Thursday 28 October 2010

Ryanair, Hahn and the Message.

The news that Ryanair will pull 33% of its services out of Frankfurt/Hahn in response to new German Government taxes on air travel looks a shrewd move. Not as a punishment for the federal government,- they aren't in the habit of backing down especially as the price sensitive low cost/price carriers are likely to suffer more than less price sensitive Lufthansa. It should be seen more as a measured cost saving response to the possible effect on the airline's Hahn business but, far more important and much more strategically significant, a warning to others that Ryanair is happy to take its ball away and play elsewhere if it doesn't like what is being done to it in any market or at any airport.They did the same recently when Belfast City( George Best )was unable to produce the promised runway extension on schedule. The message is very clear and simple. Give Ryanair what it wants or they will take their investment and jobs somewhere else.