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Publication Date: 11 Jan 2008
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TABLE OF CONTENTS
Company Overview..............................................................................................4
Key Facts...............................................................................................................4
SWOT Analysis.....................................................................................................5
Page 3
COMPANY OVERVIEW
Ryanair Holdings operates low fare scheduled passenger airline serving short haul, point to point
routes between Ireland, the UK, and Continental Europe. It is headquartered in Dublin, Ireland and
employs about 4,500 people.
The company recorded revenues of E2,236.9 million during the fiscal year ended March 2007, an
increase of 32.2% over 2006. The operating profit of the company was E471.7 million during fiscal
year 2007, an increase of 25.8% over 2006. The net profit was E435.6 million in fiscal year 2007,
an increase of 42% over 2006.
KEY FACTS
Head Office
Phone
Fax
Web Address
http://www.ryanair.ie
March
Irish Stock
Exchange Ticker
RYA
NASDAQ Stock
Exchange Ticker
RYAAY
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SWOT ANALYSIS
Ryanair Holdings (Ryanair) is Europe's leading low-fare scheduled passenger airline. The company
operates short-haul, point-to-point routes between Ireland, the UK and Continental Europe. The
company's leading market position provides the company with the ability to leverage its market
position to further expand its operating network. However, a likely rise in crude oil prices could result
in higher operating costs of the company, which would impact the company's margins.
Strengths
Weaknesses
Opportunities
Threats
Strengths
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Weaknesses
Page 6
The company is small in size compared to its competitors. Many of its competitors, such as Air
France, Lufthansa and British Airways are larger in size and enjoy a competitive advantage in
accessing financial, technical and human resources. Air France, which primarily operates in Europe
and North Africa, offers industrial maintenance and other air-transport-related services, including
catering and charter services and generated $ 31,595.9 million revenues during fiscal 2007. Lufthansa
generated $27,176.3 million revenues and British Airways generated $17,212.8 million revenues
during the same year.
In addition, these competitors are able to absorb raw material price hikes better than Ryanair holdings,
which generated revenues of around $3,062.6 million during 2007. Therefore, the weak revenues
of the company as compared to its peers indicate the lack of scale and weaker market position of
the company.
Opportunities
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it is estimated to reach a value of $475.3 billion by 2010, an increase of 49.2% compared to 2005.
The passenger volume is also estimated to reach 3,270 million in 2010, from the passenger volume
of 2,489.7 million in 2005, representing a growth rate of 31.3%.
Moreover, the demand for low cost airlines is growing. Ticket price is the number one criterion for
most passengers when selecting a flight, well ahead of the availability of a non-stop service. In view
of this growing trend, the company is planning to expand its global fleet size and could be in a position
to benefit from the growing airline industry.
Threats
Page 8
The European Union has passed legislation for compensating airline passengers who have been
denied boarding on a flight for which they hold a valid ticket, that come into effect from February
2005. The legislation also imposes fixed levels of compensation to passengers for cancelled flights,
except where the airline can prove that such cancellation is caused by extraordinary circumstances,
such as weather, air-traffic control delays or safety issues. As Ryanair's average flight duration is
less than 1,500 km and therefore considered a short-haul flight, the amount payable would therefore
generally be E250 per passenger, per occurrence.
Passengers subject to long delays (in excess of two hours for short haul flights) would also be entitled
to assistance including meals, drinks and telephone calls, as well as hotel accommodation if the
delay extends overnight. In addition for delays, over five hours, the airline would be required to
reimburse the cost of the ticket or provide rerouting to the passenger's final destination. Ryanair
does not currently offer any such compensation or other benefits to its passengers as part of its
low-fares service. The imposition of the regulation would significantly increase the expenses incurred
by the company and affect its profitability.
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