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Ryanair: "Revolution". Charge for baggage

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Old 25th Jan 2006, 15:14
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Ahh but also

From the 16th March, Ryanair will introduce a number of key service improvements for all passengers including (1) all Ryanair’s fares will be reduced by 9% (£2.50 or €3.50), (2) all passengers travelling with hand luggage and in possession of an EU passport will be able to check-in on the web at www.ryanair.com and by-pass all check-in and airport queues, (3) these passengers will also be given priority boarding which will also eliminate boarding gate queues as well,

Taken from http://www.ryanair.com/site/EN/news....=gen-en-250106

Context out of.......
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Old 25th Jan 2006, 15:17
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Revenue neutral, me arse. Waiting for the usual tiresome whingers to spit some more bile in the happy pursuit of putting RYR to trial in a web forum...

http://www.rte.ie/business/2006/0125/ryanair.html

Ryanair to charge for check-in luggage

January 25, 2006 14:54
Ryanair says that from March 16, all passengers travelling with check-in luggage will pay a fee of €3.50 per bag, per flight if booked in advance on its website or €7 per bag, per flight if presented unbooked at the airport.

The airline also said that all passengers travelling with hand luggage and with an EU passport will be able to check-in on the web and by-pass all check-in and airport queues. These passengers will also be given priority boarding which will eliminate boarding-gate queues as well. Ryanair also said today that it is increasing each passenger's luggage allowance from the current 25kgs to 30kgs, comprising 10ksg in carry-on and 20kgs in check-in luggage. It said this would 'substantially reduce' excess baggage fees.

Ryanair added that from March 16 it will reduce all its fares by 9%. 'As a result of these changes, those 25% of Ryanair's passengers who presently travel with just hand luggage will avail of lower fares, will avoid the inconvenience of check-in or boarding gate queues and will no longer cross subsidise those passengers travelling with checked-in luggage,' the airline said. Ryanair said the 9% across the board reduction in its air fares will make these changes 'revenue neutral' for the airline. It estimates that the reduction in ticket revenues and excess baggage fees will cost it over £100m a year. However it adds that the lower fares will stimulate further traffic growth.

Ryanair says its new initiatives will significantly reduce airport and handling costs. 'We believe that between 40% to 50% of passengers will quickly switch to our new web check-in priority boarding service. This will allow Ryanair to reduce the number of check-in desks, baggage hall and other handling facilities we rent at major airports,' it said.

The moves will also significantly reduce the number of check-in and baggage handling staff, but Ryanair said it expects few reductions in staffing numbers in these areas as existing numbers will be required to handle its expanding services.

* Ryanair's CEO Michael O'Leary also said today that it expected yields to fall this quarter and that high crude oil prices might prevent it from hedging on fuel. He said that yields were expected to fall 5-10% in the current quarter which finishes at the end of March.
Regarding hedging and current crude oil prices, O'Leary said: 'If it stays up there, we will remain unhedged in the summer.' Ryanair said last month it was sticking to forecasts for a 10% rise in net profit for the year to the end of March. Ryanair shares were up 15 cent to €7.87 in Dublin this afternoon.
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Old 25th Jan 2006, 15:28
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Originally Posted by PeetD
Mobile phones? that's finished them for me then. it was bad enough onboard already.
Don't worry, you'll be able to go back with them this time next year, by that time the technology will be on practically every European aircraft.
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Old 25th Jan 2006, 15:35
  #44 (permalink)  
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Another very smart move. Only two days ago, in another forum, I had suggested that he woul dmove to lower the permitted weight for check-in bags to Zero and then charge for every Kilo. But this is a much faster way to get more money in as it appears to be better for the pax. It goes without saying that, everything stated by FR in their press releases - outside of the hard facts - must always be ignored.
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Old 25th Jan 2006, 15:51
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Shades of Fly-Be

This time the others thought of it first...
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Old 25th Jan 2006, 16:52
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Great so the italians will have 80kg carry on bags instead of the usual 40
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Old 25th Jan 2006, 19:40
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Is it better to give people a weight limit for their hand luggage, or do it on dimensions? Will people try to get everything for a 7 day holiday into the over head locker?
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Old 25th Jan 2006, 20:02
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Encouraging pax to bring as much baggage into the a/c cabin as possible can hardly be great news. In the event of an incident, this would surely have a huge impact on cabin evacuation and personal injury on impact. Infact this topic was cited in the Kegworth accident report:

"The certification requirements for cabin stowage bins, and other items of cabin mass, should be modified to ensure the retention of these items of fuselage structure when subjected to dynamic crash pulses substantially beyond static load factors currently required.

The CAA consider improving the airworthiness requirements for public transport aircraft to require some form of latching to be fitted to overhead to stowage bins and this should also apply to new stowage bins fitted to existing aircraft".

Instead Ryanair go and at least double the mass of baggage in the cabin! Profit before safety?
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Old 25th Jan 2006, 20:39
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Ryanair to charge for hold baggage

BBC report:

http://news.bbc.co.uk/1/hi/business/4647906.stm

Those carrying only hand luggage will not face the charge
Low-cost airline Ryanair is to begin charging passengers extra for checking in their baggage before flights.

The Dublin-based carrier said people with bags and cases would be charged £2.50 (3.50 euros) for every item of luggage checked in from 16 March.

Ryanair said it was introducing the charge in an effort to reduce airport handling costs.

The airline said passengers carrying only hand luggage would avoid the extra fee and be able to check in online.

Europe's biggest no-frills airline said it hoped to encourage more people to travel on its flights with just hand luggage.

It said the move would reduce overall ticket prices for passengers not checking in luggage by about 9%.

"We have to be more creative as to how we tackle costs," said Ryanair chief executive Michael O'Leary.

Reducing airport and handling costs would also save Ryanair more than £20m over the current financial year, the company said.

That should make finding space in the overhead lockers fun......
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Old 25th Jan 2006, 20:52
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That should make finding space in the overhead lockers fun......
I agree. I use the low cost airlines regularly and I always try to avoid checking in luggage, because of the inevitable wait at the other end and the possibility of it being lost. Space is at a premium already.

With the luggage fee exceeding the ticket price, space in the overheads is going to be even harder to find. Perhaps people like me will end up stowing their luggage now, to avoid the hassle of finding space in the overheads, or hiding their carry on luggage under the seat in front (where it isn't supposed to be).
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Old 25th Jan 2006, 21:01
  #51 (permalink)  
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Angel

If I said this was Mr O'Leary doing what he does best namely playing the market like a fiddle then I might get slated for being an FR basher.

There is nobody in the business who can talk up a share price as much without actually saying much. I mean that as a compliment.

However Fr made about €35m last year on excess baggage. That was not what was charged to pax as desk staff got a cut as an incentive. What seems to be happening now is that MOL is cutting out the middle man, his staff.

This will probably make money as he says, who am I to doubt his figures. But he may find himself looking for more than new pilots. ( Just an opinion not a bash. )
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Old 25th Jan 2006, 21:23
  #52 (permalink)  
 
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With all that extra space there bound to have extra room in the holds, maybe O'Leary has realised there's money to be made in cargo

Sure within a few years it may be EURO 10 to EURO 20 per bag and some handling agents will be wiped out by this
Or maybe we'll all get lucky and this will backfire on Ryanair when people don't want to have to pay extra for taking luggage with you. From the way I hear it, with other airlines, when you buy a ticket with them your baggage allowance is already included in the price of your ticket Wow great idea, they reduced the fare by €3.50 just so they can charge me €3.50 to take a bag with me, yeah, really broken the mould on that one

S.C.
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Old 25th Jan 2006, 21:33
  #53 (permalink)  
 
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So "all Ryanair’s fares will be reduced by 9% (£2.50 or €3.50)" and this a "9% across the board reduction". Where does this figure of €3.50 come from? Is that supposed to be an average reduction (implying an average fare of about €39)? Or is it a number pulled out of the air to match the extra hold baggage charge?

Also on the Ryanair website, MOL is quoted as saying "We will require fewer and less expensive airport facilities such as airport check-in and baggage hall facilities."

How the heck is that supposed to work? Perhaps there will be fewer check-in desks required but if half the passengers have luggage in the hold, wont the same baggage facilities will be required? Besides, will there really be a reduction in the amount of checked luggage?

Will they start weighing hand luggage and charging for extra weight over the 10kg limit? If people do start loading their hand baggage and the amount in the hold drops, could this cause an operational problem if they don't have a good estimate of the weight on board the aircraft?
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Old 25th Jan 2006, 21:33
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Errrrrr, excuse me a moment

Does this new on line check in system mean that the security staff at the entrance to airside are now going to have to check that the passenger has a valid boarding card and a photo ID that matches the name? If so, then that's a new and seriously slow task that they don't do at the moment, and it's bad enough getting through the security checks as it is now, without adding another level of check and accompanying delay.

If they're not going to be checking to that level, then I can see a scenario where I could get to make some useful money on occasions, it's not going to be hard to produce a piece of paper that to all intents and purposes looks exactly like a boarding pass, head in to Duty Free, get whatever I want, and leave shortly after via the arrivals hall, and head to the nearest place that will give me the best return on the investment .

Then of course, there's the other issue, the potential to compromise airside security. No, I shouldn't be able to get out on to the ramp, ( but thinking it through a little, hold that thought till later in the thread) but if I can only get airside, when I'm not really supposed to be able to, that in itself presents some "interesting" challenges that appear not to have been thought through to the extent that I would have expected them to have been.

To produce a boarding card when the only source for them was a dot matrix printer at checkin ( or maybe a newer printer, but using card that's not that easy to duplicate) would not have been so easy, but if they're being produced on ANY printer, using ANY paper, at ANY computer in the world, that's just made it a lot easier to abuse the system without too much trouble at all.

The next interesting scenario will be when there's a few extra people on the aircraft, and they find that there's 2 boarding cards sequence number X. Which was the correct one?

An even more worrying scenario would be 2 cards sequence number X, and the right number of passengers on the aircraft. Where did the "spare" passenger go?

Alarmist? Maybe, that's what comes of spending several years working at an airport and having a good understanding of how the sytems work at present. This concept might be good for FR's bottom line, but it sure as isn't for the airports and the security services at those airports!!!!!
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Old 25th Jan 2006, 21:43
  #55 (permalink)  
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This is now the third thread in the third forum about this.

Just remember that it does not matter a jot what the press release says, FR will make more moeny out of it and good luck to them. Good riddance too, for that matter, but you have to admire them.
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Old 25th Jan 2006, 23:05
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I may be wrong but do FlyBe not charge for luggage now as well??

FB
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Old 26th Jan 2006, 06:47
  #57 (permalink)  
 
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Originally Posted by fly bhoy
I may be wrong but do FlyBe not charge for luggage now as well??
FB
Yes they do, hence the claims that this is hardly revolutionary.
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Old 26th Jan 2006, 07:39
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Perfect timing for this announcement I guess. Parked a/c due to no crews to fly them and then an announcement about hold luggage and terminal costs to stray people away from what is a major problem, whether they admit it or not.

If the current problem persists, and I suspect it will in some form, then everything else will be meaningless. There won't be any baggage going on parked a/c
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Old 26th Jan 2006, 08:04
  #59 (permalink)  
 
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I agree with the remarks from Heffer regarding cabin safety.
Can the B738 carry 180 odd trolley cases in the overhead bins weighing 10Kgs each??
The less bags in the cabin the better in my view
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Old 26th Jan 2006, 09:02
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Originally Posted by Irish Steve
Does this new on line check in system mean that the security staff at the entrance to airside are now going to have to check that the passenger has a valid boarding card and a photo ID that matches the name? If so, then that's a new and seriously slow task that they don't do at the moment, and it's bad enough getting through the security checks as it is now, without adding another level of check and accompanying delay.

If they're not going to be checking to that level, then I can see a scenario where I could get to make some useful money on occasions, it's not going to be hard to produce a piece of paper that to all intents and purposes looks exactly like a boarding pass, head in to Duty Free, get whatever I want, and leave shortly after via the arrivals hall, and head to the nearest place that will give me the best return on the investment .

Then of course, there's the other issue, the potential to compromise airside security. No, I shouldn't be able to get out on to the ramp, ( but thinking it through a little, hold that thought till later in the thread) but if I can only get airside, when I'm not really supposed to be able to, that in itself presents some "interesting" challenges that appear not to have been thought through to the extent that I would have expected them to have been.

To produce a boarding card when the only source for them was a dot matrix printer at checkin ( or maybe a newer printer, but using card that's not that easy to duplicate) would not have been so easy, but if they're being produced on ANY printer, using ANY paper, at ANY computer in the world, that's just made it a lot easier to abuse the system without too much trouble at all.

The next interesting scenario will be when there's a few extra people on the aircraft, and they find that there's 2 boarding cards sequence number X. Which was the correct one?

An even more worrying scenario would be 2 cards sequence number X, and the right number of passengers on the aircraft. Where did the "spare" passenger go?

Alarmist? Maybe, that's what comes of spending several years working at an airport and having a good understanding of how the sytems work at present. This concept might be good for FR's bottom line, but it sure as isn't for the airports and the security services at those airports!!!!!
Each home printed boarding card will have a unique barcode which will be scanned at the security search point to ensure it is a valid boarding card and ok for a flight from that airport on that date etc. I'm sure they have thought of every angle and the process has already been approved by the DfT in the UK.
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