Controversial Ryanair boss, Michael O‘Leary, has warned that the days of budget flights will be soon coming to an end.
Mr O’Leary added that as the company moves across Europe to more central airports and makes attempts to reduce costs, that the current average Ryanair fare of €40 (£33) won’t be sustainable in the future.
When comparing the airline with Lidl, one of the brand-driven low-cost supermarkets, he said that the airlines focus over the years to come, would be on emphasising the brands quality instead of focusing on the prices charged.
He said, “We have to move away over the next number of years from being obsessed with having the lowest fares in the market. At the moment we just pile it high and sell it cheap. Lidl started off cheap and cheerful, but now it is very sophisticated – it is no longer perceived to be cheap and cheerful.”
Operations will have to be moved to some of the more expensive central airports across Europe in the airline’s mission to attract additional travellers, but just like many other airlines, Ryanair is also facing pressure on costs.
The airline aims to look for additional customers that are more up-market, and they have recently started to run major operations out of Barcelona El Prat and Edinburgh. The increase in air fares are not however expected to happen for at least the next couple of years.
He also added that he would be remaining as the boss of Ryanair, until the business doubles in size and the total number of aircraft increases from the approximately 200 planes they have at the moment, although he did not specify a timeframe within which he aims to accomplish his goals.
In a recent interview he said, “Then the growth rate slows down to 2% or 3% per year, you will need a different management then. We won’t need my dog and pony show, which is about generating publicity. Every company has to move from being the high-growth Robin Hood.”
During the past two weeks the budget airline has cut the number of flights from Shannon Airport, as well as pulling out of Belfast City Airport, arguing that the move was fuelled by higher costs.
As a result of the Shannon move, there will be a reduction in the frequency of flights to Stansted and Gatwick and it will also mean that the airlines’ Paris route will be closed as of November 1.
In August, Ryanair transported a total of 7.68 million passengers, which is a 12% increase from the corresponding month of 2009, according to the figures that were most recently released. The percentage of seats filled on an aircraft, or its load factor, decreased by 1% to 89%. The airline carried approximately 70.9 million passengers in the past 12 months, up until August 10.
Tags: cheap flights, ryanair
