Ryanair
Instructor’s Manual
368
© Pearson Education Limited 2005
CASE TEACHING NOTES
Ryanair – The Low-Fares Airline
Eleanor O’Higgins
1. Introduction
Ryanair was the first budget airline in Europe, modelled after the successful US carrier,
Southwest Airlines. The case offers students the opportunity to evaluate the strategy of
Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. Business students at all levels enjoy this case and relate to it, since air travel is an activity virtually everyone has experienced and we all have war stories to tell about the various airlines with which we have travelled.
The Ryanair case has been used successfully with students from Ireland and other
European countries, as well as with North American and Asian students. The case would suit all levels of business students, from a capstone undergraduate course on strategy, to post work experience MBA and executive education programme participants. It has been used effectively with all these types of groups.
The case consists of:
• a description of the challenges besetting Ryanair in 2004;
• a history of Ryanair and its principal characters;
• an outline of Ryanair’s robust performance in the period preceding the 2004 difficulties; • Ryanair’s operations as a budget airline;
• a description of Ryanair’s battleground, the European airline industry, as the competitive landscape continues to change;
• a profile of Michael O’Leary, Ryanair’s ebullient CEO.
2. Position of the case
The case is a comprehensive one and would be well placed towards the end of a course on strategic management. At this stage, students will have learned something of the economic, organisational and human context of strategy. The case concentrates on how to analyse industry environments, and internal resources/capabilities of companies and
Instructor’s Manual
369
© Pearson Education Limited 2005 their connection to the concept of sustainable
368
© Pearson Education Limited 2005
CASE TEACHING NOTES
Ryanair – The Low-Fares Airline
Eleanor O’Higgins
1. Introduction
Ryanair was the first budget airline in Europe, modelled after the successful US carrier,
Southwest Airlines. The case offers students the opportunity to evaluate the strategy of
Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. Business students at all levels enjoy this case and relate to it, since air travel is an activity virtually everyone has experienced and we all have war stories to tell about the various airlines with which we have travelled.
The Ryanair case has been used successfully with students from Ireland and other
European countries, as well as with North American and Asian students. The case would suit all levels of business students, from a capstone undergraduate course on strategy, to post work experience MBA and executive education programme participants. It has been used effectively with all these types of groups.
The case consists of:
• a description of the challenges besetting Ryanair in 2004;
• a history of Ryanair and its principal characters;
• an outline of Ryanair’s robust performance in the period preceding the 2004 difficulties; • Ryanair’s operations as a budget airline;
• a description of Ryanair’s battleground, the European airline industry, as the competitive landscape continues to change;
• a profile of Michael O’Leary, Ryanair’s ebullient CEO.
2. Position of the case
The case is a comprehensive one and would be well placed towards the end of a course on strategic management. At this stage, students will have learned something of the economic, organisational and human context of strategy. The case concentrates on how to analyse industry environments, and internal resources/capabilities of companies and
Instructor’s Manual
369
© Pearson Education Limited 2005 their connection to the concept of sustainable