[Article] Ryanair

Victor

http://home.eircom.net/content/irelandcom/breaking/3001661?view=Eircomnet

Ryanair keeps Charleroi despite EU ruling - report
From:ireland.com
Monday, 12th April, 2004

Ryanair is to maintain its operations at Belgium's Charleroi airport despite a European Commission ruling against it over illegal subsidies there, the regional government was reported as saying.

Cited by the Belga news agency, local Wallonia economy minister Mr Serge Kubla said he had signed an accord with Ryanair boss Mr Michael O'Leary in Dublin guaranteeing that the low-cost pioneer would stay at Charleroi.

The deal, for a "transition period," would allow Ryanair to pay exactly the same costs as it had before the February ruling the European Commission, which ordered the Irish airline to reimburse some money it had received.

The terms of the deal would last "between a few months and a maximum of about a year," said Mr Kubla.

The Walloon minister said the deal was in line with the commission ruling, which found that Ryanair had benefitted unfairly from secret clauses in its contract with the Wallonia regional government, which owns Charleroi.

The European Commission ordered the airline to repay millions of euros it received due to the contract, which enabled it to receive steep discounts on landing fees and ground-handling charges, as well as help marketing and training costs.

Ryanair is appealing against the Commission's decision in the European Court in Luxembourg.

Ryanair said after the February ruling that it would close its route from London to Charleroi on April 29th, but said it was ready to negotiate a new deal with airport and regional authorities allowing it to keep its costs low.

AFP

Victor

http://www.rte.ie/business/2004/0428/aviation.html

Regulator hits back at Ryanair chief
April 28, 2004 18:15

The war of words between the Commissioner for Aviation Regulation, Bill Prasifka, and Michael O'Leary intensified this evening with the publication of a letter rejecting allegations made by the Ryanair chief executive last month.

In his letter, Bill Prasifka describes O'Leary's comments as 'intemperate, ill-informed and unconstructive'. He goes on to suggest that Ryanair prefers to offer the Commission 'stylistic hyperbole rather than substantive and useful comment'.

Ryanair had accused the Aviation Regulator of not keeping airport charges under control. It had also called on the Office of the Auditor and Comptroller General to audit the Regulator's accounts. In tonight's letter, the Commissioner states that its accounts are already audited by the CAG.

http://www.breakingnews.ie/2004/04/28/story144926.html

Ryanair's new Spanish and UK routes start today
28/04/2004 - 1:21:10 PM

Ryanair today begins operations on its three new routes from Ireland to the UK and Spain.

Daily flights will start from Dublin to Murcia and Reus (Salou) and Nottingham East Midlands airports.

Since the company made the announcement last March more then 50,000 passengers booked to travel, Ryanair said today.

Head of Communications, Paul Fitzsimmons, said: "Ryanair commences new daily flights to Nottingham East Midlands and the Spanish hot-spots of Reus (Salou) and Murcia direct from Dublin.

"So far the interest from Irish consumers has surpassed all expectations," he added.

ishmael whale

There's something intuitive that suggests that enviromental concerns will create a need to curb air travel, so Ryanair's problems may be less relevant in the future anyhow.

In fact the article below suggests that this might be more than intuitive.

http://www.breakingnews.ie/2004/04/29/story145192.html

Aircraft vapour trails 'could cause global warming'
29/04/2004 - 4:48:18 PM

Cloud-like white trails left by aircraft may be playing a significant role in global warming, a scientist said today.

The exhaust plumes contain carbon dioxide and chemicals which can lead to the production of ozone – which creates smog.

At the same time, the vapour trails, in the right conditions, can form feathery cirrus clouds which warm the surface of the Earth’s by trapping heat.

Patrick Minnis, of the USA’s National Aeronautics and Space Administration’s Langley Research Center in Virginia, studied how the average temperature of the US increased by one degree from 1975 to 1994.

While acknowledging that it was difficult to tell exactly how much of the warming was due to vapour trails, he said their contribution was “significant”.

Dr Minnis found that as air traffic in the US rose by more than 500% from 1970 to 1995, the number of cirrus clouds in the sky also increased.

Until now scientists have been unable to say whether they increased for natural reasons or because of aircraft.

According to the Minnis study the conditions needed to create natural cirrus clouds did not become more common from the 1970s to the 1990s.

He concluded, therefore, that aeroplane vapour trails – also known as contrails – which are clouds of ice crystals mixed with exhaust gases, must be responsible.

Andrew Carleton, a climate expert at Pennsylvania State University, who was not involved in the study, said: “It suggests we may be having a double whammy here.

He told the USA Today newspaper: “It’s not good news for the Earth when you’ve got greenhouse gas increases and you’ve got ... contrails (that) seem to warm the surface of the Earth.”

Victor

http://www.rte.ie/business/2004/0528/Ryanair.html

Analysts forecast Ryanair's profits down 12.5%
May 28, 2004 17:54

No-frills airline Ryanair is expected to post a 12.5% drop in annual net profit next week due to fare cutting.

Europe's biggest low cost airline, due to report results next Tuesday, flagged a 10% net profit drop in January when it warned it was having to slash ticket prices to fill seats on a rapidly expanding network amid intensely competitive conditions.

In a Reuters survey of six Dublin-based analysts, adjusted net profit estimates ranged from €195m to €218 , giving an average of €209m, down from €239m the previous year.

Earnings per share on a similar basis - net of tax and before goodwill and exceptional costs - are forecast to drop to 27.9 cents from 31.7 cents.

Analysts said that apart from a tough fourth quarter, when fares were drastically reduced, Ryanair's results overall would still outperform those of its peers with an operating margin of around 25%.

Next week analysts will be looking for clues to the first and second quarters of the new financial year - from April to September - because typically Ryanair makes at least 45% of its year profit in the July-September quarter.

Victor

http://home.eircom.net/content/irelandcom/breaking/3305245?view=Eircomnet

Ryanair responds to Ahern comments
From:ireland.com
Monday, 31st May, 2004

Ryanair tonight rejected the Taoiseach's accusation that the budget airline's chief executive Mr Michael O'Leary was engaging in bullying tactics, in what is developing into a game of tit for tat over the proposed break up of Aer Rianta

In a statement the company claimed it was responding to Mr Ahern's "personal attack" earlier today by highlighting the Government's "failure...to produce the legislation to break-up the Aer Rianta monopoly and introduce a competing terminal at Dublin Airport..."

Mr Ahern then told RTE News it wasn't for him to "keep O'Leary happy" and re-iterated his view that Dublin, Shannon and Cork airports should remain state owned, regardless of whether they are separated into single companies.

However, Mr O'Leary described this position as succumbing to pressure from trade unions.

He said: "When the entire tourism industry tourism industry including Hotels, Restaurants, Airlines and Tourist Boards have repeatedly called for the break-up of the Aer Rianta monopoly, the only people 'bullying' Bertie are his Trade Union pals at Dublin Airport."

Victor

http://www.rte.ie/business/2004/0601/ryanair.html

Ryanair profits better than expected
June 01, 2004 19:16

Ryanair has reported better than expected full year results and has given positive indications on summer bookings, but warned that the winter season would not be as bright.

Its shares closed down eight cent at €4.30 in Dublin this afternoon after the warning.

The budget airline, Europe's largest, reported a 5% drop in full year net profit to €226.6m before goodwill and exceptional items, beating forecasts of €195m to €218m. Adjusted earnings per share were down 6% to 29.9 cent - again higher than the average forecast of 27.9 cent.

Annual passenger traffic grew by a record 47% to over 23 million. Ryanair said this growth was fueled by 'significantly lower fares'. Total revenues rose by 28% to over €1 billion for the first time, due to a 14% fall in yields.

The airline had flagged a 10% net profit drop in January when it warned it was having to slash ticket prices to fill seats on a rapidly expanding network amid intensely competitive conditions

'Contrary to our earlier fears, our adjusted profit in the final quarter marks our 28th consecutive profitable quarter since Ryanair first floated in May 1997,' a statement from the company said.

'Our lookout for the next 12 months remains very conservative,' Chief Executive Michael O'Leary said. He added that he expected passenger traffic growth to drop to around 20% this year from 47% the previous year.

He predicted that there will be more airline casualties next winter, a process that has already started in recent months with the closure of four airlines in Ireland, the UK and Scandinavia.

Ryanair also pledged to lower prices further over the next four years as it expands traffic to over 50 million passengers a year.

Michael O'Leary said the year was characterised by adverse market conditions, including sterling weakness, the war in Iraq, the threat of terrorist attacks, significantly higher oil prices and intense price competition all over Europe.

'Despite these challenges, Ryanair has significantly lowered fares for our customers, carried over 23 million passengers, still maintained a world leading after tax profit margin of over 20% and ended the year with over €1.2 billion in cash,' O'Leary added.

He said the airline's two new bases in Rome Ciampino and Barcelona Girona are performing 'extremely well'. Current bookings indicated that load factors are both bases will exceed 85% throughout the summer period.

O'Leary predicted that regulatory battles, such as those in Charleroi and Strasbourg, will continue this year, but dismissed them as 'temporary obstacles'. He said the airline is confident of winning both its appeals on the Charleroi and Strasbourg cases.

Dismissing the recent 'hysteria' about higher oil prices, O'Leary said he believes the growth of low fare travel will not be damaged or slowed by higher fuel prices.

'Whilst we are almost fully hedged till the end of the second quarter, we are largely unhedged thereafter, as it would be unwise to lock in at the current high forward rates,' the Ryanair CEO said. 'Our view is that prices will fall this winter, or next year, and only then will we hedge, in order to benefit from such reductions,' he added.

* Ryanair said today that its passenger numbers for May flew 19% higher to 2.17 million compared to the same month last year. Its load factor - an industry measure of how many seats were sold - rose to 81% in May. This compares to a load factor of 77% in May 2003.

http://www.breakingnews.ie/2004/06/01/story150255.html

Profits down but Ryanair hits new high
01/06/2004 - 07:38:53

Budget airline Ryanair today posted a 14% drop in profits, but said passenger numbers had hit a new high.

The Dublin-based no-frills carrier said pre-tax profits in the year to March 31 were down to €228.5m from €264.5m the year before.

Ryanair said price competition, the Iraq war, a weaker pound, higher oil prices and the threat of terrorist attacks had all contributed to adverse market conditions during the year.

But it said passenger numbers during the year had nevertheless grown by a record 47% to more than 23 million.

Chief executive Michael O’Leary said Ryanair had significantly lowered fares while maintaining a “world leading” after-tax profit margin of more than 20%.

“These results demonstrate yet again what a superb job the 2,300 people of Ryanair do in both good times and bad,” he said.

Victor

http://www.breakingnews.ie/2004/06/01/story150376.html

Ryanair profits fall for first time since flotation
01/06/2004 - 16:49:09

Budget airline Ryanair today posted the first fall in its net profits since it floated in 1997.

The Dublin-based no-frills carrier said pre-tax profits in the year to March 31 had fallen 14% to €228.5m from €264.5m the year before.

Ryanair said competition, the Iraq war, a weaker pound, higher oil prices and the threat of terrorist attacks had all contributed to adverse market conditions during the year.

But it said passenger numbers during the year had nevertheless grown by a record 47% to more than 23 million.

In May, it carried 2,170,381 people, up 18.7% from last year’s 1,828,454.

Chief executive Michael O’Leary told reporters that the firm was considering a number of revenue-boosting initiatives such as in-flight entertainment screens, which passengers would pay to watch.

If the scheme goes ahead, Ryanair hopes to launch it next summer, with the company’s new 737-800 jets likely to be the first to get the seat-back screens.

Mr O’Leary said Ryanair had significantly lowered fares while maintaining a “world leading” after-tax profit margin of more than 20%.

“These results demonstrate yet again what a superb job the 2,300 people of Ryanair do in both good times and bad,” he said.

Ryanair said pre-tax profits had fallen 5% to €226.6m, excluding the €14.9m cost of the earlier-than-planned retirement of six Boeing 737-200 jets, a €2.7m charge for reorganising the recently acquired Buzz airline and goodwill costs of €2.3m.

The airline said it did not expect rises in oil prices to damage or slow the growth of low fare air travel.

It said it would absorb any hikes by cutting costs in other areas and pledged not to impose fuel surcharges on customers.

Ryanair said regulatory battles such as its recent dispute with the European Commission over subsidies from the publicly-owned airport at Charleroi in Brussels would prove to be “temporary obstacles”.

The airline said it was confident it would win its appeals on Charleroi and another dispute involving Strasbourg airport.

During the year, the airline opened two new bases at Rome Ciampino and Barcelona Girona and launched 73 new routes, boosting its network to 150 routes.

Current bookings indicated load factors at both new bases would top 85% during the summer.

The group said it was keeping a conservative outlook for the coming 12 months.

It said it expected passenger growth of about 20%, although seat capacity would only rise by 16% due to failure to agree lease terms for jets formerly run by Buzz.

http://www.breakingnews.ie/2004/06/01/story150315.html

Ryanair defends personalised attacks on Taoiseach
01/06/2004 - 12:56:39

Ryanair has defended its personalised attacks on the Taoiseach over his failure to agree to the airline's demands.

Announcing its financial results for the year to the end of March, Ryanair said it had every right to attack Bertie Ahern over the delay in constructing a second terminal at Dublin Airport, and Aer Rianta's ongoing control of Ireland’s three main airports.

Yesterday, Mr Ahern accused the airline’s chief executive Michael O’Leary of trying to bully him into shaping Government policy according to Ryanair’s wishes.

http://home.eircom.net/content/irelandcom/topstories/3307343?view=Eircomnet

O'Leary accused of trying to bully Ahern
From:ireland.com
Tuesday, 1st June, 2004

The Taoiseach has accused Mr Michael O'Leary of trying to bully him while Mr O'Leary has responded with further abuse as the row over the planned break-up of Aer Rianta continues without resolution.

Mr Ahern said yesterday that if the Ryanair chief executive was "still in the education stream" he would be described as a bully.

The Taoiseach was responding to full-page newspaper advertisements placed by Ryanair yesterday which personally criticised him for "a full two years of delay" in taking action to split up the State airport company, something for which Mr O'Leary has campaigned for several years.

The advertisements contained an unflattering cartoon image of the Taoiseach and listed a series of promises on the issue on which they said nothing had been done.

Asked about this yesterday, Mr Ahern said: "It's impossible for me to keep Michael O'Leary happy. I don't have the kind of money he has. But if he was in the education stream, he'd be up for bullying. But there is one person he won't bully, and that's me."

However, Mr O'Leary returned to the attack last night, claiming in a statement that "the only people 'bullying' Bertie are his trade union pals at Dublin airport" who oppose the break-up.

Responding to what he called the Taoiseach's "personal attack" on him, he said: "Breaking up the Aer Rianta monopoly and a second terminal at Dublin airport will create 5,000 new jobs, so why can't Bertie make a decision - two years after he was elected to introduce competition at Dublin airport?

"Isn't it time that Bertie stood up to the vested interests of the trade unions at Dublin airport. Until he does Bertie's exam results will read: 'F' for failed to keep his promises and 'F' for failed to keep his deadlines."

Mr Ahern said earlier that Government policy was to give as much autonomy to the proposed three Aer Rianta airports as possible. The unions still wanted to give their view on this, but it should be possible to implement "the idea of creating a competitive edge between the main airports and them working together in whatever structure . . . They will still stay in State control."

He said the Government had already rejected the idea of privatising the airports. "We wouldn't sell the assets because the airports as distinct from the airlines [are] important as a national part of the State's infrastructure." He said the legislation to break up Aer Rianta would be finalised over the next week.

http://home.eircom.net/content/irelandcom/breaking/3307200?view=Eircomnet

Ryanair beats forecasts with 5pc drop in profits to €226.6m
From:ireland.com
Tuesday, 1st June, 2004

Ryanair has posted better-than-expected full-year earnings and gave positive indications on summer bookings, although it painted a gloomy picture for the winter season.

"Our outlook for the next 12 months remains very conservative," Chief Executive Mr Michael O'Leary said in a statement, adding he expected passenger traffic growth to drop to around 20 per cent this year to March 2005 from 47 per cent the previous year.

Europe's biggest budget airline reported a five per cent drop in full-year net profit to €226.6 million before goodwill and exceptional items, beating forecasts.

Ryanair, which has been slashing ticket prices to fill seats on a rapidly expanding network amid competitive conditions, reported a six per cent drop in adjusted earnings per share (EPS) to 29.9 cents - against an average forecast of 27.9 cents.

Ryanair said that with 50 per cent of its summer season seats booked, it expected attrition in yields - a measure of average seat prices - to be at the low end of its previously forecast range of five to 10 per cent.

However, increased competition in the industry next winter could see that decline in a range of 10-20 per cent, it said.

Ryanair, whose aggressive discounting strategy has been eating into the market share of full-service carriers, pledged to lower prices further over the next four years as it expands traffic to over 50 million passengers per year.

In the year to end-March it flew 23 million people, it said.

Victor

http://www.breakingnews.ie/2004/06/08/story151318.html

Ryanair celebrates 45 million Irish passengers
08/06/2004 - 11:52:04

Ryanair, today celebrated carrying over 45 million passengers to and from Ireland since operations commenced in 1985.

This year Ryanair will carry almost seven million passengers on 24 routes from Ireland.

Today Ryanair’s Head of Communications, Paul Fitzsimmons said: "Ryanair has carried over 10 times the population of Ireland to and from Ireland in the last two decades. In that time Irish consumers have saved over €4.5bn on air fares."

He called for the Government to proceed with plans for a second terminal at Dublin Airport as soon as possible.

"It is time this Government stopped commissioning reports, kept its election promises and deliver a competing second terminal for Irish consumers and visitors," Mr Fitzsimmons said.

Capt'n Midnight

Originally posted by ishmael whale
Aircraft vapour trails 'could cause global warming'
29/04/2004 - 4:48:18 PM

Wasn't there something about "climate change" in the northeast USA during the days planes were grounded after 11/9.

Still if US signed up for Koyoto and implimented it then that would offset a lot.

Victor

http://www.rte.ie/business/2004/0727/ryanair.html

Ryanair launches eight new routes
July 27, 2004 11:51

Ryanair has announced eight new routes, linking eight European countries. The new routes will commence between September 20 and December 1 and brings the airline's network to 161 routes across 17 European countries.

The airline will start routes from London Stansted to Santander, Riga and Zaragoza, from Rome Ciampino to Paris-Beauvais, Santander and Endhoven, from Frankfurt-Hahn to Riga and Santander and from Tampere in Finland to Riga.

Ryanair chief executive Michael O'Leary said that for the first time Ryanair will now be servicing northern Spain and Latvia.