Ryanair proposal to grow traffic at Dublin Airport

                                                     

Ryanair announced this morning it's in active discussions with the new owners of  London Stansted and the new management at Dublin Airport and while no agreements have yet been reached, if a competitive cost base emerges, it could re-start growth at one or other airports as early as September 2013.

Speaking on Ireland's national station Newstalk 106-108FM this morning Ryanair Deputy CEO Howard Miller said the airline had submitted a growth proposal to the DAA to increase passenger numbers over the next few years, noting charges had increased in recent years , adding it would need competitive airport costs to grow.

Unlike proposals made to European Governments in Greece, Italy and Spain and last week with AENA the terms of its proposal to Dublin Airport were never disclosed.

The Irish Government has offered to abolish €3 Air Travel Tax in return for significant passenger growth at Irish Airports under the Programme for Government and has been included in 2013 Action Plan for Jobs .

Irish Aviation Research Institute © 20th May 2013 All Rights Reserved.

Wizzair operates final Cork Airport service

                                                     

Courtesy Paul Daly 

Wizzair operated its final Cork Airport service last Saturday 18th May 2013 from Katowice (Poland) by HA-LPZ Airbus A320-232 c/n 4174 as W61013 (8YV) arriving thirty minutes ahead of schedule at 1849 with W61014 (5LE) becoming airborne from Cork at 1955 bring to a close the airline's connection with Cork Airport which began in 2006.

In a tweet on Saturday Cork Airport said "Today marks the end of a great relationship with @flyWizzAir who served our Passengers with distinction & great service Thanks".

In January it axed routes to Warsaw and Wroclaw in Poland as well as Vilnius in Lithuania and announced on Thursday 7th March it wa ceasing its remaining routes to to Gdansk (April 7), Poznan (April 8) and Katowice (May 18).

Wizzair's decision to discontinue less popular services to Cork in Ireland, reflected weakening demand on routes formerly used by immigrant workers, after immigration between Poland and Ireland is now down by 40% over its peak in 2007.  The airline will use the freed capacity to serve destinations Kristiansand, Larnaca and Naples that are more in line with the current market demand.

Irish Aviation Research Institute © 20th May 2013 All Rights Reserved.

Ryanair profit up 13% to €569 million

                                                     

Ryanair announced 2013 full year results delivering a net profit of €569 million on revenues of €4,884 billion up 13% carrying 79.3 million passengers up 5% with a load factor of 82%. Ancillary revenue grew by 20% faster than the 5% increase in passenger numbers to €1,064.2 million and average fare per passenger increased by 3%.

Fuel costs increased by 18% to €1,885.6m due to higher prices and increased activity and now accounts for 45% of total costs.

The airline's gross cash increased by €43.4 million since March 31, 2012 to €3,559.0 million and has net cash of €60.7 million.

The airline will hold an EGM on 18th June to seek shareholder approval for order for 175 Boeing 737-800s to be delivered between 2014 and 2018 enabling passenger growth of 5% per annum.

Ryanair CEO Michael O'Leary said "Delivering a 13% increase in profits and 5% traffic growth despite high oil prices during a European recession is testimony to the strength of Ryanair’s ultra-low cost model. This summer Ryanair opened 7 new bases, and more than 200 new routes as we continue our strategy of growing Europe’s largest passenger airline.

Our new route teams continue to handle more growth opportunities than our current fleet expansion allows. Significant opportunities are opening up in Germany, Scandinavia and central Europe in particular, where Air Berlin, SAS and LOT continue to restructure. We are in active discussions with the new owners of Stansted Airport and the new management at Dublin Airport and while no agreements have yet been reached, if a competitive cost base emerges, then we could restart growth at one or other airports as early as September 2013.

Ryanair believes that its unique low cost advantage will enable the airline to achieve a 20% share of the European short-haul market over the next 5 years, particularly given that many of Europe’s high fare incumbents are restructuring and cutting capacity. Ryanair is now uniquely positioned to offer many of Europe’s airports sustained traffic growth in return for low cost, efficient facilities."

Irish Aviation Research Institute © 20th May 2013 All Rights Reserved.