Credit crunch 'good for business'

Last Modified: 07 Oct 2008
Source: PA News

Ryanair chief executive Michael O'Leary delivered a buoyant economic forecast in the face of the global financial crisis.

He insisted that the credit crunch was "good for business" and said his low fares airline would reap the benefits of the financial gloom.

"We are not just looking at a recession but a depression," the colourful businessman said.

"We are really looking at four or five years of recessionary economics and that's great for Ryanair's business. People are down-trading. We have a great economic outlook, the great thing about flying is that people will never stop.

"If you can't make money in this business you'd be a fool."

Mr O'Leary added that he wanted to double his company's traffic and profits by 2012.

The Irishman's defiant predictions contrast with the economic difficulties currently stalking the travel industry.

In July budget airline Zoom went into administration and grounded all its flights, with XL Leisure following in September, both companies blaming the rising cost of oil for the collapse. Mr O'Leary said he thought "more would follow" in their wake.

He blamed the industry regulator the Civil Aviation Authority (CAA) for not monitoring the companies' situations more closely and leaving passengers stranded.

Meanwhile, Ryanair also announced they would be releasing one million free seats for travel between November 15 and December 16, as an incentive for people to fly with the no-frills airline.

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