Ryanair

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Introduction
Ryanair is one of the most profitable low-cost and low-fare airlines in the world. Even though it was merely bankruptcy in 1991, it could stand up and become very successful by 1999. An issues was what led Ryanair to huge losses in 1991, how did it re-gain its position, and what lay ahead in the next century.

Analysis
Prior to 1991, Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself as a low fare airline with the first rate services. It tried to keep low and unrestricted fare, while keep focusing on the best customer service and relationship. This mixed model was proven inefficiency. The low price could lure number of
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Main reason were that it abolished the mixed model, applied low cost strategy, improved its operation, reposition itself, and increase number of ancillary services. A key issue that waited for Ryanair at the end of 1999 was how to move and what to do to maintain or increase its market share.

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.

For the in-flight service, it is suggested that Ryanair should offer rental in-flight entertainments or internet services. As for a promotion, in the best case, it could offer a free flight or I£1 flight with limited seats to attract customers who never fly before or those who love travelling.

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

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