The low-cost airline Ryanair does not rule out the closure of bases in some of its markets due to the uncertainty and “low visibility” on the behavior of demand, which has caused the company to be forced to review its flight schedules month after month.
See also: Ryanair reaches a 97% punctuality rate in August.
“We can’t rule out that in some market we will have to close some bases”, warned Ryanair’s Marketing and Digital Director, Dara Brady, in an interview with Europa Press. However, he has assured that the company is “constantly” working so that it is not necessary to undertake this cutback.
For Ryanair, the crisis is being “an unprecedented challenge”. After three months of total stop due to the restrictions of travel and movement and after restarting in July 40% of the planned schedule, the airline has regretted that the demand still does not respond as they expected for the month of September. Therefore, it has been forced to reduce its capacity by 20% during the months of September and October, waiting to see how the situation evolves.
See also: Ryanair: Consumers will benefit if Air Europa leaves the market.
The company believes that domestic and inter-European tourism will be the first to recover, while long-range traffic will be delayed more. “We believe that countries like Spain, which are very attractive, will recover more quickly,” Brady has anticipated, who sees a possible recovery from pre-crisis traffic levels in 2023 or 2024. However, he has insisted that until there is a vaccine it is “complicated” to make a forecast.
Consolidation in the Sector Accelerates
One of the consequences of the crisis, according to Ryanair’s Marketing and Digital Director, is that it may have accelerated the consolidation of the air sector.
The purchase of Air Europa by IAG, which “does not surprise” Ryanair, is the path that, according to Brady, the aviation market in Europe is expected to follow, consolidating into four or five large groups as has already happened in America.
“We are not surprised by this acquisition and possibly the Covid-19 has accelerated the consolidation of the aviation sector”, said the executive in the interview.
Without agreement with the Cabin Crew
In view of the impact of the crisis on the company, Ryanair started talks with the unions in Spain to minimize the impact of the drop in demand on employment. The company’s pilots ratified the agreement reached between the Sepla union section and the company’s management to maintain jobs over the next four years in exchange for a 20% salary reduction.
However, the company has regretted that this type of agreement has not yet been reached with the cabin crew unions, although they hope to reach a meeting point by engaging in more negotiations, as has happened in other countries.
Specifically, Brady has explained that what is being negotiated and offered to the PCCs is a salary reduction for a period of time, so that job losses can be minimized, as has been agreed with the Spanish pilots.
By EuropaPress
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