Ryanair have operated 3 aircraft, throughout Winter and Summer periods quite happily, profitably for a number of years. Believe me this is nothing to do with the Terminal or Runway at all. Ryanair operated under the Irish register therefore operating to different CAT minima so therefore sometimes; when Jet2 or TUI or Monarch (
😢 ) had to divert, Ryanair would be able to land.
This is more to do with the following:
- Ryanair industrial relations with the Pilots and Cabin Crew - a miss management of them all finally coming to the surface. Associated costs also rising.
- MOL just not letting go. Whilst he has taken Ryanair from what it was to what it is - quite successfully and praise where praise is due, unfortunately he is not able to take them into the next era, sustained growth calculated organic growth especially when with the current industrial relations. All MOL knows is - mass growth. Quick growth.
- Delayed MAX's. If Ryanair/MOL had taken this on (and the MAX had been deemed safe) they would of had sustained growth. Christ even LBA may have seen at least one - https://www.flightglobal.com/news/articles/ryanair-reasonably-confident-of-737-max-return-by-461194/
- The "B" word - it's affecting confidence. However when your as profitable as Ryanair i don't understand why you would throw away markets such as Canaries and Balearic islands especially if you had your ear to the ground about TC. Sadly they, like TUI, like Jet2, cannot grow as fast as they like due to the MAX delivery delays. Just like that Ryanair have handed over the Canaries market to Jet2, TUI and easyJet this winter and, as i've previously said, practically handed some markets over to Jet2 for next summer.
LBA isn't without faults, every single one of us on this forum recognises this, but to blame it solely on them without looking at the current Ryanair situation, is just stupid. This is more to do with internal civil war within Ryanair than it is LBA. Sadly, not to take it political, just like the conservative they've now taken it to the public and bases who will suffer.
If an opportunity come up (as big as say Norwegian) come up i don't think Ryanair would be able to take it like they would of been able to do 5,6,7 years ago. And that in the industry is quite a scary thought.
This situation has nothing to do with LBA or really Ryanair.
Once again at Septembers AGM MOL painted a worrying picture of the European aviation industry and this was before the collapse of Thomas Cook.
Every seats Ryanair has sold over the last two years have been at a loss, thats over 280 million seats.
Only seat reservation, priority boarding costs etc, which now make up 17% of revenue have saved the ship.
last year Ryanair tried to lose 5 million passengers and 10% of routes and bases, but for all sorts of reasons failed, this years reductions have to be double passengers number reduction and more bases and routes.
ON their German bases they have lost £150 million in one year due to competition, this cant carry on for all airlines, the financial papers are now considering on its German losses alone Easyjet must be in the firing line to follow TC and MOL feels sure Norwegien cant survive another year and many other carriers will fold unless prices rise by 25%.
Were in a situation that unless prices rise we will see the demise of most European carriers, MOL thinks only two in the u.k. Ryanair, plus one, (for the purpose of this exercise he has become U.K.)
This has nothing to do with the Max airliner, or the B word, yes labour relations have been poor at Ryanair, MOL has been moved upstairs and a new chairman will probably show him the door, he refused to sign a 5 year contract with Ryanair last year and now has a contract with the holding company for 5 years, which both sides know is a holding position until the new Chairman arrives.
I agree with MOL the European market is like the trans atlantic market of the 70's, it took a complete blood bath to remove virtually all the airlines (Pan Am, TWA, Continental etc) and restore proper seat pricing, this has to happen in Europe now.
In the big picture situation LBA had to lose around 20% passenger numbers and the obvious situation was to drop one aircraft, every base is going to be in a similar situation, even this reduction wont make any difference to losses, as long as other carriers are prepared to run at a loss.
Talk about head in the sands time.