Good news and bad news for our friends, Ryanair. On the one hand, they
recently reported a 44 percent year-on-year increase of passenger numbers.
They say that they handled 2.141 million passengers in August 2003 compared
to 1.487 million a year earlier. Internet bookings rose 2 points to 94
percent. The average load factor (the average number of seats sold as
a proportion of seats available on flights) fell by five percent to 78
percent in the three months to June, while yields fell 14 percent. Ryanair
blamed the decline on the launch of 50 new routes, the weakness of sterling
against the euro, the one-month closure of buzz, the former budget unit
of KLM Royal Dutch Airlines it snapped up earlier this year, and cheaper
fares.
The bad news is that a French court has ruled that subsidies it receives
in Strasbourg are illegal. Air France's subsidiary Brit Air filed
the case against Ryanair, whom they said were receiving unfair subsidies.
Ryanair said that when the Strasbourg Chamber of Commerce approached Ryanair
requesting it fly to Strasbourg, Air France was only carrying around 3,000
passengers per month on the London route and in August 2003, Ryanair carried
over 18,000 passengers on this route. “Air France has been downgrading
services from Strasbourg and other French regional airports, having withdrawn
from 10 direct international routes from Strasbourg alone in the past
8 years,” said a spokesperson.
“Ryanair's partnership with the Strasbourg Chamber of Commerce
led to 130,000 additional visitors to Strasbourg and the Alsace Region,
resulting in increased revenues to the airport and increased tourist spend
to the region, along with the creation of approximately 200 new jobs.
All this will be lost until our appeal has been heard,” they said.
As a result, Ryanair have suspended flights to Strasbourg and switched
to nearby Baden Baden across the border in Germany. (Oh yes, another case
of flying to a different country!)
Another law case is pending. Ryanair are waiting to hear about a deal
it has with Charleroi Airport, near Brussels, where it has established
one of its bases.