Chief Exec Stmnt-Replacement
Ryanair Holdings PLC
22 September 2000
The issuer has made the following amendment to the Chief Executive Statement
announcement released today at 11.00 under RNS No 3767R.
Please note that paragraph five now reads as follows 'At its meeting this
morning the Board of Ryanair approved the exercise of purchase options for
three additional Boeing 737-800...'
All other details remain unchanged.
RYANAIR CONTINUES TO GROW STRONGLY
Speaking today (Friday, 22 September 2000) at the Annual General Meeting of
Ryanair Holdings plc in Dublin, the Chief Executive of Ryanair, Michael
O'Leary gave a positive assessment of current trading conditions at Europe's
largest and most successful low fares airline.
'Traffic growth at Ryanair over the busy Summer period has been a little
stronger than we initially anticipated. Subject to the final numbers for
September, we now expect traffic growth in the second quarter to be some 30
per cent ahead of last year's second quarter, due to the success of Ryanair's
ten new routes this summer and the continuing growth of RYANAIR.COM, Europe's
largest travel website. During the month of August for example a record 83
per cent of all seats were sold directly, online through RYANAIR.COM and also
Ryanair Direct. This figure is up from 40 per cent last year.
'Whilst we are using the cost savings being made by RYANAIR.COM's success to
offer even more low fares, these lower fares are in turn generating stronger
growth and faster penetration of new routes, by bypassing the traditional
distribution channels and offering the public a real choice over the high fare
airlines which for too long have been charging extortionate air fares to
consumers.
'The announcements last week from both British Airways and KLM of price rises
due to fuel price increases indicate just how the alliances and mergers around
Europe are bad for the consumer. These airlines would not be able to drive up
prices if they were truly competing with each other. We see a future where
the only markets where air fares will be falling will be those where Ryanair
will be offering low fare competition to the high fare alliances all over
Europe.
'At its meeting this morning the Board of Ryanair approved the exercise of
purchase options for three additional Boeing 737-800 next generation aircraft
with a value of over US$120m. for delivery in mid 2002. This will bring the
total new aircraft deliveries in 2002 (from five) to eight 737-800 series
aircraft. This will enable Ryanair to maintain its 25 per cent rate of growth
in traffic numbers, and will see the fleet rise from 36 to 44 that year. In
addition we have today concluded negotiations for the purchase of our own
737-800 series simulator at a value of US$10m., which will enable Ryanair to
manage all its pilot training, and ensure that the high operating standards
which we have established at Ryanair over the last 16 years are maintained as
we continue to expand strongly throughout Europe.
'Ryanair is presently in negotiations with 25 new airports throughout Europe
for new route development next year (2001) and we are also in negotiations
with five competing airports who want us to base aircraft and open up new
routes from their airports next year. This is in marked contrast to the
continuing stagnation at our home base in Dublin Airport, where the government
owned airport monopoly has introduced dramatic price increases, delivered
awful facilities, and traffic (from the UK) has stagnated as a result.
'The fact that traffic to Ireland from the UK - which is by far and away
Ireland's largest tourism market - has stagnated, at a time when Sterling is
at record levels to the Irish Pound is a damming indictment of the policy of
the Minister and Department of Public Enterprise, who continue to protect and
support this failed monopoly at the expense of the travelling consumer.
'We believe that our proposals for a new low cost terminal - which we have
offered to finance and build - at no cost to the Irish Government or the Irish
tax payer - will enable Ryanair to launch up to ten new low fare routes to
Ireland from the UK and Continental Europe, will reverse this stagnation, and
will introduce much needed competition at Dublin Airport. Competition will
improve facilities, lower costs, and promote growth. It is about time that
the Minister and Department of Public Enterprise now adopt these consumer
orientated policies, and break up the failed and stagnant Aer Rianta airport
monopoly.
'As we have highlighted in recent quarters, our results are somewhat enhanced
by the extraordinary strength of Sterling against the Euro, and the success of
our fuel hedging program in recent years. However, if our main competitors
continue to raise prices as they are doing currently, then the prospects for
strong growth of the Ryanair 'low fares' formula in Europe remains bright.'
Ends. Friday, 22 September 2000
For reference: Michael O'Leary Pat Walsh/Alan
Tyrrell
Ryanair Murray Consultants
Tel. 812 1228 Tel. 663 3332
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