tv Interview Deutsche Welle September 17, 2024 7:15pm-7:31pm CEST
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the next on the w, the interview talks with brian s. c, e o. at adams wilson, one jim and apple is still on the back to full capacity. that's next. i'll be back at the tone will be out of the do you know which of these 3 industries has the highest c o 2 emission rates which is good. concrete, transforming business, syllabus onset, the bigger house. but the real new div just reimbursing the watch. now, on the,
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so you now have berlin, the capital city of the largest economy in europe. their airport in total has less passengers and doubling airport within the capital city of one of the smallest economies in europe. so we're now saying we've got these 350 year class. where are they like you to go? at the moment? the sign is up in germany. say, we don't want any of those aircraft. any wilson, ceo of ryan air at the irish low cost air line. can you talk us through some of the challenges that the airline is facing here in germany as well? it's not just what liners saying it's was, it's what actually is play to pose cobra. and so the german market is the worst for coverage and ation market in europe. so it's only as agents you percent of where it was prior to cobra. so there's something wrong and, and we've been pointing this out for some time that it's and it's the high taxes
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that are imposed on air passengers. but the difficulty about putting that on their passengers is that your house just may not be there. the airlines decide that to put the aircraft in, and that's precisely what's happened today in berlin. so this is the sort of a microcosm of the decision making of an airline that has an investment of about $3100000000.00 us dollars in aircraft and germany. that if the taxes in germany are, you know, 2 or 3 times what they are elsewhere. well then you're going to allocate those resources elsewhere, and the government have done nothing. and except for additional taxes on to make german airports. okay. even more competitive. and if you could berlin, easy, jazz, have more than half their operation here. and then you have the, an airport that cost over $6000000000.00 euros to build and it's half empty. and, and the reason is half empty is that it's all competitive for him. so that, you know, an airline has to recover, it goes,
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has to pay over those taxes from the affairs, but it takes him and that's been reflected in the numbers. so you now have berlin, the capital city of the largest economy in europe. their airport in total has less passengers then doubling airport within the capital city of one of the smallest economies in europe. like that, that's telling you something that airlines are not putting capacity into berlin and they're putting it in other airport treacherous. you're looking sweet last week in a, in a similar situation to germany and on recovered markers because they're equivalent of lufthansa. sash, where you know, are no longer in government control, would have only recovered to 70 percent. and norwegian, or not putting aircraft into sweden because they were bail day by day and norwegians. i know they're left what a gap and what do they do? they're on the periphery of your and they have responded by saying they're going to have the tax. and the government, or at the other day saying no,
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they actually wouldn't want to actually elimination altogether so that they can attract some of this floating capacity that airlines like right here can provide. and if you look at the scale of what we've got to provide, we've in order for 350 aircraft to be delivered between next summer and 2034. and we want to a portion, some of the ash and to germany. we've given a proposal to governments here last year to double the amount of aircraft and they just have to respond by making, by lowering and then abolishing taxes. and we'll fill that gap. and i think louder airlines would come as well. the environmental issues are often discussed in germany as a reason why people shouldn't fly between cities. how much, how much is the whole environmental issue being a factor in your discussion with, say, the german government. there's no other industry dash and where we're trying to you know, reduce our carbon emissions. and the way to do that is, you know,
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it's not to pay lip service to say, we're somehow or other the, you know, their strategy is to pull taxes of the, that's just putting prices up. and it doesn't, it doesn't manage where that capacity goes for different cities are for different reasons. i'm presumably if it was a green agend, you'd want to do what's necessary. and, but you know, there's no coherent policy. but like, like reiner and invest in the newest aircraft and like the latest aircraft, we have that compared to the next generation aircraft, 50 percent, s noise, there's 20 percent. they burn 20 percent as fuel and they carry 20 percent more passengers. as an airline travel is not discretion, we, people tend to think of it as being people wake up in the morning think i just got to go somewhere they don't and it actually grows economies. and, and if we're trying to get our carbon footprint, then that's the way to do it by, you know, if they chose the environmental taxes and put it into the production of sustainable
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aviation fuel. well then that would be something, but we're not going to get rid of the huge things. we're going to get rid of an airline travel for anything over you know, 800. it hasn't kilometers for people have got to be able to get back in one day if they're doing business or you know, if you just don't have the holidays or the time off, some people drove and put like we compete for training for no difficulty doing that we don't have any domestic services in germany, and in places like spain, we don't have flights from madrid to navigate. it's shared by a high speed train back in ireland. and we used to have a fight screen doubling carpet. and you know, when the motor away came along, that meant and we couldn't compete with that. so we don't difficult to compete. would you have to have some to join the and policy and taxes. if you just make airline travel more expensive, it's just to people with more money. you get to travel. people who don't have so much when he don't get to travel does not 2 weeks to travel in terms of aircraft
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supply. just bit of heat as obviously yes, it's difficult to have the last couple of years to study science. do you feel that those, those issues are no. yeah, one is such as boeing as boeing and airbus because we look at the summer boeing work, delivering and on time an air bus because of the problem with the engine issue. a lot of those aircraft for ground is, which meant that those us and there was a constraint and supply across both of those manufacturers. both both of those manufacturers are full way out into having to train the turkey for $831.00. so there's no new capacity coming into the market. so that limited capacity. that's why today is so parts and for, for germany, for german. sure. if he's in airport outside of frank for community, because to have the limited supply is now being close to germany because they're saying they're putting up assigned to say, we're not open for business. we're not competitive for whatever reason. and that investment will go elsewhere. but on the boeing issue in particular specifically
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yeah, they've had their difficulties for you know, and we would see their difficulties as being you know, management and manufacturing. and you know, they had their difficulties coming back at a cove it and they lost a lot of their workforce. and then the alaska issue set them at by hugely, in terms of the constraints put on them by the gsa on what they could produce. so that if you don't, if you don't producing of aircraft less come out to you on our end, we didn't get all of our deliveries. so we 20 this aircraft to summer that we would have hope to have, but i think i, they have a new management in place. and i think gradually those manufacturing issues are going to be are, and actually that just needs time and they've been making err things for, you know, for a long time. and, and this interruption has, and, you know, hasn't helped them. but i think they're on the path out of time, and we would like to think that we're going to get ahold of our deliveries next
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summer, which is, you know, approximately 50 aircraft. so we're, we're keeping the pressure on them, but it's a very close in thing. you know, the aircraft that we are right that arrives on monday. i think we to aircraft that arrived on monday. and which yesterday actually to the, to our craft that would have arrived in to our fleet. yes, we have the questions, what day they arrive on because we put them into service pretty much straight away and have to arrive in time. otherwise, gonna cancel the schedule and, you know, put people in different flights. but now as we come into the winter, you always have less traffic anyway. so you have a better chance. that's when we used to always take our, our aircraft into winter. but like the ones that arrived on monday should have arrived a month or 2 ago. so we think that over the winter period, and that would, they'll be in a much better position to deliver for next year. and then we've got a gap of easy in once before the next 10, an aircraft started for the rest of the saw summer. i mean,
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would you be optimistic going forward that to be that these, these titles be asked as somebody else? so it's just the question of why people would pay us to have our model is always, if you've got the lowest cost cindy industry that's reflected in the lowest fairs, we hit our load factor charges. even if we don't get to the fair is that we would have expected cuz we've had 2 years of growing fairs and like we get our results presentation there. i have for our q ones and we don't have any updates on fairs to have. i tried the summer and like we'll, let's do that the half year bush, like everybody knows what we, he said was that, you know, consumers were more picky and not just in our industry. so everything from fast food to drink suppliers, to hotel suppliers. anything that's customer facing people have just cost a bit more selective and haven't had as much money because of inflation refreshers . and if you look at to watch happened like we would have had air fairs grow over
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the last 2 years while we weren't growing volume. so you know that, that doesn't happen. a psycho home like that for that cake. well, forever. but certainly, you know, and there is a softening and consumer sentiment there. next to us airlines were generally out there. mean the long haul people are having difficulties feeling the uh you know, their, their business class with business travelers. they were full last summer when a lot of people with pent up demand decided to go for the holiday, but lifetime about the whole family 1st class. but they're not doing that this year, you know, and bush and yeah, i mean, but like this industry goes to cycle. so we're enough where we, we don't overly worry about these things. i think our competitors should be worrying about that. because if you got to those costs will fail and it will have the lowest fairs and that will take more pressure on competitors. can you for see a situation where
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a one point you might have to start moving to poland or to to other areas such as central europe, central europe is, is, is expanding quite quickly, particularly the aviation marcus. it's everywhere because when you saw that not barrier, there are 96 places this morning where reiner aircraft are based right across europe. as i said, to the south in morocco to the north. and we've moved to the ad to the east and in past us and then the west to the canary islands like so. we cover, you know, $96.00 different locations and almost $300.00 am at $300.00 airports in total. and we have a 350, or a craft to allocate over the next 5 to 7 years. and we've been putting forward and we want to know where we're going to put those aircraft. so we're not for a reason to be talking here to the national level because it's a national issue. it's a big national aviation, texas national security taxes in sort of places you go directly to an airport and
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say, do you want to double your traffic? and it makes commercial sense for them to say, well, it right here, put in an extra $5000000.00 passengers and they spend this amount of money that makes commercial sense for us to recover costs. so it's sort of the different it's so that's an airport level, a region level and you know, and or of the national level in germany. it's international level because the barriers to investment or had a national level, not just for, not just for rainier, but for all airlines be easy jet or a fraction of what they were here a burden because they can make better return jo square. and so we're now saying we've got these 350 or craft fair. are they like you to go at the moment? the sign is up in germany to say, we don't want any of those aircraft that they may not paying for saying that, but that's what they're saying. and we're growing in like we've grown spectacularly an industry in spain and u. k. morocco and we are gradually working, you know,
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we are way to see where we're going to fill out that quite space. now it can come over a number of years. but beyond next summer, there's no more growth for right here for a period of, of 18 months. but in germany it's all bad news. you know, it's going to be reductions in, in, in germany. we will be talking to, or we're gonna be talking to all of our other german faces over the next number weeks. and we're trying to finalize negotiations. and some of those smaller airports of them have done exceptionally well, because they don't have big government behind them. and they've had to deal with a very child as environment where there were left defensive themselves. they didn't get a sense from the german government during the cold with recovery and now of imposed all the costs of the airport. and of the other hand, they pay a lot of times a for 11000000000. so those airports are fighting for their survival. and some of them we know very, very well, and we're working with them. and hopefully, and some of those we may actually grow. right. if they can come up with ways to
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make themselves more competitive, but unfortunately, there will be some other airports that will take the approach of barely and we're hoping we can do and they will have less traffic. well, the great low get this. c the on the roads to the end of the world with it can prevent your at home even in the most remote places the well 100 of the most.
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