|
|
|
|
|
O’Leary says Irish routes are least profitable for Ryanair
07 February 2010 By David Clerkin, Markets Correspondent
Ryanair’s routes to and from Ireland are the least profitable parts of its entire network, according to Michael O’Leary, its chief executive.
Speaking after the airline reported third quarter pre-tax losses of €12.5 million last week, O’Leary told analysts that high costs, including charges at Dublin Airport, and the government’s controversial €10 departure tax were to blame. ‘‘The Irish routes are the least profitable routes we have because they are the highest cost ones," O’Leary said.
‘‘We keep listening to this nonsense that . . . the golden goose is the Irish airports, and we make so much money in them. It’s usually the opposite is the case."
O’Leary said that Ryanair would seek to grow its business in Spain and Portugal instead of Ireland, despite announcing last week that Ryanair would go head-to-head with Aer Lingus over the summer months with new holiday routes to selected destinations.
‘‘Our choice and selection of base is not because we think we can get high yields in those bases," he said. ‘‘The choice and the selection [are] based on where we have low airport costs [and] efficient operating facilities."
O’Leary also said that Aer Lingus’s new hybrid strategy, which was announced last month by its new chief executive, Christoph Mueller, was ‘‘doomed to failure’’
‘‘It’s not a low-fare airline, and it’s not a high-service airline, it’s somewhere in-between," O’Leary said. ‘‘It’s an airline, but not as we know it."
|
|
|
