Essay on Ryanair Ltd. Is Europe's First and Largest Low-Fares Airline

After researching and went through many articles which were published on the Ryanair Airline in Europe. To me, the online resources are more utilized as book resources which can be dated back to 20th century or more. The article 's which I read gives different facts and the information on marketing strategies which were used by the Ryanair Airline. Many of the contents are related to the work which I learned from this course on Airlines, and Airline Management and Marketing. The Ryanair Airline is known for its ' low airfare and consistent profitability and rapid growth. I think, the main goal for the Ryanair Airline is to provide low airfares for their customers and give high level of service, most of Ryanair passengers get excellent

Ryanair Business strategy fits the Operational Excellent Model of high reliability and dependability with fewer flight cancellations, great punctuality and fewer lost bags than most airlines. It operates on a highly efficient basis too with high aircraft utilization, minimum staffing, and maximize their use of the Internet to keep booking costs down. Ryanair airlines focus on their operation.

A pioneer in European discount air travel, Ryanair Holdings offers low-fare, no-frills air transportation via its main subsidiary, Ryanair. The carrier flies to about 160 destinations, including more than two dozen in Ireland and the UK; overall, it serves more than 25 countries throughout Europe, plus Morocco. Ryanair specializes in short-haul routes between secondary and regional airports. It operates from more than 40 bases, including airports in Belgium, France, Germany, Italy, Spain, and Sweden, as well as in Ireland and the UK. The carrier maintains a fleet of about 270 Boeing 737-800s. Ryanair holds a 29% stake in Aer Lingus and has launched several unsuccessful bids

In this essay, I will also be looking at the customer service of Ryanair. Ryanair is a low budget ‘no frills’ airline which offer domestic, inbound and outbound flights out of their hub which is Stansted. Ryanair have their headquarters in Swords, Ireland. First founded in 1985 by the Ryan family, with a share capital of just £1.00. They offered a 15 seated aircraft during the summer months from Waterford, which is in the southeast of Ireland to London Gatwick. In 2013 Ryanair saw 81,668,285 passengers, with over 300 aircraft in their fleet but with the added 180 aircraft ordered in 2013 they hope to see their fleet over 400 by the end of 2014, then a further increase to 500 by 2019. They currently fly to 183

If this strategy is scarce or they are not available to an airline industry’s competitors, they can become uncommon, difficult to exploit and rare compare to others. If Ryanair’s competitors possessed the same valuable strategy of low fares, it is not a source of competitive advantage anymore unless it is rare. This is because all of these airline industries have the capability to exploit that low fare strategy in the same way. In this case, Ryanair Holding focus on control their cost by using a single model aircraft which allows minimization of training and maintenance costs, efficient management of spare parts inventory, and more flexible scheduling of flight crews. This cost control is uncommon which is rare relative to other competitors in the short run. But in the long run, Ryanair Holding would not be rare forever since competitors which are other airline services would be using the same strategy to compete with Ryanair Holdings. Thus, it would then give customers more choices to pick. Infact, competitors like British Airways and Air France would be able to develop the latest or better version of low-cost business level strategy than what Ryanair has offered. Therefore, this strategy then would not be rare

Strengths – Ryanair is one of the largest European airline company and it keeps growing by launching new routes and opening new bases. Ryanair was the first company in reducing ticket costs and keep them low at all times. Low fares area key strength of the company and very big advantage over other airlines. Another strength of the company has a strong brand which means it’s widely recognised. Ryanair established in the European market share. The current market cap in millions is £17,729.86 according to London Stock Exchange. (Appendix 1) The last strength of Ryanair listed is the ability of landing in over 200 destinations on 33 countries.

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.

“There is no secret to the success of Ryanair! Offering the lowest costs in Europe and the best customer service; that is why 67million people will fly with us!” Michael O’Leary

case can be broken down by addressing the following list of questions which follow a

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

Since 1990 the company implemented a substantial transformation towards a “no frills” model that it was already utilized by the American Southwest Airlines. Ryanair has been the first low-cost airlines in Europe. The Ryanair features as “no frills” company, such as no free luggages, no free snacks or beverages on board and no selected seats, permits to the company to save on aircraft costs, faster turnaround situations and then less airport costs. For these reasons the company can offer to customer lower

According to (Ryanair, 2017) the company’s mission and strategic goal is to gain a competitive advantage over rival companies and firmly establish itself as a Europe’s biggest passenger airline company, by continued improvements and offering of its low fares service.

As a result of the success story of the U.S Budget Airline - Southwest Airlines - Ryanair was established as a first low-cost airline in Europe. The case study is based on the revised Strategy of Ryanair to meet challenges within European airline industry of the budget service providers.

Furthermore, Ryanair offers good on-time flights, minimum of cancelled flights and a minimum of luggage losses. Also Ryanair has made a passenger charter with the following commitments:

In a way, the competitive advantage of Ryanair would be the low fare, as there is not much differentiation on airline services. As long as the passengers reach the destination safely, there would be no problem; therefore price is the main factor.