Business environment analysis: Ryanair

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Report: An Analysis of Ryanair’s business environment Introduction: Ryanair is Europe’s leading low cost airline. It currently operates over 1600 flights per day to 180 destinations in 29 countries. It has achieved this through developing and marketing itself as Europe’s only ultra-low cost carrier (ULCC). This has seen its profits rise by 13% for the fiscal year ending 2013 to over €569million and its passenger traffic grow by 5% to over 79.3 million people, this being in spite of an increase in fuel cost by €292million. In this report we will carry out both an Industrial and an Environmental analysis of Ryanair with the help of a number of academic analysis tools and frameworks which will help us to examine both the Micro and the…show more content…
Again if we look at the annual financial report for 2013 we can see Ryanair open 7 new bases and 217 new routes for the year ending 2013. Acquiring new Fleet Again Ryanair has been very effective in exploiting the reduced demand for aircraft due to many failing airlines as a result of the economic downturn. Ryanair has been able to acquire many new aircrafts to meet its needs not only now but in the future at very favourable prices. In the year ending 2013 they were able to put a deal in place with airplane manufacturers Boeing to provided them with 175 new planes growing their overall fleet to 410 aircrafts which will result in growing their traffic by 39% to 110million people by 2019. Threats Fuel Hedging One of the main threats facing Ryanair is the unstable nature of the global oil markets. Ryanair like many other airlines engages in a practice called ‘Hedging’ when it comes to purchasing its fuel. This involves buying large quantities of fuel at a agreed price over a set period of time e.g. one year. Ryanair has already hedged 90% of it oil for the fiscal year 2014 at $98 per barrel which is set to see its overall fuel costs rises by over €200 million. If the price of oil were to fall considerably due to unforeseen circumstance Ryanair could be in big trouble. Climatic Factors Climatic factors have had a serious impact upon the operations of many European

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