Ryanair Swot Analysis Essay

Amazing Essays
Discussing the SWOT analysis of Ryanair, lowest fare is one its strength. Following the fact that Ryanair have the lowest cost base, in the European short haul flight markets, Ryanair also has the lowest average fares. The average fare is 37% lower than easyJet. Ryanair increases its fares over the years, but they still hold its symbolic prices. The reasons for their increase are including the competitor capacity restraint and fuel surcharges, and slower growth of Ryanair during winter when there's capacity cut.
Another strength of Ryanair is airport choices. With its low fare strength, Ryanair open new routes at certain regions of Europe that has little demand for air travel. By doing that, Ryanair expands their market. Moreover, in the recent
…show more content…
Ryanair, as the business sector pioneer in European short pull and the most minimal cost maker, is all around set to take an interest in this development. Ryanair targets achieving 120m travelers every year throughout the following decade, equal to 4%-5% per airlines and this looks exceptionally achievable.
Ordering more aircrafts is one of Ryanair’s opportunities. Despite fact that Ryanair left an arrangement with Boeing for up to 200 airplanes in 2010, correspondence between the two stays open and Ryanair has said a request may be set late in 2013 or ahead of schedule in 2014, for conveyances initiating likely around 2017. Ryanair is not conversing with Airbus, but COMAC could build up a 199 seat variation of its C919 airplane by 2018 or 2019 and could then be a dependable contrasting option to Boeing.
Ryanair has respected the buy of Stansted Airport by Manchester Airport Group (MAG), with whom it is likewise an accomplice at Manchester, East Midlands and Bournemouth. Ryanair represents around 75% of seat limit at Stansted, which has seen traveler numbers tumble from 24m in 2007 to 17m in 2012, mostly because of Ryanair's ability cuts there as a consequence of air terminal charge increments and the rising UK Air Passenger
…show more content…
Ryanair's generally engaged geographic presentation seemingly mitigates this introduction in respect to carriers with a more worldwide system. With a heretofore unblemished record with regards to deadly mischances, open recognition could be unfavorably influenced if Ryanair somehow happened to be involved in a serious accident.
Discussing about the loss of management focus, given Ryanair's solid reputation of beneficial development in all conditions, presumably the most critical danger to its proceeded with achievement is lost administration center. This could conceivably originate from a diversion diverting the administration group from 'adhering to their sewing' or perhaps from any change at the top. Ryanair’s current (third) attempt to acquire Aer Lingus could provide just such an unwanted distraction (CAPA,

Related Documents

  • Decent Essays

    Studies have shown that within the past 25 years, there has a significant relationship in demand regarding the change in airfare prices and passenger demand (Estimating Air Travel Demand Elasticities). Increase in prices correlates to a decrease in consumer consumption: thanks to low cost operators, more customers are flying to further destinations for tourism and thus, improving air fare sales overall. The increase of low cost operators in the airline industry have also increased competition all together and increased price sensitivity on customers (Pearce). However, lower airfares imply that the airfare is becoming a smaller part of the time spent on the average journey, this implies a reduction in the consumer’s sensitivity to price (Pearce). Passengers who use air travel for tourism are more likely to be sensitive to the cost of travel than those who travel for business purposes because tourism is a luxury, however; this does not mean business travelers are insensitive to changes in airfare prices.…

    • 916 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Within the past few years several airlines have gone bankrupt or been acquired. For new entrants this doesn’t look very enticing. Threat of substitute services The threat of substitutes is moderate. Since Southwest Airlines is only a domestic airline all of it flights are in competition with cars, buses, and trains. Depending on the ticket prices, fuel costs and the time allotted to get to the destination any of these means of transportation could be considered the best route to go for a customer.…

    • 2600 Words
    • 11 Pages
    Decent Essays
  • Decent Essays

    PEST Analysis Of Air Asia

    • 1987 Words
    • 8 Pages

    worldwide stock market plunge), aircraft leasing costs were reduced by about 40%; creating an environment with lesser competition and enabled AirAsia to lease their aircraft at a cheaper rate (leading to cheaper ticket prices for customers). Threats: Fluctuating oil prices would have an impact on operation costs when fuel prices are too high. Yield and profitability would decrease for AirAsia if fuel prices become too…

    • 1987 Words
    • 8 Pages
    Decent Essays
  • Decent Essays

    Cheapest Flights

    • 1020 Words
    • 5 Pages

    The Best Time To Buy The Cheapest Flights - CheapAir.com 1. The "First Dibs" Window (197 – 335 days) Most airlines start to sell seats on their flights about 335 days into the future. Generally, ticket prices are high when they are opened but prices tend to come down as time goes by. There's quite a few pros for booking tickets in this window. You will have the option of choosing between a wide range of flight options.…

    • 1020 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Advantages Of Vacations

    • 1296 Words
    • 6 Pages

    Planning a trip overseas is quite expensive, especially for young adults still in college, which is why I included in one of my sub-topics : “What steps can be taken by a student to plan a cost efficient trip?” Budgeting money wisely begins with the plane ride there. Recently, as I was browsing flights to Western Europe on Google Flights, the web page showed a calendar that displayed the prices underneath. I noticed some flights cost significantly less on weekdays, particularly Tuesdays and Wednesdays. These were the same flights, to the same destinations, however, the departures on on Friday through Sundays costed anywhere from fifty to three hundred dollars more! So, I asked:”When can one purchase plane tickets at the best rate?” This led…

    • 1296 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    In addition to that, the EUR-US Open Skies Agreement that took place in 2008 increase the competition drastically due to US carriers offers their services in the intra-EU market. Although Ryanair is known to be a low-cost carrier, the cost of the ticket will increase once all the fees are added and make other traditional carrier like British Airway become more competitive. This intense competition between the airlines company will gives effect to low switching cost because the customer has been various options…

    • 1139 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    A low cost model like the model that Ryanair uses is not sustainable for Aer Lingus so the strategy that they have introduced to their company is the ‘value carrier’ strategy, which is a hybrid of the ‘low cost’ model and the ‘full service’ model. The main elements of the ‘value carrier’ model is reducing long-haul capacity and reducing service in short-haul routes as free meals are only offered on long-haul flights. There is also a renewed focus on maximizing revenue per seat rather than per load. Operating costs in Aer Lingus has grown more than revenue in 2013. Aer Lingus reports that 2013 was only a satisfactory year for the company as their operating profits were lower than 2012, from €69.1 million in 2012 to €61.1 million in 2013.…

    • 975 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    What is more, it is true that low price airline can draw travellers who have small budget, but it is also true that cheap price now is not sufficient to compete with others. In present years, almost aviations industries have measured about how to the firms receiving the customer earlier than competitors. Furthermore, Jetstar recognizes about low price with quick sale so the firm tries to produce new promotion to attract and increase the customers quickly than another firm. For example, refer to Kelly (2006); he mentioned that Jetstar will offer A $25 to travel…

    • 747 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Although LCC enjoyed full occupancy, their flight frequency of 7 schedules per week, compared to competitors operating with 20 schedules, resulted in lower revenue and profits. On the other hand, FSC’s low occupancy rate was still able to generate sufficient revenue to cover operational costs for the same route. Both LCC and FSC were not optimizing their full revenue potential in limited frequencies. The inflexibility will cause passengers to fly with other competing airlines instead. 3.2.3 Aircraft Performance The type of aircraft determined potential passenger capacity and possible destinations.…

    • 1467 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    In this article, we will take a closer look at the reasons why Delta Air Lines’ earnings will continue getting better in the long run. Low fuel and non-fuel costs will drive Delta’s bottom-line performance Delta Air Lines will continue benefiting from low cost of purchasing fuel. For instance, last quarter, its fuel purchase costs dropped 42%. More importantly, Delta’s average price per gallon has declined 44% to $1.67 from $2.98 per gallon last year. In fact, its total average price has fallen approximately 41% this year, playing a vital role in enhancing its earnings.…

    • 908 Words
    • 4 Pages
    Decent Essays