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COMMENT: Third time lucky for Ryanair?

BTNews is not a fan of Ryanair.  The nickname it has earned with the travelling public is well justified. “The world’s most annoying airline.”  

Michael O’Leary will say that the 76m sector passengers who fly with Ryanair prove that the pseudo Dublin-based carrier (its largest operation is at Stansted) is all the rage, but as with much of the utterings of the Irish deity this is completely exaggerated.  Firstly these are return passengers and secondly he claims that on average people fly on Ryanair five times per year.  That comes down to seven million individuals annually flown by the airline, one tenth of the preposterous claim.

BTNews believes that Ryanair has done a great deal of good in shaking up an industry that was not lethargic, but was indolent.  Sadly, as far as his airline is concerned, he has lowered the tone of the product. 

In 2012 the cost of travelling on Ryanair is usually more than a competitor.  He only really succeeds where for one reason or another Ryanair is solo on the route.   Given the choice most would not fly Ryanair.

Which brings us round to the latest (third time lucky?) Ryanair bid for Aer Lingus. 

Unlike all the analysts and city speculators BTNews thinks that it might just go through.  BTNews does not like monopolies and one would hope for the future that would not happen but Mr O’Leary is very astute and would not have put in the bid without a very good reason.  He is not keen on spending money either.  Dealing with lawyers and city brokers can be very expensive.

If Ryanair were to take over Aer Lingus he could sell the Heathrow slots and possibly turn the former state carrier into a low-cost North Atlantic operation from Stansted, and for the first time offer connectivity with his UK and mainland Europe operations.  He would be an Airbus operator, and be in a predatory position to grab discounted line positions should Airbus or Boeing customers default or cancel.

With regard to the Competition Commission and its European parent a precedent has already been set with the British Airways take-over of bmi.  Routes would clearly come under scrutiny but there are other airlines who might wish to challenge on the UK – Ireland sectors.  Aer Arann currently is in bed with Aer Lingus on certain code-shares but these could very easily be dropped, and with an expansion larger aircraft introduced into the fleet.  The successful Stobart Group has a financial interest in Aer Arann.

The competition people do not always get it right.  People in the West Country will tell you that in spite of objections Flybe was allowed to compete on the Gatwick – Plymouth route resulting not just in the demise of Air Southwest, but the closure of Plymouth City Airport and its ramifications for that city.

Maybe O’Leary’s bid for Aer Lingus was too low?  The Board of the airline seemed to think so. Shareholders, the Irish Goverment and Etihad, have said nothing, but he can increase the offer.  Money talks.  Interesting times.

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Airbus twin for Virgin

On 11 July 2012 a brand new Virgin Atlantic A330 aircraft will depart Heathrow to Delhi.  It will introduce part of a £100m investment programme designed to beat the best offered by its competition.

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Bristol Airport expansion

The first phase of development plans, which will ultimately enable Bristol Airport to handle 10m passengers a year, was officially opened by Justine Greening MP, the Secretary of State for Transport, last Friday (22 June).  She inaugurated three new aircraft stands, the first of more than 30 separate projects which will enable growth over the next decade.

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Emirates Air Line

Following last week’s Business Travel News report, Transport for London (TfL) has confirmed that Emirates Air Line opens to the public from midday on Thursday 28 June.

The 1,000 yards long cable car river crossing will operate seven days a week, from 07:00 to 21:00 Mondays to Fridays, 08:00 to 21:00 on Saturdays and 09:00 to 21:00 on Sundays.

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Gatwick Presentation

Called “Adapting airports to the future needs of business travel” and outlined by the airport's Chief Commercial Officer, Guy Stephenson, the 60-slide presentation (including much adornment) takes the reader through the history of business travel and Gatwick’s views for the future.

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LATAM Airlines created

The takeover of Brazil’s TAM by Chile’s LAN was completed last week, the new combined carrier now called LATAM Airlines.  It creates the world's second-largest airline by market value in a deal that executives expect to yield up to US$700m in annual cost savings within four years.

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Northern Ireland flights

Following the demise of bmiBaby the shake-up of air services to and from Northern Ireland continues with easyJet now claiming to be the six counties' largest airline.  The Luton-based carrier is due to introduce extra flights from Belfast International Airport on routes including Edinburgh, London and Manchester from the start of the winter season.

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Wembley Hilton

Hilton has moved into Wembley, a name associated with the famous stadium which can trace its history back to 1923 and the Empire Exhibition.

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ON TOUR: SITA IT gathering

Now in its 14th year SITA’s IT Summit, together with Airline Business, last week brought together the airlines of the world to essentially discuss where IT is going in the scheduled aviation area. 

The annual survey looked back in retrospect what this component of air travel marketing has achieved in the last 12 months.  There were over 300 attendees representing 200 airlines, airports and associated companies.

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CRUISE NEWS JUNE 2012

P&O will commemorate 175 years at Southampton next week.  We trace the history of the world's oldest cruise line and detail the celebrations.

Hebridean has become the first ever cruise line to be honoured with the "By Royal Appoinment" distinction, Her Majesty The Queen having twice to date chartered Hebridean Princess for a family holiday around the Scottish islands.

Ken Brookes is the distinguished former President of the Chartered Institute of Journalists and a ‘sometimes’ contributor to BTN.  He is a cruise fan too.

In this month's cruising supplement to BTN he discusses the Norovirus problem and the exemplary way a major cruise line dealt with the problem.  He says that the organisation is worthy of the highest praise, but has omitted its name because some folk might treat the whole story, with distorted logic, in undeservedly derogatory fashion.  The tabloid newspapers are sadly ruthless when it comes to so-called news stories.

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AND FINALLY: The joke is on OAG

"What's the use of you having a timetable if your silly aeroplanes never stick to the schedule”, said the traveller to a member of the gate staff.

“That’s the whole point”, was the sharp retort.

“It is all part of our customer service.  If we did not go to the trouble of producing a timetable you would never know that the plane was late!”

For readers that are not aware OAG is the data provider for the world’s airlines.  Its direct predecessor produced the first railway timetable in 1853 with the words “as easy as ABC.”

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