RYANAIR IS SET TO UNLEASH HAVOC ON ITS COMPETITORS
Michael O'Leary, the CEO of European airline Ryanair has vowed to force his rivals out of business through 'painful' fare cuts.
The outspoken CEO says his airline will expand as fast as possible under different brand names to keep Ryanair on top.
O'Leary's plans come as Ryanair reported a 30% drop in profits due to rising fuel costs. Mr O'Leary said he expects to see more profit reductions over the next few years whilst his airline grows, however the extra profit Ryanair will earn once the growth is over will make up for this.
The drop in profits was also down to the average fare dropping by 6% to just €37, due to the addition of extra seats on some flights.
Aggressive fare reductions is nothing new to airlines, however O'Leary's second strategy is very unique and could leave a major footprint on the whole industry.
In order to grow as fast as possible, Ryanair is now using different names and setting up other airlines to expand in large airports.
In March 2018, Ryanair announced it would acquire Lauda Air, and airline previously run by racing legend Niki Lauda. O'Leary has transformed Lauda Air into a low-cost airline, similar to Ryanair, but with a major presence in Vienna, an airport Ryanair has been unable to enter.
To show his rivals what he means by fast growth, O'Leary is planning to purchase 100 brand new Airbus A321neo aircraft exclusively to be used on Lauda Air flights, which represents a massive jump from Lauda's current fleet of just 20 planes.
Lauda Air isn't Ryanair's only airline mask; they've also announced a new airline called 'Buzz' which will operate in Eastern Europe, and 'Malta Air' which will operate in Malta.
what do you think about this? would you fly on one of ryanair's new siblings? tell us in the comments below!