Ryanair Case Analysis
1719 Words
7 Pages
In the developed business world we live in today, companies are using all possible approaches and tactics in order to outperform their competitors and be on the top of their industry’s hierarchy. However, different CEOs use various approaches to achieve it. And if they desire a positive outcome, they must comply with the public’s vision. Otherwise, too aggressive tactics may turn out to have the opposite effect. Vivid examples of the two possible options are John Mackey – Whole Foods’ CEO and Michael O’Leary – Ryanair’s CEO. While the former is mainly interested in stakeholders’ well-being, the latter is strictly profit-oriented. Considering the enormous scandals Ryanair is being а part of, we can clearly understand why ignoring customers,
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While Mackey’s opinion is that “it is essential that the team members have a sense of shared purpose and power” (Mackey, 13), Ryanair’s vision isn’t the same. Pilots are deprived from any power in the company since the beginning of their employment. In order to become pilots, applicants are forced to create their own LLCs in Ireland. (Davis, theguardian.com). Then, endorsed by Ryanair, accountants make those applicants the directors of the LLCs. Eventually, those new firms supply pilots to agencies that are also based in Ireland, for example Brookfield Aviation. Subsequently, these agencies supply the pilots to Ryanair. As Davis calls it, the “complex employment structures” has made it possible for Ryanair to keep their labor costs low, as it “limits Ryanair’s obligations to the pilots” (Davis, the guardian.com). Even though for the company the structure brings only benefits, for the employees it is connected with nothing, but problems. Namely, numerous fraud investigations concerning taxes, stress, and the need to sell personal property to pay off their fines, made the self-employed pilots to come up with letters listing their demands. As the European Cockpit Assosiation’s vice president John Horne informs us – “these letters are crystal clear. Ryanair’s pilots are taking a firm and unified stance: they want decent working conditions and direct employment structure” (qtd. in Conor Pope, Irishtimes.com). The company, however, ignored these demands and, when approached with the issue, answered: “We do not comment on rumour or speculation” (qtd. in Davis, the
While Mackey’s opinion is that “it is essential that the team members have a sense of shared purpose and power” (Mackey, 13), Ryanair’s vision isn’t the same. Pilots are deprived from any power in the company since the beginning of their employment. In order to become pilots, applicants are forced to create their own LLCs in Ireland. (Davis, theguardian.com). Then, endorsed by Ryanair, accountants make those applicants the directors of the LLCs. Eventually, those new firms supply pilots to agencies that are also based in Ireland, for example Brookfield Aviation. Subsequently, these agencies supply the pilots to Ryanair. As Davis calls it, the “complex employment structures” has made it possible for Ryanair to keep their labor costs low, as it “limits Ryanair’s obligations to the pilots” (Davis, the guardian.com). Even though for the company the structure brings only benefits, for the employees it is connected with nothing, but problems. Namely, numerous fraud investigations concerning taxes, stress, and the need to sell personal property to pay off their fines, made the self-employed pilots to come up with letters listing their demands. As the European Cockpit Assosiation’s vice president John Horne informs us – “these letters are crystal clear. Ryanair’s pilots are taking a firm and unified stance: they want decent working conditions and direct employment structure” (qtd. in Conor Pope, Irishtimes.com). The company, however, ignored these demands and, when approached with the issue, answered: “We do not comment on rumour or speculation” (qtd. in Davis, the