Hofmann's recommendations

Hoffmann takes off: Ryanair CEO Michael O'Leary

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Ryanair CEO Michael O'Leary has successfully positioned himself as the most polarizing airline boss in Europe with spectacular predatory pricing, unconventional marketing campaigns and many a snappy comment. He told us what the future holds for his airline and Laudamotion, which he acquired at the end of 2018.

On December 31, Ryanair took over the remaining 25 percent of Laudamotion. How has the airline developed since then?
A loss of 140 million euros was recorded for the past year. 2019 could see a loss of up to 50 million. The loss will also be linked to the fares in the summer, depending on how they develop. But we have to generate volume with Laudamotion and carry six million passengers this year. This is necessary so that people get to know us.

From 2020 onwards, there should be profits. What are the plans for Laudamotion?
We plan to make Laudamotion the second-largest airline in Vienna after Austrian Airlines. To this end, Laudamotion will also meet with Airbus to discuss aircraft orders.

Why the rapid growth?
Laudamotion will set up a base in Stuttgart with three A320s. Further bases are planned. In the coming weeks, we want to set up new bases with three aircraft each. This could be in Western Europe, such as Portugal or Spain, or in Eastern Europe, such as Hungary, Poland or the Baltic states. I see opportunities for growth in Europe, as other airlines are downsizing. There are still slots available. But we have to move quickly to take advantage of this opportunity. Others are shrinking, we are growing.

With Ryanair, Laudamotion and Ryanair Sun, you have three airlines in the Group. Are further takeovers planned?
If further opportunities arise with smaller airlines, giving us additional operating licenses in other countries, then yes. We will see what happens.

How will the European airline landscape change?
The question is, who will no longer be an independent airline in the next few years? Norwegian, for example, will hardly survive as an independent airline and will probably take 30 to 40 aircraft out of service. I expect four or five major airlines to dominate Europe in five years' time. Lufthansa will probably take over Wizz Air and then there's Air France-KLM and easyJet. However, I'm not sure whether easyJet will still be independent in the future.

(c) Ryanair