Read us | Listen to us | Watch us | Join Live Events | Turn Off Ads | Live |

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Catalan Catalan Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Chinese (Traditional) Chinese (Traditional) Corsican Corsican Croatian Croatian Czech Czech Danish Danish Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Irish Irish Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Telugu Telugu Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Welsh Welsh Xhosa Xhosa Yiddish Yiddish Yoruba Yoruba Zulu Zulu

O’Leary: ‘Airline industry needs recession’

18_44
18_44
Written by editor

The recession could lead to just four European airlines surviving, the boss of budget carrier Ryanair predicted.

The recession could lead to just four European airlines surviving, the boss of budget carrier Ryanair predicted.

As many as five to six European airlines could go bankrupt between now and Christmas, added Ryanair chief executive Michael O’Leary.

And eventually just British Airways, German carrier Lufthansa, Air France and Ryanair will survive, he forecast.

Mr O’Leary said that Europe “needed a recession” as an economic downturn got rid of loss-making airlines and made aircraft purchasing cheaper.

He also held out the hope of a new transatlantic low-cost operation within about two to three years with economy fares of just £10 but stressed that this would not be operated by Ryanair and would be a completely separate company.

Mr O’Leary was speaking in London as Ryanair reported half-year profits of £170 million for the six months to September 30 – a dip in profits of 47%.

The Irish carrier said it expected to make losses over the next six months but said that average fares would dip by between 15% and 20%.

Mr O’Leary said on Monday that Ryanair had completed a “remarkable performance” over the last few months and that passenger numbers were up 18% in October 2008 compared with October 2007.

He said: “We need a recession. We have had 10 years of growth. A recession gets rid of crappy loss-making airlines and it means we can buy aircraft more cheaply.

“We think interest rates should stay high and politicians should let the economy right itself normally.”