Operation and Strategy management for Ryanair
MSc Management
Strategy and Operations Management 2013 / 2014 - GLASGOW MMN220511
Shaishav Kharwar
(Mat No: 200813679)
Course work 1 Resit
Report on RYANAIR
Module Leader Dr.Colin Combe
Introduction
The company chosen in this report is Ryanair in the airline industry. Ryanair is a low cost budget airline travelling across 1600 routes from 57 bases connecting 180 destinations in 29 different countries (Ryanair.com). Ryanair first started its operations in 1985 between Ireland and London. The first year it commuted around 5000 customers but the company really took off in 1990 when Michael O’ Leary was appointed the CEO of the company.
The company was envisaged by its CEO Michael O’ Leary and adapted the Southwest airline model from America and brought it to Europe and since then the company has also embraced a no frills, low cost model where it plans to get their customers from A to B at the cheapest rate possible. This has revolutionised the travel industry and made travel cheaper and reliable within Europe.
Ryanair has a strong hold on market in most of the countries Europe with 44% in Ireland where its headquarters are, followed by 23% to 21% in Poland, Italy and Spain (centreofavaiation.com). In the UK the company holds a modest 16% of the market with its overall customers estimated at 81.5 million for the year 2014. The company gets a stiff competition from Easyjet, Lufthansa, Aerlingus and Alitalia. These airlines try to follow the same model as well but Ryanair has been the leader by far generating revenues of €3.789 billion for the fiscal year 2013 with profits of €374.6 million.
Figure 1: Market share of different airlines ( Source: Centreofaviation.com)
PEST Analysis
Political Factors:
The political factors tend to affect the airline industry the most if they are flying from one country to another. In case of Ryanair, it only flies within the EU, thus
Strategy and Operations Management 2013 / 2014 - GLASGOW MMN220511
Shaishav Kharwar
(Mat No: 200813679)
Course work 1 Resit
Report on RYANAIR
Module Leader Dr.Colin Combe
Introduction
The company chosen in this report is Ryanair in the airline industry. Ryanair is a low cost budget airline travelling across 1600 routes from 57 bases connecting 180 destinations in 29 different countries (Ryanair.com). Ryanair first started its operations in 1985 between Ireland and London. The first year it commuted around 5000 customers but the company really took off in 1990 when Michael O’ Leary was appointed the CEO of the company.
The company was envisaged by its CEO Michael O’ Leary and adapted the Southwest airline model from America and brought it to Europe and since then the company has also embraced a no frills, low cost model where it plans to get their customers from A to B at the cheapest rate possible. This has revolutionised the travel industry and made travel cheaper and reliable within Europe.
Ryanair has a strong hold on market in most of the countries Europe with 44% in Ireland where its headquarters are, followed by 23% to 21% in Poland, Italy and Spain (centreofavaiation.com). In the UK the company holds a modest 16% of the market with its overall customers estimated at 81.5 million for the year 2014. The company gets a stiff competition from Easyjet, Lufthansa, Aerlingus and Alitalia. These airlines try to follow the same model as well but Ryanair has been the leader by far generating revenues of €3.789 billion for the fiscal year 2013 with profits of €374.6 million.
Figure 1: Market share of different airlines ( Source: Centreofaviation.com)
PEST Analysis
Political Factors:
The political factors tend to affect the airline industry the most if they are flying from one country to another. In case of Ryanair, it only flies within the EU, thus