1. Ryanair raises bonuses to €2.50 for staff enforcing baggage compliance. 2. Non-compliant passengers face fines up to £75 for oversized luggage. 3. CEO O'Leary claims most passengers comply with baggage rules. 4. Bonuses for staff have no upper limit, enhancing compliance enforcement. 5. A small percentage of passengers face fees, reducing overall complaints.
The increase in staff bonuses incentivizes compliance, potentially reducing operational costs. Historical actions of Ryanair indicate that strict enforcement leads to improved profitability, similar to past fare adjustments.
The article details a significant operational change that could impact revenue streams. The increase in penalties and enforcement mechanisms are key for a low-cost airline's profitability and customer perception.
The immediate enforcement of these new bonuses will have a quick impact on operations and revenue from baggage fees. Changes like this often see effects in the upcoming quarterly earnings report.