Ryanair, OnAir go separate ways on in-flight phone services
Two parties can't agree terms of rollout to entire Ryanair fleet
By Aude Lagorce, MarketWatch
LONDON (MarketWatch) -- Ryanair Holdings, Europe's largest low-cost airline, on Monday announced a halt to its in-flight phone service after a 13-month contract with OnAir ended, and invited rival providers to bid for the expansion of the service to its entire fleet.
Ryanair, which is well known to drive a hard bargain, said OnAir didn't wish to commit to the expansion of the service across its entire fleet.
The carrier said it will now invite other providers of in-flight communications to tender for access to its 73 million annual passengers. Considering Ryanair is well known for rapidly dropping initiatives that don't pay off, news of a tender suggests the airline was happy with the trial it ran on part of is fleet.
OnAir was operating the service on 50 of Ryanair's 202 aircraft. It said in a statement issued Monday that the two companies couldn't agree on the process and timing of a full deployment.
"It's disappointing that OnAir and Ryanair couldn't reach agreement on the detail of a rollout to their entire fleet, but our experience was extremely positive," said OnAir Chief Executive Benoit Debains.
OnAir currently works with six airlines and plans to launch services with six more during the course of the year. It said it will shortly announce strategic partnerships with major mobile phone operators to enter new markets.
OnAir has run trials with Lufthansa-owned BMI /quotes/comstock/11e!flha (DE:LHA 12.53, +0.11, +0.89%) and TAP Portugal among other airlines.
Ryanair has over the past few years made it clear that its core purpose is to take passengers to their destination as cheaply as possible. In order to offer the lowest fares and still manage to make money, the airline charges for most services, including checking-in luggage and boarding ahead of other passengers.
It also makes money from selling various services on board and partnering with car rental companies and hotels. Charging for in-flight communications is one of the ways it hopes to increase revenue in the next few years.
At the time of the launch, in February of last year, Ryanair passengers could make and receive calls at international roaming rates of two to three euros per minute and email at one to two euros, using their mobile phones.
Ryanair shares rose 0.7% on the London Stock Exchange.
Aude Lagorce is a senior correspondent for MarketWatch in London.
Two parties can't agree terms of rollout to entire Ryanair fleet
By Aude Lagorce, MarketWatch
LONDON (MarketWatch) -- Ryanair Holdings, Europe's largest low-cost airline, on Monday announced a halt to its in-flight phone service after a 13-month contract with OnAir ended, and invited rival providers to bid for the expansion of the service to its entire fleet.
Ryanair, which is well known to drive a hard bargain, said OnAir didn't wish to commit to the expansion of the service across its entire fleet.
The carrier said it will now invite other providers of in-flight communications to tender for access to its 73 million annual passengers. Considering Ryanair is well known for rapidly dropping initiatives that don't pay off, news of a tender suggests the airline was happy with the trial it ran on part of is fleet.
OnAir was operating the service on 50 of Ryanair's 202 aircraft. It said in a statement issued Monday that the two companies couldn't agree on the process and timing of a full deployment.
"It's disappointing that OnAir and Ryanair couldn't reach agreement on the detail of a rollout to their entire fleet, but our experience was extremely positive," said OnAir Chief Executive Benoit Debains.
OnAir currently works with six airlines and plans to launch services with six more during the course of the year. It said it will shortly announce strategic partnerships with major mobile phone operators to enter new markets.
OnAir has run trials with Lufthansa-owned BMI /quotes/comstock/11e!flha (DE:LHA 12.53, +0.11, +0.89%) and TAP Portugal among other airlines.
Ryanair has over the past few years made it clear that its core purpose is to take passengers to their destination as cheaply as possible. In order to offer the lowest fares and still manage to make money, the airline charges for most services, including checking-in luggage and boarding ahead of other passengers.
It also makes money from selling various services on board and partnering with car rental companies and hotels. Charging for in-flight communications is one of the ways it hopes to increase revenue in the next few years.
At the time of the launch, in February of last year, Ryanair passengers could make and receive calls at international roaming rates of two to three euros per minute and email at one to two euros, using their mobile phones.
Ryanair shares rose 0.7% on the London Stock Exchange.
Aude Lagorce is a senior correspondent for MarketWatch in London.
