Tag Archives: 7378AS

Ryanair to open a new base at Krakow, Poland

Ryanair (Dublin) has announced it would open its 53^rd base and second in Poland at Krakow in April 2013 with two-based aircraft and unveiled 4 new routes (31 in total), to/from Dortmund, Gothenburg, Manchester and Kos, as Ryanair invests over $140 million at Krakow Airport.

Ryanair will grow at Krakow as follows:

2 based aircraft
31 routes
4 new routes to/from Dortmund, Gothenburg, Manchester and Kos
Increased frequencies on 3 other routes
224 weekly flights (up 16%)
1.6 million pax p.a (up 14%)
1,600 “on site” jobs

Ryanair:

Ryanair criticizes Brussels Airlines, the Belgian government, Lufthansa and Aer Lingus, announces a new Eindhoven base

Ryanair (Dublin) has publicly stated it will not move to Brussels (Zaventem) should Brussels Airlines (Brussels) fail due to its current financial losses. The airline is committed to Charleroi near Brussels. The company issued the following statement:

Ryanair rejected recent speculation emanating from the Belgian Government and/or Brussels Airlines that there was some prospect that Ryanair would move to Brussels Zaventem when Brussels Airlines disappears due to its catastrophic losses. Ryanair has rejected this idle speculation and confirmed its commitment to its base at Brussels Charleroi, where Ryanair has operated for 15 years, and has built a growing and successful partnership with Brussels South Charleroi Airport.

Ryanair confirmed that it has recently reaffirmed its traffic development plans with Brussels Charleroi Airport, that it continues to add new aircraft and new routes at Charleroi, continues to grow traffic and jobs in Charleroi, and that it has no intention of moving to Brussels Zaventem, even if Brussels Airlines, an airline which is effectively controlled by Lufthansa (Frankfurt), ceases operations.

Ryanair called on the Belgian Government to reject Brussels Airlines pathetic attempt to obtain subsidies for its high labour costs, which would result in the Belgian taxpayer effectively subsidising Lufthansa, one of Europe’s strongest airline groups.

Ryanair pointed out that Lufthansa freely chose to take a 45% stake in Brussels Airlines, and if Lufthansa is unhappy with Brussels Airlines cost base, then it should reduce those costs or invest in the airline, rather than inappropriately pressurising the Belgian Government to subsidise another large Lufthansa partner.

Ryanair, Europe’s only ultra-low cost airline, today announced it would open its 52^nd base (second Dutch base) at Eindhoven in April 2013 with one based aircraft as it invests over $70 million at Eindhoven Airport.

Ryanair will grow at Eindhoven as follows:

1 based aircraft
31 routes
4 new routes to/from Agadir, Bordeaux, Chania and Fez
Warsaw Modlin extended for summer season
Increased frequencies to/from Alicante, Faro, Ibiza, Malaga, Marrakech and Pisa
238 weekly flights (up 8%)
1.7 million pax p.a (up 7%)
1,700 jobs at Eindhoven Airport

Ryanair also took a public swipe at competitor Aer Lingus (Dublin) which it has been attempting to take control. Here is the full statement:

Ryanair criticized the Board and Management of Aer Lingus for their latest “wet lease” agreement with Virgin Atlantic Airways (London), which Ryanair believes is yet another example of Aer Lingus’ commercial failure and lack of any independent future.

Ryanair highlighted that this is Aer Lingus’ second attempt at such a wet lease type arrangement, following the trans-Atlantic “partnership” with United Airlines (Chicago), which started in March 2010, under which Aer Lingus switched one of its trans-Atlantic aircraft, to operate an effective wet lease for United Airlines on the Washington – Madrid route. In July 2011, Aer Lingus’ CEO Christoph Mueller claimed “We operate the aircraft very cost efficiently and United is selling it at very reasonable yields and it works…”. Mr Mueller “believes this type of operation could be strategically important for the future”. Yet this “strategically important” partnership was ended by United in October 2012 after just 30 months.

Ryanair called on the Board and Management of Aer Lingus to explain why Aer Lingus is wet leasing four of its larger A320 aircraft to Virgin Atlantic to operate routes to/from London Heathrow Airport which have no connection with or value to Ireland. Where will these four aircraft come from? Will they be taken from Aer Lingus’ existing bases at Shannon, Cork or Dublin? Will this result in yet another decline in Aer Lingus’ traffic, which has already fallen from 10.4 million in 2009 to 9.5 million in 2011? Will Aer Lingus’ contribution to Ireland’s “Grabbing” in 2013 be yet another 1 million cut in capacity and traffic to/from the Republic of Ireland?

Ryanair’s Stephen McNamara said:

“In 2010 Aer Lingus was promising that the United Airlines wet lease “partnership” would be the way forward, yet 2 years later United abruptly cancelled the deal and returned the aircraft to Aer Lingus. Instead, United have now entered the Washington-Dublin route, which Aer Lingus previously withdrew from.

Today’s announcement that Aer Lingus is to take 4 of its existing aircraft away from Ireland, thereby reducing its Irish traffic by up to 1 million passengers annually, so that it can rent these aircraft to Virgin Atlantic on a short-term wet lease arrangement seems to be yet another admission that Aer Lingus has no commercial strategy or independent future. What happens in a year or two years time if Virgin Atlantic wants to cancel the deal and Aer Lingus is left with 4 aircraft with nothing to do, but has 1 million fewer core passengers ?

If, as Aer Lingus claims, their brand and commercial strategy is working, then why are they spray painting 4 aircraft in Virgin colours and renting them out, rather than running more routes to/from Ireland for the “Grabbing” in 2013? Ryanair believes that this latest wet lease deal with Virgin is yet another sign that Aer Lingus has no viable commercial strategy, a mismanaged and fading brand and no independent future.”

Copyright Photo: Guillaume Besnard. Boeing 737-8AS EI-EKJ (msn 38497) with special “Comunitat Valenciana” promotional sub-titles climbs away from Barcelona.

Ryanair:

Ryanair to grow in Scotland next summer after reaching an agreement with Edinburgh Airport’s new owners

Ryanair (Dublin) today announced a new summer build-up in Scotland:

Ryanair, Europe’s only ultra-low cost airline, today (December 4) announced significant summer 2013 growth in Scotland, with 38 routes (6 new) at Edinburgh and 27 routes (2 new) at Glasgow Prestwick, which will deliver a combined total of over 3 million passengers and sustain over 3,000 “on site jobs” at both Edinburgh and Glasgow Prestwick airports.

Ryanair cut its winter 2012 schedule at Edinburgh following the breakdown of cost negotiations with the previous owners of Edinburgh, the BAA. After reaching agreement with Edinburgh Airport’s new owners, Global Infrastructure Partners, Ryanair will now grow again at Edinburgh as follows:

38 routes (up 11%).
6 new routes to/from Bologna, Beziers, Cagliari, Corfu, Katowice & Santander
Increased frequencies on 5 other routes
From 232 to 246 weekly flights (up 5%).
From 1.6m to 1.8m pax p.a (up 11%).
1,800 jobs at Edinburgh Airport.

Ryanair will also grow at Glasgow Prestwick as follows:

27 routes (up 7%).
2 new routes to/from Rzeszow & Warsaw Modlin
Increased frequencies on 4 other routes
From 86 to 95 weekly flights (up 10%).
From 1.2m to 1.4m pax p.a (up 6%).
1,400 jobs at Edinburgh Airport.

Ryanair:

Ryanair cuts Madrid by 35% and Barcelona by 23%

Ryanair (Dublin) is cutting back on its schedule to both Madrid (35 percent reduction) and Barcelona (23 percent reduction) in response to higher airport charges at both airports. The airline issued the following statement:

Ryanair has confirmed deep cuts to its flights at Madrid and Barcelona and across its Spanish operations in 2013 in response to the Spanish Government doubling of airport taxes at both Madrid and Barcelona El Prat airports on July 1, 2012.

From March 30, 2013, Ryanair will cut its Madrid and Barcelona operations as follows:

Madrid (-35%):

· 4 based aircraft cut (from 14 to 10);

· 13 routes cancelled;

· 22 route frequency cuts;

· 272 weekly flights cut;

· 1.9m pax lost (from 5.3m to 3.4m);

· 1,900 “on site” jobs lost (ACI).

Barcelona El Prat (-23%):

· 1 based aircraft cut (from 13 to 12);

· 4 routes cancelled;

· 20 route frequency cuts;

· 170 weekly flights cut;

· 1.2m pax lost (from 5.4m to 4.2m);

· 1,200 “on site” jobs lost (ACI).

Spain (total) (-12%):

· 648 weekly flights cut;

· 4.5m pax lost (from 30m to 25.5m);

· 4,500 “on site” jobs lost (ACI).

These Ryanair cuts are the unavoidable response to the Spanish Goernment’s unjustified and unnecessary doubling of airport taxes at both Madrid and Barcelona El Prat airports in July 2012. These extortionate tax increases, which are now being investigated by the EU Commission, are particularly damaging for Spanish tourism, jobs and the economy at a time when youth unemployment in Spain stands at an alarming 50%.

Ryanair:

Ryanair to cut 10 routes from Budapest

Ryanair (Dublin) has announced a 40 percent cut and the loss of 10 routes from Budapest due to increased airport costs. The airline issued the following statement:

Ryanair on November 22 has announced 40% cuts at its Budapest base with the closure of 10 routes and loss of over 280 weekly flights from January 10, 2013 after the Hochtief-run airport increased charges, refused to provide efficient facilities and failed to offer a competitive cost base for future growth offered by Ryanair. Ryanair’s Budapest traffic will fall by 800,000 passengers per year (from 2 million to 1.2 million passengers) leading to the loss of up to 800 “on-site” jobs.

Hochtief’s failure to agree a long term growth deal with Europe’s largest airline is further proof that Budapest Airport has no interest growing Hungarian tourism, traffic and jobs as it repeatedly increases charges even as its traffic declines. This was confirmed by Patrick Bohl (Budapest Airport) who recently admitted that ‘budget airline’ passengers pay more than Malev transfer passengers, with Budapest enjoying “probably the best recovery any airport has seen when they lost a national carrier.”

These Budapest cuts (effective January 10, 2013) will include:

5 to 3 based aircraft
30 routes to 20 (down 33%).
From over 280 weekly flights to less than 170 (down 40%).
2 million to 1.2 million passengers per year (down 40%).
Frequency cuts on 9 of 20 other routes
The loss of 800,000 passengers per year and 800 “on-site” jobs at Budapest Airport.

Ryanair regrets these cuts and confirms that they can be reversed if a competitive cost offer and efficient facilities become available at Budapest Airport.

Ryanair:

Ryanair to open a new operation at Nuremberg

Ryanair (Dublin) has announced it will launch a new operation at Nuremberg (Bavaria’s second largest city) on April 1 with six routes to Alicante, Cagliari, London (Stansted), Malaga, Pisa and Porto.

Ryanair:

Ryanair is still optimistic about its proposed takeover of Aer Lingus after the EC ruling

Ryanair (Dublin) is still optimistic about final European Commission approval of its proposed takeover of rival Aer Lingus (Dublin). The European Commission has raised concerns about competition in Ireland despite Ryanair’s offer to surrender European routes from Ireland to allow for other carriers to add Irish service.

Ryanair issued the following statement:

Ryanair, Europe’s only ultra-low cost airline, confirmed on November 14 that its discussions continue with the European Commission about its radical package of remedies designed to address the Commission’s competition concerns in relation to Ryanair’s June 19 offer for Aer Lingus. This comprehensive remedies package includes a number of new airline bases in Dublin, new entrant competitors on over 40 routes to/from Dublin, Cork and Shannon, as well as specific competition solutions that guarantee increased price competition on routes to and from Ireland.

Following receipt of the Commission’s statement of objections last evening (November 13), a standard procedural step in Phase II EU merger reviews, Ryanair expects that the Commission will shortly market test this transformational remedies package, and remains confident that its offer for Aer Lingus will receive competition clearance following any fair assessment by the Commission. A detailed process of engagement with the EU Commission is now underway.

Ryanair’s offer for Aer Lingus is being reviewed while dramatic changes take place across the EU airline industry, including: (1) a large restructuring of Iberia with 4,500 job losses; (2) the takeover of Vueling by IAG, combining the Number 2 and Number 3 airlines in Spain; (3) a major restructuring of SAS including 6,000 job losses and state backed loan guarantees; and (4) the planned merger of Aegean and Olympic, the Number 1 and Number 2 airlines in Greece.

It is against this backdrop that Ryanair is proposing a merger that provides secure jobs, growth opportunities and financial benefits for all shareholders in a larger Ireland based EU carrier.

Read the local media analysis of this proposed merger from The Irish Times: CLICK HERE

Top Copyright Photo: Antony J. Best. Boeing 737-8AS EI-DCL (msn 33806) in the Dreamliner livery lands at London (Luton).

Ryanair:

Aer Lingus:

Bottom Copyright Photo: SM Fitzwilliams Collection. Airbus A320-214 EI-DEJ (msn 2364) taxies at the Dublin base.

Ryanair to start new service to Lublin, Poland

Ryanair (Dublin) has announced it will open a new route between London (Stansted) and Lublin – its 11^th Polish airport on December 17, bringing its Stansted winter schedule to 95 routes, including new winter routes to Budapest and Warsaw (Modlin), as well as ski routes to Grenoble, Salzburg and Turin.

The ultra low fare carrier also announced it open a new route between Dublin and Lublin – its 11^th Polish airport on December 18, bringing its Dublin winter schedule to 54 routes, including new winter routes to Budapest and Warsaw (Modlin), as well as ski routes to Grenoble, Salzburg and Turin.

Ryanair:

Ryanair continues its push for Aer Lingus by asking at least six airlines to fly from Ireland

Ryanair (Dublin) is making a new push to obtain a controlling interest in rival Aer Lingus (Dublin). According to this report by the Financial Times, Ryanair has approached at least six international airlines to consider starting long-range international service to and from Dublin to increase competition. If Ryanair is able to take control of Aer Lingus (so far Aer Lingus is fighting off this hostile attempt), Ryanair would need regulatory approval to complete the transaction which could lead to a possible future merger. Regulatory concerns would be concentrated around the lack of competition from DUB if Ryanair is successful, hence the new push for new competition.

Read the full report: CLICK HERE

In other news, Ryanair is adding new service to Tenerife Norte from both Barcelona and Madrid starting on November 7, 2012.

Copyright Photo: Keith Burton. Boeing 737-8AS EI-DLK (msn 33592) approaches Ryanair’s largest hub at Stansted Airport near London.

Ryanair Slide Show:

Ryanair reports a fiscal first quarter net profit of $121 million

Ryanair (Dublin) reported a fiscal first quarter net profit of $121 million.

Here is the official statement from the airline:

“Ryanair, Europe’s only ultra-low cost airline today (Jul 30) announced that Q1 revenues increased 11% to €1,284m as traffic grew 6% and ave. fares rose 4%. Unit costs rose 10% mainly due to a 27% (€117m) increase in fuel costs which led to a €40m decline in Q1 profit-as previously guided-to €99m.

Summary Q1 Results (IFRS) in Euro.

Q1Results (IFRS) €	June 30, 2011	June 30, 2012	% Change
Passengers	21.3m	22.5m	+6%
Revenue	€1,155m	€1,284m	+11%
Adjusted Profit after Tax	€139m	€99m	-29%
Adjusted Basic EPS(euro cent)	9.35	6.86	-27%

Ryanair’s CEO, Michael O’Leary, said:

“As we previously guided, significantly higher fuel costs caused Q1 profits to fall by €40m (from €139m last year’s) to €99m. Our 6% traffic growth combined with a 4% rise in ave. fares led to an 11% increase in Revenues. Ancillary sales grew by 15% to €286m (outpacing traffic growth) accounting for 22% of total revenues. Operating unit costs rose 10% as fuel increased 27% (by €117m) to €544m. Fuel amounted to 47% of total operating costs. We were hedged at $820 pt in Q1 last year compared to $1000 pt this year a price increase of 22%. As a result Q1 will suffer the largest fuel cost rise in FY13 as the pricing differential narrows significantly over the remaining three quarters of the year.

Q1 yield increases were dampened by the EU wide recession, austerity measures, and heavily discounted fares at our new base launches in Cyprus, Denmark, Hungary, Poland, Provincial UK and Spain. Excluding fuel, Q1 unit costs rose by 3%, as we rigorously controlled costs, despite a 2% rise in flight crew pay, higher charges at certain airports, and the impact on costs of stronger Sterling against the Euro.

Despite this challenging environment Ryanair continues to grow its traffic across Europe while maintaining the lowest unit costs in the airline industry, and generating healthy profits as evidenced by the 8% after tax margin achieved in the first quarter.

Our new bases (Billund, Budapest, Manchester, Palma, Paphos and Wroclaw) are enjoying high load factors, although some smaller bases such as Budapest, Warsaw and Wroclaw are doing so at very low fares. We announced our 51st base in Maastricht (Holland), which opens in December, and we plan to announce more new routes and up to 2 new bases later this year. We continue to see significant opportunities to grow across Europe as many airports aggressively compete to attract Ryanair’s traffic growth.

On July 1 the Spanish government more than doubled airport taxes at AENA’s already high cost airports in Madrid and Barcelona, with smaller increases at other Spanish airports. These tax increases have already led to winter capacity cuts by Ryanair and many other airlines in Spain. These cuts will damage Spanish tourism and jobs in a country that already suffers up to 50% youth unemployment. It has been repeatedly proven that airport charges/tax increases lead to falling traffic, and the Spanish government must reverse these unjustified increases if they wish to grow Spain’s tourism and generate new jobs.

Ryanair welcomes the UK Court of Appeal’s decision last week to dismiss the BAA/Ferrovial latest (7th) appeal against the 2008 Competition Commission’s recommendation that Stansted be sold to promote competition and the consumer interest. We now call on the UK Competition Commission to expedite the sale of Stansted. While BAA Stansted traffic declines (by 3% in June and 7% for H1 2012), both Heathrow and Gatwick have grown. We believe Stansted’s traffic decline can be reversed under new ownership which will lead to competition, lower charges, and improved passenger service at Stansted.

We are 90% hedged for FY13 at approx. $1000 pt, up 21% on last year’s price. We have recently hedged 50% of our H1 FY14 requirement at $940 pt, however these lower fuel prices will be more than offset by lower euro to dollar exchange rates. High oil prices and Europe’s recession will drive further consolidation and more airline closures this winter. This will open more growth opportunities for Ryanair because we have the youngest, most fuel efficient fleet as well as the lowest fares and costs.

Our outlook remains cautious for the year. We expect full year traffic to grow 4% (7% in H1, and 1% in H2 due to winter capacity cuts). We expect positive yields will continue in Q2 and anticipate smaller fuel cost increases (due to higher Q2 comparable last year and fuel saving measures we have implemented). Currently, we have no visibility of next winter’s yields but expect that continuing austerity, EU recession, and lower yields at new bases will restrain fare growth. Until we get some H2 yield visibility our guidance for FY 13 remains unchanged, in the range of €400m to €440m as previously guided”.

Ryanair: