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Flybe hits back at O’Leary in low cost row
Flybe has condemned Ryanair boss Michael O’Leary for suggesting that many airlines will fail this winter.
The outspoken chief executive of the Irish no-frills carrier predicted more airline casualties as they struggle to compete while air fares plummet. He was speaked as Ryanair announced its first drop in profits in 15 years – with net profits down 13.7% to £137.3 million in the year to March.
But Flybe managing director Jim French hit back at Mr O’Leary, saying: “It is clear from his comments that he does not understand our business model, does not understand our unique route structure and therefore should refrain from commenting on things he clearly has no comprehension of.”
Mr French was speaking as Flybe unveiled provisional profits of £3.1 million in the 2003-04 financial year, its second year of profit growth.
The improved profits come on ther back of the Flybe transforming itself into a low fares carrier, expected to carry 4.5 million passengers this year.
Mr French said: “Flybe has a unique low fare airline business model deliberately designed to be very different to Ryanair and other low fare airlines.
“Eighty per cent of our routes are focussed on providing UK domestic services. We are the backbone of regional air transportation. Ten per cent of our routes are into specific French regional markets where we have no head to head competition, and 10% are to Spain where again we have no head to head competition.”
He revealed that the first quarter of the 2004-05 financial year had started strongly with passenger numbers up by 43% and yields up 12% over the same period 12 months ago. This reflected a change in route mix, according to Mr French.
He added: “Cash revenues are strong and healthy, we are in a better position than we have ever been.”
Report by Phil Davies
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