Ryanair announces latest recession-busting plans

Our airport parking team reports on Ryanair’s latest plans to stay one step ahead of the recession and remain profitable in a challenging marketplace.

While business is good for cheap airport parking providers, recent rises in aviation tax and cuts in government spending have made life tough for some airlines. In response to the increasing challenges of the marketplace, Ryanair has just revealed its plans to stay successful for the rest of 2011.

Speaking in a recent interview with Travel Weekly, Ryanair Chief Executive Michael O’Leary announced plans to ground 80 aircraft this winter to offset high airport costs. Although profits for the airline were up 26% on last year, increasing the brand’s efficiency will be key to their staying successful according to O’Leary:

“Higher oil prices next winter, and the refusal of some airports to offer lower charges, makes it more profitable to tactically ground up to 80 aircraft (40 last winter) rather than suffer losses operating them to high cost airports at low winter yields.”

He went on to explain Ryanair’s unique position in relation to other airlines “In many cases competitor’s fuel surcharges are higher than Ryanair’s lead-in fares. Higher oil prices will lead to further consolidations, increased competitor losses, and more airlines going broke.”

“This creates further growth opportunities for Ryanair because we operate the most fuel efficient aircraft, have the lowest operating costs, and the strongest balance sheet. We expect to increase market share and expand into new markets as high oil prices force competitors to further cut capacity or go bust this winter.”