Ryanair will (still) to lower its prices and make an offer for Alitalia




The beginning of the week loaded, to Ryanair. The chief financial officer of the irish company said on Monday that the airline’s low-cost had launched an offer is not binding on Alitalia, the carrier Italian in big trouble

Alitalia was placed under the guardianship of the State in may, for the second time in less than ten years, and the government has launched a process of sale opening the way to his redemption in whole or in part or its restructuring. “I can’t say much more except that we believe it is appropriate to be involved in this process,” added Neil Sorahan to Reuters

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At the end of June, Michael O’leary had said that if Ryanair decides to make a takeover offer for Alitalia, the irish group would seek to obtain a majority stake in the airline a deficit. But the Irish are not alone on the kick. According to a source close to the folder, Alitalia has received a dozen offers, so that the cut-off date was set for Friday, July 21, in the afternoon. To 0725 hrs GMT (9h25 in France), as Ryanair retreated of 4.18% 17,29€, accusing the second-biggest drop in the Stoxx 600.

Price cuts in perspective

Prior to the opening of the stock Exchange, the company had announced a decrease in the price of its tickets that can go up to 9% in the coming months, putting further pressure on its competitors in the highly competitive market of short-haul flights in Europe. The largest european airline in terms of passenger traffic, has contributed to a decline in the price of the tickets on short distances in Europe by increasing its capacity to 33 million seats, an increase of 33% over the past two years.

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“We believe that the environment in terms of pricing will remain very competitive”, in the second half, ” said Michael O’leary, the company’s general manager, in a press release.

Ryanair also reiterated its forecast of a profit before tax of between 1.4 and 1.45 billion euros for the current fiscal year, which ends march 31, 2018. According to the consensus provided by the company, the analysts expected a profit of 1,488 billion euros.

(With Reuters)

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