Ryanair launches 'no-frills' phone company

Ryanair, the brand that has revolutionised airline travel by cutting costs hand-in-hand with flying frills throughout Europe, is now going to attempt to do the same for the communications industry.

For a fee, the Irish-based budget airline has licensed the use of its name to a telephone company launched in Dublin today.

Ryanair Telecom is offering a range of discount landline rates to phone users. And in an echo of the way Ryanair took on Ireland’s Aer Lingus national airline, the company claims charges around half those imposed by Eircom, the once state-owned main telephone operator, with 90% savings on international calls.

Beyond leasing their name, neither Ryanair nor their directors have an ownership interest in the new telephone venture.

But Ryanair Telecom made it clear today that its marketing campaign would be similar to that of the cut-price carrier, with its website frequently referring to rival “rip-off on phone charges“.

Chief Executive Sean McVeigh said: “Irish consumers have been penalised for so long due to lack of real competition.

“We intend to shake up the market and provide people with savings on their phone costs.”

In yet another acknowledgement of the airline’s successful formula, the phone company has also utilised its namesake’s low cost operating model, planning to save money by conducting most of its business online.

Mr McVeigh reported: “We have stripped out all the overheads without compromising on call quality so that we can provide stiff competition.”

Customers are being invited to use the service by registering their bank details online. Then they pay for calls either by credit or debit card.

The aim is to recruit 10,000 subscribers in the first year of operation.