Raynair Business Model
Ryanair’s Business Model 2011
A peek into the airline’s recipe for success
September 2011
RYANAIR’S BUSINESS MODEL 2011
AIR SCOOP
SUMMARY
In November of last year, Air Scoop published its first ever report on Ryanair’s Business Model. The report was based on extensive research into the underlying mechanics of the most disruptive lowcost airline in Europe. It was also an attempt at drawing an exhaustive picture of the airline’s development up until 2010, meant to serve, for years to come, as a reference work. This year, Air Scoop is publishing an updated report on Ryanair’s Business Model, with a new task in mind. Starting from what was built last year, the 2011 Ryanair report has been conceived with a double objective in mind: to provide readers with a brief, compelling, synthesis of Ryanair’s business model and highlight new elements and evolutions in Ryanair’s skies. In no way is that report intended as a replacement of the one published last year, rather as a complement that should provide anyone interested in the European low-cost industry with a wealth of information on the market’s most important company. Conceptually, the 2011 report was elaborated along two different axis of analysis. In a first part, the report starts by taking a look at Ryanair’s revenues and expenses. According to the company itself, if Ryanair has grown so fast, it is thanks to an efficient mix of ever increasing sources of income and ever wider cost-cutting measures in all services. For this reason, the 2011 report looks, item by item, at Ryanair’s cost-cutting, profit-maximising strategies. From the most discussed to the lesser known tactics, the goal is to show how Ryanair has managed and still manages to constantly extract increasing income from its passengers while maintaining rock-bottom prices, through a relatively complex fare system and a slew of ancillary services. The report also investigates Ryanair’s largely misunderstood relationship with its own assets and
A peek into the airline’s recipe for success
September 2011
RYANAIR’S BUSINESS MODEL 2011
AIR SCOOP
SUMMARY
In November of last year, Air Scoop published its first ever report on Ryanair’s Business Model. The report was based on extensive research into the underlying mechanics of the most disruptive lowcost airline in Europe. It was also an attempt at drawing an exhaustive picture of the airline’s development up until 2010, meant to serve, for years to come, as a reference work. This year, Air Scoop is publishing an updated report on Ryanair’s Business Model, with a new task in mind. Starting from what was built last year, the 2011 Ryanair report has been conceived with a double objective in mind: to provide readers with a brief, compelling, synthesis of Ryanair’s business model and highlight new elements and evolutions in Ryanair’s skies. In no way is that report intended as a replacement of the one published last year, rather as a complement that should provide anyone interested in the European low-cost industry with a wealth of information on the market’s most important company. Conceptually, the 2011 report was elaborated along two different axis of analysis. In a first part, the report starts by taking a look at Ryanair’s revenues and expenses. According to the company itself, if Ryanair has grown so fast, it is thanks to an efficient mix of ever increasing sources of income and ever wider cost-cutting measures in all services. For this reason, the 2011 report looks, item by item, at Ryanair’s cost-cutting, profit-maximising strategies. From the most discussed to the lesser known tactics, the goal is to show how Ryanair has managed and still manages to constantly extract increasing income from its passengers while maintaining rock-bottom prices, through a relatively complex fare system and a slew of ancillary services. The report also investigates Ryanair’s largely misunderstood relationship with its own assets and