Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO,...

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Opening Address: Opening Address: Refining and Generating Ancillary Refining and Generating Ancillary Revenue Revenue Michael Cawley, COO & Deputy CEO, Ryanair

Transcript of Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO,...

Page 1: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Opening Address:Opening Address:Refining and Generating Ancillary Refining and Generating Ancillary

RevenueRevenue

Michael Cawley, COO & Deputy CEO, Ryanair

Page 2: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Airports vs. Airlines: Who owns the Customer?

– 20th July 2010 

Page 3: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

The World’s Favourite Airline!Lowest Fares/Lowest Seat Cost in Europe

No fuel surcharges….Guaranteed!

No. 1 for Traffic growth - up to 73.5m pax

No. 1 Coverage – 1,100+ Routes and 43 Bases

No. 1 Cust Service - Best punctuality

- Least lost bags

- Fewest cancellations

Greenest, Cleanest Airline in Europe

26th year of strong growth

Page 4: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Low

High

No.1 for lowest fares Av. Fare % > Ryanair

Ryanair € 35 (-13%)

EasyJet € 52 49%

Aer Lingus € 77 120%

Iberia € 150 329%

Air France € 230 557%

Lufthansa € 228 551%

British Airways € 284 711%

Source: RYA to 31 March 2009 & Latest published Company Year end Information

Page 5: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Airline % On Time Bags miss. per1,000 pax

% completions

Ryanair 93 0.4 99.6

Lufthansa 85 10.9 98.4

British Airways

83 15.6 97.9

Air France 83 18.9 96.9

Easyjet RTP RTP RTP

Aer Lingus RTP RTP RTP

No. 1 for Customer Service No. 1 for Customer Service

Source: Ryanair, Easyjet and AEA published statistics:

Page 6: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

60

04 05 06 07 08 09

40

20

PAX M

10 11

Ryanair’s Traffic GrowthRyanair’s Traffic Growth

Page 7: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Ryanair - The World’s Favourite Airline

Source: IATA published statistics compared to Ryanair current year forecasted traffic

Page 8: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Ryanair - The World’s Favourite Airline Ryanair - The World’s Favourite Airline

43 bases

155 airports

26 countries

1,100+ routes

1,300+ daily dep

247 B737-800’s

Newest fleet (av 2.8

y)

73.5m pax p.a.

Page 9: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Ryanair Effect - United Kingdom

11 bases

19 airports

400 routes

29m pax p.a.

29,000 jobs

€7bn savs p.a.

Page 10: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

What Attracts Passengers?

• Low Fares

• Efficient Operations

• Good Service

Page 11: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Growth of Major Airlines 03/09Pax (m)

• Ryanair +44• Easyjet* +20• Lufthansa +11• Air France/KLM +6• BA -4 *2004 base

Page 12: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Lessons• The fare determines the demand

• The route only exists at that fare

• Only Ryanair’s cost base allows that fare to be offered sustainably

• .˙. Ryanair owns the route

Page 13: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Who Would Launch these Routes?• OPO – RDZ• STN – HAU “Nowhere• ZAZ – ALC to• GRO – AHO Nowhere?”• LDY - EMA• CRL - AOI

10% of routes cancelled every year

Page 14: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Market Shares on Major Routes• BGY/SXF 38%

• CRL/CIA 37%

• DUB/LON 37%

• CRL/GRO 32%

• BGY/CRL 32%• STN/NYO 30%

Page 15: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Where is Passenger Growth 07/09Pax (m)*

• Ryanair +17.5• Easyjet +12.8• Norwegian +7.1__

37.4m

Total Change -18m *Based on seat capacity intra EU

Page 16: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Which Airports are Growing 07/09• Dusseldorf Weeze (NRN) +177%

• Istanbul (SAW) +112%

• Barcelona Reus (REU) +110%

• Brussels Charleroi (CRL) +82%

• Cagliari (CAG) +61%*Top 5 airports (in %) with >1m seat capacity growth

Page 17: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.

Ryanair growth of 28% to 2013 Fleet & Traffic to grow 28% by 2013

Fleet Traffic FY Mar Total (net) Disp Pax Growth 2011 272 -10* 73.5m +11% 2012 294 -3* 80.0m +9% 2013 299 -10* 85.0m +6%

Flags in retreat; competitors squabble & stagnate

Clears the field for Ryanair* 2011 to 2013 – 23a/c disposals ( 17 Op. leases and 6 a/c sales)

Page 18: Opening Address: Refining and Generating Ancillary Revenue Michael Cawley, COO & Deputy CEO, Ryanair.