Tag Archives: ryanair dublin

Ryanair carries over 9 million passengers in August, the first European airline to do so

Ryanair (Dublin) celebrated a milestone in August and issued this statement (while taking a swipe at Aer Lingus):

Ryanair released its passenger and load factor statistics for August 2013:

  • Traffic increased by 1% to over 9 million passengers.
  • First European airline ever to carry 9 million passengers in one month.
  • Annual traffic to end August grew 2% to over 80 million passengers.
  • Load factor increased 1% to 89%.
  • Ryanair carries 9 million passengers in a month, Aer Lingus carries 9 million in a year!
Aug 12
Aug 13
Change
Yr to Aug 13
Passengers
8.90M
9.02M
+1%
80.2M (+2%)
Load Factor
88%
89%
+1%
82%

Ryanair 9m passengers in Aug

Ryanair celebrated its first ever 9 million passenger month by releasing 900,000 seats for travel in October and November at fares starting from just €14.99 one-way.

Ryanair: AG Slide Show

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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

 

Ryanair calls for three new London runways

Ryanair (Dublin) has issued this statement calling for three new London runways at three airports:

Ryanair, the UK’s only ultra low cost carrier (ULCC) on July 18 made a submission to the UK Government’s Airports Commission, calling on Sir Howard Davies and his team to resolve the 30 year old runway shortage in the South East of England by recommending that each of the three main London airports, Gatwick, Heathrow and Stansted, be allowed to develop, at the earliest possible date, one new additional runway each, which will result in three new runways serving London, which will finally address runway capacity in the South East for the next 50 years, thereby allowing competition between the three airports, to ensure that these new runways are delivered in a timely, efficient and cost competitive manner which will maximize the gains for UK consumers and visitors.
Ryanair in its submission has rubbished any new Greenfield airport plan such as ‘Boris Island’, which it criticized as being more of the failed political interference that has bedevilled UK infrastructure projects over the past 30 years. Ryanair believes that any new greenfield airport will take many decades to deliver, and will result in vast overspending and inefficiency due to the absence of any existing airport or ground transport infrastructure at any such greenfield site.
The approval of three new London runways will prevent the kind of regulatory gaming which has bedevilled London runway capacity under the failed BAA airport monopoly, and the “inadequate” CAA regulatory regime over the past 30 years. This failed airport regulatory model allowed the BAA monopoly to constrain capacity delivery, in order to charge monopoly prices to airlines and consumers, which has done such damage to UK aviation and tourism since the BAA airport monopoly was first privatised in the 1980’s. Ryanair has called on the Airports Commission to adopt its 3 new London runway proposal, which is the timeliest, most efficient long-term solution to the chronic runway shortages currently suffered by all airlines and passengers at the 3 main London airports. This new 3 runway strategy will restore London’s leadership of European aviation – without any political funding – and enable the South East to respond competitively to the new runway developments which have recently been completed in Madrid, Paris and Frankfurt.
Ryanair’s Michael O’Leary said:
“Three new runways at the three competing London airports is the only sensible and consumer focused solution to the chronic runway capacity shortages in London and the South East of England.  We cannot wait 30 years and allow billions of pounds to be wasted on ‘Borris Island’.  Because each airport and each airline (apart from Ryanair) wants to limit competition, they tend to advocate only one runway solutions and only at their airport. This means that UK aviation will continue to be hand-cuffed by political interference, and “NIMBY” opposition which has stymied aviation policy for the last 30 years. The UK in general and London in particular is being left behind by new runway developments in competitor cities such as Frankfurt, Paris and Madrid.

The failure of recent UK Governments to stand up to misleading environmental groups and their willingness to pander to narrow ‘NIMBY’ interests at individual airports has allowed UK aviation, tourism and job creation to be hijacked by backward looking luddites. Sadly the very appointment of the Davies Commission is just the latest example of the spineless approach of David Cameron’s Government which talks about stimulating growth and job creation, but instead of pursuing growth policies they pander to tree huggers and NIMBYS.

Ryanair believes that the solution to the runway shortage in London is both simple and straightforward. Thanks to the recent break up of the BAA airport monopoly, London now has three competing airports, but no spare runway capacity. Instead of pandering to the expensive lobbyists of Ferrovial and Heathrow, the Davies Commission should recommend that three new runways be developed and allow the marketplace and competition between these three airports to deliver timely, cost efficient and consumer friendly runway capacity growth in the manner that will most benefit UK consumers, UK tourism and UK job creation. These 3 new runways will in turn deliver an additional 100m passengers p.a., which – given Airport Council International figures – will sustain about 100,000 new jobs across the 3 London airports. These 3 new runways will also exploit the advantage of the existing road, rail, underground and coach infrastructure which already serves these London airports, without the waste, delay and inefficiency of trying to develop a new greenfield airports and ground transport to serve them.
Approving 3 new runways at Heathrow, Gatwick and Stansted is also the only way to keep Ferrovial/Heathrow honest as it promotes its plans to waste further billions on inefficient, gold-plated facilities which will allow them to again ‘game’ the CAA’s inadequate regulatory regime to further penalise airlines and passengers at Heathrow, with much higher charges. Competition between the airlines has significantly reduced UK air fares over the past 30 years to such an extent that Ryanair now carries more passengers than British Airways and EasyJet combined. The Davies Commission (while being another example of David Cameron kicking the can down the road) offers a unique opportunity to finally introduce effective competition and excess capacity in London’s runway infrastructure and Ryanair hopes that Sir Howard and his team will seize this historic opportunity.”

Copyright Photo: SM Fitzwilliams Collection. Now gone from the fleet, Boeing 737-8AS EI-CSI (msn 29924) is pictured on final approach to the Dublin base. EI-CSI carried Frankfurt and a German flag to promote its operations at nearby Hahn Airport. EI-CSI has since gone to be with Orenair as VP-BPG.

Ryanair: AG Slide Show

Ryanair launches aircraft advertising

Ryanair (Dublin) under the file “It was bound to happen”, has announced it will now sell advertising space on its 303 Boeing 737-800s. Although not a full logojet, a space by the nose and three other locations is being offered to any potential advertisers. The ultra-low fare airline issued this statement:

Ryanair, Europe’s only ultra-low cost carrier (ULCC), on July 17 offered businesses across the world the chance to advertise their brand on its fleet of 303 Boeing 737-800 aircraft and reach millions of European passengers through Europe’s largest and cheapest outdoor advertising medium. Ryanair operates over 1,600 flights per day, connecting 180 destinations in 29 countries, through over 1,600 routes and will carry more international passengers this year (81.5 million) than any other airline in the world. Companies can have their brand featured on four different locations on the Ryanair aircraft, including on the inner and outer winglets, front fuselage and rear fuselage, for a 12-month period, for a fraction of the price of a newspaper advert.

Ryanair Launches Aircraft Livery Advertising

Ryanair: AG Slide Show

Ryanair finalizes its order for 175 Boeing 737-800s

Ryanair-Boeing Signing Ceremony (Boeing)(LR)

Ryanair (Dublin) has finalized a firm order for 175 Next-Generation 737-800 airplanes with Boeing valued at $15.6 billion at list prices. The order, originally announced as a commitment in March, is Boeing’s largest ever aircraft order from a European airline.

CEO O’Leary flew into the air show on one of Ryanair’s 303 737-800s, which bore a special livery celebrating the agreement.

Ryanair, which took delivery of its first 737-800 from Boeing in 1999 and has the largest fleet of Boeing airplanes in Europe.

The airline operates over 1,600 flights per day from 57 bases on 1,600 routes across 29 countries, connecting more than 180 destinations.

Copyright Photo: Boeing. Michael O’Leary, president and CEO of Ryanair (left) joined Ray Conner, Boeing Commercial Airplanes president and CEO (right), at the Paris signing ceremony.

Video:

Ryanair: AG Slide Show