Ryanair expects to emerge as Europe's only major low-cost carrier

By Conor Humphries

DUBLIN – Ryanair on Monday predicted it could ultimately develop into Europe’s solely main low-cost provider, with Chief Govt Michael O’Leary claiming a widening hole on prices would make rivals easyJet and Wizz takeover targets.

“Europe is inexorably shifting in the direction of an identical out-turn as North America the place you'll have three very massive, considerably greater value, high-fare connecting carriers, and one very massive low value provider” in Ryanair, O’Leary mentioned.

Wizz chief government Jozsef Varadi, who has all the time maintained his value base is similar to Ryanair’s, final week mentioned he didn't see his airline as a takeover goal.

A spokesperson for EasyJet, a hybrid participant targeted on undercutting legacy airways at established airports which doesn't see itself as a direct competitor to Ryanair, mentioned “tens of millions of shoppers in Europe can be relieved to listen to there isn't a reasonable prospect of Ryanair turning into the one low value airline in Europe.”

O’Leary mentioned each of the rival airways “can be candidates for M&A over the following couple of years as a result of … they're caught in an area the place they're mid-airfare, mid-cost and they don't seem to be capable of compete with us on value or pricing.”

Talking on a name with analysts following the discharge of outcomes for the primary half of its monetary 12 months, O’Leary praised easyJet for establishing a “fortress-like” place in some costly airports like London Gatwick and Paris Charles de Gaulle, Geneva and Zurich.

However he mentioned the British airline was being compelled by Ryanair to retreat in different markets like Italy and Portugal.

Wizz, O’Leary mentioned, was making progress with growth within the Center East however was retreating within the face of Ryanair growth in some components of its core central and japanese Europe area.

O’Leary mentioned he additionally anticipated Portugal’s TAP and Italy’s ITA would each in the end be taken over by bigger rivals.