The Business Model Conceived By Ceo Michael O ' Leary

3225 Words Mar 13th, 2015 13 Pages
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 direction of Ryanair one must learn of the history behind the development of this low-cost commercial air carrier.

Originally founded in 1985 by Christopher Ryan, Tony Ryan, and Liam Lonergan, Ryanair was conceived to compete with the major European carriers of the time. The initial route structure consisted of a single route running from Gatwick Airport in London to Waterford, Ireland. Although deregulated within the United States, European airlines remained largely regulated in 1985. Host nations exercised a significant amount of control over international route structures and fares. Furthermore, if a prospective airline wished to compete with a major carrier internationally, the fledgling airline would have to obtain permission…
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