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Cost Leadership Strategy Of Ryanir

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Since the very beginning of Ryanair’s existence. the atmosphere was tense between British Airways Aer Lingus and Ryanair. As Ryanair grew and grew the competitors got less and less money in turnovers. After twenty years on the “field” in 2006,Ryanair offered Aer Lingus an all cash offer which they did not take. The Employee Shared Ownership Trust voted to oppose the takeover of Ryanair Holdings with 97%. Days after this takeover offer, Ryanair increased its stake from 19% to 25% which shares they bought from a US hedge fund. In 2008 they bought more shares and increased it up to 29,82%. In the beginning of 2009, Ryanair had an offer for Aer Lingus, but again they did not accept it. After all in 2015 Ryanair’s board voted to accept the International …show more content…

To achieve it, companies must: improve process efficiencies;g ain unique access to a source of lower cost materials; outsource appropriate functions and avoid certain costs altogether.
The airline industry has long been striking profitable deals with airports to keep certain routes open. Ryanair's business strategy is made up of four guiding principles: employ a single type of plane, constantly review overheads, turn aircrafts around quickly and abandon point’s schemes.
In 2002 Ryanair ordered 100 Boeing 737-800 jets with options to buy a further 50 in a transaction that was worth a price of $9.1bn. Ryanair secured a significant discount. With newer, more fuel efficient planes than many of its rivals, Ryanair was able to hold down costs, charge lower fares and pack jets with passengers who might not spend a huge amount on tickets but spend profitable sums on food, hotel reservations and check-in charges. Ryanair has introduced a number of measures which have helped the business make a profit of €503m in the past financial year. These include being the first airline to implement baggage charges, working to eliminate the need for check in desks and cutting the weight of its aircrafts; examining the possibility of larger aircraft doors, to speed up

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