Dogfight over Europe: Ryanair (C)
Case: Dogfight over Europe: Ryanair (C)
A. What is Ryanair’s strategy and why has it been successful so far?
In 1911, Ryanair faced cash flow problem, and was going to be bankrupted. However, it found the way to overcome this crisis by transform themselves from ordinary high-price airlines into the lowest price airline in the EU. They focused on 5 things to rebirth their company.
1. Focused on cut down the costs: Ryanair aggressively cut most of its costs in many ways.
Found the routes and airports that charged low landing fees, and low turnaround costs
Chose routes to Secondary airports, low airport fee
Eliminated all in-flight amenities
Used metal stairs instead of “air bridge”
Paid lower commissions to travel agents
Saved cost in its internal operations
Implemented economies of scale by using one model aircraft and treating all customers equally
2. Focused on operating efficiency: Ryanair carefully allocate all of its resources and assets to get the highest performance outcome.
Optimized airplanes usages by relocating the planes used in loss-making routes to gain-making routes.
Attempted to increased aircraft turnaround rate in many ways
Operated only one type of aircraft
Provided the newsletter to employees, which contained its and its competitors’ movements
3. Focused on customer satisfactions: Ryanair sustained customer care. Even though they are mostly middle-to-low classes who expected less services due to the lowest airfares, they would receive more than their expectation.
There were 160 full-time reservation agents at its call enter at Dublin answered calls
Maintained its record for on-time flight due to good-performed aircraft turnaround
Received airfares in other currency
Had fewer restrictions to change the tickets
4. Focused on ancillary income: Ryanair gained extra revenue from other sales and services.
In-flight sales: beverages, snacks, and traditional items
Advertised spaces renting
Other referred fees
5. Focused on
A. What is Ryanair’s strategy and why has it been successful so far?
In 1911, Ryanair faced cash flow problem, and was going to be bankrupted. However, it found the way to overcome this crisis by transform themselves from ordinary high-price airlines into the lowest price airline in the EU. They focused on 5 things to rebirth their company.
1. Focused on cut down the costs: Ryanair aggressively cut most of its costs in many ways.
Found the routes and airports that charged low landing fees, and low turnaround costs
Chose routes to Secondary airports, low airport fee
Eliminated all in-flight amenities
Used metal stairs instead of “air bridge”
Paid lower commissions to travel agents
Saved cost in its internal operations
Implemented economies of scale by using one model aircraft and treating all customers equally
2. Focused on operating efficiency: Ryanair carefully allocate all of its resources and assets to get the highest performance outcome.
Optimized airplanes usages by relocating the planes used in loss-making routes to gain-making routes.
Attempted to increased aircraft turnaround rate in many ways
Operated only one type of aircraft
Provided the newsletter to employees, which contained its and its competitors’ movements
3. Focused on customer satisfactions: Ryanair sustained customer care. Even though they are mostly middle-to-low classes who expected less services due to the lowest airfares, they would receive more than their expectation.
There were 160 full-time reservation agents at its call enter at Dublin answered calls
Maintained its record for on-time flight due to good-performed aircraft turnaround
Received airfares in other currency
Had fewer restrictions to change the tickets
4. Focused on ancillary income: Ryanair gained extra revenue from other sales and services.
In-flight sales: beverages, snacks, and traditional items
Advertised spaces renting
Other referred fees
5. Focused on