RYANAIR – THE LOW FARES AIRLINE: WHITHER NOW?
1. Ryanir is the airline company that would become Europe's most popular, and possibly most controversial one in the following years. Ireland’s Ryan family founded it in 1985. That year, Ryanair flew a single route, from Waterford, Ireland, to London in a small 15-seater aircraft. In the early years, Ryanair flew primarily between Ireland and the U.K. However two big shifts in the 1990s changed that. Firstly the European Union's "Open Skies" policies allowed, smaller airline companies like, Ryanair to compete in more markets. Secondly the Internet, which gave passengers the ability to compare fares online in the cosines of their homes in a better comprehensive manner, and stopped passengers blindness to alternatives. For most of the people it made the vacation a reality, opening up a new world of European day trips. From a new base at London's Stansted airport, Ryanair lands on major European cities solely using cities' secondary airports, where landing fees remain low and air-traffic delays are rare if not impossible. Ryanair today is a ‘’monster’’ of borderless Europe with its crowded population and vaguely defined political boundaries. But the airline's success is also a product of O'Leary's genius. The Dubliner joined Ryanair in 1988 and became chief executive in 1997. He is famous today mostly for his babbly tongue, but his real value is recognized worldwide since he managed to make small business into big player on the market.
1.1.1 Ryanair faced a dozen of problems just like all airline business did such as:
- Recession that officially started in 2008 with global effects felt in 2009. Recession affected all industries, even the strongest ones, no matter how artificial that impact might. The unemployment started rising, people spent less and started cutting their cost wherever possible.
- Unpredictable fuel prices, mostly driven by supply and demand on which Ryanair has no saying and direct...
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