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Topic: Ryanair - The Wal Mart Of The Skies  (Read 489 times)

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« on: March 30, 2012, 02:26:33 PM »

Ryanair--the Wal Mart of the skies:  http://en.wikipedia.org/wiki/Ryanair

Read what this guy is saying.  Read the operational history in Wiki.  This is the kind of mentality that has outourced so many jobs and lowers the value of goods and services that should be of higher status.  In my opinion, his mentality in this industry undermines important issues, and goods/services offered to the public in the name of saving costs.  He plans to 'swoop in' on other people's misfortunes.  It's a business model although not a very good good one.


Ryanair CEO: Boeing's 737 MAX is “rubbish”
Source: Wichita Business Journal
Published: 03.29.2012


Ryanair CEO Michael O’Leary on Thursday, speaking about a plan to swoop in on jet orders he believes other carriers will drop, again voiced a negative opinion of the Boeing Co.’s 737 MAX. Although he said Airbus’ A320neo “does credibly deliver” on its promised fuel savings, the 737 Max “as a product, is rubbish,” according to a report from Bloomberg. This isn’t the first time O’Leary has voiced his opinion on the 737 MAX, Boeing’s new engine variant of the 737. In January, he said he was “unimpressed” with the aircraft and expected that weight issues would offset the fuel savings Boeing says the plane will offer. The leader of European low-fare carrier also said he is interested in a jetliner that he’s hoping will be developed by China.  “We’re working on them to design a 199-seat aircraft, which we believe is where the real sweet spot will be,” he said. “If they produce it, it will wipe out the 737-800 and the A320. But it’s clearly 2018, 2020 before that would be delivered.” That wouldn’t be good news for Wichita, which is home to Spirit AeroSystems Inc., a major supplier to both companies, Airbus’ North American engineering headquarters, and numerous other suppliers tied into commercial aircraft production. O’Leary on Tuesday also voiced disbelief that some carriers would be able to follow through on their huge aircraft orders, namely Lion Air in Indonesia, which has 300 Boeing-built planes on order, and Norwegian Air Shuttle, which has ordered 100 A320s. If those orders fall through, O’Leary said, his company might in a position to snap up some of them. Ryanair currently has no planes on order past
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« Reply #1 on: March 30, 2012, 04:09:39 PM »

I know I hear yah.  

Ryanair is filling a market niche that lies at the lowest possible price.  That bit in Wiki though about making his pilots reduce their fuel reserves to reduce costs….that is very questionable because that encroaches upon the aviation safety.  I’m sure it’s not unheard of.  However, when you start nickel and diming flight operations then that puts people’s lives at stake.  Also, he’s lambasting the single isle airplanes from Airbus and Boeing when neither one has even reached the market.  The CEO’s desire to source airplanes from China due the lower price has been used often but we are talking planes…perhaps they cost less because there is a good reason?

Whatever the case may be, I agree with you.  Boeing and Airbus WILL be manufacturing small jets in China to save on costs in the future.  Ryanair is just one operator that is pushing for that to lower purchase prices.  Kind of like Wal Mart forces the cost issue with a strong hand and encourages outsourcing as a result.  If you remember, Boeing shut down a major assembly plant in Wichita, KS due to the astronomical Union labor costs there, which they failed to resolve.  Instead of outsourcing though, Boeing is “redistributing” the work throughout the US to plants that have competitive labor costs.  Aerospace manufacturing, and the industry as a whole is not really something that can easily be outsourced to other lower tier countries at this point.  The skill and support needed is very high and requires years to acquire and the supply infrastructure to make it reliable.  
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« Reply #2 on: March 30, 2012, 05:39:22 PM »

I'd bet Ryanair has a good sized risk-management team.....they'll need it.
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« Reply #3 on: March 30, 2012, 06:06:47 PM »

Airbus sucks.  End of discussion.
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« Reply #4 on: March 30, 2012, 07:26:59 PM »

Airbus does suck.  LOL!

Seriously, my company profits from both AB and Boeing so more power to both.  In addition to this, Airbus keeps Boeing on its toes and vice versa.  These two are the ONLY players in town and they keep the standard of the world extremely high (too high) for anybody else to compete.  The Brazilians and the Chinese would love to take away sales from these two giants but it is impossible at that level of technological capability and manufacturing infrastructure.  Not yet anyway.  Once AB and Boeing have the Chinese build their planes, that gap will close dramatically.  Anyway, by having Airbus around Boeing is forced to innovate and take risks by producing new products and vice versa.  Just look at the risk they took with their 787 Dreamliner!  Now Airbus wants in on that with their upcoming A350.  With all their bickering, both companies actually “help” each other reach higher.  That’s good for everyone.

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