Ryanair European Pioneer of Budget Airline Travel

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Presented by: Group-3 Prabal, Amrita, Sonu, Pawan, Pradeep. European Pioneer of Budget Airline Travel INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

Transcript of Ryanair European Pioneer of Budget Airline Travel

Page 1: Ryanair European Pioneer of Budget Airline Travel

Presented by:Group-3

Prabal, Amrita, Sonu, Pawan, Pradeep.

European Pioneer of Budget Airline Travel

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

Page 2: Ryanair European Pioneer of Budget Airline Travel

Issues

• Aer Lingus opposed to merge with Raynair.• Fuel cost.• Entertainment resisted by the passengers.• Staff cost and productivity.• Passenger service cost.• Airport charges and Route Policy.• Terrorism and security.• Environmental Concerns.• Industrial relations.• Safety Issues.

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

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Scenario

Founded in 1985: 2 Aircrafts Carried 82,000 Passengers

1991: Michael O’Leary Appointed Transformed to Low Cost Airline 1997: Floated on Dublin SE and Nasdaq Rapid Expansion (2008 Figures):

169 Aircrafts 794 Routes 148 Destinations, Across 26 European Countries 58 Million Passenger AnnuallySource: European Low Fares Airline Association,2009

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

Page 4: Ryanair European Pioneer of Budget Airline Travel

Scenario

• Ryanair came as Alernative to Aer Lingus.• Motto of combining with Aer Lingus.• Turbulence in 1990.• Restructuring of the organization.• Introduction of the Low Cost/Low fare Model.• Became worlds most profitable airline.

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

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Strength•Low cost Leader•Innovative Cost Reduction•First-mover Advantage•Established market Share•Strong Public Image•Established Routes/Networks•Range of Ancillary Services

Weakness•Poor Employee Relations•Volatile Customer Relations•Antagonistic Relationship with Competitors•Dependence on Michael O’Leary

Opportunity•Further growth•Advanced Cost Reduction•EU Expansion•Expansion of ELFAA

Threats•Increased Competition•Industry Criticism•Trade Unionism•Substitute Transportation

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

Page 6: Ryanair European Pioneer of Budget Airline Travel

Suggested Strategy

• 3rd Parties cover cost -Sponsorship/Advertisement -Holiday Providers• Value added Services to the customers.• By making strategic alliance with other airlines Co.• Better Passenger Services.• Better Employee Relations.• Ethical Business

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

Page 7: Ryanair European Pioneer of Budget Airline Travel

Implementation• Encouraging 3rd Parties to invest in Ryanair.• Providing no additional charges for additional

baggages.• By using centralized airports.• Elimination of entertainment system.• Use of better management practices to

minimize the compensations.

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT

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Possible Challenges

• Fuel price hikes• Trade Unionism.• Existing competitors• New Entrants.

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Page 9: Ryanair European Pioneer of Budget Airline Travel

Thank you!

INDIAN INSTITUTE OF PLANTATION MAMAGEMENT