RYAN EUROPEAN AIRWAYS, LTD.: United Kingdom (19861990). Established at London (CTN) in February 1985, London European Airways, Ltd., under the leadership of Managing Director N. R. Harford, purchases Euroflite, Ltd. from McAlpine Aviation in June. Late in the year, flights begin to Brussels. Unable to swallow the Euroflite, Ltd. merger and taking big financial losses on its new service, LEA in April 1986 is forced to lay off its 50 employees and cease trading.
Late in the year, the company’s assets are acquired by the independent Irish carrier Ryanair, Ltd. Reformed by Chairman Cathal Ryan as a sister airline, Harford’s former airline will operate flights to the north of London and charters to Amsterdam and Brussels as Ryan European Airways, Ltd. for the next four years. The carrier flies a BAe (ROM-BAC) 1-11-561RC chartered from Tarom (Transporturile Aeriene Romane).
In November 1990, Ryan European receives back its previous London European Airways, Ltd. moniker. Operations continue with a British Aerospace BAe 111-518FG and a 111-476FM, the latter leased from Ryanair, Ltd.
RYAN INTERNATIONAL AIRLINES: 6810 West Kellogg, Wichita, Kansas, 67209-2218, United States; Phone (316) 942-0141; Fax (316) 942-7949; Http://www. ryanintl. com; Code 1I; Year Founded 1973. Ryan Aviation is established by Ronald D. Ryan at Wichita, Kansas, in 1973 as an FBO engaged in aviation maintenance, sales and service. In addition, an FAA Part 135 air transport division, established in 1968 as DeBoer Aviation, named for real estate developer Jack DeBoer, is also acquired. Beginning on March 3, Chief Pilot Ryan undertakes Learjet passenger and small group charter flights. Soon thereafter, partner DeBoer is bought out.
In 1978, the company begins a 20-year association with Emery Express by flying seven Cessna Citation Is in Emery’s experimental overnight express operation.
In 1981, Emery seeks Ryan’s assistance in choosing a larger aircraft and settles upon the B-727, purchasing a fleet of eight Dash-100Fs. Simultaneously, it signs a 3-year contract with Ryan to operate the trijets; the deal is dependant upon Ryan’s upgrading to an FAA Part 121 certificate within just 90 days. The paperwork is quickly completed.
In 1982, the company, having first sold Emery Express on the concept, approaches the CAB for authority to launch B-727-100 passenger charter flights to Las Vegas from eight domestic locations. After a year’s wait, the carrier is certified in 1983 to offer domestic and regional international flights, especially inclusive-tour services.
As Ryan Aviation doing business as Ryan International Airlines, President Ryan acquires two B-727-151C passenger airliners and begins flights, on behalf of Tom Wainwright’s Flying Vacations, to the Caribbean from Philadelphia and other cities in the Northeast.
While the effort to provide passenger charters is getting under way, Ryan is approached by UPS (United Parcel Service), which seeks a carrier to transport cargo on its behalf. A contract similar to that with Emery Express is signed.
A total of 92,000 passengers are flown on the year.
The recession causes Ryan to have a very bad 1984 as enplanements fall to 32,536.
Following the crash of an Arrow Air DC-8 in Newfoundland in 1985, the U. S. government contracts with Ryan International to fly NTSB investigators, the press, and family members to the disaster scene. The passenger traffic situation is reversed as customer bookings increase a very welcome 80.4% to 166,000.
When UPS (United Parcel Service) elects to acquire the first purpose-built B-757Fs in early 1986, Ryan is chosen to operate them. Shortly thereafter, UPS decides to fill its aviation requirements in-house and begins its own airline. Ryan assists with the transition.
In August, Ryan Aviation the FBO and Ryan International Airlines are sold to the Maryland-based PHH group for $16.8 million. Ryan is required to “retire” from the aviation business for a period of three years. The cargo contracts with Emery Worldwide and UPS (United Parcel Service) are maintained; however, customer bookings fall again, down to 124,347. Profits move ahead to $1.06 million (operating) and $604,560 (net).
Airline employment grows by 28.3% in 1987 to 340 as the carrier begins to exit the passenger charter business to fly cargo exclusively for UPS (United Parcel Service). The fleet now includes 8 B-727-100s and 8 B-727-100Fs. Company pilots begin to fly five UPS-owned B-757-24APFs in September.
Late in the year, UPS (United Parcel Service) informs its contract partners that it will provide its own airlift, beginning during the next year.
Freight traffic jumps 51.5% to 94.01 million FTKs while revenues swell 51.5% to $16.9 million. Expenses climb an equal 51.5% to $15.29 million and allow an operating profit of $1.6 million. Net gain grows to $916,000.
Following an accident early in 1988, Ryan briefly suspends services. At this point, PHH elects to retire from the airline business and Ryan is contacted concerning the possibility of reacquiring the carrier.
Bookings in the final year of passenger flying total only 10,700.
In February 1989, Ronald Ryan buys back the FBO and airline (including the FAA Part 121 certificate) and enjoys renewed success that brings a demand for additional capacity. Emery Express, which has meanwhile won a contract to fly express mail for the U. S. Postal Service, offers Ryan the opportunity to provide its lift. Again, there is an Emery-instigated hitch: eight DC-9Fs and nine B-727Fs must be transferred to Ryan’s certificate within two weeks of contract signing. Again, the paperwork is successfully expedited.
At the end of December, financially troubled Orion Air, which is also under contract to Emery, is shut down by its owners, The Primark Corporation.
Emery in January 1990 purchases assets from Orion Air, leasing the aircraft acquired to Ryan. The Ryan fleet now includes 34 B-727s and 8 DC-9-10Fs, including one of each type from Orion Air. All are painted in the colors of the clients served. Traffic figures are maintained in confidence.
The Orion Air package had included assumption of that carrier’s 10-year postal subcontract with Emery Worldwide, begun the previous April. Employing dedicated DC-9-10Fs and B-727-100Fs painted in U. S. Postal Service colors, Ryan flies overnight Express Mail from the semi-public agency’s hub at Indianapolis.
Not having been deiced, Flight 590, a DC-9-15RC with two crew, stalls during its February 17, 1990 takeoff from Cleveland, rolls 90 degrees, and cartwheels down the runway; the freighter is destroyed and both of its flyers are killed.
Following Iraq’s invasion of Kuwait and the deployment of Allied forces to Saudi Arabia in Operation Desert Shield, Ryan takes over the Post Office’s D-net operations, a daytime sort operation that it will operate for the duration of the Persian Gulf War. This year, statistics are again held in confidence.
Operations continue apace in 1991 as passenger charter flights resume. The fleet is upgraded by the addition of five former United Airlines B-727-22Fs, including one named Judy Carmine and another named William F Bolger.
After its No. 3 engine suffers an uncontained failure, the takeoff of a B-727-22QC with three crew is aborted from Hartford-Bradley International Airport on May 3. Debris penetrates fuel, oil, and hydraulic lines, starting a fire that destroys the aircraft; there are no casualties.
The owned and provided fleet includes 33 aircraft in 1992 and a new South Pacific operation is inaugurated when a B-727-51C is based at Saipan to fly fish to Japan for the Ting Hong Oceanic Enterprise.
The airline now agrees to assist Morris Air Services (under contract) in the inauguration of its own airline operation. In March, an application is filed by Ryan with the DOT seeking authorization to resume charter and scheduled services with four DC-9-15RCs, including twice-daily roundtrips from Charlottesville, Virginia, to Newark.
In June, Ryan begins to operate Morris Air Services B-737s, which have been transferred to Ryan’s certificate, but which are painted in MAS livery. It also provides Morris with pilot training, personnel recruitment, acquisition of a Part 121 certificate of its own, and transition from Ryan’s certificate to its own.
A total of 449,000 charter passengers are flown, revenues are $26.2 million, and a $26.2- million operating profit is realized.
The workforce is cut 21.4% in 1993 to 473 and the fleet includes 6 B-727-51Cs, 5 B-727-22Cs, 4 DC-9-15RCs, 2 B-727-151Cs, and 1 each B-727-76F, B-727-77C, B-727-82C, B-727-172C, and 1 DC-9-15MC.
The entire 22-unit is flown on behalf of Emery Worldwide. In addition, two B-737-3A4s are subleased from American Airlines and one each B-737-3Q8 and B-737-3T5 are chartered from Aer Lingus Irish Airlines, Ltd. The Morris Air Services contract is concluded in January.
During the spring, a five-year contract is signed with the tour contractor Apple Vacations in hopes of boosting passenger charter operations. The new B-737s are, meanwhile, operated on passenger services over the new Virginia-New Jersey route.
On July 1, Emery Worldwide arranges with Ryan to operate its new U. S. mail award under a subcontract. Ryan, which has carried mail for Emery for nearly four years under an earlier subcontract, will, as a result of this new deal, be able to create 30 more jobs in Wichita by year’s end.
The U. S. Postal Service’s new logo is introduced in October, painted on the tail of an Emery B-727-51C. When the winter season begins on November 1, tour and charter flights on behalf of Apple Vacation are inaugurated from the northern U. S. to the Caribbean, Florida, and Mexico.
On the year, the overall number of customers boarded declines 81.3% to 83,140. Cargo swells 20.6% to 41.15 million FTKs. Revenues almost double to $49 million and expenses are $3 million less. As a result, a $3-million operating profit is generated as is a $3-million net gain.
Airline employment is increased by 4.6% in 1994 to 505 and in January, Ryan Aviation Corporation, the expanded but original FBO operation, is sold. Ryan’s enterprise becomes simply Ryan International Airlines. The Apple Vacation charters cease on May 1.
When the attempt at scheduled service does not succeed, the chartered B-737-300s are all replaced with a single B-737-448 leased from Aer Lingus Irish Airlines, Ltd. The dry-lease use of foreign aircraft during their off seasons for passenger charters will become company policy as first a three-year and then a five-year contract is signed with the Irish line. Meanwhile, plans are made to grow freight traffic by purchasing for conversion a fleet of eight former United Airlines B-727-22Cs.
Employing Irish aircraft, the company renews its Apple Vacation services with the start of the new fall schedule on November 1.
Passenger bookings fall another 9.8% on the year to 73,053, but freight jumps 40.2% to 57.71 million FTKs. Revenues swell 4.6% to $53.03 million and expenses climb 8.9% to $50.8 million. Consequently, pretax profit totals $2.95 million.
The workforce is increased by 28.7% in 1995 to 650. On behalf of the National Fisheries Corporation, a company trijet, beginning on August 1, hauls freshly caught tuna to Guam from the islands of Palau, Pohnpei, Truk, and Yap. From there, it is forwarded to Japan.
On October 1, the company begins flying passenger charters for Gold Transportation, operating a leased Aer Lingus Irish Airlines, Ltd. B-737-448 from Atlantic City, New Jersey, to some 55 cities in the eastern U. S.
Passenger traffic suffers a drop of 20.5% to 58,000 enplanements. Cargo, on the other hand, increases 60.4% to 94.38 million FTKs. Revenues far exceed costs and there are profits: $3.81 million (operating) and $3.82 million (net).
There is no change in the employee population during 1996. The Irish Boeing is retained.
In the wake of the May Valujet Airlines disaster, Ryan International, like many similar U. S. carriers, becomes the subject of intense safety scrutiny by the FAA. Some irregularities are found and the company is grounded for a time during the third quarter.
A contract is entered into with Star Tours to fly sports and celebrity tours. Among the teams and performers initially transported are the Chicago Bulls NBA basketball teams and the rock groups U-2 and the Rolling Stones. Lift is provided with two B-727-200s and two B-727-100s provided by the tour operator.
Still, customer bookings skyrocket 201.7% to 175,000 and 126.1 million FTKs are operated, a 33.6% increase. Difficulties do, however, have a financial impact as operating income dips 0.2% to $55.54 million. Expenses total $51.98 million and profits decline slightly; an operating gain of $4.16 million is generated, along with a net profit of $4.36 million.
The workforce is cut by 7.7% to 600 during 1997.
During takeoff from Aruba for Cincinnati on January 18, the Aer Lingus Irish Airlines, Ltd. B-737-448 with 8 crew and 148 passengers, blows the No. 1 tire; the aircraft circles the airport for three hours dumping fuel before making a safe emergency landing. One passenger is seriously injured during the subsequent chute evacuation.
During the spring, the decision is taken to operate a significant number of passenger charters the following winter. Contracts are signed with the tour operators Apple Vacations and Trans Global Tours and four Airbus Industrie A320-214s are leased, painted in the colors of the travel concerns.
Flights commence from Minneapolis (MSP) and Chicago on October 1 to destinations in the southern U. S., Mexico, and the Caribbean.
Flight 607, a B-727-51C with two crew, collides with an airport shuttle bus while taxiing for takeoff from Denver on October 1; neither flyer is hurt nor are two passengers on the bus, although the driver receives minor injuries. The nose section of the airplane is destroyed while the left front portion of the bus is damaged and the windshield is knocked out. It is later reported that the bus driver did not see either an intersection stop sign or the approaching Boeing.
Although passenger boardings are up 29.7% to 227,000, freight dips 1.8% to 123.81 million FTKs. Operating revenues increase 8.7% to $74.96 million, while expenses are up 9.1% to $70.67 million. The operating gain improves to $4.28 million, while the net profit rises to $4.56 million.
During the first quarter of 1998, the Apple Vacations contract is renewed. RIA is also awarded a charter contact from SunTrips to operate roundtrip flights from Los Angeles to various points in Mexico. The service had previously been operated by Allergo Air, S. A. de C. V. employing a wet-leased Skyservice Airlines, Ltd. A320-231. Until Ryan takes up the new arrangement, the Canadian Airbus wears “Skyservice USA” titles on its forward fuselage.
Employing a pair of DC-10-10s leased from Airtours International Airlines, Ltd., Ryan, in May, begins to operate Hawaiian charters. One contract, from Los Angeles, is flown on behalf of Sunquest, while the second, from San Francisco, is operated for SunTrips.
In an election supervised by the NMB on August 20, 72% of the carrier’s 306 pilots voted for union representation by ALPA, thereby becoming the 50th pilot group represented by that union.
At the beginning of the winter charter season in November, an A320-214 is leased from Flying Colours Airlines, Ltd. Wearing a pure white color scheme with a large apple painted on its tail, the Airbus is operated on behalf of Apple Vacations from cities in the northern U. S. to the Caribbean, Costa Rica, and Mexico.
Also in November and continuing into the spring of 1999, Ryan operates an extensive program of package tours on behalf of Trans Global Tours doing business as Trans Global Vacations. Ryan provides lift from Minneapolis (MSP) and the upper Midwest to Florida, Mexico, the Caribbean, and Las Vegas employing a pair of A320-231s leased from Britannia Airways, Ltd. and one each B-747-448 and B-747-4Y0 chartered from Aer Lingus Irish Airlines, Ltd. and Pegasus Airlines, A. O., respectively. All of the planes wear gray upper and navy blue lower fuselages separated below the window lines with a yellow cheatline. Each forward fuselage wears Trans Global titles and the navy blue tails host the lessors’ logos.
For all of 1998, customer bookings skyrocket 550.7% to 1,477,000.
Cargo traffic also is dramatically up, having ballooned 140.1% to 259.17 million FTKs. Revenues surge 126.7% to $169.92 million, while expenses are held to $162.72 million. Operating profit climbs to $7.2 million, while the net gain reaches $7.8 million.
Airline employment has been increased by 8.3% by the beginning of 1999 to 650. Jeffrey C. Crippen is promoted to the company’s presidency in September.
At the beginning of the winter holiday schedule at the end of October, the company charters the B-737-448 St. Caimin from Aer Lingus Irish Airlines, Ltd. and operated on behalf of Apple Vacations. The “Baby Boeing” wears the Irish line’s colors, with Apple Vacation titles (Ryan is not visibly mentioned). At the same time, three Airbus A320-231s are chartered from the new JMC Airlines, Ltd. to fly winter holiday flights from the upper Midwest to the Caribbean on behalf of Trans Global Vacations. A B-737-4Y0 subleased from TAESA (Transportes Aereos Ejecutivos, S. A. de C. V.) is also employed for the TGV program.
Just before Christmas, a former Southwest Airlines B-737-2H4 is acquired to fly gambling charters to Atlantic City; the aircraft is painted bright orange with a blue fleur-de-lis on its tail.
Customer bookings plunge 25.1% to 1,106,000, while freight drops 19.3% to 88.77 million FTKs. Revenues rise 4.5% to $177.64 million, while expenses are up 5.6% to $171.84 million. The operating profit falls to $5.8 million, while the net gain is down to $6.41 million.
Airline employment at the beginning of 2000 stands at 1,132, a 9.9% increase over the previous 12 months. The majority of the Emery Worldwide Boeing 727F fleet is now leased to Ryan. On its behalf, Ryan now operates a major U. S. Postal Service contract employing 5 Dash-51Cs, 1 Dash-51C, 5 Dash-22Cs, 1 each Dash 134C, Dash-76C, Dash-77C, Dash-82C, and 3 Dash-223F, all in USPS livery. In Emery Worldwide livery, Ryan flies 4 Dash-21Cs, 8 Dash-222Fs, and 3 Dash-225Fs. The company also operates 2 B-737-2H4As in its own colors, plus 1 chartered B-727-243A flown on behalf of the Skyservice Airlines, Ltd. subsidiary Sport Hawk International Airlines, Ltd.
The JMC aircraft are returned at the end of March, while the St. Caimin returns to Aer Lingus Irish Airlines, Ltd. in May. In late July, the two DC-10-10s operated on behalf of Skyservice USA are re-registered. One loses its Skyservice USA identity on October 5 when new SunTrips titles are applied at Manchester.
With the beginning of the winter schedule on October 29, one B-757-28A, one B-757-2Y0, three A320-214s, and one A320-231 are leased to Apple Vacations in the U. S. by JMC Airlines, Ltd.; they will be operated from Chicago (ORD) by Ryan International for the tour operator until March. A chartered Futura International Airways, S. A. B-737-4Y0 is also based at Philadelphia to operate twice-weekly charters via Baltimore (BWI) to Nassau. It is joined by an Aer Lingus Irish Airlines, Ltd. B-747-448.
Apple Vacations also obtains the services of a second Aer Lingus B-737-448 that flies from Baltimore (BWI) to the Caribbean beginning on December 17. At this time, the company also operates a DC-10-10, chartered from Airtours International Airlines, Ltd. on behalf of the tour operator Sun Trips.
Passenger boardings during these 12 months ascend 3.62% to 1,146,000. Cargo traffic plunges 41.64% to 51.8 million FTKs.
RYANAIR, LTD.: Dublin Airport, Dublin, Ireland; Phone 353 (1) 844-4489; Fax 353 (1) 844-4402; Http://www. ryanair. com; Code FR; Year Founded 1985. With Ir?1 capitalization, privately owned Ryanair, Ltd. is formed at Dublin in May 1985 by Cathal, Declan, and Shane Ryan, the three sons of Dr. Anthony Ryan, chairman/CEO of Guinness Peat Aviation, Ltd., to offer scheduled commuter flights to the U. K.
Employing a single Embraer EMB-110P1 Bandeirante, weekday return service between Waterford Airport in southeast Ireland and London (LGW) is inaugurated on July 8 under the direction of Christy Ryan (no relation), who has the post of director of operations. During the remainder of the year, the company’s 57 employees are able to provide for the transport of 5,000 passengers over its single route.
Although load factors are said to be satisfactory, income is insufficient to cover the tiny commuter’s costs. Rather than close their doors in the traditional manner, the Ryans elect to upgrade their concern with new routes and equipment. They also believe they will be successful if they are able to lower fares, then averaging Ir?209 one-way from Dublin to London. To bring about the change and to create the first European airline to offer low fares on short-haul intra-European routes, GPA executive Eugene O’Neill is named CEO with Declan Ryan as chief operating officer.
Two British Aerospace BAe (HS) 748-B2s are purchased and inaugurate Ir?94.99 roundtrip frequencies from Dublin, Cork, and Shannon to London (CTN) on May 23, 1986. Traffic is so promising that a BAe 111525FT is leased from TAROM (Transporturile Aeriene Romane, S. A.); christened The Spirit of Ireland, it is placed on the service in October.
The British regional commuter London European Airways, Ltd. is acquired late in the year allowing service extensions to Knock, Amsterdam, and Brussels under the name Ryan European Airways, Ltd. Three more BAe 111-525FTs are acquired from TAROM (Transporturile Aeriene Romane, S. A.), along with two BAe (ROMBAC) 1-11-561RCs. Orders are placed for two Avions de Transport Regional ATR42-300s. Charters are also offered to various European holiday destinations. Enplanements for the year total 82,000.
Airline employment at the beginning of 1987 stands at 120. The Irish independent, while still refusing to release statistics, takes delivery of its first ATR42-320 and expands its route network to 10 cities. Orders are placed for two Airbus A320-200s. Passenger boardings increase 83.2% to 681,904 and freight skyrockets 163.5% to 557,000 FTKs.
The workforce is increased by 14.5% in 1988 to 435 and the fleet now includes 6 BAC 1-11-500s, 2 BAe (HS) 748-B2s, 1 ATR42-320, and 1 Bandeirante.
Services continue without change, although another ATR42-320 is acquired and three BAC 1-11-500s are progressively retired. During the year, the Aer Lingus Irish Airlines, Ltd. routes from Dublin to Liverpool and Munich are taken over. In October, former HeavyLift Cargo Airlines, Ltd. President Patrick “P. J.” McGoldrick is appointed CEO, with a mandate to turn around the financially troubled company.
Enplanements total 678,034, but Ryanair and Ryanair European together lose Ir?8 million.
Airline employment is increased by 22.3% in 1989 to 400 and orders are placed for two Airbus Industrie A320-211s. One of the BAe (HS) 748-B2s is retired and the fleet is expanded by the addition of a third ATR42-320.
McGoldrick reorganizes Ryanair, Ltd. into five individual companies: Dublin-based Ryanair, Ltd., Ryanair European Airlines, Ltd., the former London European Airlines, Ltd. based at London (CTN), Ryanair Engineering, Ltd., Ryanair Fleet Management, Ltd., and Ryanair Tours and Leisure, Ltd. The latter two endeavors are placed under the leadership of Decian and Cathal Ryan, respectively.
Munich joins the route system and several new services are initiated to the U. K., as well as to the new airport at Knock, developed by a Roman Catholic priest.
The year’s passenger boardings climb 7.1% to 729,853 and freight is up a nearly equal 7% to 37.58 million FTKs. Still, Ryanair has lost Ir?20 million during its first four years.
Company employment is cut 18.2% in 1990 to 400 and all aircraft except the ATRs and BACs are retired; an ATR72-310 is ordered. The first A320-211 is delivered in February. Twice-daily flights are inaugurated in August from Dublin to London (STN). As the company continues to emphasize regional flights, its passenger traffic increases.
Through the first nine reported months, customer bookings ascend 7.4% to 625,859.
In November, the subsidiary Ryan European Airways, Ltd. resumes operations as London European Airways, Ltd. The fourth quarter is disastrous, largely because of the dramatic increase in fuel prices following Iraq’s August 2 invasion of Kuwait and the subsequent recession in the U. K. The workforce must be cut by 9% (46 employees) and services are dropped on October 15 between Dublin and Coventry and from Knock to Manchester. Frequencies are reduced on routes from London to Shannon, Sligo, and Donegal and one ATR42-320 is leased out for the winter. With the Irish economy stagnant and no growth in passenger traffic, the Ryan family investment is in the red.
During January 1991, negotiations are completed with British Northern Airways, Ltd. to take over that fledgling’s April delivery position for two ATR72-310s. The fleet in spring comprises three chartered ATR42-320s (with orders outstanding for four more), one of which is leased out to Hamburg Airlines, GmbH., and six BAC 1-11-500s, two of which are chartered from the Romanian state carrier TAROM (Transporturile Aeriene Romane, S. A.).
GPA magnate Dr. Ryan now dispatches his personal assistant, Michael O’Leary, to work with Managing Director Goldrick to create a restructuring and recovery plan. The two closely monitor the activities of the U. S. carrier Southwest Airlines (2) and decide to adapt its low-fare, no-frills philosophy to Europe, while meanwhile rationalizing the fleet and cutting costs.
The Irish government also agrees to assist the independent, ending all competition on Irish routes for the next three years. The company is now reorganized; Ryaniar Holding, Ltd. becomes the corporate entity, with the airline Ryanair, Ltd. as its subsidiary.
When the recovery program begins implementation, Ryanair cuts out meal service, complementary newspapers, bans smoking, reduces cleaning, maintenance, and even in-flight magazine costs. The workforce is reduced to 350.
Despite the effect of the Gulf War on European transport early in the year, enplanments during these 12 months total 540,000 and a $431,000 profit is generated, roughly 30 pence a passenger. After continuous downturn, this first-ever gain is a welcome relief.
Declan Ryan becomes managing director in 1992. The three ATR42-320s are returned to their lessor as the Irish line becomes an all-111 operator. The BACs are now painted in a new color scheme. Low-fare, nofrills services are now provided to Dublin, Liverpool, London (CTN and STN), Cork, Galway, Kerry, Knock, Waterford, and Shannon. A number of unprofitable routes are closed.
In March, the carrier signs a sales and marketing agreement with AMR Services Corporation, the marketing division of American Airlines. Under terms of the arrangement, the American major will promote the Irish carrier’s London to Dublin service in the U. S.
Ryan also agrees to purchase SABRE reservations services from another American subsidiary.
On June 16, the carrier becomes the American Airlines feeder at London (STN) when the U. S. major begins daily service to that airport from Chicago (ORD).
Passenger boardings this year increase 46% to one million and profit reaches $1.25 million.
Airline employment in 1993 stands at 440. The fleet, which now includes one each B-737-2E7A and B-737-212A, is increased by the addition of four B-737-204As leased from Britannia Airways, Ltd. In addition to charter and domestic and U. K. flights, scheduled services are introduced to Munich.
Traffic information is no longer provided; however, it is noted that the company enjoys identical $3-million operating and net profits. When the European Commission approves an Irish government financial aid package for Aer Lingus Irish Airlines, Ltd. during the fourth quarter, Ryanair files suit to block it.
A multiyear contract is signed with FLS Aerospace, Ltd. in January 1994 for the heavy maintenance work required to be performed on its aircraft fleet. During the spring, a new aircraft livery is introduced and two more Britannia B-737-204As are chartered. Arrival of the small Boeings permits an orderly retirement of the BAC 1-11s. In May, frequencies are initiated to Manchester and Prestwick in competition with
Aer Lingus Irish Airlines, Ltd.
Two B-737-2K2As, a B-737-2T5A, and a B-737-212A are leased from Transavia Airlines, N. V. in September.
On October 1, citing cost, the airline terminates its agreement with the SABRE reservations system.
The company’s staff now exceeds 500 and they assist 1.5 million travelers to make their connections this year. Revenues advance by 8.2% to $53.03 million while expenses shoot up 8.9% to $50.08 million. There is an operating surplus of $2.95 million and a net gain of the same figure.
In early 1995, company leaders attempt to persuade British Airways, Ltd. (2) to take a stake; the British flag carrier considers the plan, which would have it turn over a number of B-737-236s rather than cash. The arrangement falls through late in the year. Former Continental Airlines David Bonderman purchases 20% shareholding and the Ryan family reduces its stake to 62%, with the remaining 18% held by Mr. O’Leary.
At Dublin, seat selection is abandoned; free-seating speeds up boarding and only 12 check-in desks are required. In its tenth anniversary year, Ryanair becomes the largest passenger carrier (in terms of numbers) on the Dublin-London route and indeed the largest Irish carrier on every route it operates.
Although it continues to employ travel agents and to issue tickets, like the new London (CTN)-based easyJet, Ltd., Ryanair also begins to emulate Southwest Airlines (2) and to sell certain amenities and souvenirs. Unlike easyJet, it does, not, however, sell peanuts (food is seen as messy, requiring too much time to clean aircraft). Rather, emphasis is placed on the selling of drinks. Ryanair will reap a pretax profit of Ir?1 per passenger on its flights, all of it coming from onboard sales.
In December, the company begins flying from London (STN) to Prestwick Airport in Scotland. As part of the advertising surrounding this service launch, two of the Boeings receive new color schemes that include a Scottish tartan scarf and a wide-toothed smile.
Passenger boardings this year total 2.3 million. As a result of accounting procedures, net profit will be restated from Ir?5 million to Ir?12 million.
Airline employment stands at 680 in 1996 and the all-“Baby Boeing” fleet includes 1 each B-737-2E7A, B-737-2T5A, B-737-212A, and 2 B-737-2K2As.
Having failed to gain access to BA equipment, Bonderman turns to Deutsche Lufthansa, A. G., which readily agrees to the lease of 6, later 12, B-737-230As. As part of the arrangement, DLH receives a number of maintenance contracts for its Lufthansa Technik subsidiary.
During the fall, the company introduces the “logojet” concept of Western Pacific Airlines (Westpac) to Europe. A B-737-204A is given a special Jaguar promotional color scheme, finished in classic British racing green and silver with the outline of the automaker’s big cat on the gray forward fuselage.
During the year and with an I?2.8 million ($3.3 million) grant from the Irish government, Ryanair Direct is established as a telemarketing company. The new concern quickly begins to redirect passengers to the call center from traditional travel agents.
Enplanements these 12 months rise to 3.3 million. Revenues advance 24% to Ir?136.4 million, while costs ascend by 25% to Ir?112.7 million. The operating gain jumps 23% to Ir?23.7 million, while net profit climbs 24% to Ir?26 million ($38.9 million).
Full European Union air transport deregulation in 1997 will open the door for Ryanair to freely expand its services to the Continent, becoming the first low-fare airline to offer scheduled return services from Ireland and the U. K. Plans to increase the number of German Boeings in the fleet by five proceed; to promote St. Valentine’s Day, a B-737-2T5 is painted with hearts, kissing lips, and cupids and is given titles as “The Love Plane.” At the beginning of the second quarter, another “logojet” is unveiled; painted in a bold blue-and-orange livery not unlike that of the new British low-fare carrier easyJet, Ltd., the color scheme promotes the U. K. tabloid newspaper The Sun, noted in the titles as “SuperSunic.”
In the spring, a computerized planning and support package is purchased from Crossair, Ltd. On May 1, the company’s “Baby Boeings” inaugurate thrice-daily service from Dublin to Beauvais Airport, north of Paris, and thrice-daily roundtrips from Dublin to Brussels South at Charleroi. A new twice-daily route is opened the same day between Kerry and Bristol.
Also in May, Ryanair is floated on the New York (Nasdaq) stock exchange, with an initial valuation of $500 million. The public flotation brings in excess of IR?64 million. With overall market valuation capitalization of Ir?300 million, Ryanair is converted into a public limited company. (As with Aer Lingus Irish Airlines, Ltd. and British Airways, Ltd. (2), the company in this profile and elsewhere will be referred to as Ryanair, Ltd., rather than dividing it into pre - and post-plc sections.)
At this point, a modest profit-sharing plan is introduced for the carrier’s 700 employees, who are also permitted to become shareholders.
On June 12, daily Kerry to London (STN) service is launched, along with a twice-daily roundtrip route from London (STN) to Skavsta Airport, just south of Stockholm, and on to Oslo.
It is announced on July 25 that it will undercut, beginning at the end of October, the popular winter fares of Aer Lingus Irish Airlines, Ltd. from Dublin to Britain and the Continent. For example, roundtrip fares for two people from Ireland to Paris or Brussels is pegged at Ir?99, while a similar service from Dublin to London (STN) will cost customers just ?79.
While taking off from London (STN) on a scheduled September 30 service to Dublin, a company B-737-200 comes within 200 ft. vertically and 0.91 nm. horizontal distance from an Air U. K., Ltd. jetliner that is descending into London (CTY) after a service from Edinburgh.
On November 15-16, the carrier puts on 32 extra flights from Dublin to Brussels to ferry soccer fans to and from Ireland’s World Cup playoff match against Belgium. Over 5,000 fans are transported on the weekend.
Later, a B-737-230A joins the fleet from Germany, painted in the bright red and white corporate livery of sponsor Kilkenny, “the Cream of Irish Beer.” The “logojet” enters service on November 29.
In December, British Airways, Ltd. (2) announces the creation of a new low-cost division it will operate from London (STN) beginning the following spring. Many expect Ryanair to be a principal competitor.
At the same time, up to 50 of the 63 ground handling staff join the Services, Industrial, Professional, and Technical Union (SIPTU) in hopes of forcing Ryanair to begin collective bargaining. On December 19, the members, who earn some Ir?2,400 per annum less than their counterparts at Aer Lingus Irish Airlines, Ltd., vote for an industrial action, but agree to accommodate a company request for seven days in which to respond.
A “logojet” appears for the Christmas season wearing a Santa Claus smile and painted hat on and over the cockpit, with teddy bears, presents, and candy spilling down both sides of the fuselage.
As the year ends, Ryanair responds to SIPTU, rejecting talks with the union as representative of its workers. Ryanair, which has beaten off previous attempts by the Amalgamated Engineering and Electrical Union (AEEU) and Amalgamated Transport and General Workers Union (AT-GWU) to represent workers, sees no benefit in negotiating with the nation’s largest labor group.
A total of 4 million passengers are flown on the year and generates a net profit of Ir?30.2 million.
Having sought and been rebuffed in their efforts to obtain collective bargaining, 29 of the SIPTU-represented company baggage handlers inform the company on January 2, 1998, that they are halting work for three hours on every shift, beginning one week hence.
The company’s first strike begins on January 9, with an average of 14-17 ground handlers stopping work for three hours each shift as promised seven days earlier. Senior company executives, led by CEO O’Leary himself, load baggage for passengers at Dublin Airport to ensure there is no disruption of services. O’Leary had met the first shift at 6 a. m. and attempted for an hour to persuade it to abandon the strike.
According to The Irish Times, the two sides differ regarding the effect of the strike on January 11 operations. Apparently, at least one flight from Dublin to London (STN) is cancelled while several others are delayed. CEO O’Leary had again met with baggage handlers on the line and appealed to them to abandon their actions. The three-hour work stoppages have no affect on flights on January 12.
The industrial action continues apace over the next two weeks; the union claims to have forced the cancellation of 98 flights, while Ryanair indicates that no services have been scrubbed because of the dispute. During these days, a number of informal approaches are made to Ryanair by the prime minister and the minister for enterprise, trade, and employment plus other sources, to agree to third-party intervention by the Labour Relations Commission or some other mutually acceptable group. Ryanair, which sees any such move as de facto recognition of the union, refuses. Meanwhile, on January 20, SIPTU is careful not to take any action that disrupts scheduled flights to Liverpool for the Liverpool versus Newcastle football match.
The issue of union recognition at Ryanair is discussed by executives of the Irish Congress of Trade Unions (ICTU) on January 21. As of January 23, both sides are continuing to present differing pictures of the strike. SIPTU indicates that 134 flights have been cancelled, while Ryanair repeats its assertion that all of its schedules and 95% of its staff are operating normally.
The Irish Labour Court begins an investigation into the union recognition dispute at Ryanair on January 30. CEO O’Leary sends a letter to the body outlining reasons for not appearing, while the SIPTU warns that a serious confrontation with the trade union movement is being risked by the airline. The ICTU advises Minister of State for Labour Affairs Tom Kitt that an urgent need exists for legislation that will allow the Labour Court to intervene and arbitrate the issues in exceptional cases like that at Ryanair.
The industrial action continues into February. On February 10, CEO O’Leary, breaking his silence on the strike, is a guest on the RTE Radio 1 radio show of Pat Kenny and gives separate interviews to newspaper reporters. After presenting his views on numbers involved, job action causes, and a belief that his carrier’s baggage handlers are better off than those at Servisair, the baggage-handling company at Dublin Airport that provides services to third parties, O’Leary is challenged concerning the company’s statements that all service is operating normally. Host Kenny notes the comments of customers calling-in to the contrary, while SIPTU, in reviewing the air leader’s comments, indicates that there is clear evidence that over 220 scheduled flights have not operated since the strike’s beginning.
Ryanair attempts to counterattack in the area of public relations on February 12 when it sends SIPTU leadership a copy of a letter alleging that baggage handlers working regular shifts at Ryanair have received telephoned threats of violence. These alleged threats are also reported to the police and media. The union denies that anyone involved in the dispute has made any physical threats.
By February 14, analysts are suggesting that the increasingly bitter
Ryanair strike is becoming a test case of the growing “Americanization” of Irish industry. More and more Irish companies now emulate business practices in the U. S., choosing to bypass labor unions and negotiate directly with their workers on pay and working conditions. Private sector union representation has fallen from 85% to 40% during the past 20 years.
The labor dispute continues during the remainder of the month, with members of parliament and the government drawn into the debate on whether or not the baggage handlers and their union should be recognized by the airline. Speeches are made in various forums, including the European Union in Brussels, and demonstrations are held.
As the job action deepens, CEO O’Leary threatens to move the whole airline to the U. K. The Irish parliament begins to debate a trade union recognition bill, which the government opposes on the grounds that it may lead to a deterioration in industrial relations in the state.
Upwards of 1,000 workers from across the country join 39 Ryanair baggage handlers in a Dublin march in support of demands on February 27.
On February 28, in freezing rain, 2,000 baggage handlers, trade union supporters, and politicians attend a Dublin Airport rally in support of union rights at the airline. There are also representatives from U. S. and U. K. unions, as well as the workers at Air France. Speakers call upon the government to act immediately to force Ryanair to accept union representation and negotiation. ICTU general secretary Peter Cassells pledges the support of 650,000 trade unionists, while criticizing a reported Ir?17 million in bonuses paid to CEO O’Leary.
Ryanair announces on March 1 that it has recruited its 1,000th employee and will create an additional 100 jobs over the coming months. Ryanair withdraws security clearance from the striking baggage handlers on March 6, claiming that the strikers are intimidating other airport workers. On March 7, strikers and their union representatives inform the media that Ryanair has been using private detectives to spy on their activities, taking names and photographs. Police sources confirm that such surveillance is occurring, while the company’s public relations advisers, Murray Consultants, indicate that all such allegations are “totally untrue.”
The now-personalized and bitter industrial action reaches its zenith. SIPTU members at Aer Lingus Irish Airlines, Ltd. and CityJet, Ltd., thousands of workers in total, vote not to cross the picket lines of Ryanair baggage handlers. The action forces the cancellation of almost all flights by Irish carriers and closes down Dublin Airport. Ironically, by March 8, many Ryanair services are operating smoothly, while the state carrier, from whence most of the supporting demonstrators originate, is all-but shut down. Thousands of passengers are inconvenienced and the troubles are extensively covered by the electronic media. In some presentations, Ryanair appears the villain of the piece; This Week, an RTE Radio 1 program interviews numerous inconvenienced passengers, the majority placing the strike blame on Ryanair, or even CEO O’Leary personally, rather than the pickets. Television news programs show images of Ryanair workers drinking cans of beer and taunting baggage handlers from their windows, while chanting SIPTU members scream “scabs” at replacement workers.
After five hours of tense emergency talks led by the prime minister and other top government officials, as well as opposition politicians and trade union leaders, both CEO O’Leary and the SIPTU agree to a five-point formula. This formula will ensure an orderly resumption of work by the baggage handlers, who are not to be fired, and structured talks to address their concerns.
In addition, both sides agree to cooperate with a special Government Inquiry Team established by the Minister for Enterprise and Employment Mary Harney to review the dispute. The panel will be led by former employers’ leader Dan McAuley and former trade union leader Philip Flynn and will report its findings to the prime minister within a month or so. The inquiry team begins interviewing participants on March 9.
Also on March 9, an Ir?1.4-billion ($2-billion) order is placed with Boeing for 25 Next Generation B-737-800s, plus 20 options. Financing is handled through a combination of internal cash resources and commercial borrowing, including a letter of commitment from the Dutch Bank ABN Amro that will cover 85% of the net purchase price.
This purchase represents the largest financial transaction ever made by an Irish public company. It is anticipated that the new aircraft will allow the company to compete on an even basis with the new British Airways, Ltd. (2) discount subsidiary GO, which is set to begin flying in May.
Continuing to maintain that the March 7-8 disruption at Dublin Airport is due to unlawful activity, Ryanair repeatedly refuses to refund out-of-pocket expenses as allegedly promised to its inconvenienced passengers those two days. The story of one of these claims, that of Belgian customer Ms. Annabelle Francois, is reported by The Irish Times on April 17. Aer Lingus Irish Airlines, Ltd. has, since the disruption, received over 1,000 claims and expects to pay in excess of Ir?1 million to settle them.
Service is inaugurated on May 7 from London (STN) to Venice, St. Etienne to Lyon, and Kristianstad to Malmo. With all of the pieces in place, GO launches services from London (STN) to Milan and Rome on May 22 with three B-737-200s. During the month, the company is included on the New York Nasdaq index.
While easyJet, Ltd. and Debonair, Ltd. attempt to limit GO via legal and regulatory means, an even stronger competitor threatens to take it on head-to-head in the marketplace. In a speech before the Aviation Club at London on June 1, CEO O’Leary pledges that Ryanair “will compete with lower fares rather than wait for the bureaucrats in Brussels to rescue us.”
Flights to the Italian cities of Pisa and Rimini, plus Carcassonne to Toulouse in France, commence on June 4. At this point, the route network covers 28 destinations in 7 countries.
The company now introduces its latest “logojet,” a B-737-204A that wears billboard-sized “Tipperary Crystal” titles along the side of its white-painted fuselage. A circular blue decal under the cockpit window proclaims the product to be “Ireland’s Premier Crystal.”
An initial public offering is made on the Irish Stock Exchange on July 10. The 21 million ordinary shares are oversubscribed 5 times and bring in Ir?48.4 million ($65.82 million). The carrier is listed on the London Stock Exchange on July 13 for the first time and begins trading the next day. Market capitalization climbs to over Ir?1 billion. All of the funds generated will be employed, reports Chairman O’Leary, for the purchase of 25 Next Generation B-737-800s.
The report of the Government Inquiry Team, delivered to the minister for enterprise and employment a week earlier, is published in the July 16 issue of The Irish Times. In addition to reviewing events leading up to the early March disruptions at Dublin Airport, the document advocates that the government revisit and revise its policies for workers in essential industries and services.
The Government Inquiry Team specially criticizes Ryanair’s refusal to cooperate with the inquiry and notes that, during the course of the hearings, the company has gone so far as to dismiss the employment of probationary baggage handlers involved in the job action. SIPTU is cited for instigating and encouraging the difficulties leading up to the Dublin Airport debacle. Airport and airline employees are accused of gross misconduct in employing their security clearance passes to demonstrate on the apron and obstruct flights, while airport fire crews are criticized for actually joining in the demonstrations. The panel goes on to recommend new procedures be put into place scrapping the current volunteer guidelines and legally requiring employers and trade unions to refer disputes to the Labour Court.
It is reported on July 20 that the Irish government has instructed both the airline and the SIPTU to “consider” the results of its inquiry into their first quarter dispute and asks the two sides to adopt a “constructive and positive approach” to future discussions.
On July 25, Ryanair, embarrassed again, is further involved in controversy as it contests the findings of the prime minister’s inquiry. The Irish Productivity Center, which had carried out a comparative study of baggage handlers’ pay at Dublin Airport for the Government Inquiry Team, reveals that the airline’s claims that its pay scale is better than much of the competition is incorrect. The airline writes the IPC demanding that it “correct errors” or face a lawsuit in the High Court.
Ryanair, on July 28, proceeds to make its case in the High Court, indicating that the findings of both the Government Inquiry Team and the IPC are incorrect, but that it has been given no post-publication opportunity to offer correction. The revision is deemed necessary because the SIPTU has asked the airline to implement the inquiry’s findings and boost pay. The High Court grants the carrier leave to challenge the findings.
Also during the month, the company announces a 60.9% pretax profit increase during the second quarter and officially becomes Europe’s largest low-fare airline. In mid-August, British Airways, Ltd. (2) operates a seat sale designed to take passengers away from the discount carriers, including Ryanair. The Irish line’s CEO O’Leary terms the BA effort “fairly limp.”
Prompted by the BA challenge, O’Leary and several of his executives raise a huge promotional banner outside a BA flight shop in central London on September 3 to proclaim its own seat sale. “We want to show BA how a seat sale should be run,” O’Leary tells Reuters, Ltd. For tickets purchased over the next 12 days for travel between late September and mid-December, 1 million seats across Ryanair’s 26 European routes will cost from just Ir?16.99 ($28.54) one way.
The suit by Ryanair concerning the 1993 state aid package for Aer Lingus Irish Airlines, Ltd. is lost in mid-September when the European Court of First Instance rules that Aer Lingus has, in fact, adhered to all of the conditions laid down by the European Commission for receipt of the $259 million in assistance.
On September 30, company executives announce that the airline will cut back on flights out of Dublin and focus on its England and Scotland markets if additional terminal space in Ireland is not made available by December.
The aviation division of Stagecoach, Ltd., a concern that had built its reputation operating buses in Kenya, but which had purchased in May the company that controls Prestwick International Airport in Ayrshire, signs an agreement with Ryanair on October 1. The arrangement is part of a plan by the Irish carrier to diversify to U. K. regional airports from London (STN). Daily return service is inaugurated on October 2 from Dublin to Bristol and Teesside.
A strategic agreement is entered into with Hertz Rent-a-Car on October 10. The airline and rental firm create a preferential fly-drive program in 26 cities in 7 European nations.
During the remainder of the month and into November, discussions are held with more than 10 airports in Germany with an eye toward the launch of deep-discount service in that nation during 1999. Airport authorities in Spain, Finland, Denmark, and Austria are also approached.
During the fall, two more “logojets” are commissioned, one honoring the U. K. newspaper News of the World and the other the Irish mobile telephone company EirCell.
An Ir?200,000 publicity campaign is begun on November 10 designed to gain public support for the lowering of landing charges at Dublin Airport. The effort is in response to Aer Rianta’s plan to phase out the Traffic Incentive Scheme (which had offered landing fee rebates) over the next five years. Once more Chairman O’Leary threatens to move his company to London (STN).
One-way service is inaugurated on November 19 from Glasgow to Paris (Beauvais Airport).
Speaking in Dublin a month later on December 18, Chief Financial Officer Michael Cawley indicates that Ryanair has plans to expand by a constant 25% every year into the future.
Passenger boardings during the 12 months grow by 5% to 5 million. Pretax profits for the year surge 20% to a record Ir?45.3 million ($44.2 million).
On the afternoon of January 22, 1999, a tug towing a B-737 runs over baggage handler David Thomas, crushing his feet and breaking his left leg. Two days later, 22 baggage handlers call in sick to protest their working conditions.
It is announced on February 11 that in May, the carrier will add six new return destinations to its midweek schedule from London (STN). Hahn, which is located between Cologne/Bonn and Frankfurt (thrice-weekly), the French communities of Dinard and Biarritz, plus Ancona, Italy (weekly), and Geonoa and Turin in Italy (twice-weekly). The push is aimed against the British Airways, Ltd. (2) division GO, as well as easyJet, Ltd. and Debonair Airways, Ltd.
Ryanair rates well in the results of a new airline survey that is released by the U. K. Consumers’ Association’s Holiday Which? on March 9. The standing is based on responses from 20,000 airline travelers who were asked which airline they would recommend to a friend.
While working to complete a maintenance check on the engine of a B-737 on March 11, three aircraft maintenance technicians, meeting environmental noise regulations, test the power plant on a taxiway near 11 p. m. One of the men, Keith Chapman, loses his arm below the elbow after it is sucked into the engine.
Ralph Riegel of the Irish Independent surveys the on-going fare war between Aer Lingus Irish Airlines, Ltd. and Ryanair, Ltd. on March 15. With existing fares already as low as I?9.99 one way from Dublin to London (STN) or I?129 for a return for two to Paris, both airlines are preparing to step up their campaigns by fall. The airlines also undertake a fleet upgrade worth a combined I?715 million ($1 billion). The two carriers are preparing to complete contracts with rival manufacturers Boeing and Airbus, which are, themselves, engaged in a price war covering the 38 new jetliners the 2 Irish airlines will be receiving.
Ryanair receives its first Next Generation B-737-8AS in ceremonies at The Boeing Company facility at Seattle, Washington, on March 19. The delivery flight is completed next day via Keflavik, Iceland.
At the end of the month, the latest “logojet” is introduced, a bright yellow B-737-204 that wears the titles of “Hertz Rent-a-Car.”
Correspondent Padraig Yeates reports in the April 2 issue of The Irish Times that both the Health and Safety Authority and the Irish Aviation Authority have launched inquiries into the safety standards of the airline’s maintenance and ground-handling operations. The very same day, the wingtip of an inbound B-737 slightly strikes a fuel tanker at Dublin Airport. Two fire trucks are called to the scene as a precaution, but no damage or injuries are reported. On April 8, the reporter reveals that this ground accident is also being checked.
Twice-daily roundtrips are inaugurated on May 4 between London (STN) and Derry in Northern Ireland. The weekday fare over the company’s first route north of the border is ?49.99 one way.
The Irish Independent reports the company’s 1998 pretax gain on May 29. Simultaneously, it notes that Dr. Tony Ryan is reducing the family’s shareholding to 17.1% by selling another 10.1% stake for Ir?118 million. Chairman O’Leary is likewise selling 1.5% of his equity (for Ir?10.8 million), but will still retain 10.8% shareholding.
On May 31, the U. S. aviation journal Aviation Week & Space Technology honors the Dublin-based line with its 1998 “Best Managed National Airline” award. After reviewing the company’s achievements, AWST notes that Ryanair has become “the best-positioned low-fare carrier in deregulated Europe.” Two new Next Generation B-737-8ASs are received in June, one each on the 16th and the 28th.
The 130 passengers aboard the company’s 9:35 p. m. June 30 service from Dublin to London (STN) make history as the last passengers en route from an Irish airport to an airport in another EU nation who are able to buy duty-free goods.
The company aggressively expands its schedule on July 1, adding daily return service to Frankfurt/Hahn, Biarritz, Dinard, Ancona, Genoa, and Turin. The fourth Next Generation B-737-8AS is accepted on August 9.
On August 11, Ryanair announces that it will join Virgin Atlantic Airways, Ltd. and LOT Polish Airlines, S. A. in grounding aircraft at 4 p. m. on December 31. The year’s final Next Generation B-737-8AS is delivered on September 24.
The feisty Irish carrier continues to battle airports over what it considers to be outrageous landing and other fees. Rows with the authorities at Kerry in Ireland and at Manchester and Liverpool, England, will cost it the loss of 400,000 passengers. The 250,000-300,000 loss at Manchester alone is keenly felt.
With the beginning of the winter season at the end of October Flights between Dublin and London (LTN) are reduced to twice daily.
The eighth low-fare route of the year is inaugurated on November 4 when flights are started from London (STN) to Aarhus, Denmark. On December 2, a 10-year agreement is signed with Lufthansa Airmotive Ireland, Ltd. for the maintenance of the CFM56 engines that power its fleet of Next Generation B-737-8ASs.
At the end of the year, 60% of Ryanair’s business originates in the U. K., 22% in Europe, and just 18% in Ireland. The company’s on-time percentage improves from 74% this year to 80%, while complaints fall from 2.5 to 2.3 per 1,000 passengers.
Overall, customer boardings are up 13% to 5.6 million. The airline will boast that its customers have enjoyed over Ir?300 million worth of savings over the high fares being charged by its European flag carrier competitors.
Revenues for the year advance by 25% to E370.1, permitting an aftertax profit of E72.5 million ($77.6 million). Citing the company’s expansion and noting that it is a “capital intensive business,” Ryanair fails to pay a dividend to its shareholders.
Airline employment at the beginning of 2000 stands at 1,300. The “classic” B-737 fleet includes 6 Dash-204As, 1 Dash-2E7A, 3 Dash-2K2As, 2 Dash-2T5As, and 9 Dash-230As. Also operated are 5 Next Generation B-737-8ASs. Europe’s oldest low-fare airline, Ryanair is the only new entrant since European deregulation to grow to the size of its country’s national airline, in this case Aer Lingus Irish Airlines, Ltd.
Ticketless travel is introduced in January as the carrier switches from the Galileo back to the SABRE reservations system it had employed years earlier, saving E6.3 million in the process. Also, during the second week of the month, the Internet homepage is established, with the goal of selling 20% of the carrier’s fares online. Ryanair is named recipient of the 1999 “Market Development” award by Air Transport World magazine in February. These laurels follow upon the naming of the carrier as “Company of the Year” by the Irish business magazine Business and Finance.
At the beginning of February, the 300 cabin crew assigned to the company’s Next Generation B-737-8ASs welcome passengers aboard in their chic new blue and yellow “French-style” uniforms.
While on a February 6 domestic service from Kabul to Mazar-e-Sharif, an Ariana Afghan Airlines Company, Ltd. B-727-228A with 128 passengers is taken over by armed gunmen, who order the jetliner flown on to landings in Uzbekistan, Kazakhstan, and Moscow. Passengers are released at each point, including 10 both at Kazakhstan and Moscow. On February 8, the aircraft is flown to London (STN) where negotiations open. The resulting confusion at the U. K.’s designated hijacking airport causes Ryanair to lose 42 flights.
During February, Ryanair’s Web site generates 24 million “hits.”
At the beginning of March, CEO O’Leary sells 5 million of his 36 million shares in the company, realizing ?25 million. At the same time, another share placement generates an additional ?77 million for fleet expansion. On March 3, a new five-year heavy maintenance contract is signed with FLS Aerospace, Ltd. Frequencies from Dublin to London (STN) are increased on March 24 from 4 daily roundtrips to 10. Daily return service is inaugurated on March 26 from Glasgow to Frank-furt/Hahn.
Total traffic to Dublin from the U. K. (by far the company’s largest market) declines during the first quarter for the first time since the 1991 Gulf War. The downturn is blamed on the Irish government’s continuing high cost monopoly over airports. To try and counteract this situation, Ryanair continues to build up its capacity out of London (STN).
On April 4, Ryanair files a protest with the EU Commission’s Competition Authority over Aer Rianta’s Ir?7.20 departure fee. The company complains that the state airport authority and Irish Minister of Public Enterprise have failed to honor a pledge to drop the charge if it began flying out of the “half empty” airport. Ryanair points out that its passengers are paying more to land or depart Shannon than it costs them in airfare (Ir?7) to fly to London.
New twice-daily roundtrips are introduced on April 13 from Shannon to London (STN). By the end of April, Ryanair’s Web site is accounting for 30% of the carrier’s ticket sales, selling over 50,000 bookings every week. Several special Internet fares are offered, including Ir?1 r
World History
