This article from NYTimes.com has been sent to you by psa188@juno.com. Ireland's Ryanair to Cut Staff at Buzz February 4, 2003 By THE ASSOCIATED PRESS Filed at 8:47 a.m. ET DUBLIN, Ireland (AP) -- Ryanair, Ireland's fast-growing budget airline, said Tuesday it plans to slash staff by about 20 percent at its newly acquired carrier buzz and to become Europe's biggest airline within the next three years. Chief executive Michael O'Leary made the forecast as Ryanair reported it earned 43.2 million euros ($46.7 million) in the traditionally slow October-December period, up from 28.8 million euros a year earlier. Revenue rose to 185.9 million euros $200.1 million) from 135.5 million euros a year ago. The results capped a particularly ambitious period for Ryanair, which last Friday announced plans to purchase up to 100 new Boeing 737s and to take over buzz, a loss-making rival run by KLM Royal Dutch Airlines, for 23.9 million euros ($25.8 million). Ryanair last week also unveiled plans to open its ninth European hub, in Sweden. Deputy chief executive Howard Millar said buzz's 570 employees, largely based at London's Stansted Airport, were told Monday that about a fifth of them would lose their jobs. Ryanair, which operates most of its flights from Stansted, has about 1,800 employees. And O'Leary warned that he would shut down the whole buzz operation if the remaining workers didn't agree to adopt Ryanair's spartan working practices. These include more irregular hours and quicker turnaround times than apply in many other airlines' flight schedules. Millar said Ryanair also was already negotiating with managers of the European airports that buzz uses and would ``take pretty drastic action,'' with decisions on route closures and transfers decided by the end of the month. ``If the airports don't play ball then they'll go,'' said Millar, referring to Ryanair's practice of demanding low landing fees, often opting for suburban strips rather than a city's highest-profile airport. The most likely buzz routes facing the ax were London connections to Paris' Charles de Gaulle airport and to two German destinations: Frankfurt's Main and to Duesseldorf. Ryanair already operates or will soon open services to all three cities from more distant airstrips. Analysts on Tuesday improved their already optimistic medium-term forecasts for Ryanair, but shares fell on profit-taking following a week of substantial gains. In Dublin at midday the stock was down 2.7 percent at 6.59 euros ($7.12). O'Leary said he planned to keep buzz as a separate brand name but would market its routes through Ryanair's Web site, from which the Dublin-based carrier sells all of its tickets. He said he planned to slash buzz's fares by at least 50 percent in hopes of doubling its volume to 4 million passengers a year. He said the enlarged Ryanair operation would reclaim the No. 1 position among European no-frills carriers from easyJet. Its London-based rival last year eclipsed Ryanair in routes and passenger numbers by acquiring fellow budget airline Go for 374 million pounds ($611 million). ``We are aware that some commentators fear that we are biting off more than we can chew,'' O'Leary said. ``However ... fortune favors the brave.'' O'Leary said Ryanair was aiming to carry 24 million passengers in fiscal 2004 and 29 million in fiscal 2005. He said these targets could allow the Irish upstart -- which began in 1985 with a single daily round-trip between London and the Irish town of Waterford -- to eclipse the continent's big three European flag carriers in popularity. Ryanair has projected 15 million passengers for this fiscal year ending in March. The 24 million target would put Ryanair in the same volume league as the current No. 3, Air France, while 29 million would place it alongside British Airways and Lufthansa. http://www.nytimes.com/aponline/business/AP-Ryanair.html?ex=1045367930&ei=1&en=e53b6c2e1f6d6256 HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@nytimes.com or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@nytimes.com. Copyright 2002 The New York Times Company