Ryanair cuts fares, to charge for baggage |
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Published
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Thu, 26 Jan 2006 13:45
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LONDON: Europe's low cost airline Ryanair Holdings Plc. intends to charge passengers for baggage and introduce online check-in so that it can reduce queues at airports and cut down costs by as much as 21 million pounds. And the airline will reduce fares across the board.
The airline's chief executive Michael O'Leary said the company would not gain anything out of the new charge, but it will save money that is now spent on airport handling costs as airport check-in will be cut by half.
Ryanair is expecting to post a 10 per cent rise in its net profits to 295 million euros. It now plans to allow mobile phones and gambling on board to increase revenues.
O'Leary said the online check-in will reduce airport handling costs by 10 per cent. There could be some job cuts around the edges on this account, he said.
All passengers with hand baggage and EU passports will be able to check in online for flights originating from Britain, Ireland, Germany and Scandinavia from 16 March. Bags booked in advance will cost 2.50 pounds, while those presented at the airport without notice will cost 5 pounds. It is increasing luggage allowance from the current 25 kgs to 30 kgs and reducing its fares by 9 per cent.
The airline expects that the lower fares will bring in passengers from other airlines and 40 to 50 per cent of the passengers will switch to the online check-in facility.
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