A. Industry Analysis
The Core Business
The Company operates a low fares scheduled passenger airline serving short haul, point to point routes primarily between Irlend and UK. Rynair airline reduced airport charge ,choosing secondary and regional air destinations, anxious to increase passengers throughput .In operation since 1985.the Company introduce a low cost operating model under a new management team in the early 1990s,the airline successfully restyle itself to become Europe's first low fares ,no frills carries ,built on the model of southwest Airline ,the highly successful Taxes based operator.
The PESTEL - Analysis
Airline has always been fraught with regulation from both domestic government and the European Union.
The air line Adhered to general Rule of maximum of 900 hr flying time per annum, average 18 per week.
Taxes for contribution to make to global warming.
Employee increase by more than 700 to 3500 people 25 different national .Average pay of employee 49612(2006) high figure then other major Europeans airline.
Extensive safety training and protocols .A safety committee reports to the board at each board meeting.
Ryanair line imposed 50 cent wheelchair levy on every passenger ticket
Oleary's outspokenness called everything from "arrogant pig" to messiah.
In 2006 Aug growth by 23% to 22.1 m passenger. Total revenue 33% & ancillary (supported) Revenue 27%.unite cost increase 75%
In 2006 Sep 12% increase in net profit 74% increase in fuel cost and Increase 26% in passenger given 34.8 m in 2006
Cash pile of 2 bn in 2007 for expansion
It claimed that Ryanair website was largest travel website in European & fifth most recognized brand on Google, this potential to convert this web traffic into e-commerce & adv revenue.
Introduce cost cutting/yield enhancing measure for passenger check in and out (lagged handling) save an average of more than 1 per passenger (web based check in)
Ryanair replaced its fleet of old aircraft with new, more environmentally-friendly aircraft , newer aircraft of new aircraft produce reducing the average age of its fleets to 2.4 years 50 per cent less emissions ,45 per cent less fuel burn and noise emissions per seat
Plz add smth (land for growing airport)
Ryanair was in litigation with various airport over landing charges
Ryanair was vigorously defending French Government attempts to protect Air France -KLM by forcing easy jet and Rynair to move the staff they employ on French soil from British employment contracts to more expensive French ones.Ryanair took the initiative over illegal aid to rivals
B- Porter Five Forces: Analysis of the low- Cost Airline industry