Posts Tagged ‘low-cost carrier’


[BBC NewsRyanair has warned that profits this year may miss its forecast.

Ryanair says it will make aggressive price cuts

Ryanair says it will make aggressive price cuts

Europe’s biggest low-cost carrier says that profits may miss or be at the lower end of its range of 570m to 600m euros (£480m to £508m).

Ryanair said there had been a dip in ticket prices and booking levels for September, October and November.

Its shares plunged 13% on the news and other airline shares were hit too, with Easyjet falling 6% and British Airways owner IAG Group down almost 4%.

Lower fares
Ryanair says the weakness of European economies is partly to blame as well as price cutting by rival airlines.

In a conference call chief executive Michael O’Leary said: “We are going to respond to this by being out there first and being aggressive in fare response”.

He said that Ryanair will offer its £14.99 one way fare on up to 1,000 routes in September, October and November. That is up from 600 routes over the summer.

It is also launching an advertising campaign in the Republic of Ireland and the UK.

Investor surprise
Mr O’Leary said the weakness of the pound was hurting profits as 25% of the airline’s sales are made in sterling.

“This is a surprise statement from Ryanair and comes contrary to some of the commentary from the peer group and indeed Ryanair’s own commentary at its June investor days,” said Donal O’Neill, analyst with Goodbody stockbrokers.

To compensate for the weak demand, Ryanair will ground 70 to 80 aircraft during the winter months, after initially expecting to ground just 50.

That should mean its annual seat capacity will be 81 million seats, still up 2-3% on last year.

Read the original story at BBC News …..

 


BBC News
4th September, 2013


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[BBC NewsDiscount airline Ryanair has reported record full-year profits and rising revenues, despite soaring fuel costs.

Profits after tax rose 13% to 569m euros (£481m) on revenues of 4.88bn euros for the year to 31 March.

“Ultra-low cost carrier” Ryanair has big expansion plans and has ordered 175 new planes. Photo: Wikipedia

Passenger traffic grew 5% to 79.3 million as the airline added 217 new routes to its roster, bringing the total to 1,600.

But fuel costs rose by more than 290m euros, the company statement said, and now account for 45% of total costs.

Chief executive Michael O’Leary said: “Delivering a 13% increase in profits and 5% traffic growth despite high oil prices during a European recession is testimony to the strength of Ryanair’s ultra-low cost model.”

But he warned that growth would be slower in the 2013-14 financial year at Europe’s largest budget airline, thanks to rising oil prices and “unjustified higher Eurocontrol and Spanish airport charges”.

The company is forecasting net profits in the range of 570m to 600m euros for the coming year.

In March, Ryanair placed an order with Boeing for 175 planes worth £10.3bn ($15.6bn) to be delivered between 2014 and 2018.

The deal will increase its fleet by a third to 400 planes.

Read the full story at BBC News…..


BBC News
20th May, 2013



[IOL Travel] British Airways is to take on budget airline rivals by charging less if passengers travel with just hand luggage.

British Airways is to take on budget airline rivals by charging less if passengers travel with just hand luggage.

British Airways is to take on budget airline rivals by charging less if passengers travel with just hand luggage. Photo: Wikipedia

The airline said the cheaper fares – initially to be offered on flights from Gatwick to five destinations – will give passengers “more choice”.

Holidaymakers with luggage to check in will not pay more to compensate for the lower “hand baggage only” fares, BA insisted.

The move will be seen as an attempt to compete with low-cost airlines such as Ryanair and easyJet.

Peter Simpson, BA’s director at Gatwick, said: “The introduction of our hand baggage only fare is all about giving our customers more freedom to choose the kind of flying they want. Many British Airways customers on Gatwick short-haul breaks choose not to check in a bag as they’re already taking advantage of our generous two-bag hand luggage policy.

“Those who still want to check in a bag will simply pay the same price they do now.” …..

Read the full story at IOL Travel…..


Daily Mail
21st Feb, 2013



[Business Traveller] Until now Europe’s traditional airlines such as Air France, British Airways, KLM and Lufthansa have prided themselves on not burdening passengers with ancillary charges as do the budget carriers.

Dutch carrier KLM is the first to break ranks & charge for checked baggage.

Dutch carrier KLM is the first to break ranks & charge for checked baggage. Photo: Wikipedia

But Dutch carrier KLM is the first to break ranks. Reports today in the Dutch media, now confirmed by KLM, state that starting in April KLM will charge short-haul passengers fees of either €15 (when paid in advance) or €30 (when paid at the airport) for pieces of checked baggage.

Hand luggage will remain free and the charges will not apply to passengers flying long-haul. All members of KLM’s Flying Blue loyalty scheme will also escape the new fees.

At the same time, it’s understood KLM will strictly enforce rules for hand baggage. According to the reports, any bag which doesn’t meet KLM’s 55x25x35 cm, 12 kilos allowance will be placed in the hold and the unlucky passenger will be charged €30 at the gate.

In its defence KLM says that 60 to 70 per cent of its short-haul passengers carry only hand luggage. The airline says that passengers would prefer to pay less for their flights and that is why it has decided to bring in the fee.

Most large airlines lose money flying within Europe yet cannot…..

Read the full story at Business Traveller…..


Report by Alex McWhirter,
Business Traveller
13th Feb, 2013



[BBC News] Air France-KLM, the Franco-Dutch airline, says it made a big loss in 2012, blaming sharply rising fuel costs and trouble with its cargo business.

Air France-KLM has been struggling to reduce its debt mountain in the face of high fuel costs

Air France-KLM has been struggling to reduce its debt mountain in the face of high fuel costs. Photo: Wikipedia

Net losses increased 47% to 1.19bn euros (£1bn; $1.57bn), after a 471m-euro restructuring charge and a 890m-euro increase in its fuel bill.

But operating losses fell to 300m euros, from 353m euros the year before.

Revenues rose 5.2% to 25.6bn euros, thanks in part to increased prices on its North Atlantic routes.

Debt fell from 6.51bn to 5.97bn euros after sell-offs and spending cuts – the company plans to reduce its net debt by 2bn euros by the end of 2014.

Chief executive Jean-Cyril Spinetta said in a statement: “The year 2012 was characterised by a slowdown in global growth and recession in Europe, but nevertheless saw a sharp increase in the fuel price.

“In 2013, we will maintain strict discipline in terms of capacity management, investments and costs.”

Air France-KLM is renegotiating pay and conditions with its staff and cutting more than 5,000 jobs, as high fuel costs and competition from low-cost airlines take their toll on the debt-laden company.

The airline managed to increase…..

Read the full story at BBC News…..


BBC News
22nd Feb, 2013



[The Guardian] A fresh row over boardroom pay at easyJet is looming after the airline announced a share award that could see the chief executive, Carolyn McCall, net another £2m on top of her annual salary and bonus of £2m. 

Airline defends Carolyn McCall's performance-related incentive plan amid fears easyJet founder will vote against £2m package

Airline defends Carolyn McCall’s performance-related incentive plan amid fears easyJet founder will vote against £2m package: Photo: easyJet

The low-cost carrier said the long-term incentive plan was dependent on tough new targets that would require the company to exceed this year’s record performance.

Stelios Haji-Ioannou, easyJet’s founder and largest shareholder, is understood to be unhappy with the scheme, despite modifications to take into account his criticisms of how return on capital is calculated. He is likely to vote against the directors’ pay package again at the annual general meeting in February, although he sees the real potential for a “shareholder spring” as coming in 2014 when new rules make the vote on pay binding.

McCall has received similar performance-related share incentives each year since joining the airline in 2010. The first batch came to fruition for her this month with just over 300,000 shares, which the former Guardian Media Group boss could cash in from July for £2.2m at current rates. An easyJet spokesman said the shares would……

Read the full story at The Guardian…..

 


The Guardian – Gwyn Topham
18th Dec, 2012



[Daily Mail] Budget airline Ryanair has been ordered to ‘review’ the amount of fuel it carries after three of its planes – including one from the UK –  were forced to make ‘Mayday’ emergency landings in Spain when  they started to run out .

Ryanair was operating with a level of fuel that was 'close to the minimum' required in the case of a diversion

Ryanair was operating with a level of fuel that was ‘close to the minimum’ required in the case of a diversion. Photo: Wikipedia

The airline was operating with a level of fuel that was ‘close to the minimum’ required in the case of a diversion, they said.

Three Ryanair Boeing 737-800 aircraft heading to Madrid were forced to make emergency landings after being diverted to Valencia because of thunderstorms over the Spanish capital.

One of the three affected  planes was heading from Stansted Airport to Madrid when the diversions and emergency landings occurred at Valencia on July 26 this year.

The Irish Aviation Authority Report noted: ‘All three aircraft declared an Emergency (Mayday) when the calculated useable fuel on landing at Valencia was less than the final reserve.’

The watchdogs accept that  all three Ryanair planes left for Madrid ‘with fuel in excess of Flight plan requirements’  and also with fuel ‘in excess of the minimum diversion fuel’ required, so remained strictly  within the rules.

However, the IAA also noted: ‘Diverting with fuel  close to the minimum diversion fuel in the circumstances presented on the evening in question was likely to present challenges for the crew.’

It has also questioned whether the current fuel limit rules give passenger jets enough latitude  land safely in the event of a diversion from Madrid – and asked Spanish aviation chiefs to look at them again.

Spanish pilot union leaders have accused Ryanair of…..

Read the full story at Mail Online…..


Mail Online
21st Sept, 2012



[BBC News] The budget airline Ryanair has launched another attempt to buy its biggest Irish rival Aer Lingus.

Ryanair chief executive Michael O'Leary said: "This offer represents a significant opportunity to combine Aer Lingus with Ryanair.... Photo:  Wikipedia

Michael O’Leary said: “This offer represents a significant opportunity to combine Aer Lingus with Ryanair.   Photo: Wikipedia

Ryanair says it plans to make a cash offer for Aer Lingus, which would value it at 694m euros ($883m; £561m). Ryanair will make the offer through a subsidiary called Coinside.

Ryanair already owns 30% of Aer Lingus.

On Monday, Ryanair’s existing holding was referred to the UK’s Competition Commission for a probe that could lead to it being forced to sell the stake.

When Ryanair tried to buy Aer Lingus in 2006, its attempt was blocked by the European Commission.

It said the 1.30 euro offer was a premium of 38.3% above Tuesday’s Aer Lingus closing price.

Ryanair chief executive Michael O’Leary said: “This offer represents a significant opportunity to combine Aer Lingus with Ryanair, to form one strong Irish airline group capable of competing with Europe’s other major airline groups……

Read the full story at BBC News……

 


BBC News
19th June, 2012



[Flightglobal] Sweden’s Skyways Express and its subsidiary City Airline have ceased operations with immediate effect, and will file for bankruptcy on 22 May.

Skyways Express AB canceled all flights today saying it will file for bankruptcy.  Photo: Wikipedia

Skyways Express AB canceled all flights today saying it will file for bankruptcy. Photo: Wikipedia

“The owners of the company have decided not to fund the company any longer and therefore the board of directors was forced to decide to stop all payments and to stop all flights,” says the airline in a statement on its website.

Cyprus-based Mansvell Enterprises, which owns Skyways, is also the owner of Danish carrier Cimber Sterling which filed for bankruptcy in early May.

Mansvell had acquired a majority share in Cimber Sterling in June 2011 and planned a broad co-operation deal with Skyways and City Airline. But the investment group appears to have abandoned these plans after deciding to stop funding the airlines.

“We have come far in turning the company around but after the bankruptcy of Cimber, it became……

Read the full story at Flightglobal….


By:   Siva Govindasamy Singapore
22nd May, 2012



[Travel-News.co.uk] Ryanair, an Ireland-based low cost airline, is offering a new fare deal for passengers already booked with the airline, bmibaby, following bmibaby’s plan to wind up operations, starting with its imminent summer schedule.

Ryanair offering stranded bmibaby passengers rescue fares commencing from £29.99

Ryanair offering stranded bmibaby passengers rescue fares commencing from £29.99: Photo: Wikipedia

bmibaby, a subsidiary of UK-based British Midland Airways Limited (bmi), is to close its operations in phases, the initial phase commencing from June 2012, and the final phase ending in September 2012.

Ryanair is stepping up its summer schedule to offer stranded bmibaby passengers booked from the Belfast and Birmingham airports rescue fares commencing from £29.99 one way.

The airline is working with British International Airlines Group (IAG), the parent company of British Airways, and current owner of bmibaby, to accommodate bmibaby passengers on a priority basis. Passengers with confirmed bmibaby bookings on the routes between Belfast and Birmingham, to Glasgow, London, East Midlands, Edinburgh, Eindhoven, Ibiza, Alicante, Faro, Malaga and Palma, may apply for a corresponding booking with Ryanair.

The fares are available until May 20, 2012, atwww.ryanair.com/member/ryanairbmibabyfare.html, and will remain valid for…..

Read the full story at Travel-News.co.uk…..


BY 
MAY 4, 2012