Tag Archives: 7378AS

Nok Air and Scoot to operate a medium and long-haul low-fare airline

Nok Air (Nok Airlines Public Company Limited) (Bangkok-Don Mueang) and Scoot (subsidiary of Singapore Airlines) (Singapore) on December 13, 2013 signed a non-binding Memorandum of Understanding (MOU) to start a new low-fare airline named NokScoot Company Limited. The MOU is subject to final negotiations and approval process.

Nok will hold 51 percent of the shares and Scoot will control the other 49 percent. Nok means “bird” in the Thai language.

Nok Air logo

The objective of the proposed airline is to operate a low-cost airline with wide-body aircraft on medium and long-hail international routes.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. Nok Air’s colorful former Ryanair Boeing 737-8AS HS-DBD (msn 33821) arrives at the downtown Don Mueang Airport in Bangkok.

Nok Air (see all of the colorful “bird” liveries): AG Slide Show

Scott: AG Slide Show

Bottom Copyright Photo: Micheil Keegan/AirlinersGallery.com. Will the Scoot brand go away of this temporary agreement is finalized? Scoot’s Boeing 777-212 ER 9V-OTA (msn 28507) rotates at Sydney Mascot.

Current Nok Air routes operated with Boeing 737-800s:

Nok Air 12:2013 Route Map

Scoot logo

Current Scoot routes operated with Boeing 777-200s. Scoot will soon be adding Boeing 787-9s. Hong Kong was added on November 15, 2013, its 12th destination.

Scoot 12.2013 Route Map

Nok Air video:

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Ryanair to open its second Belgian base at Brussels and a new base at Rome Fiumicino, offers to feed Alitalia’s long-range flights

Ryanair (Dublin) grew quickly by serving under-served, sometimes remote airports near major metropolitan airports. That strategy seems to be changing as it enters two new major airport markets.
Ryanair today announced it will open its second Belgian base (62 bases in total) at Brussels (Zaventem) in February 2014 with four based aircraft and 10 new routes to Alicante, Barcelona, Ibiza, Lisbon, Malaga, Palma de Mallorca, Porto, Rome, Valencia and Venice.
Previously Ryanair had served the Brussels area via under-served and cheaper Charleroi Airport, 29 miles south of central Brussels. The company will continue to serve both Belgian airports.
Ryanair logo
10 NEW ZAVENTEM ROUTES
Alicante
14 weekly
Barcelona
42 weekly
Ibiza
14 weekly
Lisbon
28 weekly
Malaga
14 weekly
Palma
14 weekly
Porto
14 weekly
Rome
28 weekly
Valencia
14 weekly
Venice
14 weekly
In other news, Ryanair, also announced it will be allocating six Boeing 737-800 aircraft to a new base in Rome Fiumicino Airport, and launching three new Southern Italy domestic routes with multiple daily flights to Catania and Palermo (in Sicily) and Lamezia (in Calabria) with these daily flights commencing on December 18. Ryanair also confirmed the six aircraft allocated to this new Rome Fiumicino base will also offer daily business flights to Brussels (Zaventum) and Barcelona (El Prat).

These three new domestic routes from Rome Fiumicino will bring to nine the number of domestic routes served by Ryanair from Rome, (Alghero, Bari, Brindisi, Cagliari, Comiso and Trapani are already served from Rome Ciampino). Ryanair confirmed that over the next 12 months, it will move many of these Italian domestic routes from Ciampino to Fiumicino which will be its main airport for domestic services to/from Rome. This will free up slots at Rome Ciampino thereby enabling Ryanair to add more international flights and more new routes to its schedule at Rome Ciampino, the preferred Rome airport for travellers to/from international destinations.
Ryanair also confirmed that it will increase these daily frequencies if Alitalia cuts back. Ryanair has also offered to use its low fare flights to feed into Alitalia’s international network to/from Rome Fiumicino. Ryanair has for example offered to carry Alitalia passengers at one-way fares from just €50 which will enable Alitalia to significantly reduce the costs of its feed traffic on these domestic routes to Rome Fiumicino. Ryanair has also requested a meeting with Alitalia to examine any other opportunities which may exist for co-operating with and assisting Alitalia in its current restructuring.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Ryanair’s Boeing 737-8AS WL EI-EMO (msn 40283) in the Podkarpackie Travel special scheme taxies at Palma de Mallorca.
Ryanair: AG Slide Show

Ryanair to add 12 new routes from the London Stansted hub

Ryanair (Dublin) yesterday (November 21) announced it will open 12 new routes from London Stansted in April 2014 as well as adding frequencies on 17 existing routes, which will deliver an additional 1,300,000 passengers per year.
Ryanair’s growth at Stansted from April 2014 will deliver:
  • 12 new routes to Basel, Bordeaux, Brive, Bucharest, Comiso, Dortmund, Lisbon, Osijek,Podgorica, Prague, Rabat and Skelleftea
  • 126 Stansted routes in total
  • More flights and improved schedules on 17 existing routes (from 430 to 600 weekly flights)
  • Over 1,300,000 new Ryanair passengers per year at Stansted (14.5 million in total)

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Boeing 737-8AS WL EI-DLC (msn 33586) climbs away from the runway Perpignan, France.

Ryanair: AG Slide Show

Video: London’s Stansted Airport from a B-17 and P-51 World War II USAAF base to Ryanair’s largest hub airport.

Current Ryanair routes from London Stansted:

Ryanair 11.2013 STN Route Map

Nok Air Boeing 737-800 skids off the runway at Trang Airport, Thailand

Nok Air (Bangkok-Don Mueang) flight DD 7411 operating from Trang to Bangkok (Don Mueang) veered and skid off the runway on takeoff at Trang Airport on August 6. The 142 passengers and crew members were uninjured. The flight was being operated with former Ryanair Boeing  737-8AS HS-DBM (msn 33594, ex EI-DLM). The incident closed the airport.

Read the full report from The Nation: CLICK HERE

Copyright Photo: Malcolm Nason/AirlinersGallery.com. HS-DBM is seen at Shannon before its delivery flight.

Nok Air: AG Slide Show

Ryanair to add more Ireland-UK frequencies in response to Aer Lingus increases, takes another swipe at the UKCC

Ryanair (Dublin) always famous for its comments about government agencies, has issued this new scathing comment and news:

Ryanair, the UK’s largest airline, today (31 July) announced that it would add additional daily frequencies from October on its five main Ireland-UK routes in a direct response to similar flight increases recently announced by Aer Lingus for the 2013-14 winter schedule. Aer Lingus’ decision to increase flight frequencies on these UK routes further undermines the discredited UKCC investigation into Ryanair’s 6 ½ year old minority (29%) stake in Aer Lingus. Confronted with incontrovertible evidence that competition between Ryanair and Aer Lingus has intensified, the UKCC has been reduced to inventing fairytale future “concerns” that Ryanair has “influence” over Aer Lingus or that this stake has or will lead to a lessening of competition.

The UKCC, in its provisional findings, has ignored, or excluded, 6 ½ years of evidence which totally disproves their bogus claims. It has failed to produce any evidence that competition would be lessened (or UK consumers penalised) when the European Commission recently (Feb 2013) prohibited Ryanair’s offer for Aer Lingus on the very grounds that competition has intensified between the two Irish airlines over the past 6½ years. If, as the UKCC now claims, Ryanair has “influence” over Aer Lingus which “might” lessen competition, then it should explain why Aer Lingus has recently increased flights on the five main Ireland-UK routes or why Ryanair is now responding with yet more flight frequency, which will lead to lower prices and better deals for those few UK consumers who actually fly Aer Lingus.
Ryanair will add at least one additional daily return flight from October 2013 to each of its top 5 Dublin-UK routes including London (STN), Manchester, Birmingham, Edinburgh and Bristol as follows:
RYANAIR INCREASES ON 5 DUBLIN-UK ROUTES – WINTER 2013-14
Route
Daily rotations Nov 2012
Daily rotations Nov 2013
Dublin – London (STN)
7
8
Dublin – Manchester
4
5
Dublin – Birmingham
3
4
Dublin – Edinburgh
3
4
Dublin – Bristol
2
3

 

Ryanair continues to question why the UK’s OFT and CC have wasted millions of UK taxpayer funds investigating a 6 ½ year old failed merger between two Irish airlines (which has little, if any, impact on any UK consumers) while at the same time neither quango took any action whatsoever on behalf of UK consumers when BA acquired BMI, or previously when Easyjet acquired GB Airways. The UKCC has failed to explain this glaring lack in consistency particularly when neither the EU nor the Irish competition authorities had any concerns about Ryanair’s 6 ½ year old minority stake.
Since the UKCC inquiry has been unable to produce one shred of evidence that competition between Aer Lingus and Ryanair has lessened over the past 6 ½ years and since the UKCC has been forced to accept the EU’s ruling (that intensified competition has benefited consumers) this has reduced the UKCC to flailing around, inventing fairytale future “concerns” so that it can ignore the inconvenient truths of the last 6 ½ years of evidence.
The UKCC’s 3 fairytale future “concerns” are disproven by the past 6 ½ years of evidence as follows;
a) That Ryanair “might” block a rights issue by Aer Lingus: however the UKCC have ignored the inconvenient truth that over the past 6 ½ years – Ryanair has repeatedly confirmed it will support take up rights to prevent dilution.
b) That Ryanair “might” block a disposal by Aer Lingus of its Heathrow slots (despite the fact any such disposal would lessen competition between the two airlines) while ignoring the inconvenient fact that Aer Lingus, as recently as April 2013, disposed of a pair of Heathrow slots without any objection or block by Ryanair.
c) That Ryanair “might” prevent another EU airline from acquiring Aer Lingus, and/or “squeezing out” Ryanair. Again the UKCC has ignored the inconvenient truth that over the past 6 ½ years, no other EU airline has shown any interest in acquiring Aer Lingus and almost all other EU airlines have publicly stated that they have no interest in acquiring Aer Lingus.
In order to destroy any remaining shred of credibility from these bogus and invented “concerns” Ryanair has offered to unconditionally and irrevocably dispose of its 29% minority shareholding to any other EU airline who offers for, and successfully acquires 50.1% of Aer Lingus (which is far below the legal 80% squeeze out threshold). This undertaking has been dismissed by many commentators on the very obvious grounds that no other EU airline wishes to acquire Aer Lingus, another inconvenient fact which the UKCC has conveniently ignored. Ryanair’s undertaking removes any possibility that it can or could block an acquisition of Aer Lingus by another EU airline and sheds this UKCC process of any credibility whatsoever.
The UKCC’s case now lies in tatters, as Simon Polito and his team flounder around, looking to invent new and even more fairytale “concerns” when the inconvenient truth is that 6 ½ years of evidence proves that Ryanair’s minority stake has resulted in intensified competition between the Irish airlines to the benefit of UK consumers. Finally, the UKCC has produced no shred of evidence whatsoever that any other EU airline – other than Ryanair – has any interest in acquiring Aer Lingus.
Copyright Photo: Lucio Alfieri/AirlinersGallery.com. Boeing 737-8AS WL EI-DCL (msn 33806) in the original Dreamliner colors taxies at Bologna.
Ryanair: AG Slide Show

Ryanair’s 1Q profits falls 21% as previously guided

Ryanair (Dublin) has issued this financial report for its fiscal first quarter:

Ryanair has announced that Q1 profits, as previously guided, fell 21% to €78m as traffic grew 3% to 23.2m. Ave. fares fell 4% due to the timing of Easter and the impact of the June French ATC strikes but revenue per pax. rose 1% due to strong ancillary growth. Unit costs rose 4% mainly due to a 6% increase in fuel costs. Full year guidance, remains unchanged.

Summary Q1 Results.

Q1 Results (IFRS) €

June 30, 2012

June 30, 2013

% Change

Passengers

22.5m

23.2m

+3%

Revenue

€1,284m

€1,342m

+5%

Profit after Tax

€99m

€78m

-21%

Basic EPS(euro cent)

6.86

5.42

-21%

 

 

 

Ryanair’s CEO, Michael O’Leary, said:

“As previously guided higher fuel costs and the timing of Easter led to Q1 profits falling €21m to €78m. Ancillary revenues grew by 25% to €357m (27% of total revenues) driven by the successful development of reserved seating, priority boarding, and higher admin\credit card fees.

Unit costs rose 4% in line with the increase in sector length. Fuel increased 6% to €577m or 47% of total operating costs. Excluding fuel, Q1 unit costs rose by 6%, slightly faster than the increase in sector length, due to a 2% rise in flight crew pay, and increased Eurocontrol, Spanish airport, and Italian ATC charges. We are 90% hedged for FY14 at $980 p.t and 70% hedged for H1 FY15 at $935 p.t. We have extended our H1 FY15 fuel currency hedge on recent dollar weakness which delivers a 3% cut in our fuel cost per pax. for the 70% already hedged in H1 FY15.

Our seven new bases Eindhoven and Maastricht (Holland), Krakow (Poland), Zadar (Croatia), Chania (Greece), Marrakesh and Fez (Morocco)) are performing well. We plan to announce more new routes and new bases later this year as we exploit significant growth opportunities in markets where competitors including Airberlin, Alitalia, Iberia, LOT Polish, and SAS are cutting back. We are in ongoing negotiations with MAG, the new owners of Stansted airport to reverse six years of record traffic declines, but there is no guarantee that any deal will be agreed.

UK CC Enquiry.

Despite no evidence of any material influence, and compelling evidence that competition between Ryanair and Aer Lingus has intensified (rather than lessened) over the past 6½ years, we now expect that the UKCC will unlawfully attempt to force us to sell down most, if not all, of our 29.8% stake in Aer Lingus on some baseless or invented claim that competition in the future “might” be lessened. Given the CC’s total lack of evidence they are now reduced to dreaming up bogus future concerns that Ryanair “might” prevent another EU airline acquiring Aer Lingus, despite Ryanair’s repeated public statements that we would consider any offer by another EU airline to acquire Aer Lingus, and/or acquire Ryanair’s shareholding.

We have now eliminated any remaining shred of credibility from this enquiry, by offering to unconditionally sell our 29.8% stake to any EU airline which offers for, and successfully acquires, over 50% of Aer Lingus, despite 6½ years of evidence that no EU airline other than Ryanair has any interest in buying, or investing in, Aer Lingus. The UK CC has no credibility in this case having taken no action whatsoever on behalf of UK Consumers in earlier mergers when BA bought BMI or Easyjet bought GB Airways. Yet 6½ years after one Irish airline (Ryanair) bought 29.8% of Aer Lingus (an Irish airline which carries very few UK consumers), the UK CC is now ignoring evidence to pursue an apparently pre-meditated decision to force a more draconian sell down on Ryanair than they required in the earlier BSkyB/ITV case. This is absurd in the case involving 2 Irish airlines when Aer Lingus affects or carries very few UK consumers. Ryanair will strenuously appeal any such ruling, which is clearly unjustified by the evidence in this case, and we will insist that any such order cannot be enforced while we appeal the EU Commission’s February 2013 Prohibition Decision before the EU Courts.

Aircraft Order and Shareholder Returns.

Shareholders have recently approved our order for 175 Boeing 737-800 aircraft for delivery over a five year period between September 2014 and December 2018. This has allowed us to raise our growth targets by 38% to 110m passengers by FY19 (previously 100m) and our fleet to 410 (previously 375).

The strength of our Balance Sheet with Q1 gross cash of €3.6bn and net cash of €191m, (despite another recent €177m share buyback), remains unmatched in our industry. This strong cash position allied to the Capex certainty we now enjoy, following the recent aircraft order, enabled us to announce plans to return up to €1bn to shareholders over the next two years. At least €400m via share buybacks in FY14, and up to a further €600m in special dividends or share buybacks in FY15, subject to current fuel, yields and profitability trends continuing. This further €1bn brings to over €2.5bn the total cash returned to Ryanair shareholders in recent years, which is over 4 times the €585m originally raised from shareholders since our IPO.

Outlook.

We expect Q2 yields to rise despite last year’s challenging (post-Olympic) comparables, although yields on close-in summer bookings have been slightly weaker in recent weeks due, we believe, to the heat wave in Northern Europe. As ever, our outlook remains cautious for the full year as market conditions are tough with recession, austerity, high fuel costs, and excessive Government taxes (most recently in Belgium) impacting air travel demand and yields. While we expect full year traffic to grow 3% to 81.5m, we still have no visibility over next winter’s yields, and on the basis that the recent yield weakness in close-in summer bookings does not continue, we see no reason to change our full year profit after tax guidance which remains at between €570m to €600m”.

Copyright Photo: SM Fitzwilliams Collection. Boeing 737-8AS EI-CSA (msn 29916) at the Dublin hub promotes Scotland as a destination. Ryanair will be adding more advertising.

Ryanair: AG Slide Show

Ryanair gives up, will sell its 29% Aer Lingus stake to another EU airline

Ryanair (Dublin) is giving up on taking control of rival Aer Lingus (Dublin). The airline issued this statement:

Ryanair on July 23 confirmed that, as part of its ongoing remedies discussions with the UK Competition Commission (CC) in a case where the CC have produced no evidence whatsoever of any lessening of competition as a result of Ryanair’s 6½ year old 29% shareholding in Aer Lingus, Ryanair has now offered the following undertaking to the CC:

In order to dispel the CC’s unfounded and invented “concern” that Ryanair’s shareholding may prevent Aer Lingus from being acquired by another EU airline, Ryanair will undertake to unconditionally sell its 29% shareholding to any other EU airline that makes an offer for Aer Lingus and obtains acceptances from 50.1% of Aer Lingus shareholders.

The above remedy is without prejudice to Ryanair’s vehement objection to the CC’s manifestly false conclusion that Ryanair has influence over Aer Lingus’ commercial strategy and/or that Ryanair’s 6½ year old minority shareholding in Aer Lingus has resulted in a lessening of competition. This conclusion is flatly contradicted by 6½ years of evidence, by the European Commission’s findings in February 2013 that competition between Ryanair and Aer Lingus has intensified, and by the evidence submitted even by Aer Lingus and the Irish Government (to the EU), which proves that competition between Ryanair and Aer Lingus intensified to the benefit of consumers over the last 6½ years.
Ryanair’s Robin Kiely said:
“It is clear from the CC’s own Provisional Findings report that it has found no evidence of any lessening of competition between Ryanair and Aer Lingus. In fact, Ryanair’s recent (3rd) offer for Aer Lingus was prohibited by the EU precisely because of the evidence, submitted by both Aer Lingus and the Irish Government, that competition between Ryanair and Aer Lingus has “intensified” during the past 6½ years.
These inconvenient facts have reduced the CC’s Simon Polito (Chairman) and Roger Davis (Member) to inventing new and fantastical “concerns” in order to justify their apparently premeditated and biased “thinking” that Ryanair should be forced to sell down this 6½ year old minority stake. The only remaining “concern” they can now dream up is that Ryanair’s 29% stake “might” prevent another EU airline buying Aer Lingus; despite 6½ years of evidence (and repeated public statements) that no other EU airline has any interest in acquiring Aer Lingus.
In order to remove any remaining shred of credibility from this CC process and eliminate any doubt about this imaginary albeit non-existent “concern”, Ryanair has now agreed that it will unconditionally sell its 6½ year old minority stake to any other EU airline which makes an offer for, and acquires more than 50.1% of, Aer Lingus shares, at the same price and terms which are accepted by these other 50.1% of Aer Lingus shareholders. This remedy unconditionally removes any ability by Ryanair to block any future takeover of Aer Lingus by another EU airline.
This bogus CC “concern” has now been fatally undermined thereby removing any requirement for a divestment of Ryanair’s 6½ year old minority shareholding which even the CC now admits hasn’t given Ryanair any influence, and Aer Lingus admits has led to intensified competition to the benefit of the perhaps 1 or maybe 2 UK consumers who even fly Aer Lingus.”
Copyright Photo: SM Fitzwilliams Collection/AirlinersGallery.com. Boeing 737-8AS EI-CSE (msn 29920) taxies at the Dublin hub. The airframe has since gone on to Gol as PR-VBE.
Aer Lingus: AG Slide Show
Ryanair: AG Slide Show