Ryanair : FR : RYR

Ryanair and COMAC

In the event we are to believe the naysayers here at the Paris Air Show, Michael O’Leary and his airline are behaving like they are [Vous devez être inscrit et connecté pour voir ce lien] about the C919. The considered opinion among the considered in Paris is that Ryanair is playing a grand game to make Boeing blink. Airbus is less likely to blink given, shall we say, history.
As Mr O’Leary states in the linked article “….we remain in continuing discussions with both Boeing and now COMAC…” There is no mention of Airbus. And he goes on to say “…today’s announcement won’t affect our long standing relationship with Boeing…” Well what is it? A game of chicken?
COMAC has nothing to lose. Indeed, Mr O’Leary is apparently not a patient man and he is dealing with the most patient people in business. They will outlast and tire him. COMAC’s C919 is more likely to run late than say the MC-21. But IRKUT is not as hungry. COMAC obviously thinks they have manageable risk. Even if – and its likely – Ryanair stiffs them, they are likely to learn a lot about satisfying the most demanding LCC in the world.
The linked MOU is mainly fluff. We are comfortable that both sides know this. Actually everyone knows this. But Ryanair has thrown down a gauntlet to Boeing. This would be laughable under normal circumstances. No doubt there are lots of giggles among Team Boeing. However, it would behoove Boeing not to make too much fun. The Airbus neo is cleaning up in Paris. Even though Boeing has secured some 737 orders, it is not at the same level as neo orders. As of tonight we have 49 737s compared with 210 A320neo’s sold at the show. The market is speaking (shouting?).
The aviation world, especially airplane buyers, are growing frustrated waiting for Boeing to share a definitive vision on the future of its single aisle program. The 737 as we know it cannot go on forever.

By [Vous devez être inscrit et connecté pour voir ce lien]

Ryanair has again talked up the potential of the Chinese-built Comac C919 twinjet after entering preliminary discussions with the manufacturer over the type earlier this year.

The budget carrier's intent regarding the aircraft remains unclear.

Ryanair has been in the market for hundreds more aircraft but has not secured a deal with Boeing, its incumbent supplier, or Airbus.

"We believe this [C919] aircraft will be a real alternative to the existing duopoly of Boeing and Airbus," said Ryanair during its first-quarter results disclosure today.

"Real competition in the aircraft manufacturing industry will deliver more choice and lower costs for airlines. We also believe that it will make economic sense for Ryanair to become a two-aircraft operator if the present Boeing fleet economies can be matched or improved by another aircraft manufacturer."

Ryanair signed a memorandum of understand with Comanc in June covering talks over potential supply of 200-seat aircraft, with availability from 2018.

Its first quarter operating profit stayed largely flat at €170 million ($244 million), as did the company's pre-tax and net surplus.

The airline is maintaining its forecast of a full-year performance for 2011-12 "similar" to the €400 million after-tax profit achieved in 2010-11.

Passenger numbers for the quarter to 30 June rose by 18% over last year's ash-affected figures, reaching 21.3 million, which helped drive up revenues by 29% to €1.15 billion.

But the higher revenues were "largely offset" by higher operating costs as fuel sharply increased, by 49%, to €427 million.

Ryanair's outlook for the rest of the year is unchanged. It has "very limited visibility" on second-half bookings or yields but said it expects a strong first-half growth to be countered by a second-half dip owing to winter capacity cuts.

Southeast Asia's largest budget airline AirAsia looks set for a major share swap with Malaysian Airlines in a deal to help save the struggling national flag carrier, reports said Sunday.
© 2011 AFP

Le tribunal de l'Union européenne a donné raison jeudi à la compagnie aérienne Ryanair qui estimait que la Commission européenne avait manqué à ses devoirs en ne statuant pas sur une plainte concernant des mesures avantageuses dont aurait profité sa concurrente Alitalia.

2011 AFP

Ryanair reviews supply options
After a decade of ferocious growth at the low-cost airline, Ryanair’s fleet will peak at 300 next year when [Vous devez être inscrit et connecté pour voir ce lien] supplies the last aircraft due under a 2005 contract with the US manufacturer.

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our [Vous devez être inscrit et connecté pour voir ce lien] and [Vous devez être inscrit et connecté pour voir ce lien] for more detail. Email [Vous devez être inscrit et connecté pour voir ce lien] to buy additional rights. [Vous devez être inscrit et connecté pour voir ce lien]


The question for Mr O’Leary is what to do next – expand Ryanair once again by purchasing more aircraft, or concentrate on generating cash and handing it back to shareholders. A second issue hanging over Ryanair is whether it can realistically retain its ultra-lean cost structure over the long term.

Mr O’Leary – a self-confessed “loud mouth” – is clear about the case for buying new aircraft: “Staying as is for the next 10 to 20 years sounds a bit too much like just lethargy ... we’re not going to stop here,” he says.

[Vous devez être inscrit et connecté pour voir ce lien] – Boeing of the US, China’s Comac and Russia’s Irkut – about the possibility of buying between 200 and 300 narrow-body aircraft from one of them. Mr O’Leary has a tough reputation when it comes to negotiations. In 2002, he infuriated Airbus by signing a contract with Boeing for its 737-800 aircraft after coming close to a deal with the European manufacturer. Relations between Ryanair and Airbus have never fully recovered.

He likes to highlight the discount he secured on that 2002 order, given that it was struck during the aviation industry crisis that followed the September 11 terror attacks, when aircraft makers were desperate for deals.

Mr O’Leary thinks he can get a good deal this time around because the manufacturers could once again have orders cancelled amid the worsening economic climate.

Boeing and Airbus are also facing new competitors. To try to heap pressure on the established jet makers, Mr O’Leary says he is in serious negotiations with Comac and Irkut, which are both proposing to supply airlines with narrow-body aircraft from 2016.

However, Nick Cunningham, analyst at Agency Partners, says Boeing and Airbus have little incentive to strike a cut-price deal with Ryanair for new aircraft because they already have substantial orders for their narrow-body jets.

He adds that Ryanair could opt for the unknown quantity of buying aircraft from the Chinese or Russians, but those aircraft could well encounter significant delays in development. Meanwhile, although Ryanair may look a better investment than the European flag carriers in a weak economic situation, because more people want cheap air travel, some analysts say the company’s profit margin could come under pressure.

Ryanair recorded a 13.5 per cent operating margin in 2010-11, compared with 4.5 per cent at [Vous devez être inscrit et connecté pour voir ce lien]in 2010, and 3.9 per cent at [Vous devez être inscrit et connecté pour voir ce lien] in the six months to June 30.

Geoff van Klaveren, analyst at Deutsche Bank, says that more expansion by Ryanair could reduce its profitability because opening new European short-haul routes often involves discounted fares.

He adds that Ryanair investors will want reassurances that renewed expansion is not accompanied by weaker operating margins.

Andrew Lobbenberg, analyst at RBS, highlights other long term risks for Ryanair, including the possibility of higher airport user charges and unionisation of the company’s workforce.

Mr O’Leary has no issue with employees joining trade unions, but says collective bargaining could mean pay cuts. And he insists he can extract favourable user charges with airports that are keen to secure more travellers, particularly in uncertain economic times.

The Ryanair chief executive’s energy is undiminished after 17 years in the top job.

Mr O’Leary says he will retire in two to three years, but acknowledges he has been saying that for a long time.

Ryanair May Buy Used As It Waits for 200 Seat C919


Ryanair continues its discussions with Comac about developing a 200 seat aircraft. More talks with the Chinese manufacturers are due this month, says airline CEO Michael O'Leary.

But O'Leary concedes the Comac timeline is not ideal for Ryanair. The 200 seat aircraft would not emerge until around 2018, he says. “That is a little bit later than we would like,” he adds.
Ryanair's current round of fleet growth should come to an end in 2013. So that means for further growth the airline would need aircraft around 2015 or 2016. The goal is to be able to continue adding about 4 million to 5 million passengers a year.
How to fill the gap? O’Leary says it could buy used aircraft or lease some.

Many see O'Leary's talk of a Comac deal merely as a way to try to force Boeing (or Airbus) to sell him narrowbodies at a low price. The Irish CEO will not rule out making a fleet deal with either of the two incumbents

Jeannot a écrit:Le groupe de location-vente d'avions ACG commande 55 Boeing 737 (20 NG et 35 Max)

Le groupe de location-vente d'avions ACG commande 55 Boeing 737

NEW YORK - Le groupe américain de location-vente d'avions ACG a commandé jeudi au constructeur aéronautique Boeing 55 moyen-courrier 737, dont une commande ferme de 20 737-800 pour 1,7 milliard de dollars.

Outre la commande ferme, ACG s'est engagé à acheter 35 avions 737 MAX, version remotorisée et plus économe en carburant du moyen-courrier Boeing, d'après un communiqué de l'avionneur américain.

Le prix catalogue des 20 Next-Generation 737-800 est d'environ 1,7 milliard de dollars, a précisé un porte-parole de Boeing à l'AFP, ajoutant que le prix des 737 MAX n'était pas encore fixé.

Boeing travaille avec ACG pour finaliser les détails de l'accord et la valeur de la commande sera alors annoncée, a-t-il détaillé.

Plus tôt jeudi, la compagnie indonésienne Lion Air avait annoncé une commande record de 230 Boeing 737 pour près de 22 milliards de dollars, dont 201 737 MAX.

En appliquant le prix moyen par avion de la commande de Lion Air, on parvient à une estimation de 3,3 milliards de dollars pour les 35 737MAX sur lesquels s'est engagé Aviation Capital Group (ACG).

La livraison des premiers 737 MAX par Boeing est attendue à partir de 2017.

Jeannot a écrit:Boeing commence dévoiler ses clents du Max

[Vous devez être inscrit et connecté pour voir ce lien].asp

La compagnie aérienne irlandaise à bas coûts Ryanair a annoncé mardi la généralisation sur toutes ses lignes à compter de janvier de son service de pré-réservation de sièges, pour lequel elle fera payer 10 euros supplémentaires.
2011 AFP

Magnifique, ... n'est-ce pas ?

Ryanair (FR) said it will cut 42 frequencies from its network to/from Riga airport (RIX), citing the new €6.50 ($8.75) security tax imposed by the Latvian government that becomes effective Jan. 1.

Beginning Jan. 12, FR will close routes to/from Bristol and Bremen and reduce frequencies on another eight routes, including London Stansted, Bergamo and Rome Ciampino. It serves 16 destinations to/from RIX.

The LCC predicts the capacity reduction will result in the loss of more than 300,000 passengers, 300 jobs and over €30 million in tourism revenue.

“Ryanair emphasized the devastating impact such taxes have had on passenger traffic in the UK, Germany and Ireland and confirmed that passengers to/from Riga are extremely price sensitive and unwilling to pay the Latvian government’s high travel taxes,” Europe’s largest LCC said, noting that tourist taxes were scrapped in Belgium and Holland “after their governments studied the devastating impact such taxes have on tourism and jobs.”

Dans la crise économique (celle de l'Euro / la Zone Euro, ... crise qui touche tout le monde), c'est le problème des Gouvernements qui ont une facilité extraordinaire de taxer tout ce qui bouge et tout ce qui ne bouge pas !

Ryanair Still Talks Down Boeing 737 MAX

Ryanair CEO Michael O'Leary may be one of the biggest 737 operators, but he's still not warming to Boeing's latest version of the narrowbody.

While he has "been impressed with the Airbus NEO and the fuel savings" it promises to deliver, that is not the case with the 737 MAX. Not only does he say he is "unimpressed" with the offering, O'Leary argues the fuel savings are inferior.

What is more, he worries that the weight penalty the 737 suffers to strengthen the aircraft to accept the CFM International Leap-1B engines means that any savings associated with lower fuel burn will be offset by higher landing charges associated with a heavier aircraft.

In the past year, O'Leary has also been talking up the Comac C919, but in the third quarter earnings call he has been a bit more muted. All along, Ryanair has noted the basic C919 is too small for its need and has been urging the manufacturer to pursue a slightly larger version. This time O'Leary simply says he's looking for the new entrant to bring more dynamism to the competitive landscape.

As to placing an order, O'Leary plays down expectations that will happen. He sees prices at an all-time high and argues that "anybody ordering aircraft is nuts."

Jeannot a écrit:Ryanair continue à dédaigner le 737-Max

Ryanair Still Talks Down Boeing 737 MAX

Ryanair CEO Michael O'Leary may be one of the biggest 737 operators, but he's still not warming to Boeing's latest version of the narrowbody.

While he has "been impressed with the Airbus NEO and the fuel savings" it promises to deliver, that is not the case with the 737 MAX. Not only does he say he is "unimpressed" with the offering, O'Leary argues the fuel savings are inferior.

What is more, he worries that the weight penalty the 737 suffers to strengthen the aircraft to accept the CFM International Leap-1B engines means that any savings associated with lower fuel burn will be offset by higher landing charges associated with a heavier aircraft.

In the past year, O'Leary has also been talking up the Comac C919, but in the third quarter earnings call he has been a bit more muted. All along, Ryanair has noted the basic C919 is too small for its need and has been urging the manufacturer to pursue a slightly larger version. This time O'Leary simply says he's looking for the new entrant to bring more dynamism to the competitive landscape.

As to placing an order, O'Leary plays down expectations that will happen. He sees prices at an all-time high and argues that "anybody ordering aircraft is nuts."

[Vous devez être inscrit et connecté pour voir ce lien]

• (a) les opérations MAX et NEO sont la plus sotte distraction qui soit (dans l'aéronautique, l'aviation, et le transport aérien ;
  
• (b) les résultats avancés par Boeing & Airbus sont une belle fiction, et ne seront pas obtenables & / ou obtenus par les clients, qui ont été assez bêtes pour se laisser séduire par les promesses intenables ;
  
• (c) la technologie des "airframes", concernés par les opérations MAX (Boeing) et NEO (Airbus) est trop en retard pour tirer la quintessence même de la 1ère génération des moteurs LeapX et GTF ;
  
• (d) lors des premières livraisons et EIS, le risque concret de la non tenue des promesses deviendra visible ;
  
• (e) les clients se rendront compte que les "airframes" ont été 'bricolés' pour réaliser ces opérations MAX & NEO, et qu'ils ne pourront pas être optimisés pour tirer la quintessence des moteurs ;
  
• 
  
• (f) en raison des points ci-dessus, (b) à (e) inclus, cette génération de motorisation sera "orpheline", et les avions "orphelins" (avec tout ce que ça implique) ;
  
• (g) il pourrait même y avoir des déceptions importantes (regarder vers le B747-8I) et des annulations de commandes accumulées, et des demandes bruyantes dans le marché pour un ou deux véritable(s) avion(s), de toute nouvelle génération, destiné(s) à être le(s) vrai(s) remplaçant(s) des B737-NG & avions de la famille A320.
  

• faire une opération de rentrée de trésorerie, pour éviter à Airbus d'avoir à aller chercher des financements, susceptibles d'enfreindre les règles de l'OMC, pour le programme A350-XWB !
  

MoL pourrait refaire son offre (ne pas oublier : ce n'est pas l'avionneur ou l'OEM qui fait l'offre, dans le droit commercial international, ...... c'est le client !) de 300 avions, à condition qu'il y ait un rabais, par exemple, de 50% à 55%, par rapport au prix catalogue ! Cela neutraliserait, aux yeux de MoL et de RYANAIR, le manque à gagner, en raison de l'impact des promesses de performances non tenues !

Là, on pourrait s'amuser ! Tony FERNANDES reviendrait, peut-être, avec une offre de commande supplémentaire, pour 50 à 100 A-NEO, à condition de bénéficier d'une réduction de prix rétroactive sur la commande initiale de 200 x A-NEO, et sur cette tranche supplémentaire, pour que l'ensemble représente, pour Air Asia, un prix unitaire , net après rabais, par avion, inférieur, par exemple de 0.50% à 1.00% à celui accordé à RYANAIR !

Et pensez à la visite (ou à la convocation) de Qatar (Akbar Al BAKER ) !

Irish low-cost airline Ryanair announced 26 new routes from Budapest on Friday in a move to take advantage of the grounding of Hungarian airline Malev over unpaid debts.

Hungarian flag-carrier Malev ceased operating early on Friday, ending 66 years of almost continuous service, after some of its planes were held overseas for unpaid debts.

Ryanair, which in January announced plans to fly five routes from Budapest, has increased that to 31, most of which will be operating by April, the company said in a statement.

It said it would base four aircraft at Budapest and carry up to 2 million passengers per year.

(Reuters)

Ryanair offers scathing verdict on 737 Max



Outspoken Ryanair chief executive Michael O'Leary has offered a scathing verdict on Boeing's 737 Max, describing the re-engined narrowbody as a "dog's dinner of a design" that had been drawn "on the back of a fag packet as a response to the [Airbus] Neo".

Although talks "are ongoing" with the airframer about future orders of either the Max or current generation 737-800s, he complained "Boeing can't tell you what the Max looks like or what the fuel saving is".

An additional stumbling block is the carrier's concept for a standing-only area on its flights, raising capacity to 230 passengers from 189 on an all-seated aircraft. This would require the removal of the rear lavatories and final six rows of seats in the 737. "We won't place any new order until they [Boeing] come up with a fix for this issue," said O'Leary.

In the meantime Ryanair has approached an undisclosed aviation regulator with a view to trialling standing-area flights, but has received "no positive response".

Ryanair is still condsidering ordering the Comac C919, added O'Leary, and has a design team working with the Chinese airframer toward a 200-seat variant of the baseline 174-seat aircraft in the 2018-19 timeframe. Airbus was not currently in the running, he said.

Meanwhile, he criticised the UK government's lack of a clear policy towards the aviation sector and said it was damaging the UK's competitiveness. Since Airline Passenger Duty was introduced in 2007, UK passenger numbers have fallen by 20%, said O'Leary.

He called for the government to "stop pandering to the idiot environmentalists and even less sensible Nimbys" and add extra runways at London Heathrow, Gatwick and Stansted as these airports are already served by existing public transport and road infrastructure. Seeking to construct a new airport in "the estuary of Boris [Johnson's] imagination" with no road or rail links for delivery in 30 years time was, he said "complete and utter bloody lunacy even by Boris's standards".

The Commercial Aircraft Corporation of China (Comac) has signed a collaboration agreement with Boeing in the areas of research and work that will grow the commercial aviation industry in China.

In this first collaboration between the two manufacturers, a Boeing-Comac Aviation Energy Conservation and Emissions Reductions Technology Center will be set up. The centre will work on research projects that will increase fuel efficiency and reduce greenhouse-gas emissions, Boeing said in a statement.

The centre, to be funded by both firms, will be housed at Comac's Civil Aviation Aircraft Technology Research Center in Beijing.

The firms will work with China-based universities and research institutes to conduct research in areas such as sustainable aviation biofuels and aviation connectivity infrastructure that will help reduce the industry's carbon emissions. Such projects will be selected and funded by Boeing and Comac.

The two firms have also agreed to hold annual leadership meetings and exchange commercial aviation market forecasts.

"Our new technology centre shows that two companies in a competitive industry can partner to make progress on important challenges that cannot be solved by one company alone," says Boeing CEO Jim Albaugh, adding that the partnership will "further sustainable growth and fuel efficiency for China's fast-growing aviation market".

While Comac is developing its own aircraft - the C919 jet and ARJ21 regional jet - Boeing has been providing commercial aircraft and services to China for 40 years.

The Civil Aviation Administration of China forecasts that passenger traffic in the country will pass the 300 million mark this year and will hit 1.5 billion passengers in 2030. Boeing estimates that Chinese airlines will need to buy 5,000 new aircraft by 2030 to meet the country's demand.

Ryanair (FR) has condemned the “European Commission’s bias against low fares airlines” and called for an end to its travel policy prohibiting to book flights on LCCs.

At a press conference in Brussels Thursday, FR released copies of emails received from the European Commission’s (EC) travel agency, Amex, stating it is not allowed to book low-cost flights or reimburse travel expenses to and from Brussels Charleroi airport, where FR has a large base. Ryanair also released a letter from the EC’s director for administration and payment, which said it is “true that the terms of this contract do prevent Amex from booking tickets with ‘low-cost’ airlines.”

The Amex emails and the EC’s letters “unequivocally admit that the EU Commission “prevents” its travel agency from making bookings on low-fare airlines, which would save the hard-pressed EU taxpayer millions of euros each year,” FR CEO Michael O'Leary said. “This prohibition is a blatant subsidy to EU flag carriers and discriminates yet again against Europe’s low fares airlines which have now overtaken Europe’s flag carriers in terms of passenger popularity.”

Ryanair filed a formal complaint with the European Court of Auditors earlier this month, asking it to assess “the legality, regularity and financial soundness” of the travel policy.

Europe’s largest LCC described the EC’s travel policy as the latest example of its bias against low-fare airlines in general, and Ryanair in particular, and criticized the EC’s “rubber stamping” of mergers between flag carriers while blocking a merger between Ryanair and Aer Lingus in 2006.

The EC in past years cleared the merger between Air France and KLM, Lufthansa’s acquisition of Austrian Airlines, Swiss, Brussels Airlines and British Midlands International, and the merger of British Airways and Iberia.

Ryanair talks with Comac a 'genuine, serious commitment'



Low-cost carrier [Vous devez être inscrit et connecté pour voir ce lien] has reiterated that its discussions with Chinese airframer Comac on the potential development of a stretched 199-seat variant of its C919 twinjet are serious and could still yield an order for delivery in the 2018-20 timeframe.

Industry observers have been quick to brand Ryanair's flirtation with the Chinese as little more than a means of beating down incumbent aircraft supplier Boeing on price. The final delivery under its current order for 189-seat 737-800s is due to take place later this year.

However, Ryanair chief executive Michael O'Leary insists the airline's talks with Comac represent "a genuine, serious commitment". He believes that all carriers should welcome the emergence of the state-owned airframer as a serious player in commercial aviation - "a real, credible third manufacturer" in the mainline narrowbody market - as it will serve to drive down prices.

"It's a great deal for airlines all around the world," he says. "If, all of a sudden, we are all buying Chinese-built aircraft then Airbus and Boeing's pricing strategy gets holed below the waterline."

Interest in the C919 was revealed by [Vous devez être inscrit et connecté pour voir ce lien] parent International Airlines Group at the Farnborough air show in July, where it signed a memorandum of understanding to work with Comac on the development of the CFM International Leap-1C-powered C919. O'Leary says IAG's move only serves to add "credibility" to the programme.

Any order from Ryanair, however, is contingent on Comac agreeing to make a stretched variant of the C919. The baseline model is due to enter service in 2016 with up to 168 seats in an all-economy configuration.

Nonetheless, Ryanair is continuing its discussions with Boeing over a potential new near-term order. O'Leary says price is the main sticking point, although he has again expressed his concerns over the design of the re-engined [Vous devez être inscrit et connecté pour voir ce lien] Max, citing the weight increase over the current generation 737-800 as a particular worry.

He adds, however: "We are in ongoing discussions with Boeing and as soon as we can reach an agreement on price we'll place an order. It could be the -800 or the Max, whichever they discount the most - we'd buy a dog if it was cheap enough.

"We'd like to place an order, but only when the price is right."