Ryanair History
Essay by Khairul Hamed • September 7, 2015 • Study Guide • 423 Words (2 Pages) • 1,217 Views
Introduction
- Founded in 1985 by the Ryan family; headed by Tony Ryan.
- A new management team was created and led by CEO Michael O'Leary who was appointed by Tony Ryan.
- Europe's first low-fares, no-frills carrier, built on the model of Southwest Airlines, the highly successful Texas-based operator.
- Most profitable airline in the world on the basis of operating and net profit margin
- Delivered 12% increase in profit, despite a 74% increase in fuel cost
- Ancillary revenue grew by 36% (generating €7.70 per passenger, with very high margins).
- First floated on the Dublin Stock Exchange in 1997
External Environment Analysis
PESTEL
Political
- Most of Ryanair’s routes are in Europe where the political environment is quite stable.
- Local governments supporting for their own national carriers.
Economic
- Ryanair has been cautious in its outlook for 2007. Few things that could hurt Ryanair (along with the entire Airline industry) would be a downturn in the European economic, fuel prices going up, terrorist attacks etc.
- Jet fuel cost fluctuations are subject to unpredictable and volatile world events, and was dependent on hedging which are based on educated guessing.
- Saves costs by operating over secondary airports. In that way they avoid primary airport charges and extra costs.
Socio-Cultural
- Even though Ryanair is perceived to provide poor customer service, the cheap fares still make it attractive for the budget conscious customer.
- Ryanair’s cusomer service are seen as poor as their request for cancelled and delayed flights are not compensated as expected.
- Customers are key for further growth and amarket expansions and tus, social factors should be taken in consideration
Technological
- Ryanair has made full use of the internet technology to provide online booking and checking making their website one of the most heavily used websites.
- Potential for Ryanair to leverage their website traffic to sell/promote ancillary products.
- With modern technology, on board Internet connection and television can be offered to their customers and thus
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