Wide Body Orders Who's Doing What To Whom

Winging It has taken a notion that an airline company plans its immediate fleet needs within a five year cycle. Order books have filled up the Wide Body type such as the 787 and A350. The following review attempts to remain objective in its analysis but a counter view is expected from a Boeing slant. Below is a five year cycle of gross orders from January 2012 through December 2016. Most customers expect a longer delivery wait than historical production data from manufacturers deliver performance.

A 777-300-ER is an immediate delivery within three years. The 787 family of aircraft maybe five years or longer and the same for the A350. There are model variances within the manufacturer ability to deliver in a five year time frame.

Why the five year time frame? Most customers have plans and resources which take five years to evolve and those customers try to have some kind of just-in-time fleet management which will synchronize with the aforementioned plans and resources. However, the competitive nature from customers have filled up the wait lists beyond seven years for certain models such as the 787 and A-350. Some models are in a slow order pace and can fill an order quicker such the 777-300-ER. The 777X is a lady in waiting since it won't enter service until about 2020. There are no straight lines for the delivery schedule if ordering today. 


A further examination is from a chart below which may surprise some as notions of supremacy of one framer of WB over the other where in fact it is a close contest after-all.

Five Year Ordering Chart from 1-2012 through 2016 

The above chart are wide body gross orders over the last five years and much can be analysed from the gross order number.

Gross orders are used as a guideline for an apple to apple comparison. Net number are a more accurate number set as conversions and cancellations are figured into the data. Making the analysis is simpler if using gross numbers and assumes no order changes.

Discussion Points:

• Gross Units Ordered is a common rule

• The timeline from announced new models do not always sync up with a competing model.

• Timeline for retired models do not always sync up with a competitor model actively ordered.

• Market trends for WB Models are volatile.

• Raw numbers indicate a very close competition.

Boeing has a marginal lead of wide bodies ordered over the last five years. Its 1,150 gross WB ordered is 68 more than Airbus which its lead could be wiped out in one airshow order announcement. 

Boeing announced the 787 about thirteen years ago where it amassed a considerable order book before the data started a tally since 2012. The Airbus A-350 was announced about 2006 and was in a peak  order period where it received a solid number of its A350 orders after 2012. Timing of this data is affected by program order capability.

Both the 777 and A-330 family of aircraft were sold at extreme discounts so the manufacturer could 
transition from the 777-ER to the 777X and the A-330 CEO  could transition both the A-330 NEO and A-350 models. Both manufactures were jockeying airplane model types combating each others moves in anticipation of market demand.

The above chart has provided matching of models in an attempt to best illustrate some kind of head to head WB order battle as exampled by the 787 vs the A-330 and the 777 vs the A350.

A summary account determines the following: 

The A-350 and A-380 are both stalling with its orders while the 787 and 777X have taken -off with robust ordering. 

The Airbus A-330 line-up is causing the WB competition to be very close, but it can't sustain its reach unless the A-330-9 NEO can sustain an order influx. 

As close as the gross order numbers are, Boeing has positioned itself with a strong wide-boy offering from top to bottom using freight and passenger airplane orders in combination creating an order synergy for which Airbus lacks.

The Dreamliner Has Entered The Clean-up Phase

The airline market place has for the last five years been at a tug of war for wide body dominance. On one side is the 787 Dreamliner and on the side the A350 "knock-off-liner" (no name available at this time other than A350). Every airplane start-up must have phases it goes through as a simple requirement for all discussions. Therefore, phases for the 787 march towards airline supremacy must be list for any relevant discussion. 

Boeing's 787 Dreamliner five phases:

• Shock and Awe
• Conflagration
• Customer ordering march to the Sea Change
• Airbus counter "offensive"
• Clean-up

The A350 (no name) Five stages 

• Me too. Check
• XWB by five inches. Check
• Loyal Customer Ordering, Check
• Offensive ramblings from John Leahy (running away this fall?) double check?
• Build it slower and they will watch, Check

Jumping to bullet point five for each maker is where the industry finds itself today. The Boeing point is exemplified in the news today from a simple stage called, "Clean-up". This is a topic worthy of a whole article more than five pages long. Five pages long is beyond my pay grade. In order to go five pages one must use links for further reading.

Air Travel (Air Travel: All the New Flights So Far in 2017)

Cleaning up the market is where Boeing is today. They have reach several marketing achievements in the last month. The Singapore Air deal added 19 787-10's and 20 777-9X's to its book and then another 30 AerCap 787-9's during a down year. The 70 wide body signed-on recently illustrates a solid clean-up during a down the market. On the other hand, Airbus nowhere came near Boeing in the last month wide body order onslaught it booked about 22 of its older A300 and its newer A350-900. It is building about 5 A350-9's a month. Airbus has delivered 30 A-350's this year compared with Boeing's 65 of its 787. The watching list of journalist keeps growing for the A-350 delivery flow.

Looking at the Air Travel article link above is an almost everyday story when Boeing makes a 787 delivery, a new route opens.

"Amsterdam

Boosting its European Dreamliner network, Etihad Airways will deploy its new Boeing 787-9 aircraft to fly to Amsterdam, starting September 1, and Madrid from October 1 from Abu Dhabi, UAE. The 787-9 will also operate seasonally to Athens during the summer months."

The whole article is full of Boeing product going out the door to various new route locations. Even though it doesn't often reveal the type or maker of aircraft within it article on new routes, it would take further analysis to sort out the clean-up of the sky ways by maker. Looking at the order book back end, determines future plans for routes and Boeing is having a statement year with its wide body sales. The ultra-expensive big bodied airplanes are tough to move with a $250-350 million asking prices for each frame.

The other bullet points echo’s the progression of the 787. The shock and Awe is the initial announcement of the Boeing Moonshot for all things not proven but anticipated. Conflagration is the flaming path to first flight, including the 7-7-07 roll out. The mounting order flow during the first three years after the announcement changed the aviation world. Airbus had to counter with the A350 even though it had previous stated Boeing essentially couldn't do it. Boeing currently mopping up wide body sales in a tough market.

The Airbus path is not as promising even though it didn't have well publicized difficulties as Boeing had. Airbus has second hand left-overs all the way with its dumb down technological infusions when compared with the Boeing offering.

The "Me Too" announcement three years after the Boeing's announcement was hypocritical after it had lambasted Boeing for the attempt at an all new wide body offering. Airbus started off on its left foot. It had to do something better, so it went bigger by five inches. In nine across sitting a passenger space increases by less than a 1/2" or if giving the aisle, brushing-off room by another 1/4" it’s not XWB at all as intended by its initial announcement.

Almost every buy order came from the Airbus customer order list. Where Boeing crossed the customer line more often in its order book since each framers offering was announced.

John Leahy couldn't ever let it go as he often railed on the Boeing product not being as wide as his XWB. He may retire this year leaving Airbus with big shoes to fill. Maybe all his complaints have lost its validity as more 787's are ordered every year and Airbus receives the left-overs for its order book.

Airbus is building the A-350 at a steady pace but slower than Boeing did during its first 30 months with it’s 787. Remember the battery fires, Boeing stopped delivery for two months and still got on track. Airbus has delivered only 30 this year after six months. Boeing with a well advanced product stream has delivered 65 787. It is important to note Boeing is currently building three different model types where Airbus is only producing its A350-900 and testing its A350-1000. Boeing is in testing with its 787-10.

I am sure the A350 is a good aircraft and better than prior models but it is not a great aircraft from its short comings reaching the technological goal post advancements. Boeing can now build upon solid ground from a formerly unproven concepts. Airbus refused to take chances with its A350. They used proven technologies that Boeing pioneered but it did not go beyond hydraulics or a central computing core system as Boeing had achieved. In time Airbus will have to catch-up to Boeing's proposals as customers are buying in the wide body market with approximately 37% A350 and 63% 787. This does not even include the 326 777X's booked or recent 777-300ER's.

Ever Wonder What A Winging IT Writer Looks Like?

It must be the dog days of summer to write something so vane. One of my visits to Denver via the Denver International Airport includes a must stop at the famous Mexican restaurant by the TV series which referred to Casa Bonita in Denver, Co.  A "No Sopapillas" joke line made by

"South Park" and pays homage to Casa Bonita food having "No Sopapillas ?" that day. 

The author had a sketch made still hanging on the wall at home. Winging IT's, "Trapperpk" clings to the mountainside every day.

The Trapper's vanity strikes at the heart of Casa Bonita with a true family experience staying in Denver, Colorado. A sketch was made of the author not far from the waterfalls.

Two Video Features of Casa Bonita, Denver.

1.

2.

Okay, so the Airport is pronounced WEIRD International.

8 Conspiracy Theories About The Denver Airport That'll Freak You Out

Winging IT is weird but no one cares. Denver International Airport is for its rejection of Disney Land's "Pirates of the Caribbean Ride", which is almost totally under the ground. People just come to Denver for the airport ride underground and then onto Casa Bonita burritos with a side of sopapillas. 

If Boeing Gets The 797 Right, Then What?

The much discussed and speculated A321 NEO buster goes further than just breaking the Airbus back. If Boeing gets it right, the plane will go further into the Boeing playbook and reorganize its single aisle division. This commentary covers the 800 pound "IF" sitting in the room. The 797 designed right will encroach upon the Boeing Single Aisle top end while filling its gap, as a segway to its 787 family. Airbus will be disrupted as its single aisle and dual aisle offering will be over matched for a new Boeing dual aisle and engine 797.

The 737-9 and 737-10 is a single aisle marginal offering for the gap of things flying. The 737-Max 8 may become a part of a single aisle duo in Boeing's line-up. A perfect storm is a Boeing line-up by 2030 of a 737-Max 7, and 737 Max 8/200 partnering with a 797-8 and 797-9 concept. The 737-10 and 737-9 become an awkward single aisle offering when compared to a 797's comfort and passenger efficiency. Boeing will realign its model offering stumping Airbus on what to do. It is clear to see Boeing is once again shooting the moon on the cheap using its vast technology bank for flying machines.

The 797-8 should carry 200-220 passengers and fly an ultimate 5,000 miles. A 797-9 should carry 220-250 passengers and fly 5,000 miles easily. The 737-Max 7 is the 150 seat commuter offering while the 737 Max 8 and its 200 stable mate will carry up to 200 passengers. No need to stretch out single aisle into a nightmare boarding or disembarking. Let a twin aisle do the number crunching when passengers want to move to and fro.

Boeing is taking its time because there is more in play than a one model gap filler. It must have all options on the build table before announcing. Every media outlet assumes a one and done 797 gap filler referred as a New Medium Aircraft (NMA). Boeing is reinventing its offering for several purposes.

• A market shift to rising passenger demand
• A market requirement for longer medium routes.
• The newly announced Max-9 and Max-10 is a stop gap until further notice.
• A 797 completes Boeing and troubles its competitor.

The 797 makes sense only if it realigns Boeing's type offering. The investment is not one dimensional with one model for its type. Boeing recognizes it must be more aggressive with a vulnerable Airbus line-up. It needs to build passenger capacity with comfort and a seven across 797 will address both needs. Secondly, Boeing sees an expanding route distance as more markets adjust and the single aisle falls into its own gap of not going far enough with over-packed seating.

Having stated a few topics of where Boeing may go aligns with the time it is taking to make a decision. It is pondering more than just a 797 model bridging between the 737 to the 787. It is remaking its aircraft line-up going far forward in time. Once a 797 is concocted, it will go clean sheet on its single aisle family. The 787 family will need an upgrade after 2030. Boeing will wait until it has made money with the 787 when the money pit it created building this duo aisle is filled in with its own profits.

Time line watching for progress is one step at a time. The steps Boeing is taking is becoming a straighter path for regaining the high ground Airbus has assaulted. A highly functional family of aircraft from single aisle to dual aisle is the goal. There are too many single aisle types and not enough dual aisle types at this time for the changing market demand and demographics.

Boeing's Gross Order Campaign 2017 YTD Review

Boeing has gone halfway during 2017 and there are many more unanswered questions but from a positive outlook. It has out dueled Airbus into a substantial lead but it maybe not enough for this years campaign. The second half of the year will be reserved for some surprises for which it is hard to determine the outcome for either mega maker.

Boeing has netted about 381 orders as reported by its website, Boeing.com. Airbus orders remain tepid at 203 net orders. The net effect comes from cancellations and conversion from one model to another. However, the gross count score card is illustrated below with various charts made by Winging It from Boeing's current data reports.

A gross number is a bell weather number suggesting the activity within the order book. A high gross number ratio to its net number indicates how robust the order book has become. The booking of 421 gross orders to 381 net orders can be interpreted several ways. Boeing's net-to-gross ratio is .90 where it indicates a high order book efficiency at this time.

The Airbus net to gross efficiency is .82 applied the gross count of 248 thus netting its 203 orders. The second observation is the total orders made during 2017, ignoring the cancellations or conversions to another model. The post Paris Airshow count is a telling story. It is well known Boeing had many conversions from the Max 8 over to the Max 10. Boeing received orders-commitments for 361 Max 10's. In that number were a great portion of conversions from other Max models going to the Max 10. Boeing, though lists its order book according to actual firm transactions so its netting effect of .90 is indeed a remarkably high ratio considering all of the Max 10 conversion transactions. Below is the YTD Gross Orders in figure 1.

Boeing has booked 421 orders so far this year. There are more opportunities remaining during the year and a net 600+ order year is within Boeing's reach. Airbus needs 400 more orders in the remaining six months to keep pace with Boeing's opportunities.

Below is the Boeing Order-Paris effect during the month of June:

Figure 2.

The 184 units were placed as orders and does not indicate net orders. If using the .87 ratio number, an expectation net number could be 161 units (when multiplying .87 times 184). The Paris Airshow results will take the remainder of the year or longer settling up all LOI, MOU and commitments adjusting the order book. The efficiency rate of .87 is just a number based on current order book performance. As an example the Max 10 had 361 total transactions in various stages. Not all will become firm orders, some already are finalized. However, using the theoretical .87 ratio number the 361 Air Show total could turn into 314 firm 737 Max 10's orders. So much can happen during any campaign. The success of any sales transaction is subject to customers financial condition or market changes, indicating anything could happen with changing the outcome. 

Below is the June order count by type:

• 737-Max 104 units
• 777-300ER 4 units
• 777X   20 units
• 787-Dreamliner 56 units

In total 184 units from the show sales were made concurrently with sales outside the show during the month of June, 2017. 

Approximate Backlog Boeing and Airbus

Airplane Wars in the backlog trenches awaits Boeing's paper airplanes from Paris converted from MOU, LOI, options. The Boeing file on paper grows. However it is maintaining its margin from the Airbus book at 1 trillion Airbus to 898 billion for Boeing.

Is Boeing's Max 10 what A Max 9 Should Have Been?

Ever since Paris, a story is developing about the survival of the 737 Max-9. Airbus claims the 737 Max 10 will cannibalize the Max Fleet and not harm the Airbus NEO offering. On the surface this would be a true but a optimistic position taken by Airbus. However, Boeing may have missed with its 737 Max 9 Offering and made the course correction with the Max 10.

From the 737 Technical Site


Max -10:

• Length 43.8m / 143 feet 8 inches, ie 66 inches (1.68m) or 2 seat rows longer than the MAX-9
• Passenger capacity 230 in single-class layout, 12 seats more than the MAX-9.
• Range 3215nm. Slightly less than MAX-8 and -9 (3,515nm) but 265nm more than -900ER
• Slightly higher MTOW, approx 92,000kg
• Engine LEAP-1B with possible thrust bump
• Probably trailing-link MLG, that extends up to 23cm on take-off to prevent tail strike.
• An “improved flap design” that enables more approaches and landing at Flaps 40
• Maximum landing weight center of gravity modified in a way that will avoid “tail tip” events.
• Improved body contour to reduce the risk of tail strikes.
• Autoland will be certified for lower landing flap settings to improve go-around climb performance following enroute icing conditions.
• Entry into service approx 2020

Max -9:

• Length 42.1m / 138 feet 1 inch, ie 66 inches (2.6m) or 5 seat rows longer than the MAX-8
• Single class passenger capacity of up to 220
• MTOW 88,314kg
• Range 3515nm
• Engine LEAP-1B 28B1
• Only 220 of the 3600 MAX orders are for the -9
• Two flight test aircraft, 1D001, N7379E (42987/6250) and 1D002, N739EX (42989/6308)
• Expected certification Q1 2018
• Entry into service approx 2018, Launch customer Lion Air.

Incremental change is like trying shoes on at the shoe store. A customer can't fit the arch and goes to the next size. The show width is too narrow so it goes the next 1/2 size up. Then the heel slips off when walking. The bunion wears on the outer wall of the toe area. So goes the MAX build of the single aisle aircraft. Something to small, too big and then not just right. Boeing needs a NMA and John Leahy
from Airbus stated the obvious. Boeing is competing with itself in the single aisle.

Fig. 1

Above  states the Leahy  case in specifications. The weight, passengers and range do not bracket the A321 NEO in a sandwich between models. Boeing can only hope the Max 10 is just enough to compete with the A-321 NEO but won't exceed it. A perfect scenario for Boeing would be a NMA and a Max-9 in the family bracketing against the NEO family at every fit for routes and capacity. The 737 MAX 10 appears on paper to be a match for the A321-NEO with a slightly less capability. The Max-10 hurts the 737 MAX-9 chances at the back end. The models are so close in capability it becomes a more out of convenience to buy one or the other. An Airbus customer has no motivation for even looking at the 737 Max -9 when it could buy a Max-10 for some other intrinsic reason. The Max 10 and Max 9 will have to rely on other important aspects found in the aircraft to win Airbus customers over.. Once again a NMA would break this single body log jam.

However, it is not always as simple to just build an airplane and they will come into the field of dreams. Boeing will have to slip the NMA model in its back door of its overarching plans. Airbus is waiting and watching Boeing's move with great intensity at its decision. They will re engineer the A321 and then the A330 NEO make-over, even if Boeing comes out with a completely different frame type. The potential Boeing customer will have to love the NMA as the "best thing since sliced bread".

The complexity of the mater is creating a long or quick timeline. The 737 MAX 10 pleases Boeing customers more than Airbus customers and stops the bleeding when loyal Boeing customers even consider the A321NEO. Boeing can offer a deal "they won't refuse". A long timeline suggests waiting Airbus out until it over commits onto something else, and a quick timeline is a rush to market before the competitor can react. Quickness was the Airbus maneuver when it ushered forth the whole NEO family of aircraft. The chess board move now suggests a double move is in the works with Boeing on the heels of the 777X project. Airbus may counter one but could not counter a 2nd move by Boeing.

Where would a second move come from? The super Jumbo is dying and the "gap" is filling. The 777X is going to be a legacy aircraft in time. Boeing has little options but to move in with an all original NMA going to market in five years. The 737-Max-10 is a program place holder for its own customers. A NMA is a market breach into competitor territory. The second shoe dropping is a whole new single aisle family from all the lessons learned during the last twenty-years.

Boeing Has A New Medium Aircraft Stealthier Than an F-35

The Boeing New Medium Aircraft (NMA) has over the last 10 years been dodging, hiding, and going invisible as if were stealthier than the F-35. The only thing missing is a photo op of a NMA model. The tease is effective or more so than an Ad campaign concocted out of a Madison Ave. Ad agency. The world hungers for a NMA brainstormed by Boeing's "Idea Guys and Gals". 


Four Corners Of The Window Bullet Points

• Demographics
• Statistics
• Timing
• Technology

The announcement date is driven by demographics and statistics more than want. The demographic must must align with the stars. There must be at least two dozen "A" list airlines from the likes of Japan, England, and China. There must be some all Boeing customers and some split fleet customers in the announcement mix. A half dozen smaller airplane customers as well. Boeing is not there yet but is closing in on its customer objectives. The demographics are almost complete.

The statistical side of the equation consists of an ever moving target as the industry expands and contracts on a periodic basis. Boeing is looking for the statistical sweet spot. It announced a 5,000 unit need for the NMA over the next decades.

Plueger: ALC Quote: from Leeham

“For the Boeing product line, I think there is a gap. It’s probably fair [to say the Boeing gap is from the 737-8 to the 787-9].”

Does Boeing have to do the NMA?

“I think it’s an important step for Boeing. The issue is one of cost. With all the talk about NMA, what is really boils down to is price,” he said. “That will determine whether the airplane sells 5,000 units, or 3,000 or whatever. That’s something the engine manufacturers have to know pretty shortly.

“I think the whole effort can be produced at a point that makes sense.”

Timing is the art of the deal. Coming to market at the right moment can optimize the affect it has on its competitors. The three Bears story book account says it best. The market is too cold, the market is too hot and the market is just right. Airbus has its resources hog tied for the next five years and are in the too cold soup bowl.  Boeing has its own problematic resource drain with the 737 MAX , 777X through the 787-10 implementations. Therefore, the time is right when two or more programs are completed. The 737 MAX started delivery, and the 787-10 is in flight testing. When its flight testing is complete and first delivery of the 787-10 is made, Boeing should shortly announce the NMA depending on 777X risk retirement. 

Technology is locked up in R&D and design. The 787 program made many new technological concepts a reality in the wide body. Boeing does not have to re-invent, it just has to implement. The NMA will certainly mold into the Boeing family of aircraft using everything paid for from the Boeing money pit out of the deferred cost monkey barrel. What the New Medium Aircraft will add to the techno pile will be announced at the "Announcement".

As Plueger, from ALC, stated earlier (paraphrased), the NMA announcement will come from what makes sense and not sooner. What makes sense is the opportunity window that develops from the above bullet points. All elements pointed out above have positioned itself closer to that window of announcement than ever before. 

Therefore, a combination of things need to occur before a formal announcement and all are driven by time itself. It won't be two years nor five years. It will be when the soup is just right and no sooner nor later. The key is everything is almost ready to go and is just waiting for the go order from Boeing's art department.

Boeing 787 June Recap 2017

The post Paris Airshow numbers may not include all June  787 numbers until Boeing.com updates its website. Below are best information numbers which may not include all order transactions, but is correct on the production count. June made Boeing 787 count jump ahead of its book to bill ratio at a 1.15 rate exceeding the 1 to 1 desired ratio Boeing seeks for its 787 program. 

Boeing booked more orders for the year than it delivered to date. This ratio should go sub 1 ratio when more deliveries may exceed orders booked for the remainder of the year. Since 2012 Boeing has had a respectable Book to Bill ratio of .900 rounded. It has booked 57 less 787 than delivered during this span of time. 

Fig. 1

Below, Boeing missed its 12 units a month delivered guidance over 90 days of tracking, but did deliver 33 of its 787 during the 2nd quarter. The average fell below 12 down to 11 during the last 90 days. A good effort since the first half of the year is usually slower than the second half and Boeing has slowed its Charleston production while starting its testing of the 787-10 models after its various assembly line 787-10 first assembly interruptions.  

Fig.2

Fig. 3 The book to bill relationship quarter by quarter YTD 2017

Below is the 787 Program snapshot year by year where 710 are currently in backlog at this time.
Fig. 4

Fig. 5

The chart below reflects the growing production units where the 787-9 is taking hold of the program as the premier product for this family of wide bodied aircraft.

Fig. 6 Is another program snapshot of works-in-process and delivered units. A preponderance of 787-9 with 24 production units signals its dominance over the 787-8. The 787-10 has not yet begun its production run while it is still in testing. The 787-9 should remain the top contributor to this program throughout the 787 life cycle.

Boeing's Single Aisle Aficionado Michael O'Leary, Ryanair-Ancillary

Learn what ancillary means and understand the future of airline bottom lines. Typically an airline relies on the ticket prices. Passenger wonder how come they can fly to and from Europe to the US for under a "C-note" (€100)?  

Primary ancillary definition:

"providing necessary support to the primary activities or operation of an organization, institution, industry, or system."

Press Quote:

"Mr O'Leary has previously speculated that one day Ryanair passengers would be able to fly without having to pay for their tickets, with the airline generating all its revenue from ancillary services."

So how can airlines reduce ticket prices competing in the busy origin and destination air travel market? 

Answer: By ancillary revenue stream complimenting ticket prices and offsetting ticket price reduction.

Ancillary means services from the primary product. A hotel will often contain restaurants, barber and gift  shops supplanting room rates in a competitive market place. Disneyland Anaheim, California has "The California Experience" with its hotels, food establishments and gift shops. Not forgetting external revenue streams from movie making, special events and conventions. The Ryan Air executive sees a way to fly across the Atlantic on the back of ancillary projects. The ticket price could be supported by fees, service opportunity and terminal markets.

Photo Below: Dublin's Terminal 1 floor space awaiting O'Leary's idea for ancillary centers targeting passengers coming and going. 



Brain Storming Session Begins:

Ryan Air could lease-on to airport terminal space which would include its passenger market place on Ryan's Air's turf. It could make partnerships with hoteliers for room bookings. 

Dublin Terminal 1 a blur of passengers seeking to unload revenue.

Restaurants in or near an airport may be owned by an airline. Clothing shops would be on a Ryan Air ancillary wish list. Once having a mega web of Ryan Air ancillary market places which are designed for its passengers, then possibly ticket prices will fall further. The strategy is to get people on a seat so they will be exposed to other Ryan Air profit centers. 

A profit synergy exist and O'leary is shopping its potential. The key is free seats so Ryan Air passengers will spend  money on Ryan Air ancillary and convenience profit centers.

"People, just don't stand there, spend money you are flying free today!

Long Range ancillary goals:

• Resorts (destination)
• Lodging (origin and destination)
• Amusement ( destination)
• Business centers (destination)
• Convention halls (destination)

Short Term Ancillary Goals/Terminals (origin and destinations):

Ryan Air Tickets is an automatic discount for each profit center transaction.

Profit centers:

• Restaurants 
• Shops
• Kiosks
• Travel Services
• Car Rentals

These are just to name a few as O'Leary brain-storming continues. The long term goal is either as a franchisee participant or a direct ownership in selected markets. A ticket seat purchased for a nominal free such as (€50) covers the seat, luggage and on-board supplies. The seat is free (fee waived) when booking a Ryan Air hotel room or renting cars from its ground transportation division.

It can't be helped to think airlines have already explored the ancillary business model. If O'Leary is thinking this, then it has flagged that a business concept is in incubation. So far airlines sell a seat and fly. The money stream ends at arrival. Ryan Air must be looking at providing a seat as a access point for the beginning of collecting ancillary revenue. 

A further image emerges where you arrive at an airport serving Ryan Air where there are a Ryan Air concierge desks much looking like a boarding desk in the terminal. What the 'company" concierge will do is rent your car, find a room or arrange your dining at your destination's regional footprint. Of course, only with Ryan Air ancillary affiliates. Needing clothing and a haircut could be arranged within the terminal floor space, since traveling all day with just a carry-on and looking well past the 5:00 pm shadows. The whole concept is taking care of the passenger with a seamless experience allowing more time for the passenger to go do what the passenger needs to do. 

In fact if pre-package travel occurs then expect your luggage to be in your hotel room upon your hotel arrival.

The tipping can occur as ad hoc with each service rendered or it can be like a cruise ship business model where an amount can be bundled-up for all tips encountered during a trip on a company "travel card", which would be another ancillary service provided for a small fee. Its transaction card (credit card) is only good at airline affiliated point of sale centers (food or service tipping...). 

Welcome to a Ryan Air Visa card (another ancillary profit center).

Lost? no problem go to an airline terminal kiosk and summon a concierge or book a room directly (of course for airline ticket holders at a discount). The list becomes endless for what an airline like Ryan Air could build in its business portfolio. If a passenger flew free to a destination it would want to seek discounted ancillary services affiliated with the airline. Every transaction contributes to the airplane ticket price at the back-end. If a passenger goes rogue upon arrival it would experience higher costs associated with a trip on the destination street. The idea is to get the traveler/passenger onto the airline network which pays for the no cost seat as the passenger travels beyond the airport. 

Doing an European trip typically may cost €5,000 for the duration, but through the airline seat purchase it may only cost €3,500 in this example. The trip cost is incentivised with everything the airline has in its portfolio for that destination or its airports. The theme is why book with some airline other than the sponsoring airline for your travel.

Time to let your imagination take this story forward.


Bonus addendum:

A working model of what could be. Every ancillary revenue returns a 10% contribution from passengers travel expenditure to the hosting airline.

Based on seven days which contributes more money towards an airline seat cost using its ancillary services, a sliding scale for each day in travel status could be used. A per diem flight chart would charge 300 dollars for the round Trip if returning during first three day traveling, since since a passenger uses ancillary services less than three days a ticket charge is fixed amount which would not exceed €300 total round-trip ticket charge. A non participating passenger ticket would be full market fare for those not booking flight on the airline program. Traveling on day 4,5,and 6 would would slide the ticket cost downward, reducing the per diem ticket rate by €50 for each day beyond day 3. Therefore, returning on day 4 would cost €150, on day 5 €100 and day six €50. The seventh day travelling using airline ancillary services, is a return ticket with no charge return. This also assumes no charge on the first out bound leg.

Round Trip Ticket scale:

Over-night (day 1) trip ticket price using ancillary services is €300.
Night Two €250
Night Three €200
Night 4 €150
Night 5 €100
Night 6 €50
Flight day 7 No charge showing on airline credit card. the return ticket indicates airline ancillary services were used every day during a passenger's travel status, which covers the cost of an airline round trip fare. Credit account is settled during each monthly cycle with net fare showing on the passenger airline card.

A day without making an airline's ancillary service transaction (equaling a motel room or car rental), is not counted as a day in airline travel status for a trip.

Common sense drives this model. Use the airline ancillary services for reducing total ticket price to €0.00 if staying seven days while using the airline sponsored food, room, or car rental  each day during a passenger's travel status. Any break in the airline service use will add a premium charge of €50 to the ticket charges added to the airline credit card until airline services are used for up to seven days.

A net effect is in action. If staying in Europe a month a passenger needs only to stay on the airline ancillary system for seven days for a free ticket back home, otherwise anything less than seven days on the system would add a charge back of €50 for every day less than the seven days up to €300 when not booking a motel room or car through the service.

A passenger will earn credit by using the airline ancillary services rendered including food and other purchases at the airline discount. Points may be collected for from monetary values which will be applied to a ticket reduction up to €300.

Otherwise a round trip ticket to Europe costs €300 while each day using the airline's "primary" ancillary services credits back €50 per day until ticket price is covered during a passengers 7 day travel status.