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Showing posts from February 24, 2012

Ryanair Vs Airports: The Supply Chain Battle ©

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 EI-EVF Boeing 737-8AS Ryanair at Cork Airport picture courtsey of Paul Daly Ryanair announced on Tuesday 21st February that it was not proceeding with plans to launch four new routes from it's Edinburgh Base which it announced a few weeks ago citing being unable to agree a competitive cost base, as a result it is reducing the base fleet from 7 to 6 Boeing 737-800s. However deeper analysis suggest that the carrier may be leveraging its position at Edinburgh as the BAA narrows the bidding process into the second round of bidders ahead of the sale as directed by the Competition Authority. The airline indicated it may reduce the base fleet further in the winter as negotiations continues to extend the five year base deal from October 2012, and in the medium term hinted that RAF Leuchars could have potential as a joint civil-military airport. Thus the carrier has flexibility to deploy the aircraft where they can earn the highest rate of return (Existing or New Bases