Ryanair Business Strategy Essay

Ryanair was established in the year 1985 by the RYAN family and has grown from a small airline flying a short hop from Waterford to London, into one of the Europe’s largest carriers. The company expanded and within 4 years it had 350 employees, 14 aircraft, and carried 600,000 passengers a year. It is currently serving to 26 European Countries with 148 destinations. It operates on 794 different routes daily serving by more than 1050 flights in a day. It has totally 169 aircrafts running for different routes with 5986number of employees working in it However, Ryanair’s costs rose drastically and it recorded losses of £20 Million sover four years despite its growth. Although consumers were continuing to fly Ryanair

As can be understood from the analysis given below, if British Airways can cut it’s staffing by 25%* and increase it’s utilization to 90% from 60%, it shall be able to reduce the prices significantly to I£104, still I£6 more than Ryanair. As British Airways is a renowned market leader, people would be inclined to travel by British Airways by paying the I£6 extra than by a relatively unknown carrier Ryanair. Also, such a reduction in tariff on all of BA’s routes might not be necessary. It can very well position separate flights/routes for this rate so as to offset any reduction in utilization through profits in other routes.

The strategic plan of Ryanair has been to establish itself as Europe’s leading low-fares airline.” Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” (www.ryanair.com)

Summary: Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the UK, as an alternative to the then state monopoly carrier, Aer Lingus. It started out a full service conventional airline, with two classes of seating and leasing three different types of aircraft. However, despite growth in the passenger volumes financial problems were of a growing concern.

Ryanair consists of a centralised functional organisational structure. Normally, employees positioned within a centralised functional

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

In a worse case that an intense competition among employees occurs, the company should reset its pays distribution and incentives before (or along with) follow the above recommendations. Moreover, in the worst case that many more low-cost and low-fare airlines enter the same route with Ryanair, it is highly suggested that

Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing

Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown

As the Economist states, “Ryanair brands itself as Europe's only "ultra-low-cost airline"” (The Economist, 2017). In order to attain this level, Ryanair reduce their costs as, for example no drinks are offered during the flight, planes land in peripheral airports (which cost less) or the space between the seats are minimal in order to install more of them and therefore take on more passengers. As a result, Ryanair flights are significantly cheaper than others, so they are very competitive, and this leads to a war price in the flight industry. Ryanair’s message was clear: we will stop at nothing to give you the lowest fares. However the extent to which these customer services are reduced still needs to remain ethical. As a result of such little customer attending, only 22% of their travellers are corporate travellers (The Economist, 2017). Such conditions do not make this company attracting for businessmen, who need to arrive straight away to their arrival destination, and who can afford higher priced flights. The company needs to keep a certain standard of customer service, and this has been an issue faced by Ryanair. However it depends if the customer is willing to spare money for such a low customer service. The low fares were well known, but such was the ruthlessness of the check-in staff. Many customers began to believe that Ryanair rather focused on making extra profits rather than on their customer. Indeed, passengers were charged absurdly high fares to print their tickets within the airports. As a response, the company began to become “nicer” (The Economist,

Weakness –Internally, there has been serious strategic issues with current employment model applied by Ryanair. Statistics shown that the average length of service for pilots is about 4.6 years and average of 386 pilots leave Ryanair each year since 2012. This is caused by precarious nature of their employment relationship including disrespect towards pilots and cabin crew, failure of giving scheduled time off and working over contracted hours. In this case precarious work condition means that many Ryanair pilots don’t have fixed permanent contract. Pilots are grouped into Irish agency companies which have between 5 and 8 pilot directors, those agency companies then subcontract into a UK labour provider of pilots and then that UK provider provides the pilot labour into Ryanair. This causing a big distance between Ryanair and the

1. In-depth environmental analysis of the European Airline industry and discuss the implications for the budget sector and especially for Ryanair. 2. An integrated understanding of the functioning of a company – its human and technical operations, leadership, customer relationships and financial structure. 3. Implications of the internal functioning to create viable strategic positioning and discuss any changes to Ryanair’s approach to ensure an improved sustainability 4. Evaluate the strategic leadership style of Michael O’Leary

As a result of the success story of the U.S Budget Airline - Southwest Airlines - Ryanair was established as a first low-cost airline in Europe. The case study is based on the revised Strategy of Ryanair to meet challenges within European airline industry of the budget service providers.

Today, Southwest Airlines operates more than 3,100 daily flights to 62 cities across the United States, and registers yearly more than 80 million passengers. What began as a small Texas airline, Southwest now has grown to become one of the largest airlines in the United States1. European history of low-cost airlines is much younger, but those airlines are for sure trendsetters of the 1990s. The expansion of LCCs in Europe coincided with the final deregulation of the market during the 1990s. Genuine lowcost operations began in Great Britain in the 1990s with the Irish company Ryanair (founded in 1985 and started operating flights in 1986), which was patterned on American Southwest Airlines. Following Great Britain, LCCs have successfully developed on the Continent (Grotte, 2005). In the year 2005, there are 60 low-cost airlines operating in Europe2. Prior to 2002, there were no significant low cost scheduled carriers operating in the Asia Pacific rim. The initial slow development was in part due to the perception that the low cost model adopted in the United States and Europe could not be replicated in Asia, because of the longer aircraft stage lengths, lack of secondary airports and regulatory restrictions preventing access to international markets. The latter being particularly relevant given

The objective of this report is to appraise and evaluate the external environment, internal capabilities of Ryanair and assess the competitive environment. This project report also evaluates the marketing focus deployed by Ryanair in the year 2009 when the airline achieved a benchmark by being Europe’s largest carrier by passenger numbers and market capitalisation.