So is Ryanair really profitable?

[cinik]

If the state airlines went out and negotiated deals like Ryanair do, then they might not be in the trouble they now are. Why is it you find it so difficult to understand the low-cost model? It's so simple, it includes forcing down airport charges. You just can't seem to get your head around the simple fact that all costs must be targeted and reductions, no matter where they are achieved, are what determine profitability.
Suppose you're rooting for AF/KLM

Hi Sailor,

No. I have no stance on this other than the use of what are effective subsidies to artifically lower fares below economic levels.

At what point will the penny drop that it is long term foolishness
Yes others have to try and compete. It should be on a level playing field.

Can you imagine the bleating that would happen if the boot was on the other foot?

[Sailor]

Hi Sailor,

No. I have no stance on this other than the use of what are effective subsidies to artifically lower fares below economic levels.

At what point will the penny drop that it is long term foolishness
Yes others have to try and compete. It should be on a level playing field.

Can you imagine the bleating that would happen if the boot was on the other foot?

Hiya Cinik
If AL did exactly the same I'd be cheering them on - and, sure, Micko would be bleating but he's a big lad and can look after himself. And you talk about subsidies to reduce fares below economic levels - would you view the deals with Boeing in the same category?
The other thing is that it can make economic sense to lower airport charges below what would make the airport profitable - if you view the airport as part of the regional infrastructure. If you can get tourists into a region and they spend €500 each in the local economy, so what if you lose a tenner a head in airport charges?

[disgruntledcitizen]

The other thing is that it can make economic sense to lower airport charges below what would make the airport profitable - if you view the airport as part of the regional infrastructure. If you can get tourists into a region and they spend €500 each in the local economy, so what if you lose a tenner a head in airport charges?

isn't that the exact model that the Spanish and other airports use in the off peak season ? makes complete and utter sense, however we here have the gombeens in the DAA whom are only concerned with their own P&L, i would love to see an analysis on the benefits to the economy and the exchequer (which at the end of the day owns the airports) from reducing on a sliding scale the airport fees charged to the likes of EI and FR

then again joined up thinking isn't really this governments strong point is it

[Sailor]

isn't that the exact model that the Spanish and other airports use in the off peak season ? makes complete and utter sense, however we here have the gombeens in the DAA whom are only concerned with their own P&L, i would love to see an analysis on the benefits to the economy and the exchequer (which at the end of the day owns the airports) from reducing on a sliding scale the airport fees charged to the likes of EI and FR

then again joined up thinking isn't really this governments strong point is it

Correct - and people wonder why Ryanair reduced their Dublin base by 3 aircraft and are locating 4 aircraft in a new base at Malaga.

[wombat]

Correct - and people wonder why Ryanair reduced their Dublin base by 3 aircraft and are locating 4 aircraft in a new base at Malaga.

I think most people outside govt. realise that Ryanair's function is to make money which they do by moving people efficiently. It's a pity they are not encouraged to move more of them through Irish airports.

[toughbutfair]

Ryanair negotiates the deals to get as much money from them as it can, simple negotiation. If the amount of money turns it from loss to a profit then so what. Demand and supply determines how much they can squeeze from the airports.

Money is money, no difference between getting it from passengers or airports..

[Harmonica]

Other airlines are also free to do these deals with regional airlines. If Ryanair were the only one getting these deals the EU would have stopped a long time ago.

The Spanish decision on landing charges makes perfect sense but here we increase our charges.

[cinik]

Hiya Cinik
If AL did exactly the same I'd be cheering them on - and, sure, Micko would be bleating but he's a big lad and can look after himself. And you talk about subsidies to reduce fares below economic levels - would you view the deals with Boeing in the same category?
The other thing is that it can make economic sense to lower airport charges below what would make the airport profitable - if you view the airport as part of the regional infrastructure. If you can get tourists into a region and they spend €500 each in the local economy, so what if you lose a tenner a head in airport charges?

Boeing did a deal with the devil post 911. They certainly regret it now. But if a deal was seen to be done with a "2nd tier customer" again, the likes
of AA/ Continental etc would have major issues

[Panopticon]

They are profitable. If the subsidies did not exist, they would simply be smaller and less profitable, running the routes where they don't earn subsidies.

[Baron von Biffo]

Maybe that's why he got so wound up over hangar 6. He's so used to living on corporate welfare he thought it would never stop.