Case Study on Ryanair: Business Strategy Evaluation Essay

4204 Words Nov 23rd, 2008 17 Pages
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Ryanair

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Of Case Study on Ryanair: Business Strategy Evaluation
Submitted by Anthony K. Augustine

to
Rachel Sumner for MBA
Module Tutor: Business Strategy

at
Rayat London College

on
01-05-08

Word count 4,150

Title: “Live the high life!” Ryan Air is Europe’s original low fare airline and is still Europe’s largest. However, their story has not been entirely successful. Evaluate Ryan Air’s business strategy over the last decade.

“Despite a growth in passenger volumes, by the end of 1990, the company had flown through a great deal of turbulence, disposing of five chief executives, and accumulating losses of IR20m. Its fight to survive in the early 1990s saw the airline
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Their fast turnarounds enable them to keep aircrafts flying for longer hours than full-service airlines and enhance frequent departure plans with fewer aircrafts. They do not offer meals, assigned seats, interline baggage checking, or premium classes of service. They more often than not engage in e-ticketing which helps them bypass travel agents and hence save commissions to them and other administrative costs of staff and documenting, etc. No-frills airlines purchase fleets of aircrafts that are standard size and custom made for their short-haul journeys with little extras other than the basics required for safety and security enabling them to benefit a huge cut in price unit of aircraft procured. No-frills airlines’ strategy is to attract customers/passengers by providing them alternative travel facilities to what is provided by full-service airlines at a low cost and make profit for them by removing carefully extra expenses and by maximum use of aircrafts and services at their disposal. Ryanair is a no-frills low fare airline in its most accomplished form.

2.0 Ryanair-The “Southwest” of European Airlines

2.1 History
Ryanair was founded in 1985(www.ryanair.com) as an alternative to the existing carrier Aer Lingus especially to serve Irish migrants who are in the British Isles. It was launched as a full-service conventional airline (Johnson et al., 2005, p.834).When it struggled to make profit transformation and new strategic approach became a necessity to

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