Ryanair Case Study

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DogFight over Europe: Ryanair
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What is your assessment of Ryanair’s launch strategy? Is it sensible? Will it succeed? We believe that Ryanair’s launch strategy was successful and we will justify this statement with information that was provided in the Ryanair’s case. To begin with, Ryanair airline was not that hard to establish for Cathal and Declan Ryan because of the capital that Ryanair’s founders managed to get from their father, Tony Ryan, who was a co-founder of Guinness Peat Aviation, which was the largest aircraft leasing company. This was a very good start for the brothers because they did not need to search for investors or convince banks to give them loans, which would probably be very difficult because of the amount of money they needed. Furthermore, we believe that those two brothers were the right persons to make such a big step and establish an airline company because as it was mentioned in the case their father worked in airline industry for a long time, so he had huge experience and he was able to share it with his sons and advise them on certain steps and help them to explore the market from different kinds of perspectives. Another smart choice of them was to start their business with a small plane that had only fourteen seats. We believe it was clever because they spotted the weakness of their competitors in having utility rates of just around two thirds. By having small aircrafts they increased the likelihood of being fully booked and therefore more profitable. Further, they did not spent a lot of money and other resources for the first step just in case it would not work later on and that they would not have huge loses at the very beginning. Also their first plane started to operate between Waterford (southeast of Ireland) and London Gatwick airports and here you can notice that they have chosen secondary airports to operate because we assume they wanted to reduce their cost by going to less crowded airports to save

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