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Ryanair transfer traffic & interlining; closing the gap with FSCs on product, but not on costs

Analysis

Recent reports suggest that Ryanair is on the verge of two further new developments in its strategic evolution, taking it ever-closer to the network airline business model. Firstly, the CEO Michael O'Leary has said that the airline plans to introduce trial passenger transfer services at London Stansted and Barcelona airports (Irish Independent, 14-Apr-2016). Secondly, Ryanair is reported to be close to agreement on feeding Norwegian's long haul routes from London Gatwick (Irish Independent, 20/4/16).

These developments follow several other changes to Ryanair's business model over the past couple of years - changes that have been well received in the market. Until now Ryanair has not engaged in intralining with itself or interlining with others.

It would not be the first European LCC to do either of these things, but it would be the only airline to combine them with an ultra-low cost base and leadership of the intra-European market by passenger numbers.

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