David Wighton: Business Editor’s commentary
The man, the films, those blondes. Free DVD collection starting this Sunday
For Michael O’Leary, Ryanair’s chief executive, even bad news is an opportunity to go on the offensive. Mr O’Leary’s decision to cut flights out of Stansted later this year and close operations at seven other airports is partly a reflection of the damage being done to airlines by the high price of fuel. But it is also a negotiating gambit to reduce costs.
Mr O’Leary said that Stansted was the most expensive of Ryanair’s bases and attacked BAA for raising charges by 15 per cent this year.
Pulling out of seven airports at once will shock town councils and chambers of commerce around Europe because the potential loss of Ryanair is a serious threat to regional economies supported by tourists and expatriates.
When Ryanair starts threatening to abandon other airports if it does not get reduced landing fees, discounted fuel and other perks from operators in the coming months, it will be clear that Mr O’Leary is not bluffing.
Acting now also gives Ryanair first mover advantage. Mr O’Leary will find it easier to strongarm airports into giving him a better deal when he is the first to make the demand.
Later in the year, when there are dozens of other airlines clamouring for similar special treatment, it will be far harder for airports to offer favourable terms to one and not all.
It is inevitable that after the summer travel bubble, airlines across Europe will start cutting capacity. Carriers in the United States are already grounding aircraft and laying off thousands of employees and, unless there is a dramatic fall in the price of oil, Europe seems almost certain to follow.
By announcing its plans now, Ryanair will avoid the stampede later in the year and its stock may well hold up better as a result.
However, Mr O’Leary’s savage capacity cuts are also a reflection of a failed strategy. He has not hedged against the oil price and is now feeling the full pain of more than $130 a barrel. Ryanair’s lack of action on this issue means that it is suffering much earlier than its rivals.
Ryanair has also continued to buy aircraft, adding capacity at a time when it is clear that there was a serious shock awaiting the airline sector.
Playing offence in a tight spot is a trademark of Mr O’Leary and it may help Ryanair to weather the storm. Even so, perhaps a bit of defence earlier in the year would have been a better tactic.
Read the training tips and advice that helped our London Triathletes
Times Online's new TV show helps you make the right decisions for your pet
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles

Overseas contacts and local business information
2007
£47,700
2007
£41,899
2008
£41,445
Great car insurance deals online
£25,510 – 32,000
Transport for London
London
£50k
NHS
Nationwide
£
£90,000 + PRP
Essex County Council
Essex
100K
Confidential
London
5% below developer pre-launch price!
Luxury Appts, beautiful gardens w/ Thames views
Great Investment, River Views
By Funway – Thailand
from £589pp
Christmas Cruises
From only £995pp
APTs East Coast now from only
£2425pp.
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
Nobody is obliged to fly Ryanair. It is what it is, you do not get anything for nothing-ever.Mr O'Leary has made it possible for many people to travel, who would not otherwise be able to afford the fare. I took my son Spain/London return for 56 for the two of us. 10k hand luggage each. OK
Jane Curtis, Reus, Spain
I'm sick of O'Leary and his airline - I will travel any airline except this one, it is physically the very very last airline I would consider using. Hopefully he will never get his hands on the Excellent Aer Lingus which by comparison still treats its customers with respect and dignity.
R McAuley, Antrim, UK
Lets get real O"Leary is spinning a major fo-pa into "we are victims" speach. Ryanaie expanded too fast and they got it wrong with regards to their new locations that nobody wanted to go so they are not going to say we got it wrong so lets blame somebody else. O"Leary get that chip off your shoulder
Andy White, Edinburgh, UK
Surely this is a good thing especially for the people around Stansted who do not want the extra runway. Skifole should become the hub of europe with larger more efficent but fewer jets leaving the uk. There you are problem solved, more enviro-friendly
Dave Farmer, Broxbourne, England
"Why is it that no one can resist a dig at O'Leary?".
Because the man is a greedy capitalist whose only aim is to make as much money as he can using government subsidised fuel.
He has no regards for his passengers, nor his staff (that he hires and fires at a whim) nor for the environment.
Peter GODDARD, Le Rouret, France, EU
This is excellent news both for the environment and my weekly passage through immigration at Stansted on return from Amsterdam, so often hampered these days by plagues chavs with first degree sunburn and the great un-washed of Eastern Europe, all piling into the hall from paddy air flights.
steve, Reading,
O'Leary and the guys at Ryanair never believed oil would stay in the $130+ region. I think a couple of months from now we'll see large pull back in the price of Oil. O'Leary and Co could be vindicated before year end.
Dermot, Dublin, Ireland
Hard cheese Stansted. Perhaps more airlines should vote with their feet and make all regional airports in Europe bend over backwards to provide a competitive environment to attract airline business and passenger traffic with all the benefits to local economies and operators.
Will, Lincoln, UK
You have to take the rough with the smooth. Just remember what it was like before O'Leary and Stelios came along: £200+ on a state-owned airline for a flight to run-of-the-mill destinations in Europe such as Rome, Madrid or Vienna, and very few regional departures or destinations
Richard, Bexhill, UK
Why is it that no one can resist a dig at O'Leary while giving him muted credit. If his action sustains the Ryanair operation then the millions will still benefit while a few have to readjust. Flights are still available at one "cut "airport, but reduced ensuring full capacity. Good luck O'Leary
Jimd, Norwich, UK
How could any serious person hedge against an oil price driven up by the huge weight of money from speculators ? There is plenty of oil, just like (unfortunately) there is plenty of hot and borrowed money buying it. This financial engineering may well end up with another catastrophic bubble burst.
David Nammory, Liverpool,