A man clowning around next to a photo with another person dressed as a clown. A circus. There are few things that motivate Michael O'Leary more than a free advertising campaign.
The king of low-cost airlines moves 60 million passengers in Spain and does not miss opportunities, although after a particularly tense period with aviation security authorities due to its practices, he had been keeping a low profile for years.
However, the ¤107 million fine imposed by the Ministry of Consumer Affairs on Ryanair for violating passengers' rights by charging excessive prices for cabin baggage has brought out his most mischievous side towards politicians, his favorite target.
Hyperactive at 64, the executive of the airline that transports the most passengers in Europe held a press conference yesterday in English because he did not want to waste time on translation, then he hugged a cutout of Pablo Bustinduy dressed as a "crazy clown" (the only thing he said in Spanish).
He accused Bustinduy of wanting to raise prices and announced offers and more passengers to Spain where, regardless of what happens with the Consumer Affairs fine, prices will increase.
Why are you so sure that the Government will withdraw the fine?
Because it is absolutely illegal. Spain cannot use a law from the 1960s that tells airlines what prices to set, what luggage to carry, or what baggage fees to charge. There have been multiple rulings in European courts, and since 2014, airlines are free to set prices as they wish as long as they allow people to bring reasonable luggage on board that fits in the plane.
Do you think that after calling the minister a "crazy clown," he will listen to you and withdraw the sanction?
The issue is that we have a clown politician asking people to bring more luggage for safety reasons. You can't bring all the luggage on board because there isn't enough space. But no, I don't think he will. I believe he will be forced to withdraw it, either by the European Commission or by the courts.
Within what timeframe?
Who knows, maybe two or three months or perhaps two or three years. Bustinduy believes he is on a committed mission, saving Spanish consumers from multinational and millionaire airlines... No! We are a low-cost airline, last year we lowered fares by 8%, and this is just another stupid regulation that if not returned will raise ticket prices.
How much does Ryanair earn with its policy of charging for services apart from the ticket?
Let's see... The average fare last year was 45 euros and ancillaries (additional or extra revenues) were another 24, so about 50%... around 900 million euros last year. It includes snacks, seats... everything, not just bags and luggage.
They have had this policy in Spain for 21 years. Has the news of the fine led their passengers to be more combative?
No, all passengers know what they need to bring, whether two bags or one and of what size. We move 60 million passengers more than the country's population. They know how it works and don't need a politician here in Madrid to explain it to them. There's talk of us closing routes, leaving something behind... We are growing in Spain, we will surpass 60 million passengers, and we continue to invest. But we have a problem with Bustinduy, and I am also trying to convince Aena and Minister Puente to create interesting schemes to increase traffic at airports like Valladolid.
Will traffic grow in Spain while operating in fewer airports?
Santiago, Valladolid, Jerez, Zaragoza, Vigo, or Santander... no. But we will grow in Malaga, Alicante. Barcelona, Madrid, the Canaries... Traffic moves to the larger airports because that's what Aena promotes. We discussed this with Mr. Puente, who asked Aena to explain its incentive system. But Aena came with a 500-page document that, when you understood it, turned out to lower rates by 1%. We have better things to do.
What discount are you aiming for?
If you want another 100,000 seats to one of these destinations, why not lower fares by 50%? In Italy, we reached an agreement to eliminate the government tax, and while taxes there decrease by eight euros, here they increase by three, and that's why we won't grow much.
Have you approached regional governments?
Yes, we are working on it.
And what can they do?
Pressure Aena to lower fees.
Anything else?
I can't think of anything else, it's the only variable. If I assume those three euros, I will have to apply them to tickets, and people want cheaper fares.
What will happen to your prices this year?
I think they will increase by 3% to 4% due to Aena's fees and because we will grow slightly slower this year in Spain. But it will still be cheaper than in 2023.
How did you see the failed merger of Iberia with Air Europa?
They should have allowed it. Clearly, Air Europa is a company that will not survive as an independent airline and would be better managed by Iberia from Madrid than from Frankfurt by Lufthansa, which will only feed its hub in Germany. I don't think it was a decision made in Spain's interest.
Why?
Market consolidation is largely needed because not everyone fits in the low-cost space. That said, I don't understand why Lufthansa is allowed to buy AirItalia from Air France SAS and IAG is not allowed to buy Air Europa... perhaps due to the presence of British Airways and a non-European element. Luis Gallego leading it would have been better than someone in Germany making decisions for Germany.
How does the Boeing bottleneck affect you?
How does the Boeing bottleneck affect you?
Do you expect changes in emissions policy?
I think all of that is a load of rubbish. Increasing taxes on air transport will not reduce emissions. The way is to invest that money in technology, and at Ryanair, we are doing that, and it is possible to achieve reductions of up to 40% per passenger. No one produces sustainable fuel. The sector paid nearly 1 billion in emissions taxes, and not a single cent was dedicated to incentivizing sustainable fuel.