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Ryanair considers shift to major European airports to attract business passengers

23-Sep-2010 12:39 PM
Ryanair CEO Michael O'Leary stated the LCC is considering opening routes to all major European airports with the exception of the top three – London Heathrow, Paris Charles de Gaulle and Frankfurt am Main – as slowing growth prompts it to modify its strategy based on operating only to less-costly terminals (Bloomberg, 23-Sep-2010). Mr O'Leary commented that operating to larger airports, while raising costs, would enable the carrier to increase yields by attracting more business passengers. He added that larger city airports are now interested in talking to LCCs, adding that costlier airports are becoming more viable as the carrier reduces its use of facilities such as check-in desks and baggage-handling machines. Mr O'Leary added that the carrier would still maintain its 25-minute turnaround even at larger airports. 

Ryanair: “When fares aren’t being reduced every year in 2013, 2014, 2015 there’ll be more of a focus on quality, service, customer satisfaction and all that, because the prices will be rising. But are we suddenly going to go from an average fare of EUR34 to EUR100? No!,” Michael O'Leary, CEO. Source: Bloomberg, 23-Sep-2010.

Ryanair: “Almost any airport that we don’t fly to is talking to us across Europe. Increasingly in the future there’s going to be a spread of bigger airports, as well as secondary ones ... Bigger airports are now realising that EasyJet isn’t growing and none of the flag carriers are growing, so they’re now doing deals with us. And we have such a price advantage over anyone else that we can move in on anyone’s route and blow them out of it," Michael O'Leary, CEO. Source: Bloomberg, 23-Sep-2010.