The share price of Ryanair (LSE: RYA) (NASDAQ: RYAAY.US) is currently up 4.1% on the day, after the low-cost airline announced that it was launching three new Scottish routes — between Edinburgh and London, Glasgow and London, and Glasgow and Dublin — and that it would be opening a new base at Glasgow International airport, the airline’s third base in Scotland.
The new routes and base are part of a $450m investment in Scotland by Ryanair, which has existing bases at Edinburgh and Glasgow Prestwick airports.
The existing once-daily flight from Prestwick to Dublin will now be discontinued and replaced by an expanded three-times daily service between Glasgow International and Dublin, but Ryanair has said that it “remains committed” to Prestwick, where it has a major maintenance facility.
The three new routes will start service on 26 October, and Ryanair says that the new base and routes will “deliver more than 500,000 new customers through Scottish airports this year”, bringing the total number of Ryanair customers in Scotland to over 3 million.
Commenting on the announcement, Ryanair’s Chief Commercial Officer, David O’Brien said:
“Scottish consumers already choose Ryanair for our low fares, industry leading customer service and great route choice. Now they can also book their flights on our improved website, carry a free small 2nd carry-on bag, enjoy allocated seats, avail of our recently announced new Family Extra service, and use their personal electronic devices at all stages of their flight, making Ryanair the ideal choice for families and friends. We also have a new app and business product coming soon, as Ryanair continues to deliver so much more than just the lowest fares.”
At €7.17, Ryanair’s share price is up almost 15% so far in 2012, compared to a 1.7% rise in the FTSE 100. But it’s down almost 4% on this time last year, a period in which the FTSE 100 has gained over 10%.
