Business class is a must for long haul says Howard Millar, CFO
Ryanair. The airline is famous for low cost and single class system on
short haul.
Howard Millar, chief financial officer of Ryanair, said that long
distance flights cannot be undertaken without business class. Long haul
is not financially viable with only low-cost, single-class system. This
system is pioneered by Ryanair and South West on shorter routes. For
longer routes Ryanair will never fly with this system.
He further said that after executing a number of business models on it,
the conclusion was arrived that it is not feasible to operate a long
haul flight without including business or premium class. Due to this
reason the airline will never provide long haul flights. Ryanair at
present provides short haul and point to point service within Europe.
He further pointed out the staffing concerns that occurred in
long-haul business and gave an example of Norwegian Air. He also said
that the cost of long distance aircraft will also be expensive. There
are already huge orders placed by Gulf carriers with the makers of
aircrafts. This implies that there are few long-haul aircrafts available
that too at exorbitant prices.
Oliver Sleath, analyst at Barclays, said it is difficult to operate
long-haul flights without business class. These flights need
structurally higher costs that low cost airline like Ryanair cannot
avoid. There will be fuel expenses, passenger taxes, and other
expenditures that cannot be fulfilled by providing only one-class,
low-cost service. This explains why Ryanair has not started low-cost
long haul.
Ryanair is an ultralow cost carrier of Ireland established in 1985. This
airline serves 28 countries in Europe and Africa. The carrier is adding
more flights on major destinations.