The Business Model Conceived By Ceo Michael O ' Leary

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Ryanair has long been the pioneer for low-cost commercial air travel. The business model conceived by CEO Michael O’Leary affords the company much in the ways of agility and long-term adaptability. With the economic recovery of the European Union, new threats arise to challenge Ryanair such as an emerging budget air carrier market, fluctuating fuel prices, and controversial customer relations. Examined in this paper will be the internal cost accounting factors that affect the firm as well as an analysis of Ryanair’s Strengths, Weaknesses, Opportunities, and Environmental Threats (SWOT). Through all of this many opportunities arise in the way of route expansion and capitalizing on existing revenue. To understand the …show more content…

Many air carriers were denied use of the air space in another country simply due to nations holding a strong opposition to commercial air competition. In 1986, Ryanair obtained permission to service the airline’s second route running from Dublin, Ireland to London-Luton and compete directly with British Airways. This permission was given by each host nation that had begun a progressive movement towards the liberalization of air travel between European Union (EU) nation states.
From 1987 to 1990 Ryanair opened an additional 17 Routes and begins to emulate jet travel into the route structure. However, during this period Ryan air continued to emulate the standard business model due to continued fare regulation as well as a lack of innovation. Deregulation of air travel with European Union members had not yet taken full effect, and thus led to continued high operating costs and losses for Ryanair. Ryanair eliminated the frequent flyers program as well as no longer offering business class which caused a continued increase in passenger traffic but still had the airline operating at a loss. In 1987, Michael O’Leary was hired by Tony Ryan as a tax and personal finance director. O’Leary was soon tasked with aiding in the restructuring of Ryanair in an effort to return the airline’s profitability. O’Leary is a believer of a low fare

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