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tv   Interview  Deutsche Welle  September 18, 2024 8:15am-8:31am CEST

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and off the exxon dw turns an interview with ryan, their ceo, and he wilson on white german airports, still on back to full capacity. i've been to as well, and thanks for watching, no feedback to excel with boeing usefully, the one on 6 times to please come and see more people than ever on the move worldwide. in section 13, it's very hard to say very difficult, john. find out about simon story. info my grands enjoying the views and come to take a look at this. l. tv highlights me every week in your inbox, subscribe now. so
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you never have berlin, the capital c, any 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 through some of the challenges that the airline is facing here in germany? well, it's not just what liners saying, it's what is what actually is plato postcode. and so the german market is the worst for coverage and education market in europe. so it's only as aging 2 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 an,
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it's the high taxes that are imposed um air passengers. but the difficulty about putting that on air passengers is that your passengers 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. but 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 to put additional taxes on to make german airports. okay. even more competitive. and if you can, partly in easy jet, 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 all their airport stretcher. you're looking sweet. last week, in a, in a similar situation to germany and on recovered markers because they're equivalent of lufthansa says where, you know, are no longer in government control. what have only recover the 70 percent. and norwegian are not putting aircraft into sweden because they were bailed out by the norwegians. i know they're left with 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 to tax and, and the government are at the other day saying no,
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they actually wouldn't want to actually eliminated altogether so that they can attract some of this floating capacity that airlines like run year 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 quarter 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 don't just have to pay
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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 does mean it does manage where that capacity goes for different cities are for different reasons. and presumably if it was a green agend, you'd want to do what's necessary. and but you know, there's no co here in policy. but like, like reiner and invest in the newest aircraft and like the latest aircraft we have 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 environmental taxes and put
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a vintage production of sustainable 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, people just don't have the holidays or the time off. some people do and what like, we compete with train single 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 malik. game is shared by high speed train back in ireland, and we just have 5 stream doubling carpet then you know, when to move away came along. the methods are, we couldn't compete with that. so we can with difficulty compete. what you have to have some to join don't and policy, and taxes. if you just make airline travel more expensive, it's just to people with more money. you get to travel with the people who don't have so much money. don't get to travel just lot, 2 weeks to travel in terms of aircraft supply dispute. if he does all this,
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he gets it's difficult to have the last couple of years. is there any signs? do you feel that those those issues or no? yeah, one is such as boeing as full, boeing and airbus because we look at the summer boeing weren't 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 there was, there was a constraint in supply across both of those manufacturers. both, both of those manufacturers are full way out into everything to 20 turkey trade, 31. so there's no new capacity coming into the market. so that's unlimited capacity . that's why it today is so part then for, for germany and for german shave, he's an airport outside of frank for community, because out of limited supply is now being close to germany because they're saying they're putting up assign 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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you know, 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 cobit and they lost a lot of their workforce. and then the alaska issue, set them back hugely in terms of the constraints put on them by the ha, i'm what they could produce. so that if you don't, if you don't for choosing 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 a david new management in place, and i think gradually those manufacturing issues are going to be, are engaged. i mean, it just needs time and they've been making air 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 that. and we would like to think that we're going to get all of our deliveries next summer, which is, you know,
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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 the 2 aircraft that arrived on monday. and which yesterday actually to the, to our craft that would have arrived in to our fleet yesterday. and the question is, what day they arrive on because we put them into service pretty much straight away . and the passport live 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 months before the next 10, an aircraft charge for life is to be arrested. we saw summer. i mean,
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would you be optimistic with going forward that to be that these, these titles be asked as somebody else? so it shows the question, what people will pay us to have. our model is always, if you've got the lowest cost in the industry that's reflected in the lowest fairs, we hit our load factor charges, even if we don't get to the fairs that we would have expected. so we've had 2 years of growing fairs and like we get our results presentation their f r a q ones. and we don't keep 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 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 watch happened like we would have had air fairs grow over the
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last 2 years. while we weren't growing volumes, you know that that doesn't happen. hankle them like that for that cake. well, forever. but certainly, you know, and there is a softening and consumer sentiment there next against airlines. but generally out there mean the level whole 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 of a lifetime and brought the whole family 1st class, but they're not doing. and how does history know and bush and yeah, i mean, but like this industry goes from cycle. so we're enough. we don't overly worry about these things. i think our competitors should be worrying about that because if you've got the lowest cost 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 faces 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, to the east and in past us. and in the west to the canarios inside. 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? that makes commercial sense for them to say, well it right here, put in an extra $5000000.00 passengers and they spend isn't meant to money that makes commercial sense for us to recover costs. so it's sort of a different, it's still not an airport level or region level and you know, and or on the national level in germany it's on a national level because the barriers to investment or had a national level, not just for, not just for rainier, but for all airlines, easyjet 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 year across. where 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 think they're saying that, but that's what they're saying. and we're growing in like we've grown spectacularly initially 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 didn't come over a number of years. but beyond next summer, there's no more growth for right here for a period of about 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 going to be talking to all of our, with our german bases 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 an environment where there were left defense of themselves like a didn't get a sense from the german government at, during the cold with recovery. and now from post all the costs of the airport, and on the other hand, they pay a lot of times of further value. 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 make themselves more competitive. but unfortunately,
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that would be some of the reports that will take the approach of berlin, where we can do and they will have less traffic the be a own health advocates by turning into your own ex, the where you're without any fiction, with no surprise, be active the way in good shape smoke on dw moving planning, d w bought. com, how to make greener choices in your everyday lives by.

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