Archive for September, 2010
Ryanair Fair?
Ryanair is an Irish low-cost airline which operates 250 Boeing 737-800 aircraft on over 1,100 routes across Europe. Ryanair is not your typical airline; it is Europe’s largest low-cost carrier and the 3rd-largest airline in Europe in terms of passenger numbers.
Ryanair’s business model targets the low-cost airline charges fees, which attracts a lot of international passenger therefore placing Ryanair as the largest in the world in terms of international passenger numbers. Although some may believe they are getting amazing deals, they do not know 20% of Ryanair’s revenue is generated from ancillary revenue, which is income from sources other than ticket fares. These fees can be related to alternative services like using airport check-in facilities instead of the online service fee or using non-preferred methods of payment. Ryanair also charges for extra services like checked in luggage as well as food and drinks for purchase as part of a buy on board programme. In the consumer magazine, “Holiday Which?” Ryanair has been labeled as being the “worst offender” for charging for optional extras.
Ryanair argues that it charges a large number of optional extras in order to allow those passengers who do not require baggage, priority boarding or other premium services to travel for the lowest possible price by giving customers the flexibility to choose what they pay for. Do you think Ryanair is fair?
1. Ryanair payment policy is ‘puerile’, says OFTÂ http://news.bbc.co.uk/2/hi/business/8438837.stm
2. Arrest in rooftop Ryanair protest in Liverpool http://news.bbc.co.uk/2/hi/uk_news/england/8508074.stm