Opportunities Ryanair - 931 Words

Opportunities Europe s bloodbath (again) 1. Recessionary conditions suit true Low Cost Carriers best. The global economic recession has handed Ryanair and similar carriers near-perfect operating conditions. As Ryanair explains, this recession has encouraged passengers to become much more price sensitive which is why they are switching to Ryanair s low fares and unbeatable customer service over all other competitors. Ryanair expects a 15-20% reduction in average fares this year to around EUR32 per passenger. Ryanair is expecting that several of its smaller rivals will not be able to withstand falls of this size over a longer period. This means that Ryanair is in a position to profit handsomely over the next 12 months. Ryanair s†¦show more content†¦This would require off-base (like crew lodging in areas not having home bases) service operations increasing operational costs. This will cut into its operating margins. At the same time, its improved services can have a positive impact on the share prices. Since stock market earnings are always based on expansions and high operating margins they will continue to be vulnerable to market dynamics. Ryanair is already the leader in the lower price segment and it needs to cater the rapidly growing value segment to have total domination. The value segment constitutes travelers interested to optimize time, comfort and price. 2. Preferences would have to be given to city-centric airports, convenient departure and arrival times, and basic service. Competitors like Easy Jet, Air Berlin, Basic Air, BMI Baby are catering to the Value market segment. They have been successful in establishing slots at some primary airports and providing basic cost effective services. Acquisition of Aer Lingus has not only enhanced Ryanair’s expansion plans and market share but also helped it to stay in the top position of being in the low-price segment. The SWOT analysis given below explains how Ryanair can achieve its goals and mission by capitalizing on opportunities and utilizing its strengths and eliminating its weaknesses and threats. 3. OPPORTUNITIES: EU regulations, dependence on economic cycle. - LCC market share can double -Show MoreRelatedCase Study: Internal analysis of Ryanair1196 Words   |  5 PagesResources * Ryanair currently employs 2000 people (2003) from 25 nations. * The pay is performance related and among the highest in the airline industry (Annual Report 2004, p. 5). Travel concessions and participation in the share option program is granted to all employees. In 2003 over 30% (639 in total) of employees took part in the stock option program - the average pay per employee was about 53.000 (Annual Report 2004, p. 21). * CEO Michael OLeary has significantly shaped Ryanair. 2. PhysicalRead MoreRyanair Leadership Strategy Report4194 Words   |  17 PagesRecommendations (one page) Ryanair has been one of the Britain’s best low cost airlines for around 25 years since being established in 1985 by the Ryan family. Ryanair have always aimed to show their customers their statistics and monthly reports; â€Å"Ryanair believe that any worthwhile passenger service commitment must involve a commitment on both pricing and punctuality, that s why Ryanair is committed to publishing Customer Service Statistics each month and these confirm that Ryanair is No. 1 for CustomerRead MoreCritical Discussion Of The Ryanair Strategy For Past 3-5 Years4298 Words   |  18 Pagesof the Ryanair Strategy for past 3-5 years †¢ Summary of the Ryan Air The Ryan family founded Ryanair in 1985 by Tony Ryan, head of the family. The company was started to provide scheduled passenger airline services between Ireland and the UK, as an alternative to the then state monopoly carrier, Aer Lingus. In 1990s, Ryanair became the Europe’s first low-fares, no-frills carrier, built on the model of the highly successful Texas based operator South Western Airlines. Around this time Ryanair adoptedRead MoreRyanair and easyJet Case Study1759 Words   |  8 PagesI.INTRODUCTIONThis report outlines the analysis of two low-cost airlines performance in Europe, namely easyJet PLC and Ryanair Hldgs during their financial year between 2006 and 2008. It examines the companies portfolio, future prospects and competitors to analyse the threats and opportunities facing their business. In conclusion, there is a recommendation whether to invest on easyJet and/or Ryanairs shares. II.FINANCIAL AND NON-FINANCIAL RATIO ANALYSISIn terms of the completed financial analysisRead MoreRyanair business plan4830 Words   |  20 PagesAnalysis For Ryanair Strategic Maneouveurs Business Essay The purpose of this report is to analyse Ryanair’s strategic position, in addition describing and evaluating its strategies between 2006 and 2010. The first part of the report will include PESTEL, SWOT and Porter’s five forces to evaluate the most important factors that affect Ryanair’s strategic position. Furthermore, at the second part, Ryanair’s corporate and business level strategies will be analysed and evaluated. The Ryanair airline wasRead MoreRyan Air an E-Commerce Organization1872 Words   |  8 Pagescreate value and exploit market opportunities driven by new rules of connected economy†. E-commerce is a â€Å"disruptive† innovation that is radically changing the way organizations do business (Macgregor and Vrazalic, 2007). In other words a organization who do majority of their sales via internet, electronic procurement and electronic payment. As in the given case of RYANAIR AIRLINES. {text:bookmark-start} Ryanair Airlines in brief {text:bookmark-end} In January 2000, Ryanair introduced Europe`s largestRead MoreA Report On The Airline Business Industry2170 Words   |  9 Pagessame services which are cheap fare flights. RyanAir and Easyjet: †¢ tickets are sold directly to customers †¢ Non luxury flights †¢ Singular type of air carriers to minimise staff training and maintenance costs †¢ offering a single class cabin so all passengers receive the same service Ryanair It is an Irish-owned airline that was established in 1985 by the Ryan family to compete with Aer Lingus and British Airways on the Ireland–U.K. routes. Ryanair offer a point a to point b service and is a lowRead MoreRyan Air5684 Words   |  23 PagesQuestions. 1. Leadership a. Michael O’Leary is credited with the fabulous expansion of ryanair. Compare his managerial style with Richard Brandson of Virgin and Stelios Haj-Ioannou of Easy Jet. Do you see similarities, differences? O’Leary is said to have a pugnacious and aggressive management style, using a flat management hierarchy whose ethos is to provide a low cost, reliable and competitive service. Ryanair decided to hire O’Leary and sent him to the States for studying the Southwest low costRead MoreStrategy - Ryanair1400 Words   |  6 Pages- Dec 2011 Z0928183 INTRODUCTION Ryanair was founded in 1985 with only two aircrafts and a single Dublin-London route . By 2010 Ryanair had transformed itself into Europe s leading low cost airlines with 232 aircrafts flying to 153 destination. Ryan Air s strategic objective has been to offer the lowest possible air fare to its passengers and strive towards becoming europe No.1 Low Cost airlines. In this paper we will explore and analyze Ryanair s competitive position, strategic capabilitiesRead MoreRyanair1718 Words   |  7 PagesRyanair – The low fares airline: Whither now? Main Problems Ryanair’s growth rate is affected by macroeconomic factors such as the recession, as seen in 2010 when Ryanair saw a 200% increase in profit and traffic growth, as the low fares became attractive for those suffering from the current climate. Uncertainty still remains regarding the economic climate; problems would arise if it continued, as passengers would reduce spending restricting the company’s passenger volume growth. If the economic