1. Ryan air’s success can be attributed to a few factors. First would be its ‘Ever-decreasing costs’ mantra, providing low cost, low fares and no frills carrier strategy while achieving operating efficiency and satisfying its customers which gives it a competitive advantage and cost leadership. It targets price sensitive customers and offers them the cheapest short haul service among all its competitors in the market. Ryanair gives much focus on keeping costs low and is constantly examining every area of its operation to implement cost reductions. The initiatives taken to keep costs low include:
• Using Boeing 737 planes to have a fleet commonality in order to minimize staff trainings and aircraft maintenance costs.
• Web check-in facility that not only was loved by passengers but also helped Ryanair in reducing staff and printing costs.
• Point to point routes to avoid transfer costs of passengers.
• Less airport charges by choosing secondary airports that were less congested and away from the city centres and were looking to increase customer traffic.
Secondly, Ryanair keeps growing as a budget airline by focusing on growth, expansion and operational efficiency as it keeps adding new bases, routes and aircrafts and disposing older and less efficient planes. Initially after 1996, Ryanair did not pay out dividends on its shares instead retained those earnings to grow the operations and services of the company till 2010 when the company had achieved a reasonably profitable
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
Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges.
Quick turnaround time is one of the aforementioned targets Ryanair is focusing on. It lets passengers walk straight out through the front and back exit or entrance, and does not use the air bridges. Simultaneously it does not offer any pre-assigned seats so more possibly passengers are ready at the gate before the boarding time to choose their preferred seats. These are all arranged in order to quicken the procedures that flights get ready to disembark or embark the passengers. Additionally, it does not serve free food and drink on-board so as to speed up the cleaning process as the cabin crews could finish the cleaning more quickly during stops and complete cleaning would only be done at nights. This could not be achieved by full service airlines because of more debris and possibly trade union resistance. (Shaw, 2004)
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.
The airline operates a fleet of more than 380 Boeing 737-800NG aircraft with an average fleet being under the age of 6 years. This is what reduced the fuel burns as well as emissions per passenger by 14%. Ryanair has also decreased the use of paper and printing and have moved to more computerized base such as smartphone applications which allows consumers to have access their boarding pass, information and travel documents directly from their laptop or mobile phone. They have also highlighted within the CSR that they operate a ‘good neighbour’ policy which reduced noise emissions of the aircraft movement during the night. Ryanair (2017)
They do not employ an advertising agency. Instead all of the advertising is done by themselves. In fact O’Leary himself oversees much of the promotion of Ryanair. They use simple adverts that tell passengers that Ryanair has low fares.
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 attracting new employees of cabin crew by high salaries, requiring them to pay for their own training. In order to improve their skills and ability to fly new aircrafts, pilots are responsible
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
Ryanair is a company set by the Ryan Family in 1985 with a share capital of £1 and 25 staff. They got permission from the regulatory authorities to compete with British Airways and Aer Lingus’s high fare duopoly on the route of Dublin and London in 1986. Through specialization in care operations cheap and smiling, with low cost as the most crucial factor, CEO Michael O'Leary has made it famous in Airlines zone, flying from eighty five airports and operating one hundred and twenty eight the ryanair.com Web site first inaugurated for conduct e-ticketing in January 2000, it hoped make profit up to 50% of all ticket sales. Though, that goal surpassed rapidly. Within a year it was making up to 72% profit. The success of the Web site is so good at earning profit that Ryanair has not done anything to get bigger in other selling channels, such as tele sales, agent sales or direct sales in the face of the rapid increase of business in current
Elimination of several services including in-flight meals, assigned seating and baggage transfer to connecting airlines results in costs savings; and
Ryan air, an Irish airline started in 1985 by Ryan family with a capital share of £1 and a staff of 25. Over the past few years the company has shown tremendous ontogeny. Indeed it is Europe's largest low cost carrier and fastest growing airlines. Currently it’s operating more than 1,500 flights every day from over 50 bases and around 1400 low fare routes across 28 countries which connect 165 destinations.
We will see how Ryanair was successful as world’s one of the most favoured low-fare airline and how did it apply each of this mix by putting in the