Ryanair

In: Business and Management

Submitted By toap
Words 1579
Pages 7
Introduction:
Ryanair Ltd. is an Irish low-cost airline headquartered in Swords, Dublin, Ireland, with its primary operational bases at Dublin and London Stansted Airports. In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers. The case study “ Dog Fight Over Europe: Ryanair (A), (B), & (C) presents the situation of April 1986 onwards when the Ryan brothers announce that their fledging Irish airline Ryanair will soon commence service between Dublin and London. For the first time, Ryanair were faced with formidable competitors such as Aer Lingus and British Airways on a major route.
In the following write we will present as follows 1) Case study analysis based on literature provided in class 2) Key competencies & recommendations for future.

Case Study Analysis of Ryanair
European Aviation Scenario 1) Air travel become possible due to technical advancements made during World war-I which led to Emergence of small private airlines across Europe which got amalgamated and paved routs for National Flag carriers serving mainly from national capitals to other capital cities and colonies. National Flag carriers were Gradually owned and subsidized by respective National governments. 2) After World war II, air travel become widely economical. America emerged as dominant country in Air-Travel business. Governements on Europe resorted to bilateral & multilateral Agreements, Pooling arrangements and and Government endorsed cartels such as IATA to counter the threat from USA. 3) Collapse of European Empires & advent of Jets capable of vrossing Atlantic ushered new Era in Aviation industry. It also lead to emergence of new Charter Airlines to profitable destinations. 4) Cracks emerged in European Aviation cartel and Most of the National…...

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Ryanair a

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...expanded offerings of its low-fares services. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. A good pricing strategies had help Ryanair to achieve the objective and aims. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight with higher fares charges on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s tight cost control was the backbone of its low-price strategy. As a result of this cost focus, Ryanair had by far the lowest costs in Europe, about 40% lower than its closest competitors. One of the elements of Ryanair’s cost-control strategy is the use of secondary airports. Ryanair typically did not fly to the major “hub” airports in Europe but instead to secondary airports which were often located some distance away from major city centers. Secondary airport which located in economically depressed areas, Ryanair bargained hard for low fees. Rapid turnaround...

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