Ryanair takes on Scandinavia’s SAS in battle for customers

RYANAIR is going head-to-head with Scandinavia carrier SAS in a vicious battle for customers as Ryanair offer fares up to 95% cheaper than SAS from its ninth European base 100km south of Stockholm.

Ryanair chief executive Michael O'Leary announced yesterday it was setting up its first base in Scandinavia at the Stockholm Skavsta airport, putting further pressure on loss-making Scandinavian flag carrier SAS.

"Thanks to Ryanair, and Stockholm Skavsta Airport, the SAS high fares monopoly in the Scandinavian market is at an end," Mr O'Leary said.

"Ryanair are breaking the monopoly of SAS in the Scandinavian markets of Norway, Finland, Sweden and Denmark, with choice and low fares which will save consumers over 85% on the SAS high fares.

"For years, visitors to Stockholm and Swedish consumers have had to put up with SAS's high air fares, but this monopoly ends on April 4, 2003.

"Now there will be a choice of air fares and daily scheduled flights not only to London and Frankfurt, but also to Oslo, Glasgow, Aarhus, Paris, Tampere and Hamburg and guaranteed at the lowest air fares 85% saving on the high fares charged by SAS."

Ryanair said it would base up to four Boeing 737-800 planes at Skavsta owned by British airport operator TBI Plc from April 4.

Ryanair added that the new base would result in the creation of 200 jobs.

And in a note to clients yesterday, Goodbody Stockbrokers analyst Joe Gill said the 10% shift in the US dollar against the euro should knock between €460 million and €610 million off Ryanair's €3 billion to €4.5 billion aircraft capex programme and its €1.6 billion fuel bill over the next seven years.