This report is an analysis on bases of the case study on Ryanair the low fare airline. Critical analysis of the key issues focusing on decision making, planning, organising and controlling has been emphasised in this report. It also discusses the problems, challenges and opportunities faced by Ryanair in this emerging market scenario. It further evaluates alternative solutions and provides recommendation, which will help the firm to compete and dominate in the European airline Industry in terms of providing more standard services to its clients and can be the number one airline industry in the region.
Ryanair, set up in 1985 by the Ryan family with a share capital of just ₤1and 25 staffs has grown from a small airline flying a short hop from Waterford to London, into one of Europe's largest carriers. It is Europe‟s largest low-cost carrier and one of the world‟s largest and most successful airlines in terms of profits, number of flights and number of passengers flown. At present, Ryanair has 32
bases and 800+ low fare routes across 26 countries, connecting 146 destinations, employing a team of more than 6,000 people Michael O‟ Leary CEO of Ryanair was responsible for launching the first unique low fares, „no-frills‟ airlines in Europe. Michael O‟Leary known for his aggressive management style, employed a flat management hierarchy and vigorously followed the low cost policy, on all fronts.
Ryanair is also one of Europe‟s most controversial companies, praised and criticized in equal
measure; praised for its commitment to low fares, radical management, and its willingness to challenge the „establishment‟ within the airline industry and criticized for its trade union policies, hidden taxes and fees, and limited customer services, and misleading advertising.
Ryanair in order to make its stand in the competitive market they have to think of a business strategy to capture the targeted market through enhancing the company‟s internal scarce resources and capabilities.
First part of the assignment states the critical analysis and evaluation of the key Issues in Ryanair focusing on Decision making, Planning, Organising and Controlling. Accordingly, problems challenges and opportunities have been identified through SWOT and PEST analysis.
Alternative solutions have been evaluated in various forms one through the financial analysis of the company. The analysis and evaluations finally assist in prioritising recommendations for the future growth and welfare of the company.
2. Critical Analysis and evaluation of the Key Issues : Ryanair 2.1 Decision making The Ryanair culture gives us the indication that the company is solely depended on one person who is making the risky decision and putting everyone at stake. Ryanair CEO declared in 2003 that they shall swing from no frills airline to no fare airline but with the motive that the company introduced cost cutting and revenue generation modification to compensate the falls in the yields. The Ryanair‟s CEO seems to be very dominating by making every decision of the company without involving the concerned departments. Ryanair has the...