RYAN AIR

RYAN AIR



Executive Summary

This Executive Brief evaluates the existing business strategy followed by Ryanair an Irish Airline. The Executive Brief also includes recommendations to the existing strategies of the company for future development of the business. Ryanair is defined as the low budget airline in Europe. The first Low Cost Airline on the continent, Ryanair has evolved from a modest regional carrier into Ireland's largest airline in the intra-route in the last decade.

Table of Contents

Introduction2

Analysis & Evaluation of Ryanair's Strategic Direction3

Low prices3

Common air journey from issue to issue on short routes3

Choice of paths4

Maximum use of the Internet5

Obligations on the contents of the security and quality5

Support services6

Reduced functioning costs6

(I) Fixed-wing airplane equipment:7

(II) Staff costs:7

(III) The cost of clientele service:8

(IV) Charge for get access to the airport:8

Recommendation regarding New Strategies9

1. Increase the frequency of living routes10

2. Open new paths to Europe10

3. Develop little functioning bases of the continental11

4. Expand in Central and Eastern Europe11

5. Expand in North Africa11

6. Aggressively seeking to gain market share market of the Charter12

7. Customer Service Survey12

References13

Introduction

Airline Ryanair first flight in 1985, representing a tiny airline - the "home" business family Ryan. Starting flights cheap fares between Irish cities and London, the airline after 5 years was close to bankruptcy after failing to make a profit or for one year of operation. The appointment in 1990 as director of airline talented innovator and speaker Michael O'Leary was a turning point in the history of the company. Southwest Airlines O'Leary and his colleagues have carefully studied and applied in practice, the business model of low cost transportation of the American Southwest Airlines (Shankleman, 2007). Ryanair has become the first "low fare / no frills” airline in Europe, giving rise to low-cost revolution in the continent. Following the principle of "not enough to be a 10% discount, you need to be cheaper by 90%" new team Ryanair had a radical restructuring of the airline drastically reduce its expenditures. Boeing-737-200 Replacing the fleet by one aircraft type, refusal of 14 unprofitable routes and focusing only on the 5 remaining, the internal company reorganization, a significant reduction and simplification of tariffs (Ryanair Holding plc, 2002, 47). One year later, Ryanair for the first time managed to make a profit (Ryanair Official Website, 2011).

 

Analysis & Evaluation of Ryanair's Strategic Direction

The objective of the business Ryanair is to set up itself as Europe's premier reduced rate of arranged airline passengers founded on relentless enhancement and to elaborate its services to offer low-cost. Ryanair aspires to offer reduced fares that develop expanded passenger traffic (Coyle, 2003). Continue to aim on effectiveness and operational cost containment is a crucial part of the way of managing things Ryanair. Here are the key components that constitute the scheme of Ryanair:

Low prices

Used to stimulate demand, show the cost of journey, leisure and enterprise that would else not work at all or to use other procedures of transport for example vehicle, coach or train. Ryanair deals chairs on a one-sided, different most customary businesses in this change to ...