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Michael O'Leary: "I think people are becoming more price sensitive"
Photo: YVES HERMAN / REUTERS
Michael O'Leary built an empire with cheap offers.
In view of inflation and rising fuel costs, the Ryanair boss now also believes that flying is too cheap – and he is preparing his customers for higher prices.
“There is no doubt that at the bottom end of the market, our really cheap special plans – the €1 plans, the €0.99 plans and even the €9.99 plans – will not be available for the next few years be found,' O'Leary told the BBC's 'Today' programme.
The Irishman, who for decades advertised that he could make flying even cheaper (but at the same time was one of the first to pay for services such as a reserved seat or checked baggage), admits that his airline is also demanding more in view of the generally rising price level.
In view of the inflation, however, he is sticking to the cheap flight business model.
O'Leary: Undoing 'stupidities' of Brexit
“We believe that people will continue to fly frequently.
But I think people are becoming a lot more price sensitive,' O'Leary told the BBC.
People are therefore even more looking for inexpensive options than they already are.
However, the airline's average fare will rise from around €40 last year to around €50 over the next five years, he told the BBC.
Meanwhile, Ryanair is also suffering from the upheavals and lack of staff after the corona pandemic.
He has "very little understanding" for the problems at the airports, as they would know the flight plans months in advance.
And security personnel need less training than pilots, for example.
He described the fact that London's Heathrow Airport has introduced an upper limit for the number of passengers per day as "mismanagement".
In general, the situation on the labor market in Great Britain is difficult, said O'Leary, whose company is based in Dublin, Ireland - but offers hundreds of routes in and from Great Britain.
Brexit has proved to be a "disaster for the free movement of workers," he told the BBC - and called on the government to "be honest and admit" that leaving the EU was the cause of the labor shortage.
He is quoted as saying that "some of the stupid things" need to be undone and demanded that the next British head of government sign a new free trade agreement with the EU that would also include the free movement of workers.
Apr
