Examining Ryanair’s Launch Strategy
Ryanair was set up in 1985 by Cathal and Declan Ryan, as one of the first independent airline servicing the Dublin-London (Luton) route. Ryanair launched its service focusing on delivering first-rate customer service and lowest – simple, single – fare @ I£ 98, compared to I£ 208 full fare and I£ 99 discounted fare offered by competition, Aer Lingus and British Airways.
Ryanair Executives believe that Aer Lingus and British Airways’ flights are typically 60-70% full on the Dublin-London route, which means that the Average Revenue earned per available seat is 60-70% of the total revenue. Also, the total number of air passengers is 0.5 million compared to 0.75 million rail and ferry passengers, paying
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The use of only one kind of plane might help Ryanair limit its Engineering, other Aircraft related handling, ground equipment and maintenance costs.
• As per the case facts Ryanair has decided to work with London’s secondary airport, Luton instead of the main airport Heathrow from where British Airways and Aer Lingus operate. We can safely assume that at secondary airports like Luton, the traffic is not congested and fees might be comparably lower. This would help Ryanair reduce their Landing fees and en route charges, bringing down the costs further.
• We know that British Airways provides its own passenger and ground services, caters its own flights, and performs most of its own maintenance at Heathrow. If Ryanair were to outsource and contract out all these services to third-party providers, it would help limit its fixed costs and improve operating profit margin.
• British Airways sells tickets over phone, through retail point of purchase and agent network globally. If Ryanair were to contract this activity out to third party or use e-ticketing, it would help control cost of sales component and improve upon the operating profit margin.
In nutshell, the launch strategy that Ryanair has adopted is though valuable and rare at this point in the market, but is quite imitable. With competition such has British Airways and Aer Lingus who have
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.
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)
Generally speaking, the launch strategy of Ryanair was not the best one for that moment in time. They began operations between Dublin and London, in a very saturated market, which was already served by two competing and very experienced companies owned by the governments:
In 2000, Ryan Air launched its website www.ryanair.com where over 95% of bookings are made online. This saves the company from marketing and agent costs, while fulfilling the customer’s expectations of a simple online booking system. Further, Ryan air keeps upgrading its fleet to modern aircraft.
Ryanair, originally an Irish low-cost airline and established by the Ryan family in the year of 1984 starting off with only 25 members of staff. Replicating the American Southwest airline business model and then officially relaunched in the year 1990. It has vastly grown from being a single-aircraft family operation into one of the world’s top leading airlines. Now Ryanair has reached 11,458 employees. The airline carries over 131 million passengers per annum on over 2,000 flights daily, from 86 different routes, flying to more than 205 destinations in 33 countries.
The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or
Ryanair is an Irish based airline company, headquartered in Dublin airport, Ireland. It was established in 1985, and since Ryanair has expanded from a small airline to serving 90.6 million passengers. It operates 1,800 flights a day connecting 200 destinations. (Ryanair Annual Report, 2015; (Ryanair)).
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.
There are also other charges such as credit card booking fee and other transaction charges that could apply at times which are not properly disclosed. Ryan air also charges customers for use of wheel chairs. On a round trip, the seat for the return journey is charged at times. Even when a customer does an online check in and facilitates the airline by not queuing up at the counter, Ryan Air charges a web check in fee. It also charges a huge sum of 40 pounds per passenger who fails to print his
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
Ryanair is an Irish airlines company set up by the Ryan family in 1985 with a share capital of just £1 and only 25 members of staff. Its first route was launched in July 1985 from Waterford in the southeast of Ireland to London Gatwick. The expansion of the company started in 1986, when the company obtained the permission to compete with the duopoly British Airways and Aer Lingus.
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