Wednesday, June 24, 2009

More cost saving measures by Ryanair

According to this morning's Irish Independent, Ryanair is considering banning check-in luggage as part of a new system where passengers would have to carry their bags all the way to the tarmac beside the aircraft. Yesterday, chief executive Michael O'Leary detailed proposals where customers would pass all of their bags through security checks, currently used just for hand luggage, and then carry them through terminals to their flight.

The budget airline says the plans could save €20m, through not paying baggage handlers, which would be passed on to consumers. The airline claims 70pc of its passengers do not check in any baggage when travelling. However, there is no timeline on when the plans could be introduced, nor what airports the system could operate in.

Mr O'Leary sold €19m worth of shares in the company less than three weeks ago. Ryanair also said it is suspending expansion at its nine UK bases as part of its lengthy campaign against government-imposed passenger taxes. The no-frills airline claimed that a combination of a stg£10 passenger tax introduced in the UK and what it described as high airport charges levied by airport operator BAA have resulted in 4.5 million fewer passengers at UK airports within the past five months.

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