Ryanair wants to rule the aviation world (and why that’s terrible news)
By: Marco Rola
Tags: Airlines, Europe, Business, Travel, Aviation

Cheaper and better.

You know you want it, and you know you need it. At least, that’s what goes on in the mind of Michael O’Leary, Ryanair’s CEO when it’s time to, yet again, push forward on his never-ceasing attempt to conquer the world — of aviation, at least.

Cheaper, definitely. Low-cost carriers have accomplished an arithmetic miracle, by making air travel affordable for all. Looking back a couple of decades, and a 2-hour flight would cost in excess of €500 (optimistically speaking, that is). A similar route can now be found on sale for as little as €9,99, as long as you meet all the “ifs” of this life. Speaking realistically, you’ll surely find it in a €50-€150 range, still very far from the prices you’d find two decades ago. Add to the fact that the €500 of those days weren’t the €500 of today.

The market seems to be happy to buy convenience, no matter the cost involved. If little can be said about safety since Ryanair has to meet all the tight regulatory demands on this field along with everyone else, very little can be said about commercial ethics. When it comes to that area alone, very few boundaries — if any — are set, starting from the “any publicity is good publicity”.

Recently, O’Leary has yet again made a statement on how Ryanair is likely to become the only low-fare airline operating in the very competitive European market, beating both easyJet and Wizzair at their game. For consumers, that’s terrible news, as nothing great ever comes from a single-company rule in any market. Ultimately, it will result in further dependency from destinations where the airline operates, always eager to please Ryanair’s bully approach to regulations, as well as the never-ceasing attack on its labour force, and anyone that defies their ways.

Better? Not a chance!

If anything can be said about Ryanair’s competitors, is that surely they offer, by far, a superior service. They have done so by stripping their businesses from unnecessary excesses, focusing on what really matters to the customer. Carolyn McCall, former easyJet CEO was surely the main responsible for the airline’s exceptional shape when the pandemic wave flipped the airline world upside down.

Her product — her airline — operating in the extremely competitive low-fare industry, managed to challenge many flag carriers at the top of their own game. A more convenient service, with all the options transparently laid before its customers at the moment of purchase, meant the correct management of expectations, and plenty of room to surpass them.

In fact, easyJet is often regarded as a great product and an overall positive experience for customers of several markets and several levels of expectation. The airline has sailed through great challenges in the course of its history, managing its pace and realizing the market is less prone to sprints as it is to marathons.

Today, most customers that take flying more than once a year know the difference between both approaches, but they fail to sometimes realize the intricate mechanics at motion when it comes to the cheapest price offered by the first, against a more robust and professional approach by the second. Managing expectations, indeed.

That can’t be said about Ryanair. Apart from its vast offer of flights — and I do write “apart” very loosely, regarding what is actually a HUGE offer — everything else is designed to ensure they will undoubtedly fall just short enough from your expectations. It is that mechanism exactly that is in place to tempt you in paying a little extra more. And more.

The whole business approach has always been about “milking the customer” for what it’s worth. From endless announcements onboard — regardless of the time of the day — to breaking families apart upon check-in just to “invite” you to buy the allocated seat next to each other. These commercial nuances, diluted into the Terms & Conditions of your ticket define the principle that you should only make the same mistake once.

There is surely a limit to how cheap you can get — except there isn’t.

And Ryanair’s numbers prove just that. In the endless thirst of grabbing the very best deal possible, most people have repeatedly proven they don’t mind being treated like cattle, stuffed in a can, treated like a (cheap) product, and willing to repeat it all over, and over again.

Ask anyone that has ever worked for Ryanair and you’ll hear some horror stories. I have asked and heard back endless words of pure commitment from their staff, in return for a salary and nothing more. No respect, no interest, no real value.

If you feel like an interview with some of these professionals would be interesting, drop me a line, and I’ll happily provide it.

If, as customers, we are willing to save €10 or €20 in return for this approach, then it’s no wonder Mr. O’Leary’s strategy may soon become unstoppable. Whilst many airlines have rushed to a corner looking for a cuddle, Ryanair keeps thinking about the next 10–20 years with endless thirst, investing during the most demanding downturn ever in the market, and grabbing up any chances with the opportunistic approach that characterizes the airline and its CEO.

It may be unpleasant to assume we’ve all been too complacent with an airline such as Ryanair. It has definitely made its stand in bringing airfare prices down. Furthermore, it has forced flag carriers to review their operation and offer “better for less”, in most cases. It has also ensured that their competitors — easyJet and Wizzair — keep offering a better package overall, in what has been up to this point a market with enough offer to cater for all tastes.

Whether the future will segment the airline industry in absolute minimums — Ryanair — and something slightly better — easyJet and Wizzair — all the way up to flag carriers, is yet hard to see. That’s surely not O’Leary’s plan, as his approach is definitely keen on taking over flying in Europe, as much as possible.

If anything, the pandemic has put to public scrutiny the accounts and performance of many European airlines, such as the case of TAP which is now looking at an estimated €3.7 billion to keep afloat in the next few years. The public opinion will strip most of these airlines from their strengths, with Ryanair luring around the corner, willing to take over their position (and their slots).

Low-cost carriers have taken the opportunity to keep their balance sheet strong and healthy over the past few years, preparing for a downturn in the market and coming through on the other side with an upper hand. Ryanair surely sees this as an opportunity — as do all great businesses — but will their competitors be ready to face the fierce threat that is coming their way?

If not, then these are definitely terrible news for all of us.

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