Love him or hate him, it is laborious to disclaim that Ryanair boss Michael O’Leary is a shrewd businessman. So it is price noting that O’Leary, relying on a $108 million bonus, is actively opposing what could be the subsequent massive money windfall for his funds airline.
The CEO of Europe’s busiest service is bracing for greater revenues this winter due to a singular cap on passenger numbers at Ryanair’s predominant airport. But when O’Leary is to be believed, that is apparently the very last thing he desires.
Dublin Airport has an annual passenger capability restrict of 32 million individuals. The restriction was put in place in 2007 to permit the airport to get permission to construct a second terminal and increase the primary terminal.
Final yr the airport utilized to Fingal Council to increase this restrict to 40 million passengers. Nonetheless, the council refused, requesting reams of extra info in February and giving Dublin Airport six months to reply.
Which means Dublin Airport, which successfully reached its restrict final yr with 31,908,471 passengers, can not enhance passenger numbers till it receives permission to extend that restrict.
It additionally implies that flight costs will inevitably rise as passengers jockey for seats.
A spokesman for Fingal Council didn’t instantly reply Fortunes request for remark.
“Wanting like thugs”
That, O’Leary says, is unacceptable, on condition that the airport can deal with 60 million passengers a yr due to a €300 million ($324 million) second runway that opens in 2022. He additionally advised that it might take 4 years for the cap to be lifted.
Talking earlier than the Oireachtas Transport Committee, O’Leary warned that Ryanair would “behave like bandits” this winter because of this, charging as much as €500 ($540) for a one-way journey and €1,000 ($1,080) for a spherical journey again.
“I’ll be wealthy this Christmas,” O’Leary mentioned, in keeping with a number of media reviews.
O’Leary additionally warned that as Ryanair grew, advantages would bypass Dublin, the place the airline relies. It appears he wish to maintain the funds airline’s costs low and accommodate extra passengers.
Whereas O’Leary’s frustration at receiving as much as $1,080 from sick prospects could also be a boon to Ryanair’s coffers, there’s a clear different monetary motivation to foyer for extra passengers.
O’Leary is due a 100 million euro ($108 million) bonus if he can maintain Ryanair’s share worth above 21 euros for 28 days. He briefly achieved that objective by April, however not for the minimal required interval. The transfer to Ryanair’s airport passenger cap will go a good distance in serving to O’Leary’s payday.
O’Leary additionally complained about “a few Nimbies in north county Dublin” due to native opposition within the type of a stunning flood of noise complaints.
Dublin Airport acquired greater than 26,000 noise complaints from native residents in 2022, forcing the native council to halt progress.
Nonetheless, a single particular person was discovered to be solely accountable for 23,431 of those complaints.