What If Ryanair Goes Into South Africa Market

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Category: Business and Industry

Date Submitted: 05/02/2011 02:54 PM

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Executive Summary

Ryanair is the World’s favorite airline and operates more than 1,400 flights per day from 44 bases and 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. In addition, Ryanair is one the most preferred airline company and as known by every customer most of the time it is cheapest way to fly. Aim of Ryanair is not serving best quality or making guests comfortable but giving chance to fly cheaper than other companies. In light of this policy Ryanair’s customers and target markets are generally lower and middle class. Ryanair already exist in the countries which have particular middle class who is willing to pay particular money to travel by plane but also trying to find cheapest way to fly. So, Ryanair has been focused industrialized countries such as Europe and USA. In addition, as expending strategy Ryanair is looking for new markets. These markets also should have particular middle class and it is an advantage for Ryanair going into growing countries. Because in growing countries, most of the people do not used to travel by plane but they have started in few years and they are willing to travel by plane much more than car or bus but for example in South Africa, South Africa airways is expensive for them and this airline appeals to upper class in South Africa. Ryaniar wants to take advantage of this situation. Obviously there is a gap in this market and it is a problem for middle class in such countries like South Africa. So, Ryanair is going to solve this problem also and take a big market share in South Africa.

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