Ryanair in 2018

[sean1982]

Indeed, All the “experts” in the media and here falling over themselves to blame FR however reading the actual comms is too much to ask

[Inquirer]

it's 'just' a couple of euro in the end, so I doubt many people will end up in troubles because of the confusions surrounding this latest price increase of ryanair, but according to het nieuwsblad the information about the applicability of these extra fees for all tickets after november the first comes from the ryanair customer service themselves, so clearly even the 'professionals' don't always know it so well either????
https://www.nieuwsblad.be/cnt/dmf20180826_03684124
Or they do, and there will once again be a difference between what the airline legally has to put on paper, and what the airline actually tries to do in real?

[Passenger]

Indeed, All the “experts” in the media and here falling over themselves to blame FR however reading the actual comms is too much to ask

On your request, I have read it again: point 4 in "Frequently Asked Questions":

https://corporate.ryanair.com/news/new- ... ng-delays/
4. What about customers who have already booked flights before 1 September for travel on/after 1 Nov?
The new bag policy will apply to all travel on/after 1 November. Non-priority customers who booked flights before 1 September (for travel after 1 Nov) can either add Priority Boarding for €/£8* or a 10kg bag for €/£10* or they may cancel their booking for a full refund. *(price when added after booking).

This really translates to me as: "when you have booked in May for a flight in November, you will have to pay 8 or 10 € surcharge if you want to travel with your trolley".

The fact that Ryanair says that passengers who disagree with the new conditions may cancel without costs, is irrelevant. Passengers are entitled to travel at the conditions they've signed for. A unilateral change of sales conditions from a signed contract is forbitten by law in the EU.

[Passenger]

When the news was out, i immediately checked their website and it said something different than What is said here.

Indeed, All the “experts” in the media and here falling over themselves to blame FR however reading the actual comms is too much to ask.

Another bunch of "amateurs" who dare to contradict what "the experts" say: the Test-Aankoop/Test-Achats legal department, in its' press release 27th August 2018, also says that Ryanair is acting illegally:

NL:
https://www.test-aankoop.be/familie-pri ... handbagage
FR:
https://www.test-achats.be/famille-priv ... ges-cabine

[sn26567]

But TA knows them: "passengers won't be allowed to board when they don't pay, even when that's illegal".

And Ryanair knows that passengers will not go to court for 8 euros. Although...

1. Vredegerecht / Justice de paix comes free of charge.
2. TA might also initiate a class action on behalf of its members.

And that's exactly what TA is going to do: they never let down the consumer!

[saratoga]

Well i dont know if this is the correct thread to post it (so moderators feel free to move it in another thread).

Norwegian, WOW, Primera and perhaps other loco’s all offering cheap flights to the US. I am somehow surprised ryanair did not jump on that boat. We have to admit the ryr management are not the stupiest on this planet so there must be a good valid reason why they are not considering this.

Does anybody know what the reason might be??

[luchtzak]

I googled the question, and found this possible answer by John Beamer, Partner @ Strategy Firm via https://www.quora.com/Why-is-Ryanair-he ... ul-flights

Ryanair is one of the most successful airlines in the world. It has a “repeatable model” that consistently earns north of 20% ROIC - Return on Invested Capital. The elements of this model are:

• Follow an ultra-low cost model - this means absolute lowest fairs and heavy ancillary charges
• Fly one type of aircraft only - 737
• Fly to second tier airports typically a decent distance from major centres. These will have lower landing charges and are typically less busy …
• … this means that plane utilisation is better. There are fewer external factors (e.g., busy airport) that are causing delays.
• A “build it and they will come” mentality - if you can fly between A and B for $10 a seat then you will create demand. So a route that doesn’t look profitable suddenly has 4 planes flying back and forth

If we now apply this to the long-haul model we can see that Ryanair would have to change its business modela bit.

For a start, it wouldn’t be able to fly 737s - it would have to invest in a wide-body fleet. Running a wide-body fleet is surprisingly different to narrow-body and will require a different cost structure (different maintenance skills for example).

In addition there are other costs and constraints on long-haul. The legacy flag carriers are in a better position to defend this market as to date passengers have placed more emphasis on a degree of “premiumness” than they have in short-haul, although this could change.

Also it is hard to drive the same level of cost compression in long-haul for a number of reasons. For example:

• You will nearly always have to rotate pilots - so pilot costs go up
• Aircraft utilisation will naturally be lower because of longer turn around times and time zone difference can often restrict schedules
• Delays will cost more - it is easier to make up delays in high frequency short markets that lower frequency distance markets
• …

Finally, the EU makes flying among the various member states very simple - there is full freedom of movement after all. Once you move outside the EU there are (depending where you fly to) other regulatory costs and challenges e.g., trying to protect local airlines (and jobs). These can be overcome but come with hassle (and cost money to solve).

So if you are the management at Ryanair there is going to be more money to be made by taking share in European short-haul than trying to win in, say, transatlantic long-haul. Having said this it wouldn’t surprise me if in the next decade a few viable low-cost long-haul airlines established themselves. Norwegian could be one, but the airline industry, more than any other, is littered with examples of failed start-ups. However, given air travel is extremely price elastic and the maturing of the short-haul domestic low-cost model, at some point the likes of Ryanair will seek growth, and looking to long-haul will be a reasonably attractive and valid option.

[sn26567]

But TA knows them: "passengers won't be allowed to board when they don't pay, even when that's illegal".

And Ryanair knows that passengers will not go to court for 8 euros. Although...

1. Vredegerecht / Justice de paix comes free of charge.
2. TA might also initiate a class action on behalf of its members.

And that's exactly what TA is going to do: they never let down the consumer!

Not only in Belgium. In Spain, consumer association Facua is suing Ryanair because their baggage policy contravenes the Spanish law on air safety, which imposes on airlines to transport one cabin bag free of charge.

Spanish Transport Minister José Luis Abalos will meet with Ryanair representatives to discuss the issue.

[Passenger]

The Belgian Economic Inspection now also has concluded that Ryanair's new luggage policy for existing bookings is illegal:
https://www.vrt.be/vrtnws/nl/2018/09/04 ... ber-heeft/

[Passenger]

Ryanair admits it was acting illegally by charging its new luggage surcharge to existing bookings:

aviation24.be homepage:
https://www.aviation24.be/airlines/ryan ... september/

Ryanair press release:
https://corporate.ryanair.com/news/ryan ... -november/

[sn26567]

Ryanair Chairman David Bonderman is facing increasing opposition to his re-election at the airline’s annual general meeting in September 2018. What about Michael O'Leary?

On the positive side, Ryanair is set to scrap plans to reduce its fleet in Ireland after pilots there unanimously backed a deal negotiated by their trade union. Hence, no transfer of pilots to Poland, where activities will be increased nevertheless, as reported elsewhere:

https://www.aviation24.be/airlines/ryan ... mer-32019/

[clarkebarry]

Ryanair has just been all delays and strikes this year!

[luchtzak]

German based Ryanair pilots are planning a 24-hour strike next Wednesday:

https://www.aviation24.be/trade-unions/ ... wednesday/

[sn26567]

Ryanair is reportedly lobbying the Irish government to change tax regulations so it can contract staff under laws of their home country. Changes in view?

[convair]

Ryanair is reportedly lobbying the Irish government to change tax regulations so it can contract staff under laws of their home country. Changes in view?

Why would they need the Irish government's agreement to do that? When a Belgian company hires Irish staff for its Irish branch, Irish law must be applicable in their contract, afaik.

[sean1982]

Ryanair is reportedly lobbying the Irish government to change tax regulations so it can contract staff under laws of their home country. Changes in view?

Why would they need the Irish government's agreement to do that? When a Belgian company hires Irish staff for its Irish branch, Irish law must be applicable in their contract, afaik.

Because it costs them more in tax, so they want a tax reform first.

[luchtzak]

[Passenger]

Ryanair is reportedly lobbying the Irish government to change tax regulations so it can contract staff under laws of their home country. Changes in view?

Why would they need the Irish government's agreement to do that? When a Belgian company hires Irish staff for its Irish branch, Irish law must be applicable in their contract, afaik.

Because it costs them more in tax, so they want a tax reform first.

At the contrary: they will have to pay less tax to the Irish Taxman when they apply local contracts. Belgian labour contracts will result in a higher labour cost then Irish labour contracts. And higher labour costs means less profit. And less profit means less tax to be paid.

With that statement "we need a review of Irish tax regulations before we can switch to local contracts", Ryanair only tries to gain time to avoid the unavoidable. Their whole business model depends on those Irish contracts, allowing them to compete to carriers who apply non-Irish contracts:
https://www.politico.eu/article/ryanair ... spotlight/

[Passenger]

O'Leary has banned the media from Ryanair's annual general meeting on 20th Sept 2018. The press isn't happy with that:
https://www.irishtimes.com/business/mic ... -1.3628305

[sn26567]

Ryanair is reportedly lobbying the Irish government to change tax regulations so it can contract staff under laws of their home country. Changes in view?

A first in Ryanair history: a collective labour agreement with Italian cabin crew governed by Italian law. A last effort to avoid the strike of 28 September?

https://www.aviation24.be/airlines/ryan ... alian-law/