Is Ryanair starting to mind its manners?

A long-term shift in the industry could explain why Michael O'Leary's notoriously cavalier attitude toward his own customers is mellowing.

Good manners cost nothing but Michael O’Leary, the chief executive of the budget airline Ryanair, is an expert at putting a price on things people never expected to pay for. Customers who fail to print boarding passes are charged £70, checking in a bag at the airport can cost £100 and the airline periodically moots the idea of charging passengers to use the loos.

Ryanair ticket sales have historically proved immune to O’Leary’s lack of charm, and his boast that “short of committing murder, negative publicity sells more seats than positive publicity” appears irritatingly accurate. In June 2013, the International Air Transport Association reported that more than 80 million people flew Ryanair in 2012, nearly 30 million more than Lufthansa, the second most popular airline.

This makes O’Leary’s recent about-turn all the more intriguing, because he has announced a raft of concessions to make flying Ryanair a bit less unpleasant. The airline is increasing passengers’ carry-on allowance, decreasing penalty charges and giving customers a 24-hour “cooling-off” period during which they can correct mistakes to their booking. Passengers on early-morning or evening flights will no longer be subjected to headacheinducing public announcements urging them to buy e-cigarettes and scratch cards, or a grating fanfare every time their flight lands on time.

One possible explanation for O’Leary’s mellowing attitude is that Ryanair issued a warning that it might not meet its £480m profit target this year. Ryanair blamed the weakness of the European economies and price-cutting by rivals – but it could also point to a long-term shift in the industry. The gap between low-cost and legacy carriers is shrinking. Low-cost airlines were intended to appeal to holidaymakers on a budget but, having crowded out established carriers on some short-haul European routes, they are increasingly being used by cost-conscious business travellers, too.

Ryanair’s main rival, easyJet, has already introduced a series of measures to attract business passengers. Meanwhile, the low-cost airlines are expanding into markets still dominated by the conventional carriers. October brought the maiden international flight for Africa’s first low-cost airline, Fastjet. The same month, Norwegian Air Shuttle, the world’s fastest-growing budget airline, signalled an expansion into long-haul travel by unveiling plans for a flight from London to New York which will cost £149 one-way. On short-haul flights, where legacy airlines are at a comparative disadvantage, some carriers have tried to emulate their budget rivals. Aer Lingus and Iberia no longer provide free food and drinks on some routes.

In many ways, these changes were inevitable once air travel became a more accessible and, by extension, less luxurious mode of transport. In the early days of low-cost flying, passengers might have been willing to put up with rude treatment for Ryanair’s hugely popular £1 flights, but in a more competitive market O’Leary may be learning slowly that bad manners can be costly.

Has Michael O'Leary learned his lesson? Image: Rex Features

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

This article first appeared in the 30 October 2013 issue of the New Statesman, Should you bother to vote?

Photo: Getty Images
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The Fire Brigades Union reaffiliates to Labour - what does it mean?

Any union rejoining Labour will be welcomed by most in the party - but the impact on the party's internal politics will be smaller than you think.

The Fire Brigades Union (FBU) has voted to reaffiliate to the Labour party, in what is seen as a boost to Jeremy Corbyn. What does it mean for Labour’s internal politics?

Firstly, technically, the FBU has never affliated before as they are notionally part of the civil service - however, following the firefighters' strike in 2004, they decisively broke with Labour.

The main impact will be felt on the floor of Labour party conference. Although the FBU’s membership – at around 38,000 – is too small to have a material effect on the outcome of votes themselves, it will change the tenor of the motions put before party conference.

The FBU’s leadership is not only to the left of most unions in the Trades Union Congress (TUC), it is more inclined to bring motions relating to foreign affairs than other unions with similar politics (it is more internationalist in focus than, say, the PCS, another union that may affiliate due to Corbyn’s leadership). Motions on Israel/Palestine, the nuclear deterrent, and other issues, will find more support from FBU delegates than it has from other affiliated trade unions.

In terms of the balance of power between the affiliated unions themselves, the FBU’s re-entry into Labour politics is unlikely to be much of a gamechanger. Trade union positions, elected by trade union delegates at conference, are unlikely to be moved leftwards by the reaffiliation of the FBU. Unite, the GMB, Unison and Usdaw are all large enough to all-but-guarantee themselves a seat around the NEC. Community, a small centrist union, has already lost its place on the NEC in favour of the bakers’ union, which is more aligned to Tom Watson than Jeremy Corbyn.

Matt Wrack, the FBU’s General Secretary, will be a genuine ally to Corbyn and John McDonnell. Len McCluskey and Dave Prentis were both bounced into endorsing Corbyn by their executives and did so less than wholeheartedly. Tim Roache, the newly-elected General Secretary of the GMB, has publicly supported Corbyn but is seen as a more moderate voice at the TUC. Only Dave Ward of the Communication Workers’ Union, who lent staff and resources to both Corbyn’s campaign team and to the parliamentary staff of Corbyn and McDonnell, is truly on side.

The impact of reaffiliation may be felt more keenly in local parties. The FBU’s membership looks small in real terms compared Unite and Unison have memberships of over a million, while the GMB and Usdaw are around the half-a-million mark, but is much more impressive when you consider that there are just 48,000 firefighters in Britain. This may make them more likely to participate in internal elections than other affiliated trade unionists, just 60,000 of whom voted in the Labour leadership election in 2015. However, it is worth noting that it is statistically unlikely most firefighters are Corbynites - those that are will mostly have already joined themselves. The affiliation, while a morale boost for many in the Labour party, is unlikely to prove as significant to the direction of the party as the outcome of Unison’s general secretary election or the struggle for power at the top of Unite in 2018. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.