Ryanair chief pessimistic about future of airports and airlines

Michael O’Leary, Ryanair’s outspoken chief executive officer, has expressed doubt about the future of smaller, regional airports in Europe, as well as the future of several airlines. O’Leary referred to Knock International Airport, in Ireland, as “pretty flakey” and was categorical about the troubles that Waterford, Galway, Sligo and Donegal will all experience in the very near future. The discount Irish airline also suggested that it was time that government officials stopped offering subsidies to airports that faced a grim future. O’Leary believes that since Ireland is a small country, with a population of just four million, maintaining 11 airports is simply unrealistic and there is no way to gurantee their survival without government subsidies. The Ryanair chief expects that the country will soon be left with only seven airports, as all other ones eventually shut down.

More interesting that O’Leary’s prediction about the future of regional airports was what he claimed would happen to the commercial airline industry. Ryanair’s chief believes that within a matter of years, all airlines except five of the largest ones, would either go out of business, due to insolvency, or would be swallowed up by a larger rival. O’Leary noted that Aer Lingus would also probably disappear, as it would either be merged into another company, or may simply go bankrupt. O’Learty is convinced that Ryanair will be among the ones to survive, as will British Airways, Air France-KLM, Lufthansa, as well as easyJet.

O’Leary also warned that due to the difficult economic circumstances, Ryanair is unlikely to generate a profit this year. The chief executive also used the opportunity to point out that because his carrier does not add a fuel surcharg on top of tickets, it is simply more difficult to remain profitable in these circumstances.

www.ryanair.com

Thank you to Marie O’Halloran of the Irish Times for the quotes