Ryanair threaten to drop Italy

by Tom Johansmeyer on

Ryanair is saying it might ditch Italy … and it’s not just a publicity stunt. The low-cost airline says that new rules on which forms of identification are acceptable for boarding compromise security. The new reg, from Italy’s civil aviation authority, ENAC, makes licenses for driving, fishing and hunting fine for use at the gate, along with government badges and other documents.

This isn’t good enough for Ryanair. Michael O’Leary, the company’s CEO, said in a statement, “We are really sorry for the inconveniences that this decision will cause.” He continued, “It’s completely inappropriate for ENAC to introduce measures that reduce security on Italian domestic flights, compared with the security measures successfully used on all Ryanair flights in the EU and all Ryanair domestic flights in every other EU country.”

In protest – and, ostensibly, for security concerns – Ryanair is keeping its domestic flights among 10 Italian airports grounded from January 23, 2010 until the issue is fixed to O’Leary’s satisfaction.
Meanwhile, ENAC claims that the change is based on a 2000 law and that the other airlines are playing ball. In a statement, the agency said, “No carrier can operate on the national domestic market without respecting the rules.” It added, “Ryanair is the only EU and international operator that demands to fly in Italy without respecting Italian law.”

I feel strange writing this, but I agree with Michael O’Leary. Fully. A hunting license doesn’t strike me as sufficient identification to board a plane. I’m not an alarmist, but a bit of diligence is a good idea.

Ryanair could change forever

by Tom Johansmeyer on

What would Ryanair do without those gusts of hot air from Michael O’Leary? The company has been defined by cheap flights and the streams of absurdities uttered by its chief executive officer. Without O’Leary, Ryanair is nothing more than an uncomfortable seat for the price of a martini. Well, the big guy is planning to step down in two to three years, he said on Saturday. He’s said this before, of course, so we don’t know when his exit will actually occur.

So, how does O’Leary plan to get out? He told RTE radio that he’d love to see Aer Lingus take over his airline. This final, masterful cut seems to be the elusive goal for the CEO. He’s tried it twice and failed both times. But, does he really need it? The innovator has explored standing-room seating, pay to squirt and anything else that’ll make a dime. He even came to the defense of an employee moonlighting as a porn star.

For the finance geeks, O’Leary’s projected retirement date is pretty close to the end of a major capital investment program (in 2011), which is when he said he plans to pay some pretty hefty bonuses to the airline’s management. At that point, he might also ditch his no-dividends policy.

AirTran tries to make money like an internet company

by Tom Johansmeyer on

If they can’t make money taking passengers from one place to another, maybe airlines can harness the power of eyeballs … you know, the way the web does. If you get enough people passing by a particular spot — physical or virtual — it’s possible to toss up a few ads and make some money. This is what AirTran has in mind. The airline is putting ads on the bottoms of seat-back tray tables. So, for takeoff and landing, at least, when this device is in its upright and locked position, passengers will be treated to prolonged exposure to the desires of advertisers.

AirTran plans to execute this across 138 planes within the next few weeks — it’s easy to pull the trigger when you stand to make some money by doing very little. The first ad partner, Mother Nature Network, is offering fliers the opportunity to win a cruise on Royal Caribbean. Future advertisers are expected to be travel-related, as well. The ads will be 2 ½ inches by 9 inches and will be easy to swap out, thanks to the plastic in which they will be encased. As planes are brought in for overnight service, they’ll be set up for the ads.

There is precedent for this move. For several years, US Airways has put ads on tray tops, but the rollout has been limited to only a few planes. Likewise, the cash from in-flight advertising isn’t all that high. US Airways pulls in $10 million a year from this, but it includes napkins, cups and some of the products carried onboard, not just the ads. Outside the United States, this practice is pretty common. Several airlines run ads to bring in a little extra money. Of course, Ryanair is among them, throwing ads on its overhead bins, tray tables and the outsides of the planes.

Will onboard advertising save the airline industry? It’s doubtful. The five largest airlines in the United States lost an aggregate $3.2 billion through the first nine months of 2009. They’ve tried combating this with extra fees and extremely aggressive cost-cutting, but nothing has really been successful. After all, a company just can’t cut its way to growth. The new advertising revenue could help, and it’s a revenue stream that will persist (and possibly grow) after the recession has receded.

Eight months in a Swedish prison for drunk Ryanair passenger

by Scott Carmichael on

Back in June, a drunk Ryanair passenger started to freak out, and attempted to open the aircraft door in the middle of a flight from Riga to London.

The man had finished an entire liter of vodka and a couple of beers, and it took two professional boxers to get him away from the door and pin him to the ground.

The plane ended up making an emergency landing in Sweden to dispose of their drunk cargo, which means it was up to a Swedish judge to sentence the drunkard. The judge handed him an 8 month sentence, and a substantial fine, payable to Ryanair.

The man claims he can’t remember any of the incident, and blames it all on his fear of flying. The Swedish prosecutor didn’t buy it, and is actually appealing the sentence as he feels it is too light. Similar cases ended up with about 18 month sentences.

The good news is that aircraft doors are virtually impossible to open midflight due to the pressure difference between the outside air and cabin.
%Gallery-68288%

%Gallery-76818%

Ryanair threatens to “divorce” Boeing

by Tom Johansmeyer on

Ryanair may start to look for its planes closer to home. Of course, saying it was thinking about a switch from Boeing to Airbus would be far too simple for CEO Michael O’Leary … the genius behind “pay-to-pee” and many, many other stunts. O’Leary needs a bit more style, which is why his new intentions are being called “divorce.”

O’Leary believes that the management shakeup at Boeing has taken the company’s eye off the ball, which could be enough to make him switch teams. According to the Wall Street Journal, Ryanair is one of Boeing’s largest clients and has been working an order for as many as 200 planes … but the negotiations have been going on for more than a year. O’Leary says, “The difficulty has just been in getting someone in Boeing to make a decision. Boeing seem to have a degree of internal turmoil.”

But, O’Leary has pulled this game before, and according to WSJ’s The Source blog, he “is known to speak in the heat of the moment, use colorful language at press conferences to the amusement of journalists, and shoot from the hip.” Yeah, like the time he referred to the idiots in the “blogsphere …”

Want to thin out O’Leary’s wallet? Check out the video below for a few ideas.