High-flying Irishman who became global entrepreneur in aviation sector

Dr Tony Ryan: Dr Tony Ryan, who died on Wednesday at the age of 71, was undoubtedly one of the finest businessmen of his generation…

Dr Tony Ryan:Dr Tony Ryan, who died on Wednesday at the age of 71, was undoubtedly one of the finest businessmen of his generation and is considered to be the first truly global Irish entrepreneur.

Born in February 1936 in Thurles, Co Tipperary, he came from a modest, rural background. At the time of his death, he was ranked the seventh richest Irish person, with the family estimated to be worth up to €1.5 billion.

In the space of a little over two decades, he had created two aviation-related businesses - GPA and Ryanair - that were world leaders in their industries.

At the time of his death, Dr Ryan also owned a vineyard in France, had bloodstock interests in Ireland and the United States, amassed a portfolio of overseas properties and built an impressive collection of art and antiques.

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That's to say nothing of the myriad ventures that his investment vehicle Irlandia had backed, including, in recent years, start-up budget airlines in Singapore and Mexico.

He had a passion for restoring properties, best evidenced by his loving and expensive restoration of the Lyons Estate near Dublin. Just last week Dr Ryan spent several hours with Michael O'Leary, probably his best-known protege, at the estate in Celbridge, where they tossed around ideas for the future expansion of Ryanair.

The unforgiving treatments relating to pancreatic cancer must have exacted a heavy toll on his weakening body, yet Dr Ryan retained the energy and enthusiasm to talk shop.

Tony Ryan's father, Martin, was a train driver who died at a young age. As a youngster he would often ride on the footplate of a steam engine from Thurles to Limerick Junction, sowing the seeds for his love of travel. His mother, Elizabeth O'Donnell, drilled into him from an early age that success was usually 5 per cent brainpower and 95 per cent horsepower.

He left school at 16 and immediately went to work in the local sugar factory in Thurles. In 1954 he joined Aer Lingus, where he would spend more than 20 years. He rose through the ranks to become a middle manager and enjoyed stints working for the airline in Shannon, Cork, Chicago and New York.

He returned to Ireland in the early 1970s and cut his teeth with the national airline in the aircraft leasing business. Transatlantic travel had suffered with the Troubles in the North and Aer Lingus offloaded aircraft to Air Siam in Thailand, where Dr Ryan would spend three years.

In 1975, he founded the aircraft leasing and finance business Guinness Peat Aviation (GPA) with the backing of Aer Lingus and the Guinness Peat merchant bank. He put €6,500 of his own money into the business, a reasonable sum in those days.

The business idea was simple. GPA would buy aircraft and lease them to airlines. It meant airlines could get the planes they needed on tick, rather than shelling out tens of millions to manufacturers. It left Dr Ryan with the ultimate risk if the airline industry went into freefall.

From small beginnings, GPA became one of the most profit-able finance operations in the world. At its peak, GPA commanded a valuation of €4 billion and had a fleet of 400 aircraft. It made Dr Ryan rich, giving him the funds to launch Ryanair.

GPA had the world at its feet and Dr Ryan planned to float the company in Dublin, London, Tokyo and New York. The flotation came in the wake of the first Gulf War, a time when the aviation industry was experiencing severe turbulence.

Dr Ryan had planned an aggressive expansion of the business but institutional investors became nervous and the IPO was pulled in 1992. Dr Ryan had borrowed $35 million from Merrill Lynch to purchase more GPA stock. He had also missed out on a large bonus.

GPA's demise deeply affected him and he faced possible bankruptcy. However, he refused to be beaten and the company was restructured, passing into the control of General Electric.

In 1994, Michael O'Leary negotiated a settlement with Merrill Lynch on Dr Ryan's behalf. The bank agreed to accept just $4 million and wrote off the balance. To settle the debt, Mr O'Leary devised a plan for Dr Ryan to buy Boeing jets worth $20 million that he immediately sold to Ryanair for its fleet expansion at a price of $24 million.

Ryanair was set up in 1985. Dr Ryan believed the time was ripe for competition. Aer Lingus dominated the skies over Ireland, charging high fares and offering what he believed to be a sub-standard service. His plan was to provide a top-class service and the airline began flying from Waterford to London Gatwick.

Ryanair lost money in its early years as it struggled to compete with Aer Lingus. Mr O'Leary joined in 1988 and within two years he begged Dr Ryan to close it. He later tried to sell it to Aer Lingus for €25 million.

A proud man, Dr Ryan would not countenance such a proposal. Mr O'Leary went back to the drawing board and with the help and advice of Southwest Airlines boss Herb Kelleher, Ryanair became a low-cost carrier. It is now Europe's biggest budget airline, carrying 42.5 million passengers last year and earnings net profits of €435 million.

The airline eventually bestowed great wealth on Dr Ryan and his three sons, Declan, Shane and Cathal. Dr Ryan's involvement lessened after its flotation in 1997, although he was a director until his death and remained an important sounding board for Mr O'Leary. His estate will include about five million Ryanair shares worth €27 million.

He was also a successful racehorse breeder with farms in Ireland and the US.

Dr Ryan loved hurling and also enjoyed rugby. He was considered engaging company, enjoying pints of stout or a good bottle of wine. He gave generously to several universities in Ireland and was a patron of the arts.

He is survived by his wife Maireád, the mother of his sons, and his friend Martine Head, who brought joy to the last chapter of his life. He also had 10 grandchildren.

Tony Ryan: born February 2nd, 1936; died October 3rd, 2007