Ryanair happy to be boring after 25 years in the ascendancy, says O'Leary

HAS RYANAIR become a boring company? It seems an odd question after an agm that ended with a scuffle between security guards and a long-term protester. But things are a little different now.

The event dubbed “the Michael O’Leary show” (by one of 10 directors that flanked the ebullient chief executive) was marked by the usual talk of failing competitors and airport monopolies. But capacity growth, once in double-digits, is waning. Ryanair will be grounding 80 aircraft this winter, citing prohibitive fuel costs, meaning passenger traffic – still in the ascendant – will go into decline in its January-March quarter.

The promotional fares aren’t quite the same these days either. Cuts in capacity at other airlines have meant its seats are filling up faster.

“I think it’s highly unlikely that you would see promotional fares under €9.99 this winter,” O’Leary shrugged. Ryanair simply has no need to price so low.

Meanwhile, it will be at least another year before the next dividend – a “possible” €500 million return to shareholders, perhaps incorporating a share buyback, is slated for its 2013 financial year.

One shareholder quoted an analyst’s report that pondered the unthinkable. “He said for the first time in Ryanair’s history it’s become a boring company... “You have to ask yourself what is the point of holding a Ryanair share?”

O’Leary didn’t disagree with the “boring” tag: “This will be a relatively boring company for the next year or two. But after 25 years of relative madcap growth, a year or two of being boring might be of benefit to shareholders.”

As he personally held close to 4 per cent of Ryanair’s stock, his interests were “closely aligned” with those of shareholders at large, he stressed.

“Mrs O’Leary is a big believer in dividends, but Mr O’Leary isn’t.”

Any other questions?

“Are you going to retire soon so that the airline might continue under new and decent management?” asked another, substantially less calm, shareholder.

“You can sit down, there’s no need to stand,” replied O’Leary.

“I’m quite capable of standing,” said the shareholder. Perhaps he was preparing himself for that occasionally mooted prospect of a standing-room only Ryanair plane.

Speaking of the planes, one shareholder had “a little housekeeping matter” she wanted to take to the top: “On my last flight to Gatwick, there was a lump of chewed chewing gum on the safety instructions,” she informed him.

Here was another Ryanair scourge for O’Leary to vanquish. And his position was clear.

“I would torture anyone I could find who was chewing bubble gum on board our aircraft.”

Now that would be exciting.