Ryanair European Pioneer of Budget Airline Travel
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Transcript of 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
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
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
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
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
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
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
Possible Challenges
• Fuel price hikes• Trade Unionism.• Existing competitors• New Entrants.
INDIAN INSTITUTE OF PLANTATION MAMAGEMENT
Thank you!
INDIAN INSTITUTE OF PLANTATION MAMAGEMENT