Ryanair may branch out into mobile phone operations

Ryanair is talking to telecoms suppliers in the Republic and three other EU countries about setting up a pan-European mobile operation.

Ryanair is interested in a service that would allow mobile users to make calls in any part of Europe at the lowest cost, Mr O'Leary said.

He said the airline is talking to a "number of suppliers" but is reluctant to allow the Ryanair name to be used for any of the services that had been offered to date. If a suitable prospect could be found, Ryanair would consider taking an equity stake in the operation, he added.

Discussions are ongoing with operators in Germany, the UK, Italy and the Republic, he said.

At the moment, mobile services are only offered on a country-by-country basis.

If Ryanair was to get involved in the area, it would probably be as a Mobile Virtual Network Operator, although Mr O'Leary said the airline had no "immediate" plans in this regard.

Such operators, such as Virgin Mobile in the UK, offer mobile phone services by using the networks of existing mobile firms.

Mr O'Leary said, however, that he did not want to be like Virgin.

"I don't want the confusion of people thinking we're running a phone company," he said.

Marketing or selling mobile services that do not carry the Ryanair name might also be a possibility, according to Mr O'Leary.

"A number of different people are making proposals. It's not high up on our agenda," he said, adding that the airline is always working on the development of multiple new income streams.

Mr O'Leary was speaking after a Ryanair extraordinary general meeting at which shareholders approved the airline's plans to buy up to 140 "next-generation" 737-800 aircraft from Boeing.

He could not comment on current trading at the airline because it has entered a closed period ahead of publishing results.

He confirmed, however, that Ryanair had only submitted one tender in the current competition for public service obligation (PSO) in the Republic. PSO routes are subsidised by the Government because they would not make money otherwise.

Ryanair can only apply for the route between Kerry and Dublin because none of the runways on the other routes could accommodate the company's jets, Mr O'Leary said. He added that he understands "from various sources" that Ryanair's bid for the route is the cheapest.

British Midland's decision this week to bid for the same route is to be welcomed because it is good for competition, he said.

He went on to say that Ryanair would fully support a third terminal at Dublin Airport if a private operator was prepared to build it.

"We'd be supporting a fourth terminal as well," he added.