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From
May 10, 2007
Budget ticket price war takes off as airlines struggle to fill new aircraft
Rival budget airlines began a summer price war yesterday to fill a glut of empty seats, with more than ten million tickets on sale at £20 or less.
Ryanair and easyJet are flooding the market with cheap tickets in a desperate attempt to stimulate demand in a period when they are taking delivery of dozens of new aircraft.
Both reported a sharp fall in the number of seats occupied on their aircraft last month.
Ryanair announced the cheapest deals, saying it would offer 3.5 million seats this summer for £10, inclusive of taxes and charges, another 3.5 million at £15 and 3 million at £20.
You have to hand it to Ryanair, an airline that charges a £1 wheelchair levy, £4 for a sandwich, and £7 to check in a bag
It offered to pay double the difference to any passenger booking with Ryanair and finding a cheaper fare between the same cities within an hour on an another airline.
Ryanair also said it was abandoning the policy of quoting a headline fare on its website without including taxes and charges. This has allowed Ryanair to claim it offers flights which are either free or cost 1p, even though the customer usually ends up paying at least £30 for a return ticket.
Michael O’Leary, Ryanair’s chief executive, admitted that the policy had resulted in scepticism about the airline’s price promotions.
He also said Ryanair was acting before an anticipated legal change in Britain requiring airlines to quote inclusive prices on their websites. France, Germany, Belgium and Poland have already introduced such a rule.
The Air Transport Users Council issued a report last week strongly criticising Ryanair and other budget airlines for misleading passengers by failing to include charges of up to £50 in the prices shown on their websites. Mr O’Leary said that demand for flights had weakened after the doubling of air passenger duty on economy flights in Europe to £10 in February.
Ryanair will have to pay £10 in duty for each £10 ticket it sells, but it still hopes to make a profit by charging extra for baggage, priority check-in and food and drink on board.
Mr O’Leary dismissed suggestions from easyJet that publicity about the environmental damage caused by aircraft was beginning to make people consider whether they should fly less.
“I don’t think there’s any evidence that the loonies are dissuading people from flying. I don’t see people buying less kiwi fruits or kumquats in Sains-bury’s either.
“Reality TV shows are littered with people buying property overseas and if anything people are travelling more.”
The number of flights per month worldwide is due to rise above 2.5 million for the first time this month, largely because of rapid growth in China and India.
Joss Garman, a campaigner with Plane Stupid, the hardline antiaviation group that blockaded BAA’s Heathrow headquarters last month, said: “The scientists have made it clear that the culture of binge-flying — weekend stag dos in Prague and second homes in Spain — has to end.
“Yet while admitting the need to curb emissions, the Government continues to set the conditions for growth through expansion of airport capacity and through tax breaks to the industry worth £10 billion a year. That’s like claiming to fight obesity and then feeding schoolchildren Big Macs.”
Andy Harrison, easyJet’s chief executive, said that the airline would cut 10 per cent off the “lead-in” prices it offers on nearly 300 routes across Europe this summer.
Its cheapest fares will fall from £14.99 to about £13.50 including taxes.
Mr Harrison said: “We expect aggressive competition in the summer. It’s a good time for customers to fly.”
–– Airlines are resorting to random testing of their flight crews to prevent the use of drink and drugs (James Rossiter writes).
Yesterday Emirates Airlines signed up the British drugs-testing company Cozart, which makes kits used to test for drugs including alcohol, cannabis, cocaine, amphetamine and heroin.
The airline will test random urine samples taken from staff flying their routes from Britain and the rest of Europe to Australia, the Middle East, the Far East and the United States.
Virgin Airlines has also signed a similar deal with Cozart, The Times has learnt.
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Let's see now - Ryanair and Easyjet charge low prices and deliver a world class transport service.They make a profit, pay loads of tax and employ tens of thousands. Lets not forget that the aviation industry pays for all its own infrastructure. As for no tax on aviation fuel - show me the VAT on train fares. The government on the other hand taxes us to death and beyond, has no chance of ever balancing its books, hasn't a clue what its doing, hasn't a clue what it wants to do except invent even more taxes. I say - Ryanair and Easyjet should be running the country - they would do a first class job.
Pravin, London, UK
100% cheers for Ryan air boss ...not pandering to those who use any lies and deception to put up taxes....
P.s.
where's Australia....
mike, oxofrd, engalnd
Passenger numbers are falling on many routes and this has nothing to do with environmental issues. There are numerous other reasons for this. i.e. rising interest on home loans and other financial restraints, less people buying property abroad and people - like myself - are just tired of the stress involved with flying and would prefer other means of transport where available. Buying in extra planes at this time of intense competion, sounds very risky indeed. We could end up with some "Lakers" in the industry.
JohnB, Malaga, Spain
Yes, lets all holiday at home. Sit in the car on a motorway for the day getting to your exotic British holiday destination, where a grumpy landlady will rip you off for a B & B. Where you can head out for an evening to the good old British chain restaurant to be ripped off for crappy wine and microwaved food, then clamber over the drunken yoofs on your way back to bed. Next day when its raining you can get out with your coat on and be ripped off by the National Trust or English Heritage or some penniless descendent of a Norman Conqueror to look round some bit of heritage that you own already, before finding anywhere that isn't McD's for a rip off lunch. Can we stop the inverted snobbery? Cheap flights let more people see more places and experience more cultures than ever before. If an Easyjet or Ryanair can make a profit out of that then so what? They employ thousands of people.
David B., Larkhall, UK
It would appear that the punters want to fly for nothing
Eddie Keane, Brisbane, Qld.,Australia
Does anyone really want to be herded like cattle onto their planes after spending hours waiting at congested airport.
The airlines have had their day ripping off the British public.
I know where I am spending my holidays in future ,in this beautiful country.
Andrew,Harrold ,Bedford.
Andrew Jones, Harrold, BEDFORD UK
New aircraft, empty seats, make money on food and drink.......I reckon some airlines will go out of business before long
Iain, Perth, Australia