[FormerlyDoS]

first_class_please – 06/09/2013 15:59 GMT

The promoters of EU261 always expected it would raise fares a little.

I have no problem with FR making it transparent, it helps the consumer make their choice.

[BA744fan]

I’m certain more people would choose to fly Ryanair if they didn’t constantly play games with their fares, taxes and extras.

I fly at least 12x a year with low cost airlines and always choose Easyjet over Ryanair, even if the fares are higher. The main reason being I know straight away what I am going to pay with Easyjet.

Their crew are also much friendlier and are not constantly trying to sell you over priced crap when you are trying to enjoy a peaceful flight.

[LuganoPirate]

So FR carried about 80million pax last year. At €5 each that’s €400,000,000 earned. Did they pay out anything like that amount under EU 261???

[FormerlyDoS]

BA744fan – 06/09/2013 17:09 GMT

Given the choice, I’d take easyJet every time. A decent airline, with a decent product v the bottom of the barrel.

[FormerlyDoS]

LuganoPirate – 06/09/2013 20:10 GMT

I very much doubt it, but I don’t agree with your math, as I reckon a ‘passenger’ relates to a one way journey, thus 80 million x 2.50€.

So it’s ‘only’ 200,000,000€.

This gang have the clearest strategy in the airline sector. (I don’t like it, but it is elegant in construction and execution.)

[LuganoPirate]

Yes DoS, it does. I didn’t read it as a return journey. Still 200m accounts for a good chunk of its profit.

I also saw 90% of their fuel is hedged at $98 for 2014. It will be interesting to see where the oil prices lie during ’14 and how they price their surcharges. A miscalculation could seriously impact their results.

[FormerlyDoS]

The fuel situation will be interesting, very linked to what happens in Syria, the middle east is tense (again) at the moment.

[KRIyengar]

Dream on mate. Fat chance of this happening. Ryanair has more money in the bank than anyone else bar Singapore Airlines because of Molly’s instinctive ultra-conservative outlook. The guy is an accountant, don’t forget. These people are instinctively risk-averse when it comes to gambling with money. Also, Ryanair’s as costs are far lower than anyone else’s, especially their legacy competitors, they can afford to undercut them all. The thing is this BA, AF, LH etc may offer certain fares that are competitive with Molly’s but they really can’t afford doing it for a long time because their costs are so much higher. And, besides, independent statistical analyses have proven that Ryanair is still cheaper more often than its competitors despite all their nasty add-ons. To cut a long story short, anyone who thinks he can beat Molly at his own game hasn’t thought through what he is going to let himself in for: either he has to withdraw with a bloody nose or go bust before Molly goes bust because he can’t match his financial fire power.

[LuganoPirate]

Granted KRI, FR has cash and cash equivalents, financial assets and restricted cash of €3.559.00, but it also has €3,498.3 of Total borrowings so only €60.7 of net funds.

Do you have figures for IAG?

[BigDog.]

The DT –
…”Ryanair profits warning could refocus airline on good service”..

..”Could this be the start of a consumer backlash?”

..”The novelty (of the business model) is starting to wear off.”

It is only their ancillary charges that are profitable – Ryanair loses €4.36 on every passenger it carries but makes €13.43 in ancillary.

..The profit warning is a matter of mild turbulence for Ryanair. It is still likely to make slightly more than the €560m in pre-tax profits it made last year…

http://www.telegraph.co.uk/finance/newsbysector/transport/10294619/Ryanair-profits-warning-could-refocus-airline-on-good-service.html

Imo the vertically challenged Irish CEO’s haven’t the nous or ability to change from their single leadership style- bullying, so I doubt if O’Leary will have the acumen or humility to change tack as it would not sit well with the egos.

[TimFitzgeraldTC]

I’d guess if this happens as political traction gains ground around the issue of zero hour contracts then this could cause Ryanair some disturbance.

http://www.bbc.co.uk/news/uk-politics-24012368

I guess they would just move juristiction / find some loophole to keep operating. I do keep questioning the model, especially when they receive so many hidden subsidies in many many forms what happens if these were to stop. But you can’t argue that at the moment they are successful and I would not put my money on them being the next Enron.

[syclik5]

If Ryanair goes bust, then that will be the end of the aviation industry. They will be the very last airline to go out of business.

[openfly]

I find it intriguing that Molly has been so uncharacterlike in not milking the situation in the press. His silence has been incredibly loud.

[Alkaseltzer]

syclic5 & others.
Any airline can go bust.As Adam Thompson [British Caledonian] said
“If you have to tighten your belt it is a recession.If you have no belt left to tighten it is a depression.If you have lost your trousers you are in the airline business.”
Who knew in advance that Panam & Swissair would fold?

[skywards]

Fingers crossed. Maybe that would encourage other airlines not to have stupid and deranged add on charges. As for jobs…people lose their jobs everyday, life goes on….The wheel always turns a full circle.

[Author]

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