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Ryanair CEO Michael O’Leary Protests Brexit in London with Funny Costume

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

On Jun 23, 2016, the UK voted to leave the EU. The economic and political consequences will be significant and long lasting, and not just for the UK and the EU. The repercussions will be felt everywhere. The key concern for EasyJet and Ryanair, among a number of airlines hypothetically affected, is what will happen if the UK fails to remain part of Europe’s single market in air services when Brexit negotiations accomplish.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

A challenge for Ryanair is that its biggest base is in the UK, at London Stansted. Its two busiest UK routes in June this year are Dublin–Stansted and Dublin–London Gatwick.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

CEO Michael O’Leary was upfront, opinionated and amusing as ever today at a Bloomberg News conference where he warned that Brexit could lead to contagion. The CEO of one of Europe’s largest airlines said that he would leave that to greater minds than his—referring to his treasury administrators. He warned that the budget airline would be forced to rationalize investment if Britain votes to leave the EU.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

Appearing on a platform with British chancellor George Osborne at Stansted Airport, Mr O’Leary spoke that inward investment will be lost to participant EU member states such as Ireland and Germany if Britain votes for Brexit. O’Leary said,

It is this type of large-scale foreign inward investment that is helping to drive the UK economy and job creation. It is exactly this type of investment that will be lost to other competitor EU members if the UK votes to leave the European Union. The single market has enabled Ryanair to lead the low-fare air travel revolution in Europe, as we bring millions of British citizens to Europe each year, and welcome millions of European visitors to Britain, and we are calling on everyone to turn out in large numbers and vote remain.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

Brexit may result in Ryanair’s formation of UK subsidiary. Ryanair has reported it may create a new subsidiary to operate UK domestic flights if a “hard Brexit” happens, the company said. Under the worst outcome, the UK would be forced to leave the European open-skies system as it exits the EU, which would thwart Ryanair as a European carrier from remaining to operate routes from London to Belfast, Edinburgh and Glasgow.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

It would then need to establish a separate UK company, of which Ryanair would be able to own a maximum of 49.9 percent. If the UK continues part of the open-skies area, the company said it forecasts no change in the ownership structures of Ryanair or UK carriers. Ryanair said airlines have been invited to a round table discussion organized by the government department charged with navigating the UK’s exit from the EU to discuss the impact this will have on their sector.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

Ryanair has stepped up warnings that flights between the UK and Europe are jeopardized by Brexit, with the airline’s chief executive Michael O’Leary claiming that the prospect of upsetting aviation was one of the quickest and best ways for the EU27 to “stick it to the British”.

If Britain votes to leave it will be damaging for the UK economy and the European economy for the next two or three years … there’ll be huge uncertainty while Britain tries to negotiate an exit out of a single market and tries to replace that with a whole series of trade deals which they won’t get done … yet staying in is the way forward the British economy is performing fundamentally well at the moment … unemployment is low … the economy’s doing well … it’s one of the most competitive economies in Europe … this is the time to stay in and continue to benefit from European membership not leave now.

We speak as Britain’s largest airline we carry 40 million passengers to and from the UK this year we’re also a large foreign in word investor here in the UK I fly from 2060 British airports I employ more than three thousand pilots, cabin crew, and engineers and I want to keep investing in Britain I want to keep growing the business here in Britain but I can only do that if Britain remains a member of the European Union.

Were they not want to leave not just European Union but also the single market we may not be able to free to fly anymore between the UK and Europe as an Irish airline … now of course the UK is part of the European Union … it’s not part of the euro and the single currency … Ireland of course is there’s lots of criticisms about the future of the euro if it can survive in its current form overall has Ireland benefited from being a part of the single currency can the single currency survive as it is I think overall iron has benefits usually by being a member the single currency I think the single currency will survive because the strongest economy in Europe … Germany is behind the euro and I think they’ll do whatever needs to be done to make sure it does survive but there does need to be more harmonization between the outer relying countries the Greeks, the Italians, the Spanish, and the Irish who have suffered real economic problems in recent years as a result of very low interest rates and … you know property bubbles … but that’s why I a single market needs reform we’ve been very critical of Brussels and over-regulation and I think why this election will bring about more reform in Brussels as long as Britain votes to stay in.

Ryanair CEO Michael O'Leary Protests Brexit in London with Funny Costume

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Posted in Airlines and Airliners Global Business

Ryanair’s Michael O’Leary at the Paris Air Show 2013

Ryanair orders 175 New Boeing Aircraft

Michael O’Leary, the chief executive of Irish low-cost carrier Ryanair, participated in his first air show at the Paris Air Show 2013 to sign a deal with Boeing for 175 new 737-800 aircraft.

These aircraft are to be delivered over the five years from 2014 to 2018 to enable Europe’s largest airline to increase in size for twenty five percent over the five years and bring more low cost fares for Europe’s consumers. O’Leary confirmed that Boeing has been delivering great aircraft for many years, and they’ve never missed a delivery date. He also said that he chose the Boeing 737-800 over the competing Airbus model, the A320, because the operating economics of the 189-seat B737-800 are superior to that of the 180 seats on the A320. The nine extra seats make a big difference. In addition, the B737-800 is a great aircraft with superior technically reliability is among the best in the. Airbus, although makes good aircrafts, doen’st have enough seats on the A320 for Ryanair. If Ryanair would fly transatlantic, O’Leary hopes that there would be a very competitive bidding process between Airbus and Boeing and he will take the aircraft that offers the lowest operating cost per seat to enable Ryanair to offer $10 fares across the Atlantic.

Ryanair's Michael O'Leary at the Paris Air Show 2013

Answering a question on whether he’ll be at another air show to sign up for more aircraft, O’Leary responded, “I bloody hope not. I’d rather be signing in Seattle or New York or somewhere exciting rather than a wet and windy place like the Paris Air Show. … We’ve been in dialog with Boeing for the last four years, the major change has been a change in senior management in the last twelve months, and they’ve put more sales guys in charge. And there’s a real commitment within Boeing to do business and to recognize the need to compete aggressively with Airbus. “

I haven’t alienated myself from Airbus … they make great aircraft … The NEO has been a very successful product … it’s been too successful. You look at the EasyJet order yesterday and they can only get three aircraft in 2017 to be fair. The key thing about the Boeing order is that we get the three first deliveries in 2014 and then big chunky numbers in 2015, 2016, and 2017.

Ryanair's Michael O'Leary with Boeing's Ray Conner after announcing $15 billion purchase of 175 737-8 jets.

So it’s easier for us at this point to do another deal with Boeing because they have the aircraft and the willingness to continue to work with us. I think it’s harder for Airbus to do a deal with us because frankly they don’t need our business because they signed up huge numbers of the aircraft with Lion Air, Air Asia, the NEO with Pegasus, and more yesterday with EasyJet. Frankly, I’d never rule out to deal with the Airbus, if Airbus could deliver us the numbers have aircraft we need and at the right pricing, we’d do a deal.

I don’t see any prospect John Leahy leaving Airbus … he has done a terrific job over the last twenty years and he’s been one of the outstanding sales guys in the aircraft market and I hope there’s not much prospect of me leaving Ryanair for the next couple of years because I have four kids under the age of seven and I sure as hell don’t spend any more time at home. One of the opportunities that will arise if we had been allowed to acquire Air Lingus, we’ve had discussions with John Leahy, we would have placed an Airbus order very quickly if we owned Air Lingus.

Air Lingus would have continued to be an Airbus operator. You know things change and opportunities. I think it would be disingenuous to do anything other than to applaud the success of Airbus’s NEO product. It certainly has put pressure on Boeing to develop and bring forward the MAX product and that kind of competition can only be good for airlines and passengers.

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Posted in Airlines and Airliners Business and Strategy

Ryanair’s Exclusive Corporate Jet with Boeing 737-700 Charter Service

Ryanair's Exclusive Corporate Jet with Boeing 737-700 Charter Service

Ireland’s ultra low cost carrier Ryanair has converted its only B737-700 aircraft (registration EI-SEV) to a corporate jet with 60 seats in the cabin. The aircraft is now is a 2 x 2 configuration. The specifications are:

  • 60 passengers, all business class,
  • Seats: 2 x 2 seating with 48″ seat pitch, leather reclining seats
  • Crew: Ryanair’s pilot and cabin crew
  • Range: 3000 nm range, 6 hours at 500 mph cruise speed
  • Catering: available

Previously, this aircraft already in complete Ryanair livery, was used for training, and may have it has covered a couple of scheduled services. Perhaps the aircraft will be in demand when soccer teams have to play in far-flung eastern European destinations. Ryanair also aims it at sports teams, travel groups as well as business customers. Ryanair will price the services of this aircraft on a cost-per-hour basis, and depending on the departure and arrival airports, the rates could be the most competitive in Europe.

Ryanair’s corporate jet charter is akin to similar services offered by Korean Air (16 or 28-seat 737 Business Jet), Emirates (19-seat A319 Executive Jet) and Qatar Airways (40-seat A319.)

For the summer season, the Boeing 737 corporate jet will be used as a normal passenger aircraft with 149 seats for training and as a backup aircraft for routes between the UK and Ireland.

Ryanair exclusively flies Boeing 737-800 aircraft, of which 320 are in service and 153 in orders, as on 10-Mar-2016. Ryanair is also the launch for the 197-seater Boeing 737 MAX 200 aircraft with options for an additional 100 aircraft of this subtype—all to be delivered between 2019 and 2023. The MAX 200 aircrafts hold eight more passengers than the popular Boeing 737 MAX 8 aircraft. This subtype includes a mid-exit door to increase the exit limit. With eight additional seats than the standard 179-seater MAX 8, Boeing claims that the MAX 200 airplane offers 20% superior operating cost efficiency in comparison to the Ryanair’s staple, the 737-800. The front and rear galley spaces are removed and the lavatory space is repositioned to the rear of the aircraft. Surprisingly, Ryanair claims that the seat pitch will stretch to a tad over than 30 inches.

Michael O’Leary, Ryanair’s CEO, had been pushing for a maximum-density 737-800 aircraft for ten years. Beyond 200 seats, Ryanair will need a fourth flight attendant on its aircraft. Although Boeing claims that 35% of the worldwide market demand for single-aisle aircraft will in due course lie with low cost carriers (LCCs,) for which the MAX 200 is intended, Ryanair is the sole customer thus far for the Boeing 737 MAX 200. News emerged in March 2015 that Boeing was presenting some airlines with concept of 737-8ERX, a longer-range version of the 737-8 MAX.

Ryanair owns three Learjet 45 aircrafts, which are based at its prominent bases in London Stansted (STN) Airport and Italy’s Bergamo Airport (BGY, 45 km northeast of Milan.) These aircrafts carry Isle of Man registrations M-ABEU, M-ABGV, and M-ABJA. They are primarily used to rapidly transport aircraft parts and maintenance personnel around Ryanair’s ever-expanding network. The number of aircrafts in order is testimony to the ambition of Ryanair to accelerate its traffic growth modestly. Ever since transforming in the LCC paradigm in the mid 1990s, Ryanair has mostly operated a single aircraft type, thereby providing economies of scale and flexibility in terms of aircraft deployment, maintenance, crew scheduling, and training.

Ryanair has unit costs that are lowest of any European airline and one of the lowest of any airline on the planet. Ryanair has a level of unit cost that is unlikely to be equaled by competitors in Europe and so other airlines are doubtful to be able to contend with it on price.

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Posted in Airlines and Airliners