Ryanair Case Study

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

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)

Since Ryanair is looming their highest return-on-capital route, it was expected that, not to lose the passengers volumes, both airlines will start to offer lower fares and greater frequency of flights. It is not likely that BA and AL will try to match the exact prices of Ryanair because they have other factors that would influence their customer base to remain loyal. Also, the majority of their costs are fixed, making it difficult for them to quickly reduce their operating expenses without significant financial losses. Not only will BA and AL have to figure out ways to lower their costs, they will also need to reassess the limitations they have on their tickets. Ryanair is offering tickets without any restrictions, so even if BA and AL came close to their price, the customer may still choose Ryanair if the others do not make policy changes. They offer a variety of classes of service, from first to economy, while Ryanair has less complicated offer - one class on one type of plane. BA and AL were assuming that the deregulation of the airline industry, particularly in the United Kingdom, will allow them to expand their routes and cover more of their significant overhead. Some expected

Ryanair, originally an Irish low-cost airline and established by the Ryan family in the year of 1984 starting off with only 25 members of staff. Replicating the American Southwest airline business model and then officially relaunched in the year 1990. It has vastly grown from being a single-aircraft family operation into one of the world’s top leading airlines. Now Ryanair has reached 11,458 employees. The airline carries over 131 million passengers per annum on over 2,000 flights daily, from 86 different routes, flying to more than 205 destinations in 33 countries.

From the analysis, Ryanair should maintain its current position. However, it is strongly recommended to provide the check-through baggage for connecting flights for other airlines. This could increase number of passengers who have to transit via a route that Ryanair provided. Moreover, it should increase ancillary services by offering referral program to car rentals, hotels, and travel agencies. By doing this, it could generate more revenue to provide more services in other parts.

Ryanair's passenger numbers have grown by up to 25% a year for most of the last decade. Carrying under

Plan: The options and ideas are brainstormed and planning is done about how to utilize and deliver them.

Ryanair, Europe's first and largest low fares' airline started in 1985 and was set up the Ryan family with a share capital of just £1, and a staff of 25. Over the past few years the company has shown tremendous growth and now operates more than 1400 flights every day from 44 bases and around 1100 low fare routes across 27 countries which connect 160 destinations. The company now has approximately 73.5 million passengers in the current fiscal year.

In spite of the cost deduction planning, Ryanair also has designed other plans to maximize its profit and expand the market share of the company. On 1st February 2003, Ryanair announced that it was acquiring Buzz, the loss making budget subsidiary of KLM, based at Stansted. Ryanair purchased the loss making company Buzz, as it was a golden opportunity to pick up a ready- made bundle of take -off and landing slots at Stansted Airport, where there is intensifying competition for space. This would not only increase Ryanair‟s share of slots in Stansted from 33 to 49.5 per cent but also produce profit by the fiscal year end of March 2004. Ryanair also aimed to increase its sales through ancillary services in conjunction with its core airline

• Ryanair operating on secondary airports catches mainly the attention of new customers for whom traveling by air is a new habit. Considering traveling routines of European customers it might be difficult to take away market share from charter airlines since their passengers buy ‘holiday’tickets in a ‘travel package’.

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

In 20th century air travel was exceptional and expensive; travel was restricted for wealthy individuals that tend to travel for special occasions. After the II World War improved design has modernised the industry and allowed to carry more passengers. That resulted in economies of scale that lowered the price of the ticket within reach of a regular person. Ryanair Ltd is an example of low cost carrier that revolutionised the airline industry by offering short-haul flights around the Europe for the lowest fares (Ryanair, 2015). In similarity to other businesses, the airline industry is affected by changes in its external environment. Ryanair as well as other low cost airlines can afford to cut the price of the ticket by reducing operating costs. One of the main

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.

According to Ryanair company, the main problem for the company is the rate of fuel is not consistent from time to time. If the rate of fuel is not consistent from time to time, it will lead to disrupt of the Ryanair’s strategy which is low fares which set a target that the fare is low to compete with other competitors. This strategy is set up to attract the customer to have the service with Ryanair’s service. The fuel is important for the company because all of the aircraft the fuel is needed, once the fuel rate is increase the fare is automatically is high and if the fuel rate is decrease the fare is automatically is low. Then, Ryanair’s company may feel difficult to achieve their company strategy which one of the strategy is low fare because the rate of fuel is not consistent from time to time. In order the rate of fuel is unpredictable either it is increase or decrease, once the fuel price is

The airline industry is a buyers market were all somebody has to do is log onto another website to access alternative flights with another company. The power of suppliers in the airline industry is very strong also, as you can see in the newspapers there is a strike at Boeing and this has halted all airplane deliveries. This has a direct knock on effect to Ryanair that they can do nothing about. Each low cost airline is offering the same basic service however Ryanair have an advantage as they are currently offering 297 routes out of 107 airports but competition is strong. Areas such as customer service and branding are key to success.