Ryanair announced (17-Aug-09) plans to switch/close nine of its ten Manchester routes, effective 01-Oct-2009, to "lower cost competitor airports" in East Midlands, Leeds Bradford and Liverpool, after Manchester Airport Group "refused to lower its charges to reflect the lower fares being paid by passengers in the current recession", according to Ryanair. The move will result in the loss of 44 weekly services (to Barcelona Girona, Bremen, Brussels Charleroi, Cagliari, Dusseldorf Weeze, Frankfurt Hahn, Marseille, Milan Bergamo and Shannon) and 600,000 passengers p/a. According to Ryanair, the LCC had offered Manchester an additional 28 weekly services and 400,000 new passengers if the airport reduced its charges. [more]
Ryanair to close nine of ten Manchester routes
You may also be interested in the following articles...
American Airlines and Norwegian forge new partnerships for global reach: CAPA Americas Summit
American Airlines' recent pursuit of China Southern, and Norwegian’s partnership discussions with Ryanair, reflect the multiple changing dynamics that airlines operating across all business models must face as they maximise network connectivity to remain relevant and competitive. American had to drift outside oneworld to gain an important foothold in China, while Norwegian stresses that traditional airline partnership structures are not viable for its business model.
But despite American’s attention grabbing decision to take a small equity stake in China Southern, the agreement appears to be a one off event. American has no plans to join rival Delta in pursuing stakes in airlines around the world to attain network longevity. American's position is that its current and prospective joint venture agreements provide anchors in the most important global regions.
For Norwegian, a potential tie up with other low cost airlines allows the company to offer network breadth to the pool of passengers it intends to stimulate with new narrowbody service to the US, but without the frills and expense inherent in more complex airline partnerships.
Ryanair and Stansted. Brexit may have increased the LCC's bargaining power over its biggest airport
Ryanair's plans for nine new routes and increased frequency on 13 routes at London Stansted Airport in summer 2017 mark a further chapter in the relationship between the two. Stansted is Ryanair's biggest airport and Ryanair is Stansted's biggest airline customer. However, Ryanair dominates Stansted, while Stansted's importance to Ryanair is diminishing.
When Ryanair took exception to what it considered to be excessive airport charge increases it severely cut its capacity at Stansted, severely denting the airport's traffic base between 2007 and 2012. The subsequent growth in passenger numbers following Stansted's acquisition by Manchester Airports Group in 2013 is the direct result of a deal with Ryanair over reduced airport charges. In 2016, Stansted's traffic recovery was complete and it handled more passengers than at its 2007 peak.
Ryanair's summer 2017 expansion plans at Stansted point to further growth in the airport's passenger numbers. However, Ryanair has reduced its growth in the UK as a result of Brexit uncertainty, and this is likely to mean slower growth for Stansted. Ryanair is even modestly cutting its capacity at the airport this winter. Ryanair has consistently been a critic of Brexit, but it may have further increased its bargaining power over its biggest airport.