Ryanair Leadership Strategy Report

Topics: Airline, Low-cost carrier, Boeing 737 Pages: 13 (4186 words) Published: November 30, 2010
Leading in a Complex World

Strategy Report

Strategic Recommendations (one page)

Ryanair has been one of the Britain’s best low cost airlines for around 25 years since being established in 1985 by the Ryan family. Ryanair have always aimed to show their customers their statistics and monthly reports; “Ryanair believe that any worthwhile passenger service commitment must involve a commitment on both pricing and punctuality, that's why Ryanair is committed to publishing Customer Service Statistics each month and these confirm that Ryanair is No. 1 for Customer Service with unbeatable prices and punctuality. [ (Ryanair, About us, 2010) ] Although according to the figures Ryanair is the “World’s favourite” low cost airline, in the minds of their customers this is not always the case.

Many customers complain about the hidden charges and extra costs. Once you select your flight there may be charges such as taxes and online check in, that can add up to an extra £30 on to your flight price. Then you pay extra if you want luggage in the hold and then a £5 credit card fee per flight. If Ryanair stated these charges before you are ready to pay, then customers have no reason to complain about these charges. This could improve their image, showing that their website is customer friendly.

Ryanair have always been in the public eye for their advertising. Michael O’Leary seems to believe that any publicity is good publicity. Some of their advertising techniques can provide a negative impact for the company by offending people and providing the press the “ammo” to target the company. Ryanair could adapt a more traditional approach to advertising by not using any misleading or provocative images on their campaigns.

One of the most effective ways for Ryanair to generate new income is to develop more bases and travel to new destinations. Travelling to new destinations can provide new jobs and provide entry to new markets out with the EU and help the company expand even further. Analysis - Internal

Strengths & Weaknesses (press ‘tab’ in the last cell of the tables to add another line if you need it) Strengths|
Strength| Evidence / argument|
Cost Efficient Airline:| Ryanair is a cost efficient airline. Ryanair save money in numerous areas. By having turnaround times of 25 minutes, this means that the fleet spends more time in the air and more flights can be scheduled each day. By spending less time on the ground they reduce aircraft parking fees. Also by flying to non-major airports their landing and parking fees are generally less expensive than flying to major international airports. They utilise only one type of aircraft, Boeing 737 with only one engine type, this reduces maintenance and training costs and maximises flexibility. They have negotiated bargain prices for these aircraft by buying bulk| Internet bookings:| Ryanair take the majority of their bookings online. Booking over the phone is more expensive for the company. Whereas if people book from home, they can print out their own boarding cards, which saves the company money and also results in avoiding a “middle man” such as travel agents.| High Service Performance:| “Ryanair is No. 1 for Punctuality. No. 1 for fewest lost bags. No. 1 for flight completions. No. 1 for fewest complaints” (Ryanair, 2010). The high standards that the company has set have been a major strength for the company in maintaining the name of; One of Europe’s leading low cost airlines. This service they have managed to maintain for years but will have to continue to keep on top of these figures to remain one of Europe’s leading low cost airlines.| One type of aircraft:| Ryanair’s fleet is all Boeing 737’s. This currently stands at 202 aircraft. This allows the company to bulk buy their aircraft, saving them millions of Euros. Since the fleet is new and modern they are very fuel efficient. The fleet is fairly young so the aircraft needs less...
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