Sunday, April 26, 2015

Ryanair CEO: “I despise the French political class” – leJDD.fr

Why do you have done to save 10 billion euros last year to the European consumer
The calculation is simple: our average ticket is 46 euros when to after about 170 euros for a short flight within Europe. Each passenger Ryanair has therefore a potential saving of 120 euros. As we carried 90 million passengers last year, have your result. Comparing with Air France, the average ticket is close to 300 euros, the savings are even greater. I speak of course of flights operated on days when their drivers are not on strike!

“We have always been impeccable safety”

Pulling up the prices down, do not you also save on security?
If that were the case, the company will certainly be celebrating not this year its thirtieth anniversary. We have always been flawless on this subject. The first reason is that our planes are new. The average age of our fleet is 5 years and will be reduced to 4 years next year with the delivery of new aircraft. We will bring our fleet to 380 aircraft by eight. It grows 10% per year based on Boeing’s delivery schedule. It’s a pace that suits us very well. I would also buy Airbus, but we never managed to agree on prices.

For 46 euros on average tickets, you still have to cut costs somewhere, right?
How can he a supermarket selling toilet paper at a price, and another three blocks away, half the price? It’s all about volume. We realized last year 800 million profit. To charge full price tickets has never been a guarantee of more security.

It has often been questioned wages and working conditions of your employees …
We currently have 300 pilots and nearly a thousand of hostesses and stewards on a waiting list who want to work for us. All the things we hear on Ryanair is nonsense. Many companies such as Air France cut jobs. Us, we create, we increase salaries and we pay pension contributions.

“In 2016, we should be € 40 average ticket ‘

your prices may fall further?
Absolutely, from 10 to 15% over at least the next two years. In 2016, we should be € 40 average ticket. This is the result of the decline in oil prices that we will pass. We also continue to increase the number of passengers we carry and lower our costs. Our new aircraft are equipped with engines that consume on average 18% less fuel. They also have more capacity so more seats. And airports side, we can continue to get great rates on the part of those who want to grow.

Think you can serve a Orly or Roissy day?
Roissy, ever. They do not require passengers we can get them. It’s the same with the other major European hubs like Frankfurt or London Heathrow. And as Orly is managed by the same group as Roissy, it seems difficult, especially still very expensive. We will stay in Beauvais. What is unfortunate is that, with Air France, whose only strategy is to feed its hub at Charles de Gaulle, I do not see how the French regional airports will be able to develop …

Get away from Roissy and Orly Does not condemn you less growth in France than in the rest of Europe?
We operate today from 31 airports in France, our fifth market. To speed would require us to have a base in France, able to locate personnel and aircraft.

This is what EasyJet, which is just in front of you in France …
But who wants to employ workers in France? You saw taxation, labor law? We have staff in Spain, Italy, Germany, but not for you because of this administrative madness … Or, more accurately, we have to Marseilles, but only six months a year in seasonal jobs, not to fall under the scope of the law.

Your practices have earned you be sentenced by the French courts. You find that it is harassment
Everything was done against us: investigations, trials, appeals at the European Union for competition issues. I do not see why we should pay taxes in the country where you are working and not in the country of the group that employs you. However, Europe is a market open to the free movement of workers … There in France, where it’s like that. That is why the Air France model is broken. Good for the competition!

“In five years Ryanair in number 1, EasyJet second”

What do you just recovery Air France has committed?
I do not believe in the strategy is conducted. As Lufthansa for years, Air France has exacted a maximum on long-haul flights to fund losses on domestic flights. With competition from the Gulf and American airlines, Air France can no longer rely on the long-haul as a cash cow. Will have to close and flights.

You do not fear the development of its low cost Transavia?
Not when I see how the company had to back face the wrath of his drivers …

Neither of the Hop, its short and medium-haul brand?
Sigh …

How do you see the European market in five years
Like today: Ryanair in number 1, second EasyJet and Lufthansa, IAG (British Airways group) and Air France behind. The only change is that these three will have a significant proportion of their capital held by Gulf companies. This is already the case with IAG, which Qatar Airways has taken 10% early in the year …

And why not yours?
They are not interested in low-cost airlines on the medium-haul.

Etihad Airways has bought Air Berlin or Darwin …
Yes, but they were losing money This is not our case.

“I love France and the French. I just despise the political class’

What should you think the Air France boss?
Sell KLM and closing lines lose money. Moreover, Air France does nothing to develop KLM. Rather they are competing against each other. That’s why the Dutch are not happy. And I would yield 20 or 25% of Air France capital to a company in the Gulf.

And you, what can you improve Ryanair in relation to particular EasyJet?
We have made efforts in recent years to be closer to our customers. We have implemented tariff offers for families, business travelers, a second bag free board. Our website is nicer, better thought our mobile application. And all this without increasing our prices, unlike EasyJet is no longer a low cost airline, just cheaper Air France.

Do not like France or you just love the French bashing?
I love France and the French. I just despise the political class that destroyed with many applications the French economy by thinking that we can respond to globalization by protectionism. Look at the number of young French talents who come to work in London or Dublin. If this does not change, France will towards bankruptcy.

Do you think you would have been as successful in another area that the air?
I’m not too bad in the air, but I especially lucky that this industry is changing. If I worked for Air France, I probably would not be as successful.

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