Friday, July 31, 2009

Child passengers made booking with easyJet a difficult task

"Budget airlines work hard to make fares cheap for us. Ryanair, for example, is wondering whether it can abolish seats altogether in its aircraft. Now, according to Niamh Simms, its rival easyJet is penalising those reckless enough to spawn children. Investigating flights from Edinburgh to Amsterdam she tested prices with a quote for one adult. The outward bound leg came in at £45.99 and the return was £10 cheaper. Satisfied she had a bargain she set about booking tickets for two adults and two children whereupon the cost of each seat shot up by a fiver. She then tried one adult and two children and found she would have to pay £3.33 a head more than the original quote."
Last chance for Sky Europe

"SkyEurope has another chance to survive! Even if we don’t really know yet how the Slovak based company will manage to turn profits quickly, this is good news. According to www.monstersandcritics.com, SkyEurope, announced Friday in Vienna, that it has found an investor “that has agreed to inject 16.5 million euros (23.2 million dollars)”. However, Focus Equity (the firm that accepted to deal with SkyEurope) said that they will only conclude the deal “on several conditions, including the successful restructuring of SkyEurope”."
Ryanair to improve clarity over 'hidden charges'

"The no-frills airline, renowned for its “hidden charges”, was referred to the OFT following a number of complaints to the Advertising Standards Authority (ASA). Ryanair has promised to give greater prominence to information regarding “optional” charges, such as those for checking in luggage, and will provide clearer information on its promotions and low price guarantee. “We welcome Ryanair’s action which we believe will make it easier for consumers to access the information they need when choosing low cost flights,” said Mike Haley, the OFT’s director of consumer markets."
Italy grounds low cost airline MyAir

"Italy's civil aviation authority grounded low cost airline MyAir on Wednesday, saying months of financial troubles made the company's service unreliable. The Italian authority, know by the acronym ENAC, said it suspended MyAir's license to fly effective at midnight Friday. The airline based in Vicenza, northern Italy, flew from Italian cities to airports across Europe, as well as Morocco and Turkey. ENAC had issued a temporary license in June, hoping MyAir would work through its money problems, but the airline scrapped several flight over the last few days, leaving hundreds of passengers grounded."

Thursday, July 30, 2009

Jet extras are 'not Easy to see'

"Easyjet was yesterday accused of using "hidden charges" to boost sales. The budget airline revealed takings rose 12% to £721million in the three months to July. But that's nothing compared with the 36% jump in revenue from things such as checked-ibaggage, car hire and in-flight food. Of the £51.42 an average passenger spends, about a fifth was on these profitable extras. And experts accused easyJet of not being upfront. Bob Atkinson, of Travel supermarket.com, said: "Easyjet has achieved this result, in part, by confusing customers through a complicated booking process and a series of hidden charges."
Source: Mirror
Dutch authority rejects easyJet's AMS complaint

"Netherlands Competition Authority rejected a complaint by easyJet that the difference in tariffs at Amsterdam Schiphol between origin/destination and transfer passengers is discriminatory and puts the LCC at a competitive disadvantage. 'After an extensive investigation under the Dutch Aviation Act, no evidence has been found to support the assertion that Amsterdam Airport Schiphol discriminates by charging higher tariffs for passengers that start their journey at Schiphol than for passengers that transfer at the airport,' NMa stated, noting that the Act allows for different tariffs for different passenger types as long as competition is not impeded."
How Ryanair stole our souls

"Ryanair is one of a growing number of organisations who make their customers think they're getting value for money by making them feel cheap. Like numerous companies (most of whom take the spaces out of their titles, to save money on engraving costs one supposes) such as PayPal, TalkTalk, most high street banks and all parking enforcement agencies, Ryanair have pared down their customer service to email- or telephone-based wild-goose-chases, the purpose of which is either to require more money or to present the customer with problems more significant than the one which prompted him or her to establish contact. The customer almost always lets the matter go by using the 'it wasn't much money anyway' psychological escape clause – except in the case of the banks, who will help themselves to the money in your account regardless of any circumnavigatory progress you may make through their various, hermetically sealed call centre divisions."
Ryanair Vs. Ryanair

"Budget Irish airline Ryanair is facing a mighty competitor in its bid to raise passenger numbers in the midst of the recession: itself. The airline is being forced to cut prices by much more than it had expected this year, sending its yield, or average revenue per passenger, down by up to 20% for the year ending March 2010, Ryanair said in a statement that caught the market off guard on Monday. Its share price tumbled 8.6%, to 3.08 euros ($4.40), in Dublin on Monday morning."
Detained SkyEurope Plane to Remain in France

"A plane belonging to Slovakia-based airline SkyEurope will remain detained in Paris Orly Airport, a French court in Creteil ruled on Tuesday. 'The Court ruled in favour of Paris Orly Airport, which will keep the plane,' Helene Caillet from Paris Orly Airport press department told TASR. Due to unpaid take-off and landing right fees, Paris Orly Airport has detained the plane for more than five weeks – soon after SkyEurope was granted protection from its creditors by a court in Bratislava."
Ryanair's shares plunge on profit warning

"Shares of Ryanair Holdings fell as much as 13% Monday, dropping as Europe's top no-frills airline warned that its annual profit would come in at the low end of forecasts, which took attention away from a forecast-beating profit in for the carrier's fiscal first quarter."
Vueling SWOT Analysis: Provides upbeat outlook, after returning to profitability in 2Q2009

"Vueling provided an upbeat outlook for 3Q2009, based on steady bookings and cost savings resulting from the carrier’s merger with clickair, and stated it expects to post a pre-tax profit in the full year period, even after restructuring costs are factored in."
Outside Edge: Pioneers of the Ryanair revolution

"Is Michael O’Leary a child of the Soviet Union, something of a fellow traveller? OK, it might not be the first thing one associates with Ryanair’s Irish boss, the very personification of raw business drive who turned a struggling low-cost airline into a successful profit machine – all the while railing at bloated competitors and deploying a mischievous turn of phrase to generate more coverage than any marketing budget could ever deliver."
Jet2.com parent soars, Southwest, easyJet and AirAsia higher, Ryanair falls again

"Shares in the UK’s Dart Group, parent of successful LCC, Jet2.com, surged 11.7% ahead of the company’s earnings report. Investors continue to punish Ryanair (shares down 2%) after its earnings report, while easyJet (+3.7%) is in favour after a solid earnings performance and better outlook."
Scotland set to lose 150,000 visitors as flights are axed

"Scotland faces losing up to 150,000 visitors a year after the no-frills Ryanair announced it was axing three popular tourist routes to Prestwick to focus on sunshine destinations for holidaying Scots. The carrier is to end flights between the Ayrshire airport and Frankfurt in Germany, Krakow in Poland and Stockholm in Sweden in October and hopes to fly fuller aircraft to the Mediterranean and Canaries. However, the new links to Alicante, Lanzarote, Las Palmas and Palma that month, and to Ibiza in March, are expected to spark an air war with rivals Flyglobespan and EasyJet, which fly the routes from Glasgow."
Stelios backs down in EasyJet board dispute

"EasyJet on Wednesday forecast a steep fall in profits for the current year to the end of September but signalled an end to months of feuding within the board over the pace of the UK-based low-cost airline’s growth. Sir Stelios Haji-Ioannou – the founder of EasyJet, largest shareholder and a member of the board – has backed down in his fight over EasyJet’s capacity growth and has accepted the airline’s plan for a growth in capacity of 7.5 per cent a year over the medium term."
Flybe: Emergency at Edinburgh airport

"An emergency was declared at Edinburgh airport last night as an inbound Flybe flight reported problems with its hydraulic system. Emergency services were scrambled just after 5:30pm when the flight inbound from Bergerac, in France, sounded the alarm. The flight, which had 54 people on board, was scheduled to land at 5:20pm, but had to delay landing. The plane was forced to circle overhead for more than 20 minutes before landing safely."

Wednesday, July 29, 2009

Ryanair - sad clown in the airline circus

"Ryanair saw its shares drop 13 percent yesterday, after it announced that it yearly profits will likely be lower than hoped. In fact, the discount Irish airline saw a three-month net income 20 million euros below what was anticipated. What's seemingly strange about this—and yes, in this case, an airline with bad financial news could be considered 'strange'—is that until recently, Ryanair had managed to soar when other airlines struggled. Over the last 10 years, the airline was up 323.4 percent. Could this current downturn suggest changing winds for the plucky Ryanair? Let's look at the evidence. Recently Ryanair has made more noise for its unorthodox business schemes than its fiscal prowess. The list of truly awful, comically bad business ideas they've put forth is long:"

Tuesday, July 28, 2009

Fare cuts to put pressure on Ryanair profits

"The group - headed by flamboyant boss Michael O'Leary - said annual net profits were now expected at the lower end of market forecasts for between 200 million euros (£172.8 million) and 300 million euros (£259.2 million). Ryanair reduced fares by 13 per cent on average over the three months to June 30, which saw revenues come under pressure, although significantly lower fuel costs helped profits climb almost seven-fold. Ryanair, which last week announced it was cutting its winter services out of Stansted by 40 per cent, reported first quarter net profits of 136.5 million euros (£118 million) up 550 per cent thanks to plunging fuel costs. Its revenues fell slightly, down 0.3 per cent to 774.7 million euros (£669 million)."
Ryanair Loses Case Over Handling Charges

"The practice by Ryanair of charging passengers extra for using credit and debit cards could be challenged following a court ruling in Germany. Just this week the no frills airline lost a court case in Germany about the handling charges that it imposes on customers booking online. This case, which has not been reported in Britain, came about just following the complaint by the Federation of German Consumer Organizations over the imposition of a €8 charge per person, per return flight when passengers make payments by credit or debit cards. Right now the charge in Britain is £10 per person, per return flight."

Sunday, July 12, 2009

Ryanair loses ‘handling charges’ case

"A court case in Germany could change the way Ryanair charges its customers for paying with credit and debit cards. Ryanair’s practice of charging passengers extra for using credit and debit cards could be challenged following a court ruling in Germany. Telegraph Travel learnt this week that the no-frills airline lost a court case in Germany last month over the “handling charges” it imposes on customers booking online. The case, which has not been reported in Britain, came about following a complaint by the Federation of German Consumer Organisations over the imposition of an €8 (£7) charge per person per return flight when payment is made by credit or debit card. In Britain the charge is £10 per person per return flight."

Friday, July 10, 2009

Jason Bitter Appointed CEO of Air Arabia (Maroc)

"The Air Arabia Group, which oversees the operations of low-cost carriers (LCCs) based in the United Arab Emirates and Morocco as well as a wide range of ancillary businesses in tourism and hospitality, announced today the appointment of Jason Bitter as Chief Executive Officer of Air Arabia (Maroc), which launched operations from its hub in Casablanca on May 6, 2009. The new airline, a joint venture company and member of Air Arabia family, focuses on offering comfort, reliability and value-for money-air travel to and from the Moroccan city of Casablanca. Air Arabia's successful business model is applied to the management of the newly established LCC."

Thursday, July 09, 2009

Ryanair hits out as airport numbers decrease

"Passenger numbers at Dublin Airport are likely to be down by as much as 300,000 last month compared with June last year. Although the airport has yet to release passenger numbers for June, Ryanair estimates that traffic is down 14% compared with the same month last year."
Source: The Irish Examiner
Sky Europe is in Intensive Talks with Potential Financial Investors

"Low-cost air carrier SkyEurope Airlines that has been under court protection from creditors since July 22 for three months is intensively negotiating with investors from the financial sphere. However, SkyEurope spokesman Tomas Kika did not provide any details on these negotiations. “We cannot elaborate on it. We are in talks, and that is all. We cannot be specific about the talks because of stock exchange rules,” he said about talks with investors who should help the company survive. He added that they are doing everything to come to an agreement. Media brought unofficial information that the Turkish-American group Odien is to rescue the ailing company. The group is the owner of tourist agency Cedok."
Source: SITA Slovenska Tlacova Agentura
Wizz Air is No Rival for SkyEurope Airlines

"The Hungarian low-cost airlines Wizz Air in neither a rival to nor a replacement for the Bratislava-based low-cost air carrier SkyEurope Airlines, spokesman for SkyEurope Tomas Kika told SITA news agency in response to the planned opening of the Bratislava-Rome line by Wizz Air. The flights should start on September 20 four times a week. Wizz Air offers a product that resembles Ryanair rather than SkyEurope, which operates three flights per day to destinations served by Wizz Air only three times a week from Prague. Mr. Kika claims that the Hungarian company wants to compete with SkyEurope although it cannot because it offers a different product. Wizz Air lacks the category of business passengers. Wizz Air CEO John Stephenson did not conceal his ambition to replace SkyEurope on the Slovak market during the company's presentation on July 1."
Source: SITA Slovenska Tlacova Agentura
Slovak SkyEurope passenger number down 37.7% in Jun 2009

"Slovak low-cost air carrier SkyEurope Holding AG said Tuesday it transported 214,481 passengers in June, down 37.7% year-on-year. At the same time, the capacity was reduced by 35.6%, compared to June 2008. The load factor declined by 2.5 percentage points to 74.6%.
Source: Austrian News Digest
Air Berlin June passenger levels down 5 percent

"Air Berlin Plc., Germany's second largest airline, said Tuesday that passenger levels in June fell 5 percent as the world economy continued to cut into demand. Air Berlin transported 2.57 million passengers for the month compared with 2.7 million in June 2008, the company said. The airline's fleet capacity utilization, a measure of how full airplanes are, decreased to 79 percent from 81 percent in June of 2008."
Source: Associated Press Newswires
Ryanair's fares make the `poor' much poorer

"In response to "McEwan hits back at O'Leary attack" (ttglive.com) - good point, John! I have just checked what a "poor" family of four would pay for their "cheap" flights with Ryanair from Gatwick to Alicante in August with one bag each. It comes to £1,175. So, they'd be very poor after the flight! Danny Crowe, marketing director, OPI Group."
Source: Travel Trade Gazette UK
The UK in airport subsidies

"Our research shows that over the past 10 years government agencies have spent £80m on helping private enterprise to increase the number of flights. Airports in the UK are – or are supposed to be – commercial operations. Airport companies build them then recoup their money by leasing space and landing rights to carriers and renting out pitches for shops. (...) Scottish Enterprise has spent £8m on developing air routes between Scottish airports and English or European cities, and on subsidies and grants to British Airways, Ryanair, Loganair and BAA."
Source: Guardian Unlimited
Vueling, Clickair merger fully primed for take-off

"The merger of low-cost Spanish carriers Clickair and Vueling is due to become operationally effective later this week in what remains an extremely challenging environment. Vueling sources said Monday that the two carriers will function as one from Thursday of this week as far as customers are concerned, although Clickair planes are not expected to have incorporated the Vueling logo until the fall."
Source: El Pais - English Edition
Air Berlin appoints non-executive director

"Air Berlin has appointed Hartmut Mehdorn as a new non-executive director to the board. Mr Mehdorn will be taking over the position vacated by Claus Wulfers, who left the board on June 10, 2009. Mr Mehdorn was CEO of Deutsche Bahn from December 1999 until April 30, 2009."
Source: Datamonitor News and Comment

Tuesday, July 07, 2009

Ryanair responds to EU directive regarding hidden charges

"As we covered in one of our recent posts, Ryanair was looking at potential fines and penalties from the EU with regards to so-called hidden charges on the company's website. However, after a discussion with the UK Office of Fair Trading (OFT) Ryanair has today agreed to make its charging structure more transparent and easier to understand."
Ryanair Steals My Standup Idea!

"Ryanair’s Michael O’Leary is reported as examining the idea of ‘vertical seating’ in order to pack more people into his airplanes. He may or may not be serious, but he has considered this idea before. In 2004, as part of a book of prank letters called ‘Absurdly Yours: The Michael Nugent Letters”, I exchanged eight letters with Michael O’Leary about the idea of airplanes with no seats. I wrote the O’Leary letters under the pseudonym Pierce Whitehead: a mix of Richard Pierce and Gustave Whitehead, both of whom made powered flights before the Wright brothers did."

Monday, July 06, 2009

SkyEurope Airlines Comments on Management Reshuffling

"Reshuffling of the management of low cost air carrier SkyEurope Airlines, a.s. does not directly relate to the current financial situation in the company, says its spokesman Tomas Kika. It is not uncommon for important changes to appear in management. He said he would not seek a direct connection, as the change was a result of a mutual agreement reached by Mr. Bitter and the company. This does not mean a large change in the overall process or in relation to passenger transport, he explained. SkyEurope Airlines is the first air carrier in the European Union to undergo this process amidst the crisis."
Source: SITA Slovenska Tlacova Agentura
Ryanair boss wants passengers to stand on flights

"Ryanair boss Michael O’Leary wants passengers to STAND on the budget airline’s flights — in a bid to pack in more people and boost profits. Passengers would pay less to huddle next to what have been described as “bar stools”, with seatbelts around their waists. O’Leary has already held talks with US plane manufacturer Boeing about designing a jet with standing room. He is now hoping to get the go-ahead from the Irish Aviation Authority before ordering a new fleet. A Ryanair spokesman said: “If they approve it, we’ll be doing it.”"
Jason Bitter resigns as Chairman of the Board of Directors SkyEurope Airlines

"SkyEurope Holding AG announces that Jason Bitter, by mutual agreement, has resigned as chairman of the board of directors of SkyEurope Airlines a.s. as of 3-Jul-2009. Vice chairman, Nick Manoudakis, has been elected the new chairman of the board of directors of SkyEurope Airlines a.s."
SkyEurope’s black boxes

"It’s not difficult to search for the black box in the case of SkyEurope’s accident. The company’s managers acknowledge that during its growth and formation they made several mistakes. The company was pressured by high fuel prices and exhausting conflicts between low-cost airlines. The company wanted to handle this at the standard which was in line with traditional airlines. SkyEurope had acute cash problems since August of last year. Kosice airport was the first to step into the fight over unpaid invoices. In November it sent executors to the company who blocked its accounts. Three weeks ago the same airport, with its Viennese owners, locked horns with SkyEurope again."
Vueling and clickair merger set for completion mid July

"Five year-old Vueling, the Spanish low fare airline, will formally combine with its rival clickair on the 9th of July to create what the new Vueling CEO Alex Cruz calls ‘a merger of equals.’ On Monday 29th June the Spanish stock market regulator CNMW exempted Iberia from making a takeover bid for the new airline but Iberia will hold a 45.85% shareholding in the new Vueling."

Friday, July 03, 2009

Ryanair misleading the public

"Air Malta strongly rebutted the statement issued by Ryanair this week in which the airline said it confirmed that the Irish airline is Europe’s number one for customer service with the best on time performance, the fewest cancellations and the least lost bags. Ryanair also tried to undermine Air Malta’s consistently good operational performance amongst European airlines, Air Malta said in a statement on Friday afternoon. Ryanair was commenting on the Association of European Airlines Consumer Report for Winter 2008/09 (a copy of which is attached). Ryanair is not a member of this Association. This is the second time that Ryanair has issued such a misleading statement on the Maltese carrier."
SkyEurope collapses

"Struggling budget airline goes into holding pattern after seeking protection from creditors. Budget airliner SkyEurope has gone into administration after several years of heavy losses. The Slovak-based airline has long been regarded by City watchers as one of the most vulnerable European carriers as restructuring and consolidation carries on apace in the European aviation industry, the FT reported."

Thursday, July 02, 2009

Wizz Air to enter Slovak market in fall

"Hungarian low-fare airline Wizz Air on Wednesday said it will enter the Slovakian market with the launch of a Bratislava-Rome flight from September 20. Wizz Air made the announcement just days after Bratislava-based peer SkyEurope filed for bankruptcy protection. 'Slovakia was always part of our plans. Now the time has come to take advantage of opportunities on the market,' said Wizz Air deputy-CEO John Stephenson. 'This is the first step, but more will follow.'"

Wednesday, July 01, 2009

Airlines that charge for oxygen 'shamed' in Commons

"Airlines that charge passengers suffering breathing difficulties for use of oxygen cylinders were named and shamed in the Commons yesterday. Ryanair, First Choice and BMI were named among those that refuse passengers the right to bring their own cylinders on board and then levy charges for using oxygen provided."