RYANAIR HOLDINGS, PLC

Case Study - 2011

Presented to: Lecturer Atique Ahmad

Presented by: Syed Faizan Jaffri L4F13MCOM2001

NOVEMBER 11, 2015

CONTENTS
Overview of Ryanair ......................................................................................................................................................... 1
Vision ............................................................................................................................................................................ 1
Mission .......................................................................................................................................................................... 1
Business Strategy .............................................................................................................................................................. 1
Operations ..................................................................................................................................................................... 1
Use of Boeing Aircrafts 737 800........................................................................................................................... 1
Use of secondary, regional airports ........................................................................................................................ 1
Extra fee at airport services ..................................................................................................................................... 1
Human Resource Management .................................................................................................................................... 1
Customer Service .......................................................................................................................................................... 1
Ancillary Services ......................................................................................................................................................... 2
Internet services ............................................................................................................................................................ 2
Environmental Analysis .................................................................................................................................................... 2
Economic factors ...................................................................................................................................................... 2
Social factors ............................................................................................................................................................ 2
Technological factors ............................................................................................................................................... 2
Legal factors ............................................................................................................................................................. 3
Environmental factor - SWOT ................................................................................................................................. 3

RAYNAIR HOLDINGS, PLC 2011

OVERVIEW OF RYANAIR
Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline
services between Ireland and the UK, as an alternative to the then state monopoly carrier, Aer
Lingus. Initially, Ryanair was a full-service conventional airline, with two classes of seating,
leasing three different types of aircraft.
Ryanairs objective was to maintain its position as Europes leading low-fares airline,
operating frequent point-to-point flights on short-haul flights, mainly out of regional and
secondary airports. The heart of its strategy was based on providing a no-frills service with low
fares designed to stimulate demand, particularly from budget-conscious leisure and business
travelers, who might otherwise have used alternative forms of transportation, or who might not
have travelled at all.

VISION
To firmly establish itself as Europes low fare, schedule passenger airline through continued
improvements and expanded offerings of its low fare service.

MISSION
To become Europes most profitable low cost airline by rolling-out proven low fare, no-frills
service in all markets in which we operate to the benefit of passengers, people and stakeholders.

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BUSINESS STRATEGY
Ryanairs business strategy is to minimize its cost and so increase their profits. Therefore, to
achieve their objectives they have based five primary components;
1- Operations
2- Human Resource Management
3- Customer Services
4- Internet Services for customers
5- Ancillary services

OPERATIONS
USE OF BOEING AIRCRAFTS 737 800
-

Availability of trained staff

Less Cost of maintenance

Easy handling of spare parts inventory

USE OF SECONDARY, REGIONAL AIRPORTS

-

Outdoor boardings

Check in on internets

Low and traffic volume based fee

EXTRA FEE AT AIRPORT SERVICES

-

Reduces the number of bags or luggage

Reduces the handling cost

Reduces the number of check in desks

HUMAN RESOURCE MANAGEMENT

-

Introduction of productivity base incentive system

Outsourcing of ticketing and other airport services

CUSTOMER SERVICE
-

Services substitution for cost saving purpose such as;

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Reduction in free bags checking, meals, flights to major airports, with promising ontime departures/arrivals, fewer luggage loss etc

ANCILLARY SERVICES
Although Ryanair charge for ancillary services but these services attracts more customers as
they are available at single platform. Ryanair knows that more the customers, lower the cost,
higher the profits.
-

Ancillary services includes; Trip managements, Hotel reservations, car rentals, priority
boardings, availability of food, infant equipments, sports and musical instruments

Teaming up with other service providers to make the services available at single
platform

INTERNET SERVICES
Ryanair is providing internet services to its customers so they could be facilitated by connecting
Ryanair online and enjoy the information and paid services while sitting home that also enables
time savings and avoiding nick of the time issues.

Environmental Analysis
ECONOMIC FACTORS
The major economic factor discussed in this case is fuel, and it has been discussed that fuel
prices are instable where they are also been expected to be rise in coming year. So, this factor
may effect Ryanairs operations and strategies as the fuel is a major factor of airline-companys
cost.

SOCIAL FACTORS
There are many controversial things came up from the Ryanair that may impact socially on
organizations credibility, such as advertisements controversies, differences in services
provided and fee, as claimed by company.

TECHNOLOGICAL FACTORS
Technology is a very crucial factor to keep in mind while making strategy for any organization.
It may help a company to leap ahead than the competitor as we as helps in saving cost.
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In Ryanairs case, the company as chosen those aircrafts, that are already been famous in the
market, and also it has low maintenance cost, experienced crew can be find easily that reduces
the training cost.

LEGAL FACTORS
One of the important external factor, legal factors include the issues with the governing bodies
of EU governments as well as airlines and aviation governing bodies. Their rules and
regulations may affect the organizations strategies and operations and may also impact the
cost and profits.

ENVIRONMENTAL FACTOR - SWOT

STRENGTHS
-

Ryanair Company has strength in ancillary services that has grown its profits with in
short time as for airline-company. It can move on with offering more facilities with
attractive packages.

Modern/Low Cost Fleet single aircraft type; average plane age 2.94 and no plane older
than 8 years on fleet.

Profits increased by 25.6% from 2010-2011.

Traffic grew 8% to 72 million in 2011.

WEAKNESSES
-

Bad Public Image due to controversial incidents, complaints filed against them by
Advertising Standards Board (ASA)

Complex Fee System leading to customer dissatisfaction

Only arrive at secondary airports; no option for arrival at Primary Airports.

Weak in negotiation with employees unions thus companys productivity base incentive
strategy failed

OPPORTUNITIES
-

Success in ancillary services may lead the company to the new markets for joint
ventures

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Open up their aviation repair service and flight training programs to operations outside
the company.

Customer base is expected to grow up to 85 million passengers.

Chances to penetrate in new markets other than Europe

THREATS
-

Airlines and aviation governing bodies rules on flying hours and aircraft regulations
could increase future expenses. As company has already paid 88 million in claims last
year due to the EU 261 regulations where the airline has to cover accommodations and
compensation

Unpredictable and uncontrollability of rising fuel costs, regardless of hedging.

In the future legislation will require airlines to pay about 1.4 billion for emissions of
carbon dioxide which will rise to 7 billion by 2020.

Increased competition from alternative forms of travel.

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