SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January 2006
RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
RYANAIR TO REVOLUTIONISE EUROPEAN AIR TRAVEL
- FARES REDUCED BY 9% (GBP2.50 OR EUR3.50) FROM 16TH MARCH '06
- WEB CHECK-IN TO ELIMINATE CHECK-IN AND AIRPORT QUEUES
- LUGGAGE ALLOWANCES INCREASED FROM 25KGS TO 30KGS
- PASSENGERS ONLY PAY FOR THE BAGGAGE SERVICE THEY USE
Ryanair, Europe's largest low fares airline today (Wednesday, 25th January 2006)
announced details of its next revolution in European low fare air travel. From
the 16th March, Ryanair will introduce a number of key service improvements for
all passengers including (1) all Ryanair's fares will be reduced by 9% (GBP2.50
or EUR3.50), (2) all passengers travelling with hand luggage and in possession
of an EU passport will be able to check-in on the web at www.ryanair.com and
by-pass all check-in and airport queues, (3) these passengers will also be given
priority boarding which will also eliminate boarding gate queues as well, (4)
for bookings after 16th March, Ryanair is increasing each passenger's luggage
allowance from the current 25kgs to 30 kgs (comprising 10kgs carry-on and 20kgs
checked-in luggage) which will substantially reduce excess baggage fees and
finally (5) all passengers travelling with checked in luggage who book after
16th March will now pay a fee of GBP2.50 (EUR3.50) per bag, per flight if booked
in advance on the website, or GBP5.00 (EUR7.00) per bag, per flight if presented
unbooked at the airport.
As a result of these changes, those 25% of Ryanair's passengers who presently
travel with just hand luggage will avail of lower fares, will avoid the
inconvenience of check-in or boarding gate queues and will no longer cross
subsidise those passengers travelling with checked in luggage. A further 50% of
Ryanair's current traffic (who travel with just one checked in bag) will see no
change in their cost of travel, as the GBP2.50 ticket price reduction will fund
their GBP2.50 baggage fee if booked on the internet. These passengers will enjoy
much shorter queues at check-in thanks to the large numbers of people who will
now switch to web check-in, thereby reducing the airport check-in queues. Lastly
those passengers who presently travel with more than one checked in bag will see
the cost of their travel rise by the GBP2.50 (EUR3.50) per bag for their second
and subsequent bags. These passengers will also enjoy shorter check-in queues,
and will be encouraged to travel with less checked in luggage which would then
make these changes cost neutral for them as well.
This 9% "across the board" reduction in Ryanair's ticket prices from 16th March
will make these changes revenue neutral for Ryanair. The airline estimates that
the reduction in ticket revenues and excess baggage fees will cost Ryanair more
than GBP100m per annum. These lower fares will stimulate further traffic growth
and increase the current (50%) price differential between Ryanair's prices and
the average ticket prices of our higher fare competitors such as Easyjet. We
expect as a result of these measures, and in particular the attraction of web
check-in and priority boarding that more and more of Ryanair's customers will be
incentivised to travel with hand luggage only and take advantage of Ryanair's
industry leading 10kgs of carry-on luggage.
The upside for Ryanair in these initiatives will be the opportunity to
significantly reduce airport and handling costs. We believe that between 40% to
50% of passengers will quickly switch to our new web check-in/priority boarding
service. This will allow Ryanair to reduce the number of check-in desks, baggage
hall and other handling facilities we rent at major airports. It will
significantly reduce the number of check-in and baggage handling staff required
to handle individual flights, although the airline expects few reductions in
staffing numbers in these areas, as existing numbers will be required to handle
our rapid growth. Ryanair believes that its airport and handling costs will be
reduced by over 10%, which equate to a saving of some EUR30m. This saving would
equate to 10% of Ryanair's current year forecast after tax profits.
Announcing these changes in London, Michael O'Leary, Ryanair's Chief Executive
said:
"Many sceptics have doubted whether Ryanair could drive its fares even
lower. Well today we prove the doubters wrong. From 16th March next,
Ryanair will reduce its fares by almost 10% across the board. Ryanair
will also become the first low fares airline in Europe to make web
check-in available for all our customers and we believe that this
service will prove enormously attractive to passengers who wish to
avoid those frustrating queues at airport check-in, at security, and
at the boarding gate as well.
"These changes will also be welcomed by the overwhelming majority of our
remaining passengers who will still be checking in one bag, as these
passengers will enjoy lower air fares, but also shorter and faster
moving queues at airport check-in. We have no doubt that this
pioneering development for checked in bags is the way forward, as it
will encourage and incentivise more passengers on short-haul journeys
to travel with hand luggage only. Ryanair's higher carry-on limit of
10kgs, and our new increased checked in allowance of 20kgs will
largely eliminate excess baggage charges.
"These changes will enable Ryanair to reduce our airport and handling costs
across the network. We will require fewer and less expensive airport
facilities such as airport check-in and baggage hall facilities. We
will carry fewer bags making our aircraft lighter and improving our
fuel consumption. Our existing check-in and baggage handling personnel
will now be able to accommodate significantly greater traffic numbers
as we aim to double the size of the airline over the coming five
years.
"Ryanair started the low fares revolution in Europe back in 1990. We have
continued to pioneer changes in both the cost and practice of air
travel over the past 15 years. Today's announcement takes this
revolution one step further. With a 9% reduction in Europe's lowest
air fares and the first web check-in facility for low fare passengers,
we believe that up to half of Ryanair's passengers will now be
encouraged to avoid airport queues. Short-haul travel in Europe will
never have been cheaper or more convenient than Ryanair will make it
this year".
Ends.Wednesday, 25th January 2006
For further information
please contact: Peter Sherrard Pauline McAlester
Ryanair Murray Consultants
Tel. 353-1-8121212 Tel. 353-1-4980300
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
RYANAIR HOLDINGS PLC
Date: 25 January 2006
By:___/s/ Howard Millar____
H Millar
Company Secretary & Finance Director