Smitchy you are one hell of an optimist.
Basing projections for 2009/2010 on what happened in the last 5 years is sure hopeful. If there were pots of gold at the end of some mythical air routes - believe me, there'd be a melee to get there.
Don't see much sign of it.
Sell off 2nd hand aircraft? He did it before?
He couldn't sell a used taxi plate right now.
Nobody is buying.
Anyhow, let time tell. We won't have to wait all that long.
There is nobody out there to buy Ryanair's second hand low spec crap.
To use a motoring analagy for anyone that can follow-
Irish rental companies lease masses of bog standard Fiat Puntos and the garages then take them back to sell in September.
The cost of extras is mainly lost to people who bough a top spec Punto in January and are selling in September, yet they will get the first buyer as nobody wants to be seen in the crappy Punto with black plastic door handles, mirrors and bumbers, with steel wheels hidden by spurious hubcaps that look like the last hooker on the docks that even the most desperate soul wouldn't look at...the buyer wants the colour coded Punto with the CD player, alloys, sunroof and better engine.
O'Leary is overloaded with the former, whihc still owe Ryanair money and is repeating his mistake by buying more of them when the ones he has are fine.
AL have Big 30 year old Mercs, that have no economic value and cost a fortune to run, but it has built up a modest cash reserve and is perfectly poised to buy up the best new Lexus for a song at an auction, which has just been repo-d from a First Active manager somewhere.
Woop Woop
Suppose we need to wait and see what the Q3 figures (out on Monday) really say and what Q4 is looking to be. But their business model with wafer-thin margins was always going to get hit in these times of a recession.
"The thing that always annoyed me about traditional Irish historiography was the paradox of its Anglocentrism. People are now prepared, I think, to confront the possibility that many Irish problems are, in a sense, indigenous to the Irish situation." Roy Foster (1989).
I never expected it to be this bad:
Of course the headline reads traffic growth of 13%. Not much use when you're losing €100 million in one quarter. In an attempt to bury this, Ryanair has spread rumours of a major new aircraft order. Of course that's not going to happen, they can't even find anywhere to fly the aircraft they're getting now. Always be wary when Ryanair make a big announcement about new aircraft/transatlantic flying. It usually means they're trying to bury dreadful results.Ryanair, Europe’s largest low fare airlines today, (2 Feb) announced a Q3 loss of €102m Ryanair.com - News : Ryanair Beats Recession As Traffic Grows 13%
Last edited by BaudrillardNeverExisted; 2nd February 2009 at 02:14 PM. Reason: typo
Ryanair runs up heavy losses but expects passenger growth next year | Business | guardian.co.uk
They indeed are trying to put a positive shine over it all. And that on a day where the weather is creating havoc and 73 Ryanair flights were canceled according to the BBC.
"The thing that always annoyed me about traditional Irish historiography was the paradox of its Anglocentrism. People are now prepared, I think, to confront the possibility that many Irish problems are, in a sense, indigenous to the Irish situation." Roy Foster (1989).
One would have expected that a visionary like O'Leary should have seen the Snow storm coming and have an efficient contigency plan in place?Originally Posted by Nem
I mean the man can perform miracles right?
'Hello. My name is Inigo Montoya. You killed my father. Prepare to die.'
Inigo Montoya.
The "contingency plan" in these cases is to cancel all the flights because Ryanair has no significant numbers of ground staff to deal with a schedule full of delays. As the Stansted protest showed, they rather put up with disgruntled customers and a bad reputation then invest in more staff.
Where they are going to get all the passengers from they said they will get I don't know. On airlinequality yesterday someone noted that the Edinburgh to Bournemouth flight was practically empty. Q4 (January/February/March) will be interesting. Now that the AL diversion is out of the way Mr. Feckless can go back to actually running his airline. He's made the right choice in hedging his fuel for most of next year though...
To be clear, there is no suggestion whatsoever that this airline is in financial trouble.
Last edited by Nem; 2nd February 2009 at 03:05 PM.
"The thing that always annoyed me about traditional Irish historiography was the paradox of its Anglocentrism. People are now prepared, I think, to confront the possibility that many Irish problems are, in a sense, indigenous to the Irish situation." Roy Foster (1989).
In fairness I think the biggest hit they took was from hedging oil at a very high price.
If they have now hedged in a t a low price- it will certainly increase their margins again.
I would see it difficult for them to grow customers next year but overall I think they will remain profitable.
Other airlines with higher cost basis should be reporting interesting results over the next while.
Don’t think AL will be announcing a profit for their financial year.
The aircraft issue is a fair point and Ryanair may have commited themselves with too many new crafts.
Believe it or not there is other economies in the world that are going to be in growth in this depression so there will be still demand especially from China/India for 2nd hand craft.
The anti Ryanair rhetoric is getting tiresome though.
Its' still cheaper to go for a weekend in these places than to go out in Ireland.
Easyjet flies into the main city airports like the national airlines - Ryanair does not. That is the difference.
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