pressure on SAS and Norwegian

According to Jacob Pedersen, SAS has been lucky that Ryanair has not gone for a base in CPH, but when he looks at the 47 routes that Ryanair will fly from Billund and Stockholm, he sees that there are plans for more attacks on SAS .

"It is not only the southern European destinations that Ryanair offers. There are also cities that can be interesting for business travelers, and then you can see that they will challenge SAS in the domestic market in Sweden, ”says Jacob Pedersen, referring to the fact that Ryanair will fly from Arlanda to Malmö and Gothenburg.

Will Denmark and Sweden tolerate atypical cabin crew and pilot employment, avoidance of social security payments?

FlightDetent, pilots employed by Ryanair DAC and Malta Air have direct employee contract employment and it's been like this for a while now. I don't know about cabin crew.

Ryanair have officially stated that they will sign a collective agreement with the Danish unions. Work in progress. They seem to be playing by the book this time.

It will be interesting to see if Ryanair will recruit from their talent pool for these bases.

How well did that go in Austria.

BTW the cabin crew element is important, the law is supposed to protect the weaker side from the unscrupulous. Not just the pilots who are at times a precious comodity so there's economic incentive.

Despite my sour rethotric, I do sincerely hope they will be forced to play nice, hope for progress.

It's fairly obvious that MOL will flex his muscles as the aviation business is starting to awake from this enforced period of rest it has had to endure. Ryanair will go for the jugular in the next 12 months. Integration of their 198 seat Max will be a defining factor over the next few years. The competition are going to squeak as this lean low cost outfit moves onto new territory. The only way Ryanair think, is ruthless expansion. Thing is it works.

Given that BLL was a base for years before they fell out with the Danes over the opening of CPH hardly a major move.

The history of Ryanair shows that following each and every global crisis they grow.

FlightDetent

Sadly Sweden for sure, it has been show time and time again that (we) Swedes will fold easier than a folding IKEA chair. Danes on the other hand (as we know from before) has ba!!s and know how to use both their middle fingers to companies like RyanAir, hopefully they will do it again despite the situation.

Why should the Danes do that if Ryanair will be fully compliant with the Danish payroll and social security system?

Gotta agree with Joe. Ryanair will be signing a collective agreement with a Danish contract. That’s at least what the Danish union is saying. If they do that I see no reason why they wouldn’t be able to run a reasonable business in Denmark.
I’m no fan if Ryanair but when they choose to comply with unions and follow the same rules as everything else I suppose it should be seen as a positive step.

A positive result would be if they do respect any such contract and eventually follow the same rules everyone should.

The emphasis is that "announce" <> "sign" <> "comply" <> "respect". Hence my remark at #6.

I hear what you’re saying. Let’s see what will actually will happen..

FlightDetent

Once again, I can confirm the contract in Italy does exactly that and it's quite good. Those that I know in Spain are happy as well. I can understand some prejudice against them, but in Western Europe the terms and conditions aren't bad and the 5-4 roster is probably the best work-life balance one can find in this industry in the short haul segment.

no, the 5-4 roster offered by easyJet with further protections added to to EASA minimum including real FRMS is a better roster and gives you a better work/life balance but the fact that Ryanair are now employing people on local contracts with union recognition is a very positive step. The Ryanair guys still work hard in that system(pre-COVID of course)
The key to good T&Cs is having your competitors on similar or better terms. Having a national airline with significantly better terms is also a massive positive. Funny how these things work..

Banana Joe

I respect that. Not a predjudice, more of leopard & spots or by their fruit..

Unlike many others I do not believe their management is on an eternal quest to destroy the conditions of our profession. They simply do what's best for the financial benefit of their employer, leaving no stone unturned and throwing away some from their path rather indiscriminately. Italy and Spain are markets so large they cannot be ignored, and so RYR accepted playing by the book. Same with France as I learend here just recently, but that was not without an ugly fight. Not sure about Madrid base in previous years?

Ready and hoping to be shocked again, are the CC enjoying the full protection of the CLA and other proper emplyment arrangements in Spain and Italy too? (serious question)

But even if, check what happened in Poland and Austria, it does not get any more serious.

Unelss fiercly opposed they will try to have it their way though I second the remark the Danes know how to count their chicken and stand ground. Those who do not get bulldozed.

Another reality check for me: Is that 5+4 written in the contract? It's very long time since I saw one, but that spelled 6+3. While 5+4 would had been rostered it was not enforcible, a carefully crafted Damocles' sword.

I have not seen a Ryanair contract, but all of my friends have always been on 5-4 rosters. In Stansted it was 5-3 for a period of time.

Million dollar question I know, but I wonder if RYR will be recruiting too with these additional routes/bases?

FlightDetent,

Historically, Ryanair contracts have been 5/3 with the 5/4 agreed as part of "Base Agreements". The threat of removal of 5/4 was what drove down the Ts & Cs as the pilot body in it's purposely divided nature would give up some amount of conditions to keep the 5/4 rather than fight for it and the removed conditions, potentially very much alone. I believe the 5/4 roster is now in the various CLAs agreed and whether it's removal can still be used in the same way will depend on local laws, which we'll find out the strength of when each comes up for renewal in a couple of years.