1.1 Introduction Essays - Aviation, , Term Papers

1.1 Introduction Ryanair is Europe largest low cost airline service which has its headquartered in Ireland. This report is to analyse the business objective of Ryanair and its business environment. Ryanair is one of the successful low cost carrier airlines in the European airline industry. This report undertakes study of Ryanair's current strategy and its financial operations. It indentifies its current operational position with respect to the airline industry and its competitors. To access this company various models have been analyzed to get a deeper understanding of Ryanair's operations over the last few years. Strategy that makes Ryanair the most profitable and the key player in their market through their Strengths, weakness, opportunities and threats has been analyzed. This report demonstrates how this airline have been performing during the past few years and on which factors the management would have to focus in order to have a strong competitive position in the low cost airline market. The Business plan for this project ranges from internal and external analysis, industry analysis to financial and competitor analysis. 1.2 Company Overview It was established in the year 1985 with the launch of daily flights on a 15 seated turboprop plane between Waterford airport and London Gatwick. It's a public quoted company which has its shares traded on London, Dublin and New York ( Nasdaq ) stock exchanges. Its is now the largest low cost airline service in Europe and United Kingdom which is based on the strategy of a Low Cost Leadership model. It is commits to low cost airfares and introduces competition to flag carriers and growing alliances in the European airline market. With its ability of offering lowest fares in this industry to passengers makes it one of the toughest competitors for any new entrances. Ryanair was the first European airline specifically to offer low fares to its customers on short inter European routes. "Ryanair has its operations at London, Dublin, Glasgow, Brussels, Frankfurt, Milan, Stockholm, Rome and other European destinations. Its is operating on a schedule passenger low fare startegy airline serving short-haul point to point routes. Ryanair was the pioneer in low fare operating model in Europe in the early 1990s." As of June, 2009 the company offers over 1200 short term flight a day serving European destinations with a operating fleet of 196 aircrafts flying 845 destinations.[ HYPERLINK "https://www.ukessays.com/essays/management/company-overview-of-ryanair-management-essay.php" \l "ftn1" 1 ] During 1986, Ryanair entered the Dublin-London route, where two state owned airlines namely British Airways and Air lingus already existed. This was a demanding route which had been stagnating at about 1 million passengers per annum between 1975 and 1985, which was characterized by some of the highest fares in this route. Ryanair expanded by opening many new routes and increasing them between Ireland and United Kingdom. The company attracted many customers because of its attractive prices but were not cost efficient which resulted in significant losses. Over the next few years, Ryanair opened up new routes to other places of Europe such as Paris, Stockholm and Brussels. Ryanair entered these markets with 80% low airfares as compared to other flagship airlines. Despite of its success, Ryanair was entirely committed in providing low air fares, increased frequencies to destinations and providing services to both business and economy class passengers. Ryanair has presently well positioned itself in the current recession to grow. They have strong financial structure and have presently a liquid cash of 2.5 Billion (Euros). Industry Analyses In the year 1996, Ryanair holding was incorporated to Ryanair limited. Ryanair is well established low cost carrier airline which has its services in most of the European countries like UK, Continental Europe, Ireland and many more. Ryanair from over the years of its service has made a name for itself as a scheduled low cost carrier airline serving point to point short haul destinations. It has been ranked the top by IATA as world's leading airline in term of international passenger carried in the year 2008. On June 2009, with its operating fleet of 196 Boeing 737-800 aircrafts, Ryanair offers more than 1200 scheduled flights per days serving 145 destinations. Ryanair suffered losses after taxation of 169.2 million Euros in the fiscal year 2009, compared to its