For Michael O’Leary, Ryanair’s chief executive, even bad news is an opportunity to go on the offensive. Mr O’Leary’s decision to cut flights out of Stansted later this year and close operations at seven other airports is partly a reflection of the damage being done to airlines by the high price of fuel. But it is also a negotiating gambit to reduce costs.

Mr O’Leary said that Stansted was the most expensive of Ryanair’s bases and attacked BAA for raising charges by 15 per cent this year.

Pulling out of seven airports at once will shock town councils and chambers of commerce around Europe because the potential loss of Ryanair is a serious threat to regional economies supported by tourists and expatriates.

When Ryanair starts threatening to abandon other airports if it does not get reduced landing fees, discounted fuel and other perks from operators in the coming months, it will be clear that Mr O’Leary is not bluffing.

Acting now also gives Ryanair first mover advantage. Mr O’Leary will find it easier to strongarm airports into giving him a better deal when he is the first to make the demand.

Later in the year, when there are dozens of other airlines clamouring for similar special treatment, it will be far harder for airports to offer favourable terms to one and not all.

It is inevitable that after the summer travel bubble, airlines across Europe will start cutting capacity. Carriers in the United States are already grounding aircraft and laying off thousands of employees and, unless there is a dramatic fall in the price of oil, Europe seems almost certain to follow.

By announcing its plans now, Ryanair will avoid the stampede later in the year and its stock may well hold up better as a result.

However, Mr O’Leary’s savage capacity cuts are also a reflection of a failed strategy. He has not hedged against the oil price and is now feeling the full pain of more than $130 a barrel. Ryanair’s lack of action on this issue means that it is suffering much earlier than its rivals.

Ryanair has also continued to buy aircraft, adding capacity at a time when it is clear that there was a serious shock awaiting the airline sector.

Playing offence in a tight spot is a trademark of Mr O’Leary and it may help Ryanair to weather the storm. Even so, perhaps a bit of defence earlier in the year would have been a better tactic.

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