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    Rynair Case Study 1 Page

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    Mit Mecwan
    Ryanair adopted a low-cost business model in the early 1990s that focused on simplifying operations and reducing costs. This included using a single aircraft type to reduce maintenance costs, flying to secondary airports with lower landing fees, and fast 25-minute turnarounds to maximize flight time. Ryanair also sold most tickets online and avoided costs like free food and assigned seating. This strategy helped Ryanair grow despite the recession and become Europe's largest airline.

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    Rynair Case Study 1 Page

    Uploaded by

    Mit Mecwan
    105 views1 page
    Ryanair adopted a low-cost business model in the early 1990s that focused on simplifying operations and reducing costs. This included using a single aircraft type to reduce maintenance costs, flying to secondary airports with lower landing fees, and fast 25-minute turnarounds to maximize flight time. Ryanair also sold most tickets online and avoided costs like free food and assigned seating. This strategy helped Ryanair grow despite the recession and become Europe's largest airline.

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    Ryanair adopted a low-cost business model in the early 1990s that focused on simplifying operations and reducing costs. This included using a single aircraft type to reduce maintenance costs, flying to secondary airports with lower landing fees, and fast 25-minute turnarounds to maximize flight time. Ryanair also sold most tickets online and avoided costs like free food and assigned seating. This strategy helped Ryanair grow despite the recession and become Europe's largest airline.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    105 views1 page

    Rynair Case Study 1 Page

    Uploaded by

    Mit Mecwan
    Ryanair adopted a low-cost business model in the early 1990s that focused on simplifying operations and reducing costs. This included using a single aircraft type to reduce maintenance costs, flying to secondary airports with lower landing fees, and fast 25-minute turnarounds to maximize flight time. Ryanair also sold most tickets online and avoided costs like free food and assigned seating. This strategy helped Ryanair grow despite the recession and become Europe's largest airline.

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    of 1

    Case study: Ryanair  Simple fleet – using a single aircraft type (Boeing 737 – most of

    (www.ryanair.com) which are quite new) simplifies maintenance, training and crew
    scheduling.
    In 2010 Ryanair, based in Dublin, was Europe’s largest low-fare airline and,
    despite the recession, it carried almost 66 million passengers in the 12  Secondary airports – using airports away from major cities keeps
    months to the end of February: a record for that period. landing charges low, sometimes as little as £1 per passenger
    against £10 at a major airport; it also avoids the delays and costs
    In 1985 the company began offering services between Dublin and London, caused by congestion at major airports.
    in competition with the established national carrier, Aer Lingus. In the early
    years the airline changed its business several times – initially a  Fast turnarounds – staff typically turn an aircraft round between
    conventional competitor for Aer Lingus, then a charter company, at times flights in 25 minutes, compared with an hour for older airlines. This
    offering a cargo service. enables aircraft to spend more time in the air, earning revenue (11
    hours compared with seven at British Airways).
    The Gulf War in 1990 discouraged air travel and deepened the company’s
    financial problems. In 1991 senior managers decided to focus the airline as  Simplified operations – not assigning seats at check-in simplifies
    a ‘no-frills’ operator, in which many traditional features of air travel (free ticketing and administrative processes, and also ensures that
    food, drink, newspapers and allocated seats) were no longer available. It passengers arrive early to get their preferred seat.
    aimed to serve a group of flyers who wanted a functional and efficient
    service, not luxury.
     Flying directly between cities avoids transferring passengers and
    baggage between flights, where mistakes and delays are common.
    In 1997 changes in European Union regulations enabled new airlines to
    Cabin staff collect rubbish before and after landing, saving the cost
    enter markets previously dominated by established national carriers such
    of cleaning crews which established carriers choose to use.
    as Air France and British Airways. Ryanair quickly took advantage of this,
    opening new routes between Dublin and continental Europe.
    Source:
    Boddy, D., Paton, S. (2011)
    Although based in Ireland, 80 per cent of its routes are between airports in
    Management: An introduction. Harlow, UK: Pearson.
    other countries – in contrast with established carriers that depend heavily
    Economist, 10 July 2004; O’Connell and Williams (2005); Doganis (2006);
    on passengers travelling to and from the airline’s home country (Barrett,
    and other published information.
    2009, p. 80).

    Managers were quick to spot the potential of the internet, and in 2000
    Case questions
    opened Ryanair.com, a booking site. Within a year it sold 75 per cent of
    seats online and now sells almost all seats this way. It also made a long- 1. What were the problems existing in the company in 1985-1991?
    term deal with Boeing to purchase 150 new aircraft over the next eight 2. What were the threats and opportunities in the external
    years. environment?
    3. What did management contribute to the growth of the airline? Give
    Several factors enable Ryanair to offer low fares: examples of some points at which managers changed what the
    organization does and how it works?

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