Max Keiser, Ryanair and the eco fears forcing their way onto the share price
national |
environment |
opinion/analysis 
Monday July 02, 2007 10:47
by stacyh
"Ecology fund puts Ryanair on its hit list"
As predicted nearly three years ago by Max Keiser in the Ecologist Magazine, "Ryanair in a Tailspin" (Ecologist, October 2004), Ryanair's share price has been falling big time this year due to what the company concedes is successful environmental campaigns.
In the January 9, 2005 issue of the Irish Business Post, a headline read: "Ecology fund puts Ryanair on its hit list" by Eammon Quinn
"Ryanair shares have been targeted by wealthy ecology activists who are planning to set up a $100 million (€76 million) London hedge fund designed to short sell stock in companies they believe are vulnerable to consumer boycotts. . . .
Ryanair shares have been identified by activist group Karmabanque, which Keiser set up to rate world stocks by the number of activist complaints and their vulnerability to boycotts. The airline was rated as the sixth most vulnerable to a consumer boycott in the world, along with companies such as Coca-Cola, McDonald’s, Starbucks and Exxon Mobil, which have traditionally attracted the ire of global ecology activists.
According to Keiser, Ryanair was included in the index after activist groups in Britain launched a campaign for wheelchair access by the airline and because the airline industry does not pay Vat on aviation fuel. The airline was then identified as vulnerable to consumer boycotts because of its huge profitability, he said. . . . . "
At the time a spokeswoman for Ryanair said: “Since they put Ryanair on their list, our share price has gone up by 10 per cent. We are always delighted to be part of a list which includes Coca-Cola, Starbucks and Wal-Mart.”
Today the stock price down nearly 30%, Ryanair has a different message according to the Hindu Times, "Ryanair admitted yesterday that the onslaught from environmental campaigners may have an effect on the low-cost flight market. Howard Millar, Ryanair deputy chief executive, said “I am concerned that there is a continuing media campaign and the concern is that people might say ‘maybe I will not fly on holiday and maybe I will make a different choice’.”
To find out more read here: http://www.hindu.com/thehindu/holnus/006200706020340.htm
