easyJet and Ryanair: How do they do it?

Old Sep 15th, 2005, 12:56 AM
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easyJet and Ryanair: How do they do it?

How are easyJet and Ryanair able to offer such cheap flights? For example, I just came up with a one-way flight from London Stansted to Milan for one pence! Yes, they add on taxes and fees, but for TWO of us it would be less than 30 pounds!

How can they stay in business? Are they subsidized (subsidised) by the British government or something?

Colo(u)r me curious.

Bob
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Old Sep 15th, 2005, 01:15 AM
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Hi Bob
They minimise their overheads, cut out all frills and try to operate in a lean and efficient manner.
They have a minimal fleet of aircraft and keep landing charges down by avoiding many of the expensive airports.
Drinks and cold snacks are provided for a price and you won't find the latest movies or in fact TV screens in many planes. Cuts down maintenance I suppose too.
They try to ensure a 30 min turn around, difficult but they do it.

I'm sure there are a million other things they do but someone will be along with more soon.

I have flown easy jet a few times and all has been ok, however when things go wrong they go very wrong.

Muck
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Old Sep 15th, 2005, 01:18 AM
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They only have a few of these "giveaway seats" on every flight. The prices fluctuate wildly depending on demand. In April I paid 6GBP + taxes return from London to Palermo on a Tuesday morning. The same flight is now 99GBP + taxes each way (the flight is still a month away).

Should you wish to book on a flight that leaves in the following 2 days or so, the fare is likely to be equivalent to, if not more expensive than a full price airline.

Both are also very good at cutting out extras. The in flight food and drink are expensive, there is no seat booking (you get a number, but when the flight is called it is often a free for all.)

Most importantly for Ryanair, it does not fly to major airports. The flights to Brussels land at Charleroi, Venice is really an Ex Italian airforce base at Treviso. Milan is Bergamo etc.

The landing fees at these sites are far less than at the major airports. There is currently a court case going on about airports who either waived landing fees, or actually paid Ryanair to land (Some regional French towns have seen tourist revenue quadruple since the budget airlines have arrived at local airports).

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Old Sep 15th, 2005, 01:59 AM
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http://www.guardian.co.uk/comment/st...567605,00.html
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Old Sep 15th, 2005, 02:15 AM
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Patrick, thanks for the link - very amusing.

I have to say that much as I dislike O'Leary and his attitude, I love Ryanair and the other low cost airlines. They have allowed me to travel, sometimes 2-3 times a year. This would have been impossible for me many years ago. I know I run the risk of cancelled flights with little chance of compensation, but if I can get two flights to Sicily for less than 50GBP including taxes, and 90% of my journies are going to be OK, then that is a risk I am happy to take.
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Old Sep 15th, 2005, 02:51 AM
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We recently traveled from Athens to Gatwick on EasyJet for about 55 Euros each.

Service was excellent, flights were on time, equipment was in great shape, and staff were helpful and efficient.

We got what we paid for, and more IMO...I wish all airlines were this consistent regardless of amenities offered.
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Old Sep 15th, 2005, 04:07 AM
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These airlines are making record profits.
Their success is mostly due to various failed policies of other airlines - eg going for the business market at the expense of tourists, agreeing to high landing charges (its ok the businessmans expenses will pay) instead of moving to other ports, forcing customers to buy drinks & horrid food (there is no "free" food & drink on planes), issuing tickets, reserving seats etc.

(NB: you have no ticket just a booking number.You board approx 20 at a time, bunched in order of when you check in, then pick your own seat.)
Those who aren't paying for their own seats will still fly on the expensive airlines, but the volume isnt enough.
I prefer Easyjet to Ryanair, but not by much.
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Old Sep 15th, 2005, 04:16 AM
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I have also heard that they frequently carry cargo, which easily pays for the cost of running the plane, so they'd rather offer v. cheap seats and fill the plane (and, as a result, encourage customer loyalty) rather than leave seats empty.
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Old Sep 15th, 2005, 04:18 AM
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It isn’t what each seat costs that matters, but what the average seat price is.

On Easyjet etc they fill almost all of their seats, at wildly differing prices, but they will average out at a level that is profitable for the airline – in short: late bookers pay the profit.

The likes of BA charge higher prices (and have three classes), but also run with empty seats – so the average price is probably only a few quid higher than the various budget airlines.

Also Easyjet work on the assumption that if you get your seat for next to nothing they will at least get a few quid out of you for sandwiches and drinks (which are almost pure profit).

Couple that with massive reductions in costs – ie more efficient use of planes, using secondary airports, no in-flight hot meal (does anyone ever miss this?) and they are highly profitable – well most of them are….

What is also true is that there are too many of these airlines chasing too few passengers and quite a few of them aren’t going to make it.
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Old Sep 15th, 2005, 04:32 AM
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EasyJet make a big thing about flying into airports and not airfields (a dig at Ryanair). However, it sometimes suits to be nearer where you actually want to go. For instance, if you want to fly to Brittany then with EasyJet you'd have to fly to Paris and then on by land. Ryanair, though, fly to Dianrd. OK, so it's an airfield with little way in shops etc, however - you are likely to be the only flight going out at that time which means less crowds and confusion.
As for the South of France, Ryanair fly to Perpignan, Carcisonne, Montpellier and Nimes amongst other places.
The naughty part of this is that they do advertise destinations loosely (want to go to Venice? Then fly to Treviso!) but then it takes a long stretch of the imagination to call Stansted, Gatwick or Luton as London.
Ryanair are now removing head-rests and looking to do away with fold-up tables. This means less maintenance.
The answer really is that it's fine for short haul. I'm going to Montpellier on business on Monday and I've been booked on BA (more than 20 times the Ryanair price). BA are currently not feeding anyone more than tea, coffee and buscuits on short-haul (according to their website) - so what do I get? On-line check in and a numbered seat. Absolutely nothing else whatsoever.
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Old Sep 15th, 2005, 04:36 AM
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In addition to the things already mentioned, low-cost carriers also look to eliminate frequent flyer rewards, multi-class service (including benefits for upper-tier flyers, such as dedicated check-in, lounges, and concierge services), interline baggage agreements, refundable tickets, and generous baggage allowances. Some try to standardize on one type of aircraft, although this can become a two-edged sword. They also try to avoid having unionized staff.

Anselm
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Old Sep 15th, 2005, 05:11 AM
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"low-cost carriers try to avoid having unionised staff".

Many of us would pay a significant premium to avoid unionised staff.
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Old Sep 15th, 2005, 05:49 AM
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When I flew Ryan Air, they boarded the plane from the front and the back. They turned the plane around in just 30 minutes. No reserve seats but the first 50 people with boarding passes boarded first. None of this Rows 30 and higher can board now. Also, they don't allow large carry-ons like they do in the United States.

Finally, their not paying their pilots $300,000 a year.
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Old Sep 15th, 2005, 05:53 AM
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I don't know if they save any money with this but the cabin crew of EasyJet only speaks English. No other language. It's a curious thing when they fly from Spain to London and most of the passengers are spanish people to look at everybody doing gestures..I suppose it happens the same in France or Italy flights.
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Old Sep 15th, 2005, 06:08 AM
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Most of their planes are equiped with automated voice instructions on the PA. They just push the button for the language they need and it is played.
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Old Sep 15th, 2005, 06:18 AM
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The cabin staff don't need to speak anything but English as you just talk louder to a foreigner.
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Old Sep 15th, 2005, 06:43 AM
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Quite right AR. Also they're used to miming instructions. What more do you need?
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Old Sep 15th, 2005, 07:05 AM
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AR- how can the NHS afford to put you on BA. What can you learn there that LLandough can't teach you?

;-)

Muck
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Old Sep 15th, 2005, 07:08 AM
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When I ordered new analysers for the lab, I made sure that I bought the ones that had a head office in Montpellier. We have a User Group Meeting every year, paid for by the company. Actually, it's an annual piss up that I happen to organise - well, I do come from an important hospital don't I?
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Old Sep 15th, 2005, 01:46 PM
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Brilliant,its got to be good, and think of all the petrol you will save...lol.

Muck
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