Carriers hit back at O'Leary
Jet2 and Flybe have hit back at Ryanair boss Michael O’Leary’s comments that the fuel crisis will shut down “crappy competitors”.
The outspoken Irishman used yesterday’s financial results announcement to comment that he expected only Ryanair, Easyjet, BA, Air France and Lufthansa to break even or make a profit this year, adding that Sky Europe, Flybe and Jet2 would probably be grounded in the approaching months.
He said: “I hope oil prices stay high over the winter because we will get rid of a lot of crappy competitors. A few carriers will be safe but everyone else is in danger of going bust.”
But Flybe put out a statement in response, saying: “Flybe notes with indifference the latest rantings of Mr O’Leary and notes his usual attempt to deflect attention from his own results by making unsubstantiated accusations about other issues. Flybe also notes that Mr O’Leary tried exactly the same tactic in 2001, 2002, 2003, 2004, 2005, 2006 and 2007.”
The airline said it would soon report record profits for the year just gone and the highest ever operating margin, adding that cash reserves were strong .
It added: “Flybe’s fuel costs are only 24.6% of its total cost base at today’s prices, while Ryanair’s are 44.5% (compared at $1250 per tonne). While Mr O’Leary expects to break even only at $130 a barrel we believe that fuel will have to be well over $170 a barrel before Flybe is forced to breakeven.”
The carrier has hedged 76% of 08/09’s fuel needs. It says its network is balanced well between business and leisure, with 84% of routes on double daily frequencies or more, “allowing it insulation from consumers pulling in marginal consumer expenditure.”
Meanwhile Jet2’s boss Philip Meeson said: “It won’t be Jet2.com. I’m sorry Mr O’Leary – unlike you, Jet2.com has bought all its fuel for this summer, this coming winter and next summer at attractive rates. Our passengers can rely upon us for many, many years to come.”
http://www.travelmole.com/stories/1129023.php
Jet2 and Flybe have hit back at Ryanair boss Michael O’Leary’s comments that the fuel crisis will shut down “crappy competitors”.
The outspoken Irishman used yesterday’s financial results announcement to comment that he expected only Ryanair, Easyjet, BA, Air France and Lufthansa to break even or make a profit this year, adding that Sky Europe, Flybe and Jet2 would probably be grounded in the approaching months.
He said: “I hope oil prices stay high over the winter because we will get rid of a lot of crappy competitors. A few carriers will be safe but everyone else is in danger of going bust.”
But Flybe put out a statement in response, saying: “Flybe notes with indifference the latest rantings of Mr O’Leary and notes his usual attempt to deflect attention from his own results by making unsubstantiated accusations about other issues. Flybe also notes that Mr O’Leary tried exactly the same tactic in 2001, 2002, 2003, 2004, 2005, 2006 and 2007.”
The airline said it would soon report record profits for the year just gone and the highest ever operating margin, adding that cash reserves were strong .
It added: “Flybe’s fuel costs are only 24.6% of its total cost base at today’s prices, while Ryanair’s are 44.5% (compared at $1250 per tonne). While Mr O’Leary expects to break even only at $130 a barrel we believe that fuel will have to be well over $170 a barrel before Flybe is forced to breakeven.”
The carrier has hedged 76% of 08/09’s fuel needs. It says its network is balanced well between business and leisure, with 84% of routes on double daily frequencies or more, “allowing it insulation from consumers pulling in marginal consumer expenditure.”
Meanwhile Jet2’s boss Philip Meeson said: “It won’t be Jet2.com. I’m sorry Mr O’Leary – unlike you, Jet2.com has bought all its fuel for this summer, this coming winter and next summer at attractive rates. Our passengers can rely upon us for many, many years to come.”
http://www.travelmole.com/stories/1129023.php
