The airline industry experienced growing revenues throughout the 1990s. At the turn of the new millennium, there was a drastic change to this trend. A major devastation to the airline industry came after the terrorist attacks on September 11, 2001. The industry recorded losses of $7.7 billion for the year and revenues went down 13.5% after a record $93.6 billion in 2000. The industry struggled throughout the following years. Recovery from losses was difficult in those times due to increased security costs, increasing oil prices, a struggling economy, and low ticket fares. In 2008, oil prices reached a record high and the top 10 U.S. carriers lost $4 billion, followed by a $5 billion loss in 2009. Conditions have begun to look better for the industry. There is evidence of improving demand and revenues for the top 10 U.S. carriers in the first half of 2010, and oil prices remain lower than the 2008 record highs. This could be the beginning of more profitable years for the industry.…
COLOGNE BUSINESS SCHOOL (CBS) Case Study: Ryanair The future of the leading low fares airline Term paper for Transnational Management Summer Semester 2014/2015 Lecturer: XXX Anton Wischnewski BA12 in International Business / International Trade Student-No. XXX Table of Contents 1 Introduction ....................................................................................................2 2 Overview of Ryanair ......................................................................................3 2.1 3 Facts and Figures .............................................................................................. 3 Internal Analysis ............................................................................................5 4…
As mentioned before, Europe has around three thousand short-haul airlines meaning that the competition of easyJet can be very wide. Although, the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. This company bases its competitive strategy in “cost leadership” approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. It covers the main destinations of Europe offering around 27 different countries and main cities in every country. From 2011 to 2012 Ryanair had an increase in profit after tax of 25% leading to a new record of €503 million. On the other hand, easyJet in 2012 got €255 million of profit after tax (half of Ryanair`s profit).…
The purpose of this executive summary is to give recommendations on Ryanair, along with supporting logic for the recommendations. In the following paragraph, I will focus on Ryanairs’ strategic analysis, game theory application for the strategic analysis, and finally give recommendations based on reasonable analysis.…
The aim of this report is to analyse Ryanair’s current service culture and provide a new strategy to refocus the Ryanair brand to make it more customer-focused and family friendly.…
The current market is a stabilized market, with a duopoly amongst the two strong players: British Airways and Aer Lingus. Both airlines established routes in the lucrative Dublin - London markets and tap on profits from this route to finance their other less profitable operations. The demand for air travel between the Dublin and London has probably stabilized over the 10 years from the stagnant market share of half million air travelers. Ryanair's strategy is focused on breaking this duopoly with the introduction of Ryanair's low costs and efficient service on the same route. The strategy entails to achieve the following:…
Ryanair is Europe 's prominent Low Fares Airline: In 2011 we expect to carry over 6 million passengers across 34 routes. Ryanair have recently added 7 new European routes to our ever expanding network. It is market leader on every course where it competes with Air Lines. Ryanair is convinced that Europe 's high-cost and often state-subsidised airlines will be no match for its low cost, no frills formula. Ryanair set to grow by 25% each year, and a US $2 billion order for 45 new aircraft in place, millions of European air travellers will feel the `Ryanair effect ' in the years ahead.…
IntroductionRyanair was founded in July 1985 by the three brothers, Catlan, Declan, and Shane Ryan, with the financial assistant of their father Tony Ryan. As a beginner commercial carrier, its operations began with 25 staff and a single 15-seat turbo-prop commuter plane between Waterford in the southeast of Ireland and Gatwick Airport, the second busiest airport in London after Heathrow. Later on, regulatory authorities permitted the Ryanair Airlines to have at least four flying flights a day on Dublin-London route, with more seating capacity. Nowadays, Ryanair, with its rapid growth, occupies the most sought position in its own field, being "Britain's favorite airline" and the oldest-low cost air carrier in Europe.…
Clout, L and Condron, S. (2007) Ryanair threatens to sack pilots over 'danger ' incidents, Telegraph.co.uk…
Ryanair chose to enter the market at a time when the consumer base needed a low cost alternative and the airline industry was being deregulated. At the time, there was a large segment of the European population, over 750,000 people, who were traveling from Dublin to London via rail and sea ferries instead of air. Ryanair assumed that if these customers had a more economical option, they would likely choose to take a flight and cut the time of their trip by 8 hours. Aer Lingus also offered discount fares that were on par with Ryanair but they weren’t always available and had to be booked one month in advance. Ryanair’s option offered consumers the option to have no advance commitment and still only pay I£43 more to save 16 hours roundtrip. This was a perfect alternative for last-minute business travelers, as well as leisure travelers who didn’t fly because of historically high prices.…
Ryanair is a competitive and cost-efficient company compared with their competitors but they was concentrating their resources…
marked by economies of scale and Ryanair then, with a small fleet of all old-fashioned…
As everyone knows, Ryanair is one of most successful airlines in Europe. Since established in 1985, it has kept a great financial performance annually. But by consistently lowering the cost and expanding their routes at the cost of ignoring the customer service, the management has appeared a big problem. A news article (iAfrica, 2013) reported that some customers were hitting by fines at the airport because of not print off the tickets and another news (BBC, 2010) also wrote about an employee of Ryanair tells a girl to buy a plane ticket for her violin. What is more, Ryanair has been voted the worst UK brand for customer service in 2013(Management today, 2013). Things like that told us Ryanair neglect the importance of customer service and cause disappointment of their customers, so we can apply management theories with this issue to analyze this distinctive company.…
How did Michael O’Leary transform Ryan Air, a loss-making airline to a profitable and Europe’s largest low fare airline? This report will try to answer this question. More importantly it will also analyse in detail what strategy Michael O’Leary applied to achieve this great feat. Critical evaluation of the strategy Ryan Air applied will highlight the strategy paradigm it followed based on the strategic models of Porter’s five forces. It also aims to investigate the internal environment (strengths and weaknesses) and external environment (opportunities and threats) of Ryanair in the 21st century.…
I said that since passengers have to pay for an extra services even for using the restroom this is a weakness for Ryan Air and also the fact that profits decreased could also prove to be a weakness as Ryan Air may have to cut down on certain services or products to make up for this loss. Nadine Grixti and Elenia Desira argued that since passengers must pay for their luggage this is also a sign of weakness, Nadine Grixti came up with the idea that Ryan Air should provide a package which includes luggage along with flights. Maria Azzopardi and Elenia Desira continued to say that this should not be obligatory since certain groups travel with only hand luggages. Maria Azzopardi said that since Ryan Air does not provide adequate Human Resources policies this may lead to an unmotivated workforce. Nadine Grixti said that the website is the only means of booking flights which is once again a weakness.…