RYAN AIR

Ryan air



Ryan air

Introduction

Ryan air is Europe Largest Low Fares Airline, operating 76 low fare routes to 13 countries throughout Europe and is growing at an alarming rate. No other company we know of is growing such a market share and gaining such a reputation. I have put together a report based on the company regarding aspects such as growth to date and future plans.

Changes in The Business Environment

The political environment can have a significant influence on businesses as well as affect consumer confidence and business spending. The political environment is one of major advantages to Ryan air, as the majority of its operations are contained within Europe. This region maintains political stability, thus Ryan air does not experience issues with governmental instability in Europe as a concern regarding passenger volumes or flight destinations.

Political factors

Irish government policy from September, 1989(Creaton 2007 Pp.23-29). This policy were known as “two airline policy” valid for three years and was directed at benefiting both Irish carriers Aer Lingus and Ryan air. The new policy ruled that the two major Irish airlines will not compete on any international route and they both had to have separate routes-European Union deregulation of the airline businesses from 1997; set up a number of low-cost airlines offering no-frills services. This deregulation enabled Ryan air to open new routes to continental Europe(Calder 2002 pp.78-79).

Other very important factors that have near- and long-term effects on the success of company's strategy are the economic forces. They include inflation rates, tariffs, the growth of the local and foreign national economies, exchange rates, as well as unemployment rates.

Economically stable European Union market provided Ryan air with significant value in the form of higher volumes of consumers.

Oil prices and inflation

Increasing oil prices inflated the costs of fuel and impacted profit margins-At the same time people in Europe are willing to travel more for lower price and this was option for low-budget airlines like Ryan air. European Union deleted duty-free on intra- European Union countries, and this new taxation policy affected Ryan air in loss of revenue, increased landing charges and increased the number of flight attendants.

Social And Cultural Influences

The social and cultural influences of business vary from country to country. Social cultural factors in Ryan air case include:-Increasing of the people's mobility in Europe, where good transportation is essential for every European citizen and it was a great opportunity for Ryan air to expand its business.

Cost of Living

Personal disposable income of people in Europe was rising which increased traveling lifestyles and business traveling. People in Europe travel for leisure, business, and searching for new jobs, as well as the number of senior citizens who were enjoy traveling. Traveling low cost has become a norm on European market(Thompson 1997 pp.45-49).

Technology

Technology is vital for competitive advantage and is a major driver of globalization. A new trend in European airline industry which was website establishment. Airlines set up websites through which they sell tickets and other ancillary products and services such as car rentals and travel ...