Few bosses, even in the age of executive salaries that are astronomical, would turn down an additional €100m. Fewer billionaires are often seen carrying cardboard props in the small elevator of a London hotel before a press event.
Michael O’Leary of Ryanair, who will soon receive a megabonus, has given off the impression that he is not bothered by it. The payout will be paid to the airline’s CEO in 2019 if it meets its long-term profits targets, which are becoming more achievable.
O’Leary is a major investor in the airline, so this has a part to play. The potential €98m bonus (£84m), given his 3.9% stake, is just a fraction his on-paper wealth. A 50% increase in shares since November makes his stake in Ryanair several hundreds of millions more.
O’Leary may not be satisfied. He will only admit that his “reasonable wealth” is due to aviation. A billionaire, no? He says, “Probably.” The Ryanair share price fluctuates.
He also seems determined to keep his family and himself grounded. A “tour” is planned at least once a year, and this year included a trip to the concentration camps.
He says that children of wealthy people, who have a privileged view of the world from social media, should visit Auschwitz to see that bad things do happen. “Everyone must be aware of the atrocities and should never forget them.” You may think that your life is hard, but you should go and see the atrocities committed against the Jews during the Second World War.
After decades of press conferences stunts, snarling tirades and unbridled hip shooting pronouncements, it can be a bit of a shock to see O’Leary address serious issues in public.
This autumn, his favourite targets have been the UK’s air traffic controllers, Nats: he made repeated calls for the head of “overpaid” chief executive Martin Rolfe (salary: £477,000), after the system failure which briefly stopped flights in August. The last O’Leary Press Conference was a full-blown, extended denunciation against Nats, Civil Aviation Authority, and their board of directors.
O’Leary’s rant is entertaining and affable, and he expresses his opinions quickly. If you don’t agree with them, you may not like others.
The who once said “the best thing to do with environmentalists was shoot them” is now worried about the effects of climate change. As one of Ireland’s largest farmers, I can confirm that we have had a bad summer. I’m a general believer in the ability of technology and human creativity to overcome concerns about climate changes. “I think we have to decarbonise and I am absolutely certain that we won’t decarbonise if we tax the people more.”
He doesn’t know what else could happen. Ryanair is ordering a large number of new planes that are more efficient for passengers, but it will also mean more seats available.
O’Leary says that people will “absolutely” not stop flying due to concerns about climate changes. He was hit with cream pies recently by climate protesters in Brussels . “I feel a little resentful that airlines are the poster children for climate change when they only account for 2% CO2 emissions,” he adds. Shipping is responsible for 5% of CO2 emissions, but no one ever posts pictures of boats chugging through a port and says: “There you are: the world is warming up.”
He says Sustainable Aviation Fuels, the great hope of many airlines are a scam: “They’re just a wheeze.” The only way to get sustainable aviation fuels in the quantities we need is if governments step up and support the production of these fuels. You want everyone running around collecting cooking oil? “There is not enough cooking oil to power the world for more than a day.”
Ryanair signed agreements with oil majors for up to 9,5% of its fuel requirements in SAF to be supplied by 2030. “But we don’t know if they can make that kind of volume.”
He says that to help aviation, the government should reform air traffic control, his nemesis. If you eliminate ATC delays, and inefficient routes, you can reduce fuel consumption another 20-25%.
O’Leary believes that electric cars are the way to go if we want to reach net zero by 2050.
Few could call O’Leary incompetent, despite the criticism he receives for his airline and his “take no prisoners” policy regarding additional fees. Ryanair has grown from an Irish airline to Europe’s largest airline by lowering costs. This includes charges from suppliers and airports.
He says he was at a Jesuit school for six long years before he found freedom in university. “I fell into aviation accidentally.” We spent the first couple of years drinking beer and chasing girls. After that, I wanted to start a business and earn money.
He began his career as a KPMG tax accountant and then invested in convenience shops, because it was the only way to make money in Ireland at that time. As they were cash-based businesses, you jacked up their turnover to extract cash and then bought real estate with the excess.
In the 1980s, a turning point occurred when Tony Ryan, an owner of a leasing company in aviation, was advised by KPMG on his tax affairs. He then left KPMG to work for Tony Ryan. The new airline was “bleeding” at the time. All the money he received from the leasing company disappeared into the black hole of Ryanair.
O’Leary was going to close it down, but then he was sent to the US by Herb Kelleher (founder of Dallas-based Southwest Airlines). He then returned to Ryanair, implementing Southwest’s stripped down model just as Europe deregulated aviation and low cost travel opened up. “We were the first to arrive.” “We managed to stay ahead.”