Ryanair - Strategic Position

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

Ryanair was founded in 1985 by Tony Ryan who already died in 2007. It was originally a full service airline and turned into a low-cost carrier in 1990s. Ryanair used a series of cost-cutting policies to attain to the target as its mission statement (Ryanair Annual Report, 1999):

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:

The purpose of my assignment has been done in terms of strategic analysis, its formulation and implementation of Ryanair organization. The assignment is developed by three parts which includes variety of questions in the each part.

Low fares- This is a result of lower costs, enabling Ryanair to offer lower costs than their competitors. If Ryanair can replicate their current cost model which has proved so successful in the European market and transfer it into transatlantic routes, they could offer flights at a significant amount less than Delta and BA.

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.

Ryanair airlines low fare concept was conceived by three Irish businessmen in 1984 who wanted to break up the duopoly of the major airlines between Ireland and England. The strategy was simple in nature; offer lower prices than any competitor on the same route. Ryanair began operations in 1985 with a single 15 seat turboprop aircraft operating one route between Waterford, Ireland to London, England. The fare was only €99 ($138), less than 50% of the two competitors at the time. Ryanair carried 5000 passengers during the first year. In 2012, the airline carried more than 79 million passengers. Ryanair has demonstrated consistent growth and profit with the exception of 1991 and 2001(Ryanair, 2013).

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.

Ryanair has always managed to come up with cost effective strategies which helps it to maintain a competitive advantage over its rivals. It also considers the present environment as the basis for formulating its strategies, for example, the airline made an effort to gain soccer fans as its customers by announcing a special return flight for all Arsenal fans from London Stansted to Barcelona Girona, so that they can watch the club’s vital champions league match in Barcelona on the 6 April, the flight would leave from London on 6 April at 8:30 am and

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

According to Ryanair company, the main problem for the company is the rate of fuel is not consistent from time to time. If the rate of fuel is not consistent from time to time, it will lead to disrupt of the Ryanair’s strategy which is low fares which set a target that the fare is low to compete with other competitors. This strategy is set up to attract the customer to have the service with Ryanair’s service. The fuel is important for the company because all of the aircraft the fuel is needed, once the fuel rate is increase the fare is automatically is high and if the fuel rate is decrease the fare is automatically is low. Then, Ryanair’s company may feel difficult to achieve their company strategy which one of the strategy is low fare because the rate of fuel is not consistent from time to time. In order the rate of fuel is unpredictable either it is increase or decrease, once the fuel price is

The airline industry has long been striking profitable deals with airports to keep certain routes open. Ryanair's business strategy is made up of four guiding principles: employ a single type of plane, constantly review overheads, turn aircrafts around quickly and abandon point’s schemes.

Founded in 1985, Irish Company Ryanair was first created as an alternative towards Aer Lingus who was operating as a monopolistic company on the market. Operating as a full-service carrier with two classes of seating, company achieved big passenger volumes but despite its growth by the beginning of 1990 Ryanair was one step away from bankruptcy. Immediate changes in business leading strategy were essential, so company has gone through total operations management transformation. Ryanair extended its services towards rest of the EU, becoming Europe's first low-fares, no frills airline and the leading airline in the world in terms

Ryanair’s low cost strategy has indeed grown overtime to develop into the worlds most successful and one of the most sought after models for organisational success.