Ryanair hopes to benefit from IAG’s BMI purchase
08.11.11
Ryanair could be flying ten million extra passengers by next summer, boosted by the planned takeover of BMI by British Airways parent IAG and people trading down to budget class in the continuing recession.
Michael O’Leary, the budget airline’s chief executive, told Bloomberg: ‘A lot of BMI’s short-haul routes from Heathrow will be closed or cut back, leading to more growth opportunities for Ryanair from Stansted, Luton and Gatwick. bmibaby will probably be sold, closed down or go bust. It creates more demand for our routes.’
‘Europe continues to migrate in the same direction as the US. There is no business-class across the US on domestic flights and everybody is flying low-cost. What’s driving it is the implosion of flag carriers in short-haul markets.’
‘The IAG merger with BMI will see more and more loss-making short-haul routes closed as slots are used for medium- and long- haul destinations. Those short-haul passengers will switch into our services.’
He said that Ryanair is in talks to serve 30 more airports and plans to step up talks with Boeing and China’s Comac as it seeks 200 - 300 new planes to exploit gaps on short-haul routes likely to be left by a merger of BA and BMI. Boeing will meet the airline in Dublin this month to discuss the re-engined and more fuel efficient version of its 737 single-aisle jet, while Mr O’Leary will visit Comac for an update on the rival C919 model.
Ryanair has an all-Boeing fleet and will take delivery of 30 737-800s this winter, giving it about 300 of the 188-seat jets. The possibility of a Chinese order emerged in June when the carrier signed an accord to help develop the C919. Mr O'Leary said: ‘The reality here is that if the Chinese deliver a 199-seat aircraft then there is nothing Boeing can do. The 10 extra seats would almost pay for the aircraft.’
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