Ryanair to expand fleet faster.

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Ryanair to expand fleet faster.

Post by RyanairBristol » 03 Jun 2017, 09:25

Ryanair is looking to expand the size of its aircraft fleet more quickly in a bid to steal market share from struggling rivals.

The Irish-based company said several competitors across Europe were undergoing major overhauls that had created opportunities for the carrier if it was able to add to the number of planes it has more quickly than planned.

Ryanair is talking to aircraft maker Boeing about allowing it to keep some of the planes it is leasing for a longer period of time, as well as "adding selectively" to its current order of new craft.

"As competitor airlines undergo deep restructuring, we are aware of the need to have additional short-haul aircraft to respond quickly as these unique growth opportunities arise," chief executive Michael O'Leary said.

The comments came as the company reported its fares had fallen 13pc in the year to March 31 and would drop a further 5-7pc this year because of the weakness of sterling and excess capacity in the European airline industry.

The persistently low oil price has allowed many airlines to keep flying routes that might have otherwise become unprofitable, meaning a glut of seats remains available across the Continent. This has, in turn, meant carriers have been competing heavily on price in a bid to gain passengers.

In such an aggressive price environment, keeping on top of costs is key. Mr O'Leary said Ryanair had been able to cut overall costs by 5pc excluding fuel, despite a 13pc jump in passengers to 120m.

In its full-year results, the company unveiled a 5pc increase in pre-tax profits to €1.47bn (£1.28bn) and a 2pc rise in revenues to €6.6bn.

This was in spite of what the company called "difficult trading conditions caused by a series of security events at European cities, a switch of charter capacity from North Africa, Turkey and Egypt to mainland Europe, and a sharp decline in sterling following the June 2016 Brexit vote”.

Mr O’Leary also announced a major boon for shareholders with a €600m share buyback, on top of a €1bn buyback that was previously announced.

Meanwhile, the company's chief marketing officer told the BBC that it had not subcontracted its IT services to avoid any of the problems that have plagued British Airways.

"We have three IT locations across Europe and these are owned and managed by Ryanair," said Kenny Jacobs.

"One of them is used at any one time. If we did have an issue which caused an outage in one, automatically one of the other two would kick in and in our 31-year history, thankfully, [we] have never had an issue.

"We take IT very seriously - the important thing here is making sure that we don't have an outage like BA had that caused such disruption to their customers."

Ryanair's shares dropped 2pc in early trade, but later clawed back losses.

Cantor Fitzgerald transport analyst Rob Byde said given the results were in line with consensus expectations and the valuation of the company was high, he expected "some profit taking" by investors.

Source: http://www.telegraph.co.uk/business/201 ... -7pc-year/


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Re: Ryanair to expand fleet faster.

Post by RyanairBristol » 04 Jun 2017, 10:58

This is a better article with more information
https://www.flightglobal.com/news/artic ... ft-437713/

Ryanair is seeking two to three extra additional aircraft to give it "more firepower" as it seeks to take advantage of "various opportunities in the market" in Europe, finance chief Neil Sorahan has indicated.

Speaking at a media briefing in London today, Sorahan said the budget carrier was in talks with Boeing to potentially order more aircraft "at the right price" and was also seeking to extend the leases on three aircraft in 2018 and 10 in 2019.

Sorahan says these moves are intended to "make sure we have got the capacity" for a number of initiatives, including the setting-up of charter airline "Ryanair Sun" in Poland, and to provide "flexibility as we see more growth opportunities around Europe on the back of the restructuring that's going in places like Germany, in Italy, down in Portugal, Poland and elsewhere".

Ryanair is receiving 50 new aircraft this year, but Sorahan says there will be a "slowdown in deliveries" ahead of the arrival of its first 737 Max aircraft in autumn 2019.

With this in mind, the Dublin-headquartered airline is deferring the sale of some older aircraft in order to maintain a fleet of 585 aircraft. As the first Max orders arrive, aircraft sales will accelerate, he adds.

Sorahan says Ryanair has little appetite to acquire aircraft from restructuring airlines such as Air Berlin or Alitalia, unless there was a "fire sale" of their assets, given that "we buy our aircraft for such a good price from Boeing".

He says that while he expects Alitalia to "come out the other side" of its administration process, even if the Italian carrier's leased narrowbody fleet were to be returned to their lessors they would retain their value given demand in eastern Europe and Asia.

Flight Fleets Analyzer shows that Ryanair has orders for 65 737-800s and 100 Max 8s on order, and has 563 aircraft currently in its inventory, excluding three Bombardier Learjet 45s.

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