BUDGET Irish airliner Ryanair is planning to completely cut its fares – but you’ll have to wait at least five years to fly for free.
Chief executive Michael O’Leary said he is considering plans to cut fares completely in a bid to increase passenger numbers, explaining the move would be possible if airports agreed to share retail revenues with the airliner.
He admitted that bigger airports such as Heathrow were unlikely to agree to such a deal, but said that smaller sites looking to increase air traffic would be interested.
Ryanair have previously offered flights for as little as 1p, but Mr O’Leary explained that the airline was operating at a loss after changes to air passenger duty meant the company now pays £13 for every seat sold in Britain.
The airline promised to cut the cost of seats by 10 to 15 per cent this year, and outlined plans to increase passenger numbers by 80million to 200million per year by 2024.
Mr O’Leary told the Airport Operators Association on Monday that he was considering abolishing fares in five to 10 years in order to increase passenger numbers.
“The challenge for us in the future is to keep driving airfares down,” Mr O’Leary told the Guardian.
“I have this vision that in the next five to 10 years the airfares on Ryanair will be free, in which case the flights will be full, and we will be making our money out sharing the airport revenues; of all the people who will be running through airports, and getting a share of the shopping and the retail revenues at airports," he said.
“I think it will happen, it just won’t happen at Heathrow or those big hub airports. But most of the other airports who are looking for big traffic growth, that process is already starting to happen, lowering airport fees and some of the charges.
“If air passenger duty is gone: at many airports, I’m paying more than £20 already with APD and fees if I start getting that back, why not?" he added.
“I’m doing seat sales this week at £4 and I’m paying the £13 APD – I’m paying you to fly with me. Instead of promotional tickets being £9 or £5 they will be free.”
Average fares on Ryanair last year were £39, including one checked bag.
The low cost airliner has previously scrapped plans to make passengers pay to use toilets on board and to sell advertising space on its wing tips.
