Ryanair's chief executive Michael O'Leary has come out fighting in response to the price cuts by mainline carriers and a series of stories in the UK media questioning the service standards of the low-cost sector.
Ryanair is launching what it describes as a "passenger services and lowest fare charter" - an obvious reference to the Brussels-inspired passenger charter agreed by mainline carriers last year. Ryanair refused to sign up to that charter, which O'Leary characteristically dismisses as, "a rubbish document", adding, "it makes no mention of prices or punctuality".
In the Ryanair charter, O'Leary promises that the budget carrier will beat any competitor's price on any city pair - even when rivals launch special offers. Many mainline carriers have been heavily discounting fares in the face of decreasing traffic levels and the increasingly stiff competition from the low-cost sector.
Ryanair passengers will also be able to change names on tickets and travel times subject to a surcharge. However, O'Leary admits there will be no compensation for passengers if Ryanair fails to keep to its commitments. The document states: "Ryanair will not provide refreshments or meals or accommodation to passengers facing delays." The low-cost carrier is, however, aiming to improve the way it notifies passengers when there are problems with flights.
The mainline carrier agreement sets out agreed levels of compensation and customer care for delays and cancellations.
O'Leary also repeats his support for the European Commission's quest to force airlines to go public on a monthly basis with statistics covering punctuality, baggage losses and passenger complaints. A similar system already operates in the USA.
O'Leary insists that despite a ticket sale in mid-September covering off-peak flights in the last quarter of the year, Ryanair is still on course to meet analysts' estimates for full year profits.
Source: Airline Business
