BMI takeover will be boost for Ryanair says Michael O’Leary

RYANAIR will start flying ten million extra passengers by next summer, with the twin propellers being the planned takeover of BMI by British Airways and people trading down to budget class in the austerity climate.

Michael O’Leary, the Irish airline’s plain-talking chief executive, said: “A lot of BMI’s short-haul routes from Heathrow will be closed or cut back, leading to more growth opportunities for Ryanair from Stansted, Luton and Gatwick. [Low fare arm] bmibaby will probably get sold, closed down or go bust. It creates more demand for our routes.”

It came as the Dublin-based carrier posted a 20 per cent rise in six‑month net profit to €544 million (£467.5m) to end‑September, as a 13 per cent rise in average fares helped it offset a 37 per cent leap in fuel costs. O’Leary added: “The more price sensitive people get… the more they switch to Ryanair.”

The group, which forecast its passengers carried would jump from 70 million last year to 80 million in 2012, said it expected to make a profit of €440m for its 2011 financial year, up from its previous forecast of €400m.

International Airlines Group, owner of BA, announced on Friday it would buy BMI from German parent Lufthansa in a deal thought to be worth £300m.