Ryanair Case Study Summary

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2. BUSINESS PROFILE

Ryanair is one of the leading Airline companies in Europe with the highest seating capacity and the second highest passenger numbers. It has a very strong market position. Despite the falling sterling value due to Brexit and the difficult trading conditions, Ryanair made €1.316 billion as Profit after tax, which is an increase of 6% from the previous year. The air traffic has increased by 13%. The current report, as of Jan 2018, shows that the Customer numbers have increased by 6% to 9.3 million and the load factor has been increased by 1 %. This implies low fares and increasing customer footprints. Ryanair's seating capacity increased to 12,448,485 in September 2017 and is highest among its peers. This shows that the
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It offers flights to secondary cities and airports. By this Ryanair avoids competition and traffic at airports and also avoids airport landing and gate charges. 206 new routes and 10 new bases were opened in 2017. Hence, it is clear that Ryanair has a competitive advantage considering the routes, key airports where there is less direct competition. It is important to note the high operating efficiency of Ryanair which is mainly due to the focus on cost effectiveness and its comparatively younger fleet. Also, efforts have been put on maintenance and innovation of the aircrafts to sustain the efficacy. Ryanair.com is also the world’s number one website for airlines. Volatility of both fuel and currency is a major problem faced by this sector. But Ryanair hedges this risk more extensively than its peers. It had its fuel hedged about 95 % for FY17 and has currently hedged it for 87%. The Capex for Boeing 737-800 is also completely hedged. This helps in cost certainty as well. These factors give a very positive picture of the Business profile of …show more content…
Corporate Governance can be understood from the management records and collective decisions regarding the efficiency, business mix and market position of the company. The financial performance over time provides a useful measure of the management’s ability to execute its strategies. The Board of Directors of Ryanair are committed to maintaining the highest standard of corporate governance, to achieve this goal they have applied the main and supporting principles of the 2014 UK Corporate Governance

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