Ryanair Case Study

Decent Essays

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

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