Ryanair: Its Vulnerability and Exposure to the Macroeconomic Environment

Introduction: 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

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

References Berry, S., & Jia, P. (2010, August). Tracing the Woes: An Empirical Analysis of the Airline Industry. American Economic Association, 2(3), 1-43. Retrieved from http://www.jstor.org/stable/25760397

1.4 Conclusion To be successful in an increasingly competitive environment, Ryanair has to be more adaptive and innovative than ever before in providing superior quality service. Ryanair should develop its market globally. Ryanair resources and capabilities combined them to make more competences in low cost strategy to enjoy profit margin. However, the current strategy focuses on the benefit of a cost leadership generic

However, the airline recovered posting profits soon after. The enlargement of the European Union on 1 May 2004 opened the way to more new routes as Ryanair and other budget airlines tapped the markets of the EU accession countries.[16]

Since Ryanair is one of Europeans most predominant budget airlines, they do not take likely foreign firms investing in their "home state". An example of this is with Go 's foray into Dublin. Ryanair saw this move as a personal attack and so they increased the frequency of flights around Dublin and reduced the prices to levels which Go could not match. Eventually Go stopped servicing Dublin. This gives a indication of how intense rivalry is in the European budget airline industry.

Ryanair was making a good profit from flying to secondary airports which gave them a cost advantage because they avoid huge gate and landing charges and their flights in the less congested airports allow them to improve the turnaround time and the arrival and take off

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

Case Study in: Johnson, G. et al., 2005. Exploring Corporate Strategy. 7th ed. Essex: Pearson Education Ltd. 1. Internal audit of tangible, financial and intangible resources Tangible Resources 1. Human Resources * Ryanair currently employs 2000 people (2003) from 25 nations. * The pay is performance related and among the highest in the airline industry

Global MBA Strategic Management Formative Assignment - Dec 2011 Z0928183 INTRODUCTION Ryanair was founded in 1985 with only two aircrafts and a single Dublin-London route . By 2010 Ryanair had transformed itself into Europe 's leading low cost airlines with 232 aircrafts flying to 153 destination. Ryan Air 's strategic objective has been to offer the lowest possible air fare to its passengers and strive towards becoming europe No.1 Low Cost airlines. In this paper we will explore and analyze Ryanair 's competitive position, strategic capabilities and sustainability of its strategies.

 Economic crisis: Economic turbulences can cause an airline business to deteriorate or even get closed. In case of financial crisis in the world, airlines are borne to losses like any other business. Economic cycles such as Boom, recession, depression and recovery can determine which business an airline is leading. Aviation industry contributes to the GDP of any country, so when a country is a boom state the airline is making more revenues and raising GDP. Airlines also face the biggest threat when an economic crisis occurs. One of the most apparent actions during an economic crisis is layoff of employees to reduce the airline’s labor costs. During any economic crisis the demand for air transport reduces causing airlines to lose millions

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.

Report: An Analysis of Ryanair’s business environment Introduction: Ryanair is Europe’s leading low cost airline. It currently operates over 1600 flights per day to 180 destinations in 29 countries. It has achieved this through developing and marketing itself as Europe’s only ultra-low cost carrier (ULCC). This has seen its profits rise by 13% for the fiscal year ending 2013 to over €569million and its passenger traffic grow by 5% to over 79.3 million people, this being in spite of an increase in fuel cost by €292million.

II.3 Competitive Advantages Their main competitors are carriers including easyJet, BMI baby, FlyBe and ThomsonFly all of who try to attract potential customers by emphasising their low cost tickets. This makes the competition in this market segment fierce as in order to offer the lowest fares, costs must also be kept to a minimum.

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)