Ryanair and Its Activities Within the “European Airline Industry”

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Ryanair and its activities within the “European Airline Industry”

A pioneer in European discount air travel, Ryanair Holdings offers low-fare, no-frills air transportation via its main subsidiary, Ryanair. The carrier flies to about 160 destinations, including more than two dozen in Ireland and the UK; overall, it serves more than 25 countries throughout Europe, plus Morocco. Ryanair specializes in short-haul routes between secondary and regional airports. It operates from more than 40 bases, including airports in Belgium, France, Germany, Italy, Spain, and Sweden, as well as in Ireland and the UK. The carrier maintains a fleet of about 270 Boeing 737-800s. Ryanair holds a 29% stake in Aer Lingus and has launched several unsuccessful bids to acquire the rival Irish airline.

1. Staff

It is important to have highly trained staff on the plains and on the ground as well. It does not only mean that they complete their tasks well but they shall have great communication and interpersonal skills since they will be dealing with different nationality customers. Ryanair’s strategy is to deliver the best customer service performance in its peer group. According to reports by the Association of European Airlines and the airlines’ own published statistics, Ryanair has achieved better punctuality, fewer lost bags and fewer cancellations than all of the rest of its peer grouping in Europe. Ryanair achieves this by focusing strongly on the execution of these services and by operating from uncongested airports.

2. Service Product/Promotions

The service product, the aircrafts has to be new, well equipped and we need to have a wide range of them to be able to serve all kinds of customers. Another important factor is the service we provide as an airline (e.g.: online booking, insurance) and also inside the aircrafts. To attract customers the airline needs to have large promotions to create loyalty and repeat business. Low Fares. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight, with higher fares charged on flights with higher levels of demand for bookings made nearer to the date of departure.

3. Route System

To be able to gain success an airline need to cover all possible travel destinations. Obviously this is impossible as an individual airline; partnerships need to be set up with other airlines. This is how we can keep customer loyalty. Ryanair provides frequent point-to-point service on short-haul routes to secondary and regional airports in and around major population centers and travel destinations. In the fiscal year ended March 31, 2004, Ryanair flew an average of approximately 1.83 round-trips per route per day with an average route length of 491 miles and an average flight duration of approximately 1.2 hours. Short-haul routes allow Ryanair to offer frequent service, while eliminating the necessity to provide “frill” services otherwise expected by customers on longer flights. Point-to-point flying (as opposed to hub-andspoke service) allows Ryanair to offer direct, non-stop routes and avoid the costs of providing through service for connecting passengers, including baggage transfer and transit passenger assistance costs.

4. Revenue/Cost Control

Maximizing revenue while lowering costs with special focus on the fuel prices, FNB supply etc. There are many elements of operating an airline where we can save on our costs. It is important not to damage the quality of services we provide while saving cost. Management believes that...
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