Ryanair and the "conquest" of Italy. Interview with country manager Mauro Bolla
From the minimum capital of 1 pound to the 300 Boeing maxi order, via the first landing in Treviso [...]
From the minimum capital of 1 pound up to the 300 Boeing maxi order, moving from the first landing in Treviso to the 730 routes from Italy offered later this year. The story of Ryanair is an example of a relatively young airline (39 years in business) that has turned the aviation market upside down, especially in our country, overcoming international economic crises, geopolitical tensions and pandemics unscathed.
In this article:
And he did it always under the banner of standardization of a model and growth in markets where other carriers were retreating or had no interest in covering. Two events of the 1990s then were the absolute gamechangers: the arrival of Michael O'Leary as head of the company and the de-regulation of flights in Europe.
The main example of this momentous change has been Italy itself: this year in fact Ryanair celebrates 25 years of business from the first flight: a connection London-Treviso that would set the path for the record growth of the airline, which is now the top operator in the country for both domestic and international flights.
How Ryanair took on Italy
"We are not a Made in Italy company, but I can say that we are made for Italy - argues the country manager, Mauro Bolla - Over the years we have responded to unexpressed demand in the territory by offering both international and domestic connectivity that has come off the "flag on the tail." We believed in the territory and listened to it."
What is the characteristic of this Italian achievement?
"Everyone likes to fly point-to-point, nonstop, from the most accessible and nearby airport. The market has been receptive, and we have offered connections, simplicity, affordable rates and punctuality to territories that had unexpressed potential and were poorly and poorly connected by the hub and spoke model. The result has been that in 25 years we have transported over 460 million passengers from Italy and we are now touching 40% market share by 2023."
What should we expect, then, from this year?
"In 2019 Ryanair was doing 41 million pax in Italy, in 2023 we expect 56 million with 98 aircraft based in Italy-six more than in summer '22, which was already a record-seventeen operational bases, and that's 730 routes from Italy (more than 70 new ones) and more than 7,200 weekly flights to Italy."
It seems that the pandemic has not affected your plans. Why?"
"During Covid we did not lay off staff or retire aircraft. As soon as there were reopenings we were ready to go again. And we stayed true to our model: international connections, standardized process, north-south connections in Italy. The truth is that no one really wants a stopover: for the passenger, the hub-and-spoke model is a waste of time and money."
With questa volume of passengers have you ever thought of a loyalty program?
"Our model is based on simplicity and standardization of processes with a structure that is reproducible in different countries and easy to implement. A frequent flyer program to date is neither a priority nor a focus, but it cannot be ruled out entirely. I would point out, however, that pr Ryanari that all that aggive a cost in structure then it can fall back on the fare, and we don't want that to happen. Ryanair builds customer loyalty with its fare policy, its excellent on-time performance and its point-to-point network."
Ryanair's history from 1984 to today
Let's take a time jump to when it all began. In 1984...
"Tony Ryan founded the airline with a capital of 1 pound and started flying small machines - theEmbraer 110 15-seater to serve the first route, Dublin- London Gatwick. It was a service for business men with 2 flights a day, morning and evening. In 1986 we launched the Dublin-London Luton with Avro748s, 46-seat aircraft. The first jet in the fleet is dated 1987 with the arrival of the 79-seat Bac 1-11, and flights to Liverpool, Glasgow, and Cardiff opened."
The real turning point, however, comes in the 1990s. What happens?
"The arrival of Michael O'Leary marks a total change of pace: he is the one who takes his cue from the Southwest model in the U.S. and designs the first embryo of the future Ryanair: watch out for the monoflot, ancillary services are maximized such as catering, the network is expanded and low-cost fares are introduced, initially between London and Dublin."
When will the first Boeing 737s arrive?
"In 1993 the company reached one million passengers the following year the first B737-200s, the classics, were delivered. But the other big turning point is when in 1996 Eruope opens to de-regulation in air transport. Ryanair opens up to the entire EU market and begins flying to Stockholm, Oslo, and Paris Beauvais. 1998 is Italy's year with the first ever flight between London and Treviso, which we will celebrate just next week (May 25 and 26, ed.) in Veneto. After that we will also start connecting Pisa and Rimini."
How many passengers did Ryanair carry in the first Italian year?
"It didn't even reach 200,000 passengers. Also in that year, however, we start operating the first 189-seat B737-800s-our trademark and historic machine that has contributed to our success-full density, all economy, an efficient aircraft that consumes little fuel and fits perfectly with our point-to-point model."
From that moment the unstoppable rise begins....
"In 1999 we landed in Genoa, Ancona and Tornio. All defined regional airports but with great tourist appeal and "thirst" for domestic connections. They were forgotten airports. But already in 2000 we reach 1 million pax to/from Italy. Then in 2003 comes the first base: Bergamo Orio al Serio. Back in the day it was a small, little "beaten down" airport. Now it is among the largest in Europe with 24 based aircraft, 107 routes and 5 maintenance hangars. In 2006 the other bases in Rome Ciampino and Pisa were born."
Everything else is history. And numerous airports and territories in Italy have benefited...
There has been a major focus on southern Italy over the years, especially Puglia, Sicily and Sardinia have had very high hits in terms of accessibility and have experienced real tourism exploits and also on the business side. When you have accessibility and content you are enticed to visit the destination this applies to Apulian citizens who have discovered direct connections to international destinations, but it has also applied to foreigners who have discovered new destinations in Italy. Alghero, for example, has had an incredible response in markets from Poland and Hungary."
Plans for the future
Will the fleet investments made in recent months be another momentous step?
"Absolutely. We have already placed an order for 210 Boeing 737-8200s and an order for 300 737 Max10 aircraft. These are larger machines, with 228 seats, which include reducing C02 emissions by 20% and noise by 50%. They serve to grow, even more: from 178 million passengers in 2023 we want to reach 300 million in 2034 with a fleet that will grow from the current 537 aircraft to 800."
Will anything change in the operating model and network with the 737Max-10s?
"The model remains the same, it works. We add an extra 21% of seats on the single aircraft which means responding from a commercial point of view to the expected demand for all of Europe with more capacity. This will have a impact on loadfactor and cost. As O'Leary says, "our core business is to fill the car" so we will never do a high pricing policy, because for the market we offer additional capacity and more opportunities."
So more growth in Italy as well. Where?
"In addition to our larger bases-Bergamo, Bologna, Pisa, Rome Fiumicino-I believe there will be a further burst in the South, where we have many bases but smaller ones, with up to 10 aircraft. I see significant growth opportunities at Bari, Cagliari, Naples and in Sicily".
Is Rome Fiumicino increasingly strategic?
"The base at Fco was born 10 years ago, in 2013, and now. we are the second largest airline, behind the flag carrier (Ita Airways, ed.). The growth for summer 23 over 22 is 40% extra capacity. The market share on Fiumicino increased by 9 points percentages compared to pre Covid and in FY2023 it will reach 17%. I would say the growth is already very strong that these are important numbers."
Besides growth and fleet renewal, what are the other priorities?
"We want to be even closer to and better understand the territories where we operate,, focusing on the most local and accessible narrative. Our goal is to have global growth, but we also tell the territory better what has been done-and what is often not known-and listen to its demands to understand how and where to grow together. We are doing this in Italy, Spain and the Central and Eastern European area."
Predictions on airport chaos and strikes
Will airport chaos be repeated this year as in 2022?
"I don't think that will be the problem. The big hubs in Northern Europe last year suffered from staff shortages, much better did the Italian airports. But I think we would not have this kind of problem this summer. They are concerned, however, about the continuing strikes by air traffic controllers, especially in France."
Too many strikes, according to Ryanair?
"None of us is against the right to strike, but the fact remains that 52 days of mobilization in the first quarter in France is a lot. The real problem-which is the subject of our petition-is theminimum service utilization different than in Italy and other countries. In France, when controllers go on strike, minimum service is guaranteed only for domestic flights and not also for overflights. This creates a big problem for all airlines and inconvenience for millions of travelers. With our petition we demand that this minimum service be extended to overflights as well. Then we would like to see the adoption of the Single European Sky: We have a single currency in Europe, but not a "single sky." To date, a disruption or strike in one country creates a chain reaction on all continental air transport."
- 6,000 Mile Registration Bonus
- Collect miles WITH EACH PURCHASE
- Your miles with no expiration*
- No fees for ATM withdrawals and foreign purchases
- Without having to change banks
- Autonomous card activation
- Multi-function mobile application
- Free travel insurance
- Free credit for up to 7 weeks
- Contactless Payment
- Mastercard® SecureCode