O'Leary tells Puente to buy a maths book and stirs up another aviation row
When Ryanair stops flying somewhere, that place usually starts to worry. But when the airline's chief executive suggests a minister buy himself a maths book for dummies, the worry turns into a full-blown panic. The war over airport fees has a new chapter.
The clash between Michael O'Leary and Spain's Transport Minister, Oscar Puente, is no one-off outburst. Ryanair has made fee pressure its modus operandi. The most recent example: the removal of all its flights to the Azores, in Portugal, over its refusal to pay charges the airline considers disproportionate. The route has even disappeared from its website.
The maths book taunt divides analysts. Some see it as a lesson in market economics: lower fees, cheaper tickets, more tourism. Others read it as an intimidation strategy. They point out that Ryanair tends to fly to small, remote airports, and that its "price first, everything else later" policy leaves many regions on the ropes.
Meanwhile, in Spain, other airlines are starting to look with interest at secondary airports Ryanair scorns. The threat of leaving loses its bite when competitors are willing to fill the gap. The question is whether Puente will decide to prove O'Leary right, do the sums and cut the fees, or wait for the Irishman to get bored. Knowing Ryanair, either option is a risk. What does the minister prefer: a maths book or a war that lasts for years?
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
Read the full discussion (42 replies).
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