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Ryanair to start Transatlantic Flights in 3-4 Years

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    #92
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    Well I guess if people are mug enough to be taken in by all the hidden extras it works on short haul. But the model is totally unproven on long haul and is a huge risk.

    I believe O'Leary blurted this whole thing out off the top of his head, to cover his embarrassment at being seen off in his attempted takeover at Aer Lingus. Rumours from the EU Competition authourity are sounding bad for his chances of success in future.
    Its a bit like a child picking up his ball and running off to play with his 'new friends' because his little pals have rejected him.:D

    I remember a year or two ago when EOS were setting up on the Transatlantic service. They set out with a LoCo business model - then suddenly reversed their plans and went for a 'Full Biz Class' service instead. When cross examined on the 180 degree turn they said the numbers just wouldn't add up on the LoCo model.
    They are still in business, and doing well with their new model.

    The jury is out on LoCo long haul. If O'Leary tries it he may fall flat on his face.


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    #93
    GuanYin
    Closed Accounts Posts: 15,552 ✭✭✭✭GuanYin


    daveirl wrote:
    This post has been deleted.

    Agreed. AL are awful and I'll probably never fly with them again.

    BA or AF for me.


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    #94
    antoinolachtnai
    Registered Users Posts: 9,773 ✭✭✭antoinolachtnai


    What Mick is trying to do is to scare off Aer Lingus's bankers. If the bankers feel AL are likely to be competing with O'Leary on the Atlantic, they will not fund AL, because its cost base is too high to prevail in a price war.

    This is how O'Leary plans to force Aer Lingus to do a deal with him (as far as I can see).


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    #95
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,584 CMod ✭✭✭✭faceman


    Captain Boycott wrote:

    The jury is out on LoCo long haul. If O'Leary tries it he may fall flat on his face.

    o'leary did say he would offer a premium service (presumably business or 1st class on the flights too) so he may have been trying to cover off all bases...


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    #96
    dowlingm
    Registered Users Posts: 5,309 ✭✭✭dowlingm


    antoin - I think that's exactly what MOL is up to - scaring EI shareholders and bankers.

    As for what FR might do next - who can tell? Once upon a time MOL said noone would want to go near Gdansk and yet a couple of years later there he is, opening routes to Poland and telling the local media how much humble pie tastes like chicken.


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    #97
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    Right.
    But anyway, back to the point.
    Why does O'Learys deputy CEO think his bosses idea is just a publicity stunt?
    Strife in the boardroom?
    Maybe O'Leary sees the writing on the wall - he's for the high jump.

    The Aer Lingus buyout might have succeeded if it wasn't for his motor mouth. The guy is a liability.


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    #98
    BuffyBot
    Moderators, Motoring & Transport Moderators Posts: 24,924 Mod ✭✭✭✭BuffyBot


    Unlikely. He's already said he's planning to step down.


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    #99
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    Maybe he's taking too long about it and somebody else wants a go?

    There are mutterings on certain websites about whats going to happen to the value of his Aer Lingus share holding if the EU tells him he must off-load them. The shareholders money he has tied up in that misadventure is looking highly at risk.


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    #100
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,584 CMod ✭✭✭✭faceman


    Captain Boycott wrote:
    The Aer Lingus buyout might have succeeded if it wasn't for his motor mouth.

    how u figure that?
    Captain Boycott wrote:
    The guy is a liability.

    yeah, ryanair have suffered since he was appointed CEO :rolleyes:


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    #101
    dowlingm
    Registered Users Posts: 5,309 ✭✭✭dowlingm


    Michael O'Leary is an excellent CEO *of the company he runs* - he would be an awful CEO of a flag carrier but he sets out his stall - airline as bus service - and sticks to it. He has made a ton of money for his shareholders which is after all his statutory duty. If he has abused his customers - well, it goes to show that his customers are stupid because his form is hardly a secret!

    The CEOs who have tried to run flag carriers as MOL has (are your ears burning Willie?) have been a disaster.


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    #102
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    faceman wrote:
    how u figure that?
    Because Aer Lingus Staff hold about 15% of the company and might have sold their share if wooed. O'Leary promised them all the sack. How to win friends and influence people? NOT!
    He just can't help himself.
    yeah, ryanair have suffered since he was appointed CEO :rolleyes:
    O'Leary is the CEO of Ryanair, but he doesn't run it singlehanded. He has had some fantastic back room staff who've saved his neck on numerous occasions, and were responsible for the ground breaking ideas which made Ryanair what it is today. O'Leary was quick to take the glory of course...and push out those who were a threat by showing greater initiative.

    He's just a bully and a bombast with a big mouth, and very much less ability than the media and the foolish have creditied him with.


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    #103
    faceman
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators, Social & Fun Moderators Posts: 16,584 CMod ✭✭✭✭faceman


    Captain Boycott wrote:
    Because Aer Lingus Staff hold about 15% of the company and might have sold their share if wooed. O'Leary promised them all the sack. How to win friends and influence people? NOT!
    He just can't help himself.

    no i was referring to the EU ruling. No matter what he promised he wouldnt have won.

    investors saw €€€ in their eyes when o'leary announced this and job cuts reducing the cost base improving profitability is music to their ears!


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    #104
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    Well hey! He's pissed off the Euro politicians as well by his comments - didn't he tell the Aviation Regulator (!) to 'F@*k off' when they demanded he refund subsidies given him!
    no i was referring to the EU ruling. No matter what he promised he wouldnt have won.

    The EU decision is still under consideration! The finding on competition is due out in July. If he is given the go ahead he can bid again. But the Aer Lingus staff would sell to the devil before they'll sell to him.

    Now if it was Richard Branson...different story. Which just makes the point - it is O'Leary who screws himself up with his motor mouth.


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    #105
    Victor
    Registered Users Posts: 78,249 ✭✭✭✭Victor


    Captain Boycott wrote:
    There are mutterings on certain websites about whats going to happen to the value of his Aer Lingus share holding
    I understand a lot of it is options not outright purchases.


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    #106
    antoinolachtnai
    Registered Users Posts: 9,773 ✭✭✭antoinolachtnai


    Michael O'Leary is the only one who is telling the truth about Aer Lingus. If that makes him a motor mouth, that's pretty sad.

    There are going to be big cutbacks in Aer Lingus. The only question is who is going to make them - Dermot Mannion, who said there wouldn't be cutbacks in Aer Lingus, or Michael O'Leary, who said there would, or some other third party, who won't even comment on what they plan to do.

    Richard Branson taking over Aer Lingus? What sort of sense would that make?


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    #107
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    antoinolachtnai wrote:
    Michael O'Leary is the only one who is telling the truth about Aer Lingus. If that makes him a motor mouth, that's pretty sad.
    Oh, he's sad alright.
    There are going to be big cutbacks in Aer Lingus. The only question is who is going to make them - Dermot Mannion, who said there wouldn't be cutbacks in Aer Lingus, or Michael O'Leary, who said there would, or some other third party, who won't even comment on what they plan to do.
    Speculation = nonsense.
    Richard Branson taking over Aer Lingus? What sort of sense would that make?
    For starters it would give him an extra 30 slots out of LHR.
    One might equally ask what sense it made for FR to try taking over ALT. I guess you didn't spot that coming either...
    I understand a lot of it is options not outright purchases.
    Explain that. I'm listening.


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    #108
    antoinolachtnai
    Registered Users Posts: 9,773 ✭✭✭antoinolachtnai


    Richard Branson isn't in the habit of buying businesses, especially unionized businesses. He couldn't use the slots to compete on his US route (government and EC would never allow it).

    Who is speculating? This is reality. No cuts, no loans. No loans, no planes. No planes, no expansion.

    Buying Aer Lingus gives O'Leary transatlantic reach. (Richard Branson already has that.) It also gives him access to more airports.

    I didn't say the thing about options, but an option is the right to buy a share for a certain price. Saves you having to actually put up the cash and buy the share. You don't hold the share, so your only risk is the cost of the option.


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    #109
    Captain Boycott
    Closed Accounts Posts: 22 ✭Captain Boycott


    antoinolachtnai wrote:
    Richard Branson isn't in the habit of buying businesses, especially unionized businesses.
    Hah! They said that about O'Leary!!
    He couldn't use the slots to compete on his US route (government and EC would never allow it).
    More speculation.:rolleyes:
    Who is speculating? This is reality. No cuts, no loans. No loans, no planes. No planes, no expansion.
    ALT have over 1 billion in cash sitting in the bank, which is why O'Leary is so keen. There is no shortage of cash. You are talking nonsense.
    Buying Aer Lingus gives O'Leary transatlantic reach. (Richard Branson already has that.) It also gives him access to more airports.
    O'Leary has feck all interest in Aer Lingus' long haul operations. He wants the cash, and more importantly, he wants to distract the company from effectively competing with him at this crucial point, when it is in expansion mode.
    Didn't you read the comments of his own Deputy CEO (Michael Cawley) who stated the Long Haul plans were a 'publicity stunt' by O'Leary.
    I didn't say the thing about options, but an option is the right to buy a share for a certain price. Saves you having to actually put up the cash and buy the share. You don't hold the share, so your only risk is the cost of the option.
    Yes, I know what an option is.:rolleyes:
    Show us the evidence to back up the assertion.
    You can't, because its bull. It would be illegal under Takeover Panel Rules.


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