tv Interview Deutsche Welle September 21, 2024 5:15pm-5:31pm CEST
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to speak to ryan mc or any wilson about the costs of operating in germany. i base is old and i'll be back next out with when you sleep by the enjoying the views and come to take a look at this. our tv highlights me every week in your inbox, subscribe. now. he's the head of a country no longer exists. the deadline is the end of 2 beds has been occupied by china for almost $75.00. is people have been fighting for independence for just the july normal time to see for his country. for this he receives the nobel peace,
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the 2 best best as china, september 27th on dw the. so you now have berlin, the capital c, any of the largest economy in europe. their airport in total, has less passengers and dublin airport within the capital city of one of the smallest economies in europe. so we're now saying we've got these 350 year across, where are they likely 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 wife is what actually has play the post cove. and so the german market is the
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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 that are imposed or passenger's. but the difficulty about putting that on their 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 and partly, and so this is the sort of a microcosm of the decision making of an airline that has an investment of about 3 point. $1000000000.00 us dollars in aircraft in germany. relative to texas 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 has done nothing. and except for additional taxes on to make german airports. okay. even more competitive. and if you could, berlin easy jet have more than half their operation here. and then you have the,
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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. and so that, you know, an airline has to recover, it goes, has to pay over those taxes from the fairs that it takes in. and that's been reflected in the numbers. so you now have berlin, the capital city of the largest economy in your there airport in total, has less passengers. then dublin 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 order for treacher. 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. what have only recover the 70 percent. and norwegian are not putting aircraft into sweden because they were bail day by day
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and 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, or at the other day saying no, they actually wouldn't want to actually eliminate it 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 complement 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,
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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 have to pay lip service to say, we're somehow or other the, you know, their strategy is to put taxes of it. the that's just putting prices up and it does, it does manage where that capacity goes for different ca. he's 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 m a 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 burned 20 percent as few of the carrier 20 percent more passengers. and an airline travel is not discretion. we people tend to think
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of it as being people wake up in the morning think i just got to go somewhere if they don't. and if 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 told environmental taxes and put it into the 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, 800000 kilometers for people have got to be able to get back in one day after 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, difficult to do and we don't have any domestic services in germany. and in places like spain, we don't have flights i'm interested to model gave. it's shared by a high speed train back in ireland. and we just have the fight screen to the car for then you know, when the motor away came along, that meant and we couldn't compete with that. so we so difficult to compete with it
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. but you have to have some type of joining dope and policies. 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 money, don't get to travel, does not 2 weeks to travel in terms of area across supply dispute. if he does, obviously, gets out of the last couple years. is there any signs? do you feel that those, those issues or no? yeah, when a such as boeing is full, boeing and airbus because we look at this 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 in supply across both of those manufacturers. both both of those manufacturers are full way out into every $10.00 to $20.00 turkey trade, $31.00. so there's no new capacity coming into the market. so that in limited capacity, that's why today is so part then for, for germany and for german shared. he's an airport outside of frank for community
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because to have a limited supply. it's never been 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 and password to go elsewhere. but on the boeing issue in particular specifically, 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 100 difficulties coming back at a cobit and they lost a lot of their workforce and then the alaska issue set them. and by hugely, in terms of the constraints put on them by the fha, i'm what they could produce. so that if you don't, you know, producing of aircraft less commodity 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 renew 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
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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 ahold of our deliveries next 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, for the jesse. and the question is, what day they arrive on the, as 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,
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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 started for the rest of the saw summer. i mean, would you be optimistic going forward that to be that these, these titles gives us just somebody else. so it's just the question, what 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 targets. even if we don't get to the fairies that we would have expected. so we've had 2 years of growing fairs and like we get our results presentation there. they have for our 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
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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 the last 2 years while we weren't growing volume. so you know that, that doesn't happen. hankle home 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 this, 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 and worry about these things. i think our competitors should be
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worrying about that. because if you've got the lowest cost will fail and we'll have the lowest fairs and that puts even more pressure on venture. can you for see a situation where 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, at 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
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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 taxes national security taxes in sort of places you go directly to an airport and 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 isn't meant to money that makes commercial sense for us to recover costs. so it's sort of the 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 right here. 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 craft fair. are they like you to go? and at the moment, the sign is up in germany to say,
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we don't want any of those aircraft that they may not paint for 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, 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 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 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. and, and they've had to deal with a very child as environments brenda were left defensive themselves. they 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
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then the other hand, they barely have enough time to 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 make themselves more competitive. but unfortunately, there will be some other airports that will take the approach of berlin, where we can do and they will have less traffic the the v c c.
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