Where have you guys been? Under a rock.... this guy copied SWA overseas and then started down this new path years ago.....
Its the wave of the future..... wave of the future.....wave of the fu(king future..... God save us all......
A radical fix for airlines: Make flying free
Ireland's Ryanair gives away tickets to earn big profits from other aspects of the travel experience.

By
Matthew Maier, Business 2.0 Magazine staff writer
March 31, 2006: 11:31 AM EST
(Business 2.0 Magazine) - Michael O'Leary, Chief Executive of Ireland's
Ryanair (
Research),
Europe's most profitable airline, wants to make air travel free. Not free as in free from regulation, but free as in zero cost. By the end of the decade, he promises, "more than half of our passengers will fly free."
The remarkable thing is, few analysts think his prediction is far-fetched: Ryanair already offers free fares to a quarter of its customers.
By a wide margin
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Even without free flights, Ryanair has become one of Europe's most popular carriers. Last year it flew 35 million passengers to more than 100 European destinations, while its customers paid an average fare of just $53. The airline enjoyed revenues of $1.7 billion, up 20 percent over 2004, at a time when most competitors were stuck in a holding pattern.
Even more impressive, Ryanair's $368 million in net earnings gave the airline an industry-leading 22 percent net profit margin. (By comparison,
Southwest Airlines's (
Research) net margin was 7.2 percent.) "Ryanair has the strongest financials in the European airline industry," says James Parker, an equity analyst with Raymond James.
The secret? Ryanair's austere cost structure almost makes Southwest look profligate. In addition, the Irish airline puts a price on virtually everything except tickets, from baggage check-in to seat-back advertising space. As a result, last year Ryanair collected $265 million--15.6 percent of overall revenues--from sources other than ticket sales.
"We weren't the first to figure this out," O'Leary says. "But we do it better than everybody else."
The similarities to the Southwest model are hardly coincidental. In 1991, when Ryanair was just another struggling European regional carrier, O'Leary went to Dallas to meet Southwest executives and look for lessons he could take back to Ireland. The visit prompted a wholesale reconsideration of how the airline did business.
Following Southwest's lead, Ryanair embraced a single type of aircraft--the venerable
Boeing (
Research) 737. Likewise, it focused on smaller, secondary airports and began to offer open (unassigned) passenger seating.