Presentation on theme: "Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair."— Presentation transcript:
Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair
Airports vs. Airlines: Who owns the Customer? – 20 th July 2010
The Worlds Favourite Airline! Lowest Fares/Lowest Seat Cost in Europe No fuel surcharges….Guaranteed! No. 1 for Traffic growth - up to 73.5m pax No. 1 Coverage – 1,100+ Routes and 43 Bases No. 1 Cust Service - Best punctuality - Least lost bags - Fewest cancellations Greenest, Cleanest Airline in Europe 26th year of strong growth
Low High No.1 for lowest fares Av. Fare % > Ryanair Ryanair 35 (-13%) EasyJet 5249% Aer Lingus 77 120% Iberia 150329% Air France 230557% Lufthansa 228551% British Airways 284711% Source: RYA to 31 March 2009 & Latest published Company Year end Information
Airline% On TimeBags miss. per 1,000 pax % completions Ryanair93 0.499.6 Lufthansa8510.998.4 British Airways 8315.697.9 Air France8318.996.9 EasyjetRTP Aer LingusRTP No. 1 for Customer Service Source: Ryanair, Easyjet and AEA published statistics:
Ryanair - The Worlds Favourite Airline Source: IATA published statistics compared to Ryanair current year forecasted traffic
Ryanair - The Worlds Favourite Airline 43 bases 155 airports 26 countries 1,100+ routes 1,300+ daily dep 247 B737-800s Newest fleet (av 2.8 y) 73.5m pax p.a.
Ryanair Effect - United Kingdom 11 bases 19 airports 400 routes 29m pax p.a. 29,000 jobs 7bn savs p.a.
What Attracts Passengers? Low Fares Efficient Operations Good Service
Growth of Major Airlines 03/09 Pax (m) Ryanair+44 Easyjet*+20 Lufthansa +11 Air France/KLM +6 BA -4 *2004 base
Lessons The fare determines the demand The route only exists at that fare Only Ryanairs cost base allows that fare to be offered sustainably.˙. Ryanair owns the route
Who Would Launch these Routes? OPO – RDZ STN – HAUNowhere ZAZ – ALCto GRO – AHO Nowhere? LDY - EMA CRL - AOI 10% of routes cancelled every year
Market Shares on Major Routes BGY/SXF38% CRL/CIA37% DUB/LON37% CRL/GRO32% BGY/CRL32% STN/NYO30%
Where is Passenger Growth 07/09 Pax (m)* Ryanair +17.5 Easyjet +12.8 Norwegian +7.1__ 37.4m Total Change -18m *Based on seat capacity intra EU
Which Airports are Growing 07/09 Dusseldorf Weeze (NRN)+177% Istanbul (SAW) +112% Barcelona Reus (REU) +110% Brussels Charleroi (CRL) +82% Cagliari (CAG) +61% * Top 5 airports (in %) with >1m seat capacity growth
Ryanair growth of 28% to 2013 Fleet & Traffic to grow 28% by 2013 Fleet Traffic FY Mar Total (net) Disp Pax Growth 2011 272 -10* 73.5m +11% 2012 294 -3* 80.0m +9% 2013 299 -10* 85.0m +6% Flags in retreat; competitors squabble & stagnate Clears the field for Ryanair * 2011 to 2013 – 23a/c disposals ( 17 Op. leases and 6 a/c sales)
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