Ryanair Cyprus airline deal unlikely

Ryanair has less than a 50% chance of acquiring Cyprus Airways, Michael O’Leary said yesterday.

Last month, the Dublin- based airline tabled a bid for the struggling Cypriot carrier saying it could boost its passenger numbers by 500% over three years and make it profitable.

It was reported last week that nine bids had been tabled for Cyprus Airways by the deadline of last Wednesday.

Speaking yesterday at Ryanair’s headquarters in Dublin, after flying in from Seattle on the first of the airline’s new Boeing next- generation 737-800 jet, Mr O’Leary said Ryanair’s chances of landing the Cypriot airline was “less than 50-50”, adding it was more likely to plump for Greece’s Aegean Airlines.

He said he expects a decision to be made on Cyprus’s new owner by the end of November.

Nevertheless, he said that Ryanair has already applied for a Cypriot air operator certificate, which will allow it grow in the region in the coming years.

Mr O’Leary said the company still plans to make it hard for any other bidder to land Cyprus Airways. Ryanair would offer, he said, very rapid growth, a retention of the existing brand, and would make it a very vibrant airline. Whether or not it succeeds with the carrier, Ryanair remains “opportunistic”, according to Mr O’Leary, and foresees more consolidation in the European airline sector in the coming years.

On the issue of Ryanair’s proposed expansion into Russia, he said it could happen as early as next summer, but urged Tourism Ireland to contribute, via marketing assistance, in order to help a route to St Petersburg to break-even in its first three years.

On wider issues, he said Ryanair’s $200bn (€155bn) purchase of 200 new Boeing aircraft (with an option to buy 100 more) — its second new plane order in as many years — will significantly lower its costs and allow a pushing down of air fares, by as much as 20%, over the next decade.

Regarding the ongoing row over airport charges at Dublin, he said Ryanair continues to support the regulator’s call for a 22% drop in the next five years. Ryanair, he said, could increase its passenger numbers at Dublin from 7.7m to 12m over the same timeframe.

He said that would only happen if Dublin becomes a lower cost base.