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Ryanair criticizes Brussels Airlines, the Belgian government, Lufthansa and Aer Lingus, announces a new Eindhoven base

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Ryanair (Dublin) has publicly stated it will not move to Brussels (Zaventem) should Brussels Airlines (Brussels) fail due to its current financial losses. The airline is committed to Charleroi near Brussels. The company issued the following statement:

Ryanair rejected recent speculation emanating from the Belgian Government and/or Brussels Airlines that there was some prospect that Ryanair would move to Brussels Zaventem when Brussels Airlines disappears due to its catastrophic losses. Ryanair has rejected this idle speculation and confirmed its commitment to its base at Brussels Charleroi, where Ryanair has operated for 15 years, and has built a growing and successful partnership with Brussels South Charleroi Airport.

Ryanair confirmed that it has recently reaffirmed its traffic development plans with Brussels Charleroi Airport, that it continues to add new aircraft and new routes at Charleroi, continues to grow traffic and jobs in Charleroi, and that it has no intention of moving to Brussels Zaventem, even if Brussels Airlines, an airline which is effectively controlled by Lufthansa (Frankfurt), ceases operations.
Ryanair called on the Belgian Government to reject Brussels Airlines pathetic attempt to obtain subsidies for its high labour costs, which would result in the Belgian taxpayer effectively subsidising Lufthansa, one of Europe’s strongest airline groups.
Ryanair pointed out that Lufthansa freely chose to take a 45% stake in Brussels Airlines, and if Lufthansa is unhappy with Brussels Airlines cost base, then it should reduce those costs or invest in the airline, rather than inappropriately pressurising the Belgian Government to subsidise another large Lufthansa partner.
Ryanair, Europe’s only ultra-low cost airline, today announced it would open its 52nd base (second Dutch base) at Eindhoven in April 2013 with one based aircraft as it invests over $70 million at Eindhoven Airport.
Ryanair will grow at Eindhoven as follows:
  • 1 based aircraft
  • 31 routes
  • 4 new routes to/from Agadir, Bordeaux, Chania and Fez
  • Warsaw Modlin extended for summer season
  • Increased frequencies to/from Alicante, Faro, Ibiza, Malaga, Marrakech and Pisa
  • 238 weekly flights (up 8%)
  • 1.7 million pax p.a (up 7%)
  • 1,700 jobs at Eindhoven Airport
Ryanair also took a public swipe at competitor Aer Lingus (Dublin) which it has been attempting to take control. Here is the full statement:
Ryanair criticized the Board and Management of Aer Lingus for their latest “wet lease” agreement with Virgin Atlantic Airways (London), which Ryanair believes is yet another example of Aer Lingus’ commercial failure and lack of any independent future.
Ryanair highlighted that this is Aer Lingus’ second attempt at such a wet lease type arrangement, following the trans-Atlantic “partnership” with United Airlines (Chicago), which started in March 2010, under which Aer Lingus switched one of its trans-Atlantic aircraft, to operate an effective wet lease for United Airlines on the Washington – Madrid route.  In July 2011, Aer Lingus’ CEO Christoph Mueller claimed We operate the aircraft very cost efficiently and United is selling it at very reasonable yields and it works…”.  Mr Mueller “believes this type of operation could be strategically important for the future”.  Yet this “strategically important” partnership was ended by United in October 2012 after just 30 months.
Ryanair called on the Board and Management of Aer Lingus to explain why Aer Lingus is wet leasing four of its larger A320 aircraft to Virgin Atlantic to operate routes to/from London Heathrow Airport which have no connection with or value to Ireland.  Where will these four aircraft come from?  Will they be taken from Aer Lingus’ existing bases at Shannon, Cork or Dublin?  Will this result in yet another decline in Aer Lingus’ traffic, which has already fallen from 10.4 million in 2009 to 9.5 million in 2011?  Will Aer Lingus’ contribution to Ireland’s “Grabbing” in 2013 be yet another 1 million cut in capacity and traffic to/from the Republic of Ireland?
Ryanair’s Stephen McNamara said:
“In 2010 Aer Lingus was promising that the United Airlines wet lease “partnership” would be the way forward, yet 2 years later United abruptly cancelled the deal and returned the aircraft to Aer Lingus.  Instead, United have now entered the Washington-Dublin route, which Aer Lingus previously withdrew from.
Today’s announcement that Aer Lingus is to take 4 of its existing aircraft away from Ireland, thereby reducing its Irish traffic by up to 1 million passengers annually, so that it can rent these aircraft to Virgin Atlantic on a short-term wet lease arrangement seems to be yet another admission that Aer Lingus has no commercial strategy or independent future.  What happens in a year or two years time if Virgin Atlantic wants to cancel the deal and Aer Lingus is left with 4 aircraft with nothing to do, but has 1 million fewer core passengers ?
If, as Aer Lingus claims, their brand and commercial strategy is working, then why are they spray painting 4 aircraft in Virgin colours and renting them out, rather than running more routes to/from Ireland for the “Grabbing” in 2013?  Ryanair believes that this latest wet lease deal with Virgin is yet another sign that Aer Lingus has no viable commercial strategy, a mismanaged and fading brand and no independent future.”
Copyright Photo: Guillaume Besnard. Boeing 737-8AS EI-EKJ (msn 38497) with special “Comunitat Valenciana” promotional sub-titles climbs away from Barcelona.
Ryanair: AG Slide Show

Filed under: Aer Lingus, Brussels Airlines, Lufthansa, Ryanair Tagged: 38497, 737, 737800, 7378AS, Aer Lingus, aviation, Barcelona, BCN, Boeing, Boeing 737, Boeing 737800, Brussels Airlines, brussels charleroi airport, brussels south charleroi, brussels south charleroi airport, Comunitat Valenciana, EIEKJ, Lufthansa, Ryanair, transportation

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