Ryanair closes at Valencia

[cstorey]

Ryanair is shutting its Valencia operation with the loss of 750 jobs. Is this the tip of the iceberg?

[Garry Russell]

Depends on the real reasons

They say it is because the local authority has failed to promote the airport properly

This sort of thing Ryanair would do even without recession

http://www.telegraph.co.uk/travel/32543 ... -base.html

Garry

[DispatchDragon]

Sounds very Familar Garry

My RW job - does the same thing -- load factors drop below 80% adios muchachos -- The Boss's concept is if it dont
make a profit we dont fly there -- pure economics -- which might explain why we just posted a third quarter profit
of 106 Mill and why when everyone elses stock is tubing out ours keeps rising -- RyanAir isnt going under they are
practising sensible economics


Leif

[Trev Clark]

They say it is because the local authority has failed to promote the airport properly

To translate that into english.....The town hall failed to give us about 1 million euros to fly into thier airport!

It happened near me in Granada, Ryanair conceeded after a sum of 700,000 euros was paid by the local town hall to 'ensure jobs and services'. Ryanair are the biggest crooks in the business, but at least they are 'honest' about it ;-)

[AllanL]

If you read closely you will see that the "750 lost jobs" are nothing to do with Ryanair either, they calculate that 1 job is created locally for every thousand passengers brought in, and their "investment" is the value of the two aircraft based there which will simply be re-allocated to other bases.

They do employ 60 local staff, and unless they operate into another nearby airfield, I don't suppose those jobs are going to continue.

[Garry Russell]

True

But this sort of thing happens during boom times as companies move to where the best profit is.

The only way any lost cost operation can survive is to draw their line and stick ridgedly to it.

Garry