Banking observation

spot the odd one out:

Lord Stevenson, former chairman, HBOS Bank
Andy Hornby, former CEO, HBOS Bank
Sir Fred Goodwin, former CEO, RBS Bank
Sir Tom McKillup, former chairman, RBS Bank
John McFall MP, chairman, Treasury Select Committee
Alistair Darling, Chancellor of the Exchequer
Sir Terry Wogan, presenter of the BBC Radio 2 Breakfast Show

It's Terry Wogan, the only one with a banking qualification.

Aer Lingus cheaper than Ryanair

How Aer Lingus is cheaper than Ryanair. This'll annoy Michael O'Leary.

This is my weekly flight, so these are real figures based on looking at the relative websites today and booking my usual route with my usual baggage allowance and my usual credit card. I have excluded seat booking costs from this as I don't need to choose my seat in advance. Both airlines of course are guilty for advertising headline air fares without including all the mandatory charges (including tax and any booking fees).


Cost Aer Lingus = £109.75. Cost Ryanair = £194.20
Aer Lingus markup over flight cost = 214%
Ryan air markup over flight cost = 285%

Ryan Air are not only more expensive for my journey option but there's no loyalty scheme and I would have to queue at the airport to pay the excess baggage fee.

Booking parameters:

Route Edinburgh - Dublin on 02 March 2009 (need to fly from Edinburgh as it's an early start)
Dublin - Edinburgh/Glasgow on March 06 March 2009 (can fly back to either Glasgow or Edinburgh, doesn't matter to me).
Flying with 17Kg of hold bags
Compared on Sunday afternoon, 22nd Feb 2009


Aer Lingus Edinburgh-Dublin-Edinburgh

Flight £19.99 + £74.99 = £94.98

Including taxes and charges (except the processing charge) = £141.75

Handling charge = £8
Total to fly = £149.75
Bag charge £20
Total to pay = £169.75

cost for mandatory extras on top of the flight cost = ((169.75-94.98)/94.98)*100 =78%


Aer Lingus Edinburgh-Dublin-Glasgow

Flight £19.99 + £14.99 = £34.98

Including taxes and charges (except the processing charge) = £81.75

Handling charge = £8

Total to fly = £89.75
Bag charge = £20

Total to pay = £109.75

costs for Mandatory Extras on top of the flight cost = ((109.75-34.98)/34.98)*100 = 214%


Ryanair Edinburgh-Dublin-Edinburgh

Flight £0.49+£49.99= £50.48

Including taxes and charges = £96.20

Add bag handling = £28.50

Add Mastercard fee £9.50

Add excess bag costs 2Kg (over) * £15 per kilo * 2 (per flight) = £60

Total Ryanair costs = £96.20 + £28.50 + £9.50 + £60 = £194.20

Even without the £60 extra bag charge, this is £134.20

The costs of the flight were £50.48.

Cost for mandatory extras = 166% extra on top of the flight costs.
Plus the bag charge its 285%

siliconglen on twitter

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Still updating this blog but my whereabouts are more frequently updated on twitter. Thanks for following, Craig

Banking ignorance

I liked this quote from the recent Davos conference:

One top money market manager said: "If you believe that the world economy will turn the corner at the end of this year, or in [the first quarter] of 2010, I tell you we have not turned the corner, we can't see the corner, we don't even know where the corner is."

Once again, as I have said repeatedly on this blog bankers seem to be completely out of touch with customer service, a vision of improving the quality of their products and are constantly engaged in an endless cycle of making as much money as possible and no consequences for either customer service or indeed the global recession their greed has now caused. The above is simply another statement of their ignorance of the real world. Put the bankers into an environment where it's about more than just making as much money in a risky a fashion as possible and it's into headless chicken mode.

Still, one thing appears clear - the above quote does at least indicate that in the last year months they have learnt something about honesty.

Top tip for banks: Now is the time that you need to start thinking out of the box and investing in startups that have a solid business model which works in a recession. That's where you'll get the great growth rates, not in buying other banks laden with sub-prime debt (Royal Bank of Scotland etc take note)

Craig