Ryanair Case Analysis

[Name of the Institute]Ryanair Case Analysis

History

Ryanair Company is the pet project of Tony Ryan, who is the former executive of an Irish airline with the name of Aer Lingus. Tony Ryan was a very wealthy person, since he grew up as a broker, the one who places excess jumbo jets on behalf of a number of airlines all across the globe. The company Ryanair started their business in the year 1985 with one fifteen (15) seat airplane transporting travellers amid Waterford. Waterford was a tiny airport having a distance of nearly 90 minutes from London and Dublin. However, in the next year, the company Ryanair attained an authorisation to wing from Dublin to London. However, on the other hand, the company Aer Lingus played a monopoly on this explicit route. Aer Lingus protested to no avail against the yielding of the permit, placing the period for years of unpleasant fierce battle.

In the year 1986, roughly about 800,000 customers flew in the route of Dublin-London. These passengers paid about 200 pounds purchasing a return ticket only for a flight of one hour. However, with a long account of expatriation there were mostly Irish inhabitants in the United Kingdom. However, on the other hand, these people tend to the trip home just on exceptional circumstances, for instance wedding in the family or attending funerals. In the year 1986, in the month of May, the company Ryanair proclaimed that they will charge 99 pounds on their opening flight. This encouraged the company Aer Lingus to cut its price up to £ 95 this further prompted the company Ryanair, consecutively, to lower down its fares up to £ 94.99.

The ensuing years were stormy, to guess the least the company Ryanair confronted fierce rivalry and competition from reputable and the well-established air companies. This fierce competition was in different forms, such as savage fare cuts and awareness rising to governments, as well as the rise in the discount prices of airlines. However, by the end of the year 1990, the company Ryanair's charges dropped to £ 59 on the route of Dublin-London. Later in the year 1999, the prices reduced to £ 19.99; and in the year 2005, the company Ryanair gave a tariff of 99p up to 100,000 travellers, while celebrating the company's 20th birthdate. In the year 2007 in May, the company Ryanair gave a free air seat bargain to 1m travellers and also assured that none of the airlines can match these charges. It is through this stretch; that the passengers of Ryanair traffic raised intensely. Their target reached up to 50m travellers on 571 directions crossways catering their services to 26 European nations by the year 2007. Ryanair airline endured the War of the Gulf States in the year 1991, the outcome of the incident of September 11, in the year 2001, along with the dramatic increase in the oil price, all of these factors created severe complications for the airline industry. However, by the end of the year 2007, ...