Ryanair unveiled Monday plans for an overhaul to create four subsidiaries as the no-frills airline also revealed a third-quarter loss of 20 million euros and said a no-deal Brexit “remains worryingly high”, reports AFP.
Mirroring a set-up by British Airways and Iberia owner IAG, a statement said it planned to have four distinct operations, each with its own chief executive.
Michael O’Leary will head up the overall group, Ryanair said. Under him will be Ryanair DAC overseeing the Irish operations and there will be also Ryanair UK, Laudamotion for its Austrian business and Ryanair Sun, or Polish unit.
“Having agreed this group strategy as the best way to grow Ryanair, Sun, Lauda and other possible airline brands, Michael O’Leary has agreed a new five-year contract as group CEO,” the statement said.
It added: “Over the next 12 months Ryanair Holdings Plc will move to a group structure not dissimilar to that of IAG.
“A small senior management team will oversee the development of four airline subsidiaries… (focusing) upon efficient capital allocation, cost reductions, aircraft acquisitions and small scale M&A opportunities,” the statement said
On the latest group earnings performance, O’Leary said that while the 20 million euros ($23 million) net loss was “disappointing”, the group takes “comfort that this was entirely due to weaker than expected air fares”.
Last month, Ryanair cut its annual profit forecast for a second time, blaming lower air fares caused by overcapacity in the European short-haul sector.