Ryanair Plans Zero Frills And Fares

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orwell

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Nov 21, 2003
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Who knows - maybe this is the future over here...


Ryanair plans zero frills and fares

David Gow
Monday February 16, 2004
The Guardian

Michael O'Leary, Ryanair's combative chief executive, is to offer half of his fleet's seats free over the next five years by cutting the last remaining frills from his low-cost airline, he said yesterday.
Mr O'Leary, struggling for the first time against both falling profits and declining passenger numbers, said he wanted to save more than £1.3m by fitting non-reclining seats on his new fleet of Boeing 737 planes.

Ryanair's list of savings also embraces the removal of window blinds, headrest covers (possibly replaced by ones supplied by advertisers) and seat pockets to cut cleaning and turnaround costs.

This could save the airline more than £300,000 on running costs for each new plane. But Mr O'Leary's biggest saving would come from persuading passengers to take only hand luggage on board.

He said people were quite happy to take their own bags on to buses, so why not planes. The aim is to cut time and money spent on checking in luggage, baggage-handling and storing lost property.

"It's not just a question of staff. It would mean smaller airports, simpler facilities and lower charges. It could deliver savings of up to 20% for the airline." Baggage-laden passengers would pay more for their seats.

Mr O'Leary's plans are his immediate response to this month's ruling by the European commission that Ryanair must repay up to £3m in unlawful state aid provided by Belgium for flying into and out of Charleroi airport in the depressed south of the country.

He said then that the "disastrous" EU ruling would add £10 a ticket to low-cost carriers while Loyola de Palacio, the EU transport commissioner, says a truer cost would be an extra £6 a ticket.

Ryanair is forecast to see full-year earnings decline by 10% this year.
 
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