Ryanair cracks down on deals for corporates

Ryanair cracks down on deals for corporates

RYANAIR plans to ditch direct deals with corporate accounts and “stiffen” the criteria needed for corporate deals in a bid to tighten costs.

Ryanair sales and marketing director Tim Jeans said: “We will be saying to some corporates that the deals will not be reviewed. This is due to a tightening of administration costs. Unless we have the volume, special corporate deals are not worth it.”

As well as ditching a number of accounts the airline is also reviewing existing accounts and “stiffening”the criteria needed for Ryanair special deals.

“We are looking for more volume before we enter into an agreement, for example a couple of hundred passengers every month.

“Fifty passengers a month in general terms would not be sufficient to merit a volume deal with us,” he said.

Jeans declined to reveal which corporates would lose their deals with Ryanair but industry sources estimate at least three or four will have agreements cancelled.

Jeans added: “We will exit some deals and stiffen the criteria for others. We will tell our corporate accounts towards the end of the calendar year.”

Ryanair takes 40% of business passengers and 60%of leisure customers.