KLM cuts capacity while Ryanair buys extra aircraft

Airline Industry Information, August 7, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

While KLM Royal Dutch Airlines has indicated that it will be cutting its winter capacity by 3% compared to 2000 due to the current economic downturn, Ryanair, a low-cost Irish carrier, has stated that it intends to purchase up to 50 new aircraft in the near future.

Analysts have said that Ryanair's economic model is withstanding the current economic climate better than many other carriers. The airline has been waiting to purchase additional aircraft and is expected to obtain some good deals given the glut of second-hand aircraft available, Reuters reported. Ryanair's aircraft acquisitions are expected to cost about USD1bn.

Meanwhile, KLM has stated that it cannot rule out further capacity cuts.

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