Ryanair's six new routes to Greece
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Ryanair's Frankfurt move puts pressure on Lufthansa and supports its German growth ambitions
Ryanair and Fraport announced on 2-Nov-2016 that the Irish ultra-LCC will open its 85th base at Frankfurt Airport, Lufthansa's main hub. Ryanair will base two aircraft at the airport and launch four new leisure routes in Mar-2017. With a daily departure to each of Alicante, Faro, Malaga and Palma de Mallorca, it expects to attract 400,000 passengers pa.
Although Ryanair has been increasing its primary airport presence for some time, CEO Michael O'Leary had previously said that Frankfurt Airport was one of the few, alongside London Heathrow and Paris CDG, that Ryanair would not serve. Frankfurt was seen not only as too expensive, but also as too congested for Ryanair's short turnaround times. Details of Ryanair's agreement with Frankfurt Airport have not been disclosed, but it is likely that the airline has secured favourable terms in return for traffic growth targets.
Ryanair's move into Frankfurt is relatively small compared with its operations in Berlin Schoenefeld and Cologne/Bonn, but this development supports its growth ambitions in Germany. Ryanair's average revenue per passenger is half that of Lufthansa's network airlines. Its move increases the competitive pressure on Germany's national airline.
Ryanair: digital success raises ancillary target to 30% as it becomes the "Amazon of air travel"
Kenny Jacobs, Ryanair's Chief Marketing Officer, has said that its website aims to become the "Amazon of air travel". The airline that was built around selling seats on flights as cheaply as possible – and not much else – now wants to sell a much wider range of products and services. In Oct-2016 it launched its new accommodation service, Ryanair Rooms, and it plans Ryanair Holidays by next summer.
Now well into its third year, Ryanair's 'Always Getting Better' programme (abbreviated to 'AGB') has been a demonstrable success. Accompanied by a move to increase Ryanair's presence in primary airports, AGB has aimed to improve customer service and reinvigorate its digital interfaces. Since AGB was initiated in 2014 Ryanair's passenger numbers have returned to double-digit rates of growth, and load factor has gained more than 10ppts.