“It’s not me, it’s you”, Ryanair’s strategy with Spanish airport: El Prat, Reus and Girona
In the last episode of this grand epic that is the relationship between Ryanair and Spanish airports things have been shaken up again. In another shocking twist, Ryanair announced it wouldn’t get back together with Girona. The fickle Irish low-cost also revealed it wanted to break up with Reus, alleging the local authorities hadn’t been playing fair. But there’s still hope for El Prat as, apparently, the airport has escaped the airline’s wrath.
It’s not so surprising actually. Ryanair’s decisions in Spain are rather extremely telling regarding the Spanish market. A few years ago, when low-cost competition was still low, it was easier for the company to fly to Girona – or really any small airport it wanted – than the more courted city center airports. Now that low-cost companies are all the rage for airports and even between companies the competition is raging, Ryanair is refocusing its offer to ensure minimum passenger volumes on its routes.
Indeed, now that there’s a wide range of affordable low-cost routes to Spain, Girona really has lost all interest for Ryanair. Which would explain the fact that the company is asking 15 millions euros in subsidies for 3 million passengers, effectively doubling its price for 25% fewer passengers. Asking more for less, the parallel with drug dealing economics easily comes to mind… But it’s only Ryanair trying to extract maximum revenue from something it’s not really interested in.
After Girona, it’s Reus’ turn. Ryanair announced it would leave the airport, suppressing 28 routes and a steady flow of at least 500 000 passengers, by the end of October if it didn’t receive an increase in subsidies. That might come as a surprise to some but, looking back on it, it seemed like it was bound to happen. Reus, a bit like Beauvais or Charleroi, was Ryanair’s gateway to a big city. But the airport’s relative proximity with Barcelona is now costing it its contract, as Ryanair seems set on focusing its operations to and from El Prat.
The bitter irony of the story is that Ryanair never completely closes the door on those relationships. Like an ex-lover who can never really say goodbye (though there’s hardly any good feelings involved), Ryanair always leaves open the possibility of maintaining operations at the base. In exchange for increasing fees, and generally lower results.
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El Prat eh. Somehow it sums up the people who fly Ryanair so it’s a marriage made in heaven. Bless.