Ryanair Business Model

Ryanair was set up in 1985 by Tony Ryan to operate low-cost flights from Waterford and Dublin in the Republic of Ireland to London. In its initial few years of operation, it struggled financially. Michael O'Leary, now Chief Executive of the company, was Ryan's financial controller at this time, and persuaded Ryan to let him try and redress the situation. O'Leary developed a strategy heavily influenced by Southwest Airlines in the US, the world's first low-cost carrier, and not only stemmed Ryanair's losses, but turned it into a huge success. Now, Ryanair is the World’s favorite airline and operates more than 1,400 flights per day from 44 bases and more than 1100 low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft with firm orders for a further 64 new aircraft (before taking account of planned disposals), which will be delivered over the next 2 years. Ryanair currently has a team of more than 8,000 people and expects to carry approximately 73.5 million passengers in the current fiscal year. Low-cost airline Ryanair is a rising star in the skies of Europe. It challenges many received ideas but its brand remains bland. The skies of Europe used to be overcast, as monopolistic national companies were twisting the rules of market economy. With governments and the European Commission now actively promoting competitiveness, the aggressive low fares are attracting a new segment of cost-conscious passengers, which were largely left out of the market. Ryanair is serving this segment of market offering enviable level of quality at very competitive price. Our key objectives are: - low fares - industry-leading customer service - frequent flights on short-haul routes - low operating costs, addressing aircraft and equipment, personnel productivity, customer service costs and airport access fees - taking advantage of the internet and - commitment to safety and quality maintenance In order to achieve these...