Ryanair sees strong airport demand for growth if the risk is shared
AIRPORTS across Europe are approaching Ryanair to secure routes amid the downturn in passenger traffic, according to Ryanair’s director of route development, Niall O’Connor.
He also said that France still presents a significant growth opportunity for Ryanair and that the carrier could also potentially allocate 15 aircraft to London Gatwick, where British Airways is contracting and Wizz Air is expanding.
“If you look across the market, the vast majority of carriers are now in a process of retrenchment and self-preservation,” Mr O’Connor told an online event yesterday hosted by aviation industry publication Anna Aero.
“EasyJet have announced the deferral or disposal of in the region of 50 aircraft, Lufthansa between 100 and 200, and I think Air France a 40pc capacity cut,” he said.
“Generally what we’re seeing is that there is still an appetite for growth and traffic recovery and airports are coming to those carriers that can offer growth,” he added.
“We’re somewhat unique in that we will take delivery of 200-plus aircraft [over the next five years]. We’ll be adding substantial capacity, subject to Max deliveries, from summer 2021.”
He said that airports which can deliver the lowest costs have the highest chance of securing business from Ryanair.
The airline has called for “immediate airport cost reductions” and the removal of the
‘We are unique in that we will take delivery of over 200 aircraft’
quarantine period to boost air travel in Ireland.
It has urged the government to push for no airport charges at Dublin Airport until the end of the year.
Ryanair also wants a €15 per arriving passenger incentive at all airports in Ireland to the end of 2023. Based on criteria put forward by Ryanair, the carrier claims the subvention would cost a “modest” €135m a year. It also wants no “green tax” until at least the end of 2025.
“In the current environment, certainly, everyone’s at risk in terms of capacity,” said Mr O’Connor in relation to how airports could be affected. He said Ryanair needs to allocate capacity “very carefully”.
“We’re returning to growth… we’re going to have very, very low fares – we already have them on sale – to drive the volume, so it’s only reasonable in our view that the risk is shared,” he said.
“Airports need to manage their costs and offer improvements and lower costs in order to help us recover traffic.”