Management Organization Essay

961 Words 4 Pages
Management Organization

History of the company

Ryanair, now firmly established like the largest budget airline of Europe, began to operate in the year 1985 with the launch of a daily flight among the airport of Waterford in the southeast of Ireland and the airport of Gatwick in London. The flight was carried out with a turbo prop bandeirante with capacity for 15 passengers. The company had compromised to carry out cheap flights and to make possible that everyone, in Ireland and in the RU could travel by airplane, not only the rich. In the first year, the 57 employees of the company transported some 5,000 passengers in their unique route.

In 1986, Ryanair broke the placard of high rates
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Although the passengers, attracted by the low prices, responded in crowd to Ryanair, it did not exercise an effective control of costs and the company only accumulated losses. For 1989, it counted with 350 employees, 14 airplanes (of four different types) and transported 600.000 passengers a year but, nevertheless, Ryanair lost £20 million in barely four years.

A new board of directors reorganized the air line among 1990-1991, and relounged Ryanair as the first one of a new lineage of airlines "under cost / without luxuries ", being based in the formula utilized for the first time and with great success by Southwest Airlines in the United States. They eliminated the routes that didn't produced profits, reduced the network of routes from 19 to only 5, got rid of the airplanes turbo prop, and reduced considerably the rates of the remaining routes, offering 70% of all the plazas in the two lowest rates. For 1991, Ryanair operated a fleet of six jets BAC 1-11, employed 350 persons, transported 700.000 passengers for five routes and, for the first time registered profits.

1997 was a historic year for Ryanair. Thanks to the deregulation of the air transportation in all Europe the airline had, for the first time, the freedom to open new routes toward Europe and, thus did it, inaugurating services from the airport of Stansted in London to Stockholm and Oslo as

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