As I look at the latest incident involving Ryanair and BAA, in which the former is claiming that BAA are overcharging for landing fees contrary to an alleged agreement, it prompted me to put onto paper what I have thought for a long while.
Ryanair's low fares and business model are based on a fundamentally short-term series of 'deals' which will eventually come to an end, so ending their low fares and competitiveness.
For example, Ryanair do not have a unionised workforce. Once they reach a certain size, this will become inevitable. A unionised workforce will increase costs. Fares will have to rise.
The EU is outlawing all state support (i.e. route support) from airports. This has already caused Ryanair to pullout from Brussels-South. Fares will rise again when this is repeated across the continent.
I guess my point is that Ryanair relies on 'deals', either with its workforce, or BAA, or who knows how many other 'actors', that are unsustainable. When they have to take on the liabilities that other airlines do....like unions....then they won't be able to offer fares any lower than the competition.