Daire O'Brien: Shaken and stirred is the Ryanair chief
Michael O'Leary has sent us a very nice letter in which he has taken exception to a piece we ran in Final Word last week.
One of our points was that Ryanair's threat to ground planes at Dublin Airport because of an unfavourable landing charge comparison to Birmingham was a little disingenuous.
Published landing charges at Dublin are actually less than at Birmingham.
However, it appears, that published landing charges are about as relevant to the actual price paid as, say, the asking price quoted on an estate agents' website for a commuter-belt semi-d.
The numbers are confidential, Michael tells us, but he points out that significant discounts exist for those airlines -- like Ryanair -- who can guarantee an airport over three million passengers per annum.
An offer, he gleefully points out, which is in place for other airlines if they want it.
He also points out that the threat to ground planes is not, as we had the temerity to suggest, "Ryanair willy-waving" as the airline has actually grounded seven planes at Stansted this winter and "will ground planes next winter at Dublin".
O'Leary is aware that DAA management -- like that in every other business -- tends to think that its revenue curve will always point upwards and onwards, and he seems to be keen on reminding the authority to show a little more love for the hand that feeds it.
Mick also pointed out that he felt it hard to "share your view that Ryanair is just a punt on oil prices".
We actually said that buying stock in the company -- which we think is an excellent thing to do at current levels -- is a punt on oil prices "as well" as being a pure airline play.
Mick says that we were wrong to suggest that oil was available at "below $60 a barrel" in early 2007, but a quick trawl shows that it did indeed dip well below that level in January 2007 before resuming the trajectory that saw it close in on $100 by December.
Still, we appreciate that calling the oil futures market is not what Ryanair is in business to do.
Mick concludes his breezy epistle by pointing out that Ryanair will continue to grow profitability whether oil prices rise or fall and asks for a Cheltenham winner.
Picking ante-post winners at Cheltenham is about as fraught with danger as punting on oil but, since you ask Mick, you could do worse than have a look at the aptly-named Air Force One in the Sun Alliance.
Walsh's briefing on flu threat gives me very cold comfort
Now to an altogether more bizarre pronouncement from an airline chief exec, this time Willie Walsh of BA who addressed, according to the press release, "a breakfast briefing attended by some of Ireland's leading CEOs" at the Shelbourne Hotel on Monday last.
The keynote theme for the breakfast? Global Credit Markets? Competitiveness? Foreign Currency fluctuations ?
No. This particular audience was gathered to hear the wisdom of Willie on the burning subject of "The Economic Impact of an Influenza Epidemic. Is Your Business Prepared?"
A quick check of the date of the release revealed that it was not April Fools' Day and that Willie had indeed taken up the cudgel on behalf of global anti-flu vaccine manufacturer Roche Pharma by telling the assembled audience that: "The threat of a flu pandemic is very real, so it is vital that businesses put the necessary controls in place now through proper continuity planning.
"This planning means they will be prepared in advance and will help them to avoid major financial losses when it does happen. British Airways (BA) have taken this threat seriously by creating a business continuity plan for pandemic influenza, and I would recommend that Irish businesses do the same."
Whatever next? Stand by for Richard Branson being flown in to reveal that traffic jams are very bad things.
Dolmen's rock solid stance on Adidas
Stockbrokers, as we know, are far more comfortable with "Buy", "Add" and "Hold" advice than they are with the type of recommendations they should have been making since the beginning of 2007.
This could fall under the collective term of "Get The F@#5 Out".
Interesting, therefore, that Dolmen have started to instruct clients to short certain stocks, including Adidas, this week.
It seems surprising that nearly all of the published bearish sentiment in Dolmen research notes seems to be major cap European equities rather than ISEQ or IEX stocks.
Anyway, Dolmen reckons on a near 10pc downside in Adidas from current levels, based on general consumer weakness and the fact that the stock is rated at a sizeable premium to its peer group.
Adidas reports numbers on March 5 so we'll have a chance to report back to you on the accuracy of Dolmen's shorting skills then.
Green minister's blurbs are just a waste of paper
Another bizarre attempt to garner newsprint came from Green Minister Eamon Ryan who thought that it would be a great wheeze to spend some of our tax euro on yet another "Public Information Campaign" -- this time breaking the staggering news that it was unwise to respond to e-mails from unknown senders with your confidential financial details.
I for one am sick of high-spending state bodies and their "public information campaigns" telling us to a) wash our hands after we go to the toilet, b) clean our children's lunchboxes, c) "shop around" for a mortgage, d) remember to breathe.
