Ryanair Offers In-Flight Mobile Phones

Posted by: Kerry Capell on February 20

Ryanair CEO Michael O’Leary unveiled the discount airline’s latest money-making plan: inflight mobile service. Although several other airlines such as Air-France KLM and BMI British Midland have run in-flight cell phone service trials, Ryanair is the first European airline to actually begin kitting out 20 of its 170-strong fleet.

The service is provided by OnAir, a company 67% owned by aviation company Sita and 30% by Airbus. O’Leary aims to offer it aboard the entire fleet within the next 18 months. Calls aren’t cheap, though, costing between $2.15 and $4.28 a minute, with text messages costing 60 cents and e-mails up to $2.85.

The new service is just the latest way O’Leary plans to boost so-called ancillary revenue, the money the airline generates aside from ticket sales. It’s a revenue stream of growing importance to Ryanair, which aims to continue to slash airfares to stimulate demand. For the quarter ended Dec. 31, 2008, such revenues accounted for more than one-fifth of total revenue, rising 19% to $167 million.

The question is will noisy planes and the airline's relentless attempts to make money eventually irritate passengers? I'm a frequent flyer on Ryanair attracted like most by the often super-cheap fares. But I wasn't the only regular Ryanair customer to get annoyed recently by the airline's new policy of charging customers who don't check in online.

Those who check-in at the airport now face charges of $13.60 per passenger. The only problem is only people who hold a passport issued from an EU country are able to use the online service. Everyone else needs to pay at the airport, waiting in a separate lengthy payment line before they can board the flight. If, like me, you tried to check-in online in advance but hold a non-EU passport, you must pay the charge before you board then apply to get a refund. (Note to Ryanair: I'm still waiting more than a month later)

On a recent February day, I queued up with countless irate passengers caught unawares of this new policy change at Stansted airport where ticket desks have largely been replaced by automated kiosks. With limited staff on hand, it was complete chaos. Passengers who had been queuing in what they thought was the payment line found they waited ages only to be told they needed to join another queue. Having wasted time, many were just minutes away from missing their flights.

So what did passengers talk about while waiting in line? How their so-called cheap ticket no longer seemed much of a bargain after paying all the extras. The credit card handling fees for a round trip flight for two people cost $27. Want to bring more than a carry-on? It will cost $54 round trip for two people who want to put one bag in the hold. And the latest fee? A $38 penalty for passengers who cannot fit all their hand luggage into one bag.

The Consumers’ Association of Ireland described the measure as “mercenary”. But O'Leary is unapologetic. "We are doing this because, people with extra bags are slowing down the boarding of our planes," he says. "I have been a victim of the policy at Gatwick myself when I turned up with a computer bag and a suit bag which was as light as a feather, and it is my own airline."