Posts Tagged ‘Michael O’Leary’


[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 NewsRyanair has announced record profits this week, and the purchase of 175 new Boeing airliners. It’s evidently one of Europe’s most successful airlines at present – but has it even so been blowing its own trumpet a bit too much?

Ryanair prides itself on turning around flights quickly.

Ryanair prides itself on turning around flights quickly. Photo Wikipedia

Ever heard the cheerful jingle on a Ryanair plane as it touches down on the runway?

“Last year over 90% of Ryanair flights landed on time, beating every other European airline.”

Quite a boast. According to the statistics that Ryanair puts out itself, they achieved 90% punctuality last year, and have done for the last few years.

But we only have their word for it. There is scant data available to the public on airline punctuality.

The UK’s Civil Aviation Authority does collect data on flights arriving and departing from 10 UK airports. It defines “on time” as being within 15 minutes of its stated arrival time.

A website called flightontime.info crunched that data and worked out that Ryanair fell short of 90%, achieving only 83% at these 10 airports.

Taking the figures for 2012, bmi regional was the most punctual. Eleven other airlines also beat Ryanair’s 83% punctuality record.

Ryanair’s overall punctuality score – taking into account its flights landing at or taking off from other airports around Europe – could easily be higher than 83%, says Jim Paton, senior lecturer in the Department of Air Transport at Cranfield University.

“A big proportion of their network in Europe is operations to small airports that don’t suffer from air traffic congestion, as would be the case around London and Paris,” he says. This makes it easier to avoid delays.

He adds that Ryanair flies to airports where the facilities are relatively close to the runway, so the plane doesn’t spend several minutes taxiing, as it would often have to at airports such as Schiphol in Amsterdam.

The airline says: “Ryanair’s published monthly punctuality is calculated as the percentage of all (approx 42,000 on average) Ryanair flights in any month, at all 180 airports, which land ahead of, on, or within 15 minutes of scheduled arrival time.”

Punctuality statistics published by third parties are unreliable because their data is based on estimates or incomplete samples, which exclude certain airports, flights or airlines, the company adds.

But the Ryanair jingle also says it is “beating every other European airline” on punctuality. Where does this idea come from?

Ryanair says it is comparing its own punctuality figures with “the most recent Association of European Airlines published statistics”.

However, that organisation has not published any new figures since 2009.

In addition, it has only 32 members. Although those members include many big airlines, more than 200 airlines in Europe are not members – including Ryanair.

So there is no public data that proves this claim. And even if there were, it might be hard to take at face value because of a phenomenon known as “schedule padding”.

This is when airlines (or other transport companies) stretch their published journey times in order to…..

Read the rest of this feature at BBC News…..


Charlotte McDonald
BBC News
26th May, 2013



[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



[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



[Washington Post] DUBLIN — Aer Lingus welcomed a court victory Tuesday that permits British authorities to keep investigating Ryanair over its ownership of a 30 percent stake in Aer Lingus, a sore point between Ireland’s two major carriers.

Ryanair said it would appeal Tuesday’s judgment to the UK Supreme Court. Photo: Wikipedia

Ryanair said it would appeal Tuesday’s judgment to the UK Supreme Court. Photo: Wikipedia

Ryanair sought to block the probe into whether its status as the No. 1 shareholder in Aer Lingus represents a threat to competition on British-Irish air services. Ryanair lawyers argued that Britain’s Office of Fair Trading had no jurisdiction to investigate two Dublin-based airlines, and that the probe launched in 2010 came too late.But the Court of Appeal in London sided with the Office of Fair Trading and Aer Lingus, which wants Ryanair to be forced to sell. Ryanair built its stake as part of a hostile 2006 takeover bid that was blocked both by European Union regulators and Ireland’s government, which retains a 25 percent stake.

Ryanair said it would appeal Tuesday’s judgment to the UK Supreme Court.

Ryanair chief executive Michael O’Leary says he expects eventually to purchase the government’s stake to take control of Aer Lingus because of Ireland’s rapid descent to the brink of bankruptcy, culminating in a……

Read the full story at The Washington Post….


By Associated Press
Tuesday, May 22



[Independant] Millions of people who have already paid in full for their summer flights to Spain have been warned they may have to pay a surcharge before they are allowed on board.

Charges at the two main airports in Madrid and Barcelona could soar

Ryanair – which is now the leading airline between the UK and Spain – has sent emails to “millions” of passengers booked to fly from Spanish airports about possible airport fee increases.

The message says “We may be forced to debit passengers for any government imposed increases in airport charges prior to your travel date”, and cites its rule that says “If any such tax, fee or charge is introduced or increased after your reservation has been made you will be obliged to pay it (or any increase) prior to departure”.

Ryanair’s chief executive, Michael O’Leary, said the warning arose from a draft budget presented by the Spanish government, with what he called the “ludicrous suggestion” that charges at the two main airports in Madrid and Barcelona could soar:

“It’s a bit uncertain at the moment but it looks like the Spanish government are going to double the airport fees overnight the day the budget gets passed. We have already taken a number of millions of bookings for passengers intending to travel to these airports this summer and if they double the taxes we will be sending them a bill for the increase taxes or debiting their debit and credit cards”.

There is no certainty that any increase in airport charges will take place, but Richard Taylor of the Civil Aviation Authority said it was a commercial decision to pass any such rise on: “It is up to the airline to choose where the money comes from; whether this is taking money from the customer or footing the bill themselves. They are legally within their rights to take money from customers who have already paid.”

Mr O’Leary said passengers who object would get a full refund: “You can of course reject that additional payment, cancel your flight and then not fly with us if you so wish.  But we’re not going to be funding the Spanish government’s taxes.”….

Read the full story from Simon Calder at The Independent….


SIMON CALDER 
THURSDAY 19 APRIL 2012



THE boss of Edinburgh Airport said Ryanair has “to pay its way” as he hit back in the row with the budget airline over its plans to axe eight routes from the Scottish capital.

Michael O`Leary, chief executive of Ryanair. Picture: Reuters

Michael O`Leary, chief executive of Ryanair. Picture: Reuters

THE boss of Edinburgh Airport said Ryanair has “to pay its way” as he hit back in the row with the budget airline over its plans to axe eight routes from the Scottish capital.

Jim O’Sullivan said he would not have the no-frills airline “flying here for free” as he dismissed suggestions from the Dublin-based firm that Edinburgh airport had failed to offer a competitive deal.

The attack on Ryanair came after the airline’s deputy chief executive, Michael Cawley, flew into Edinburgh yesterday to announce “devastating reductions” to the carrier’s winter routes, with the scrapping of the destinations of Bratislava, Bremen, Frankfurt, Fuerteventura, Gothenburg, Kaunas, Lodz and Poznan.

Mr Cawley issued a stark warning about “substantial further reductions” to Ryanair’s Edinburgh operations which he said would be “much smaller” unless airport bosses handed the Irish carrier a better deal.

However, Mr O’Sullivan insisted that he was “not in a position to negotiate” an extension to Ryanair’s five-year base agreement, which expires in October 2012, due to the British Airports Authority (BAA) seeking a buyer for Edinburgh Airport.

He also dismissed claims by Ryanair that 200 jobs had been shed during a previous round of cutbacks by the airline this year that saw the firm end its flight routes to Berlin, as well as scrapping plans for services to Malmo in Sweden, Murcia and Ibiza in Spain, and Tallinn in Estonia.

Mr O’Sullivan said: “We’re not in a position to negotiate because of the sale process, but in the long term, we’re confident we’ll be able to go to them with a proposition. We can’t have them flying here for free and they’ve got to pay their way. We have 40 airlines and have to be fair and we can’t have 39 airlines subsidising the other.”…..

Read the full story at The Scotsman….


The Scotsman – scotsman.com
Published Friday 13 April 2012



The budget airline said the changes will mean a drop in passenger traffic of 500,000 and could lead to the loss of 500 on-site jobs, however airport operator BAA said these figures were “speculative”.

RYANAIR has axed eight winter routes from Edinburgh Airport.

RYANAIR has axed eight winter routes from Edinburgh Airport.

The budget airline said the changes will mean a drop in passenger traffic of 500,000 and could lead to the loss of 500 on-site jobs, however airport operator BAA said these figures were “speculative”.

The routes being axed are Bratislava, Bremen, Frankfurt, Fuerteventura, Gothenburg, Kaunas, Lodz and Poznan.

Closure of the routes from October 2012 will reduce the number of Ryanair flights to and from Edinburgh by 60, down from 168 to 108.

The announcement follows the airline’s decision in February to cut five routes from its summer schedule because it could not come to an agreement with BAA over charges.

Ryanair has also warned that more cuts to its winter schedule may take place if BAA does not agree to an extension to its five-year base agreement, which expires in October 2012, on “more competitive terms”.

Speaking in Edinburgh today, Ryanair deputy chief executive Michael Cawley said: “Ryanair regrets BAA Edinburgh Airport’s rejection of our proposals for a competitive cost base which would allow Ryanair to further grow our traffic and routes for winter 2012 and beyond.

“Sadly, BAA Edinburgh seems to prefer higher costs, even if it means fewer passengers and jobs at Edinburgh….

Read the full Daily Record story ….


Daily Record: dailyrecord.co.uk
12th April 2012



It might be 90 miles from Paris and 70 miles from Disneyland but that has not stopped budget airline Ryanair naming its latest operating airport – ‘Paris-Vatry-Disney’.

Speaking to The Independent, Michael O'Leary, Ryanair's chief executive, said: 'We are generating very significant demand on our three Vatry routes. 'I have myself driven from Vatry to Paris in just over an hour.'

Speaking to The Independent, Michael O'Leary, Ryanair's chief executive, said: 'We are generating very significant demand on our three Vatry routes. 'I have myself driven from Vatry to Paris in just over an hour.'

The no-frills group, which is no stranger to controversy, has just launched services from an airfield in the Champagne region of France.

But despite Ryanair marketing it as the ideal gateway to the French capital and Disneyland Paris, it is in fact closer to the Belgian border than the Eiffel Tower and the quaint streets of Montmartre. Speaking to The Independent, Michael O’Leary, Ryanair’s chief executive, said: ‘We are generating very significant demand on our three Vatry routes.’I have myself driven from Vatry to Paris in just over an hour.’

When booking flights online, customers are told that Disneyland Paris is with ‘within easy reach’ from Vatry Airport – but it is about 70 miles away. t the moment flights operate between the Champagne airfield and Marseille, Porto and Stockholm.

If the route proves successful, then flights from Britain could follow. It is not the first time, the company has ‘renamed’ airports despite their location. Ryanair has marketed Frankfurt Hahn, an ex-US Air Force base in the west of Germany, as being near to Frankfurt when it is in fact closer to Luxembourg.

But the creative naming of airports has angered airline rivals including Stelios Haji-Ioannou, founder of easyJet, who described the carrier as flying from ‘nowhere to nowhere’.

In 1999, British Airways took legal action against Ryanair over an advert which it said was written and presented in terms which were ‘materially false and misleading.’ The High Court chucked out the case.

Over the years Ryanair has also hit the headlines following controversial cost-saving ideas

Read the full story at The Daily Mail, (dailymail.co.uk)


By TARA BRADY
PUBLISHED: 10:42, 7 April 2012 | UPDATED: 10:47, 7 April 2012



Ryanair is reducing the size of its in-flight magazine, serving passengers less ice – and even asking cabin crew to watch their figures – as part of efforts to trim its fuel bill.

Ryanair's annual charity calendar should 'motivate' cabin crew to lose weight, according to the airline

Ryanair's annual charity calendar should 'motivate' cabin crew to lose weight, according to the airline

With the price of jet fuel rising sharply in recent years, airlines have   devised ever more imaginative methods to reduce the weight of their   aircraft.

“We cut costs wherever possible, and the changes will represent a significant   reduction in weight,” said Stephen McNamara, a spokesman for Ryanair. “We   also considered removing armrests, but decided against it. We even encourage   staff to watch their weight – with the motivation of appearing in the annual   Ryanair calendar.”

It has also been a vocal supporter of an airline “fat tax”, under   which overweight passengers would be asked to pay more.

“Let’s Go with Ryanair” – the magazine given to all passengers who fly with   the no-frills carrier – will now be published on A5 paper, rather than A4.   It will also double as an in-flight menu, a move that could reduce its fuel   bill by thousands of pounds and cut printing costs by more than £400,000.

Other policies implemented by Ryanair include cutting the amount of ice taken on board a flight, and reducing the weight of trolleys and seats.

Measures taken by other carriers include the removal of magazine racks and rubbish bins and the replacement of glassware in first-class cabins with plastic cups.

In 2008, Air Canada removed life vests from some of its aircraft in favour of lighter floatation devices. Authorities approved the change, so long as it was limited to aircraft which didn’t venture more than 50 miles from the shore.

And in the 1980s, Robert Crandall, the former chief executive of American Airlines, claimed the carrier had made annual savings of $40,000 by removing one olive from every salad served on board its flights.

Despite the rising cost of fuel, Ryanair says it remains committed to its promise not to introduce fuel surcharges – unlike such airlines such as British Airways and Virgin Atlantic. BA currently levies a fuel surcharge of up to £145 on long-haul flights.
 
Full story from Telegrapgh Travel here…..


By Oliver Smith
03 Apr 2012