Ryanair Inc.

Topics: Airline, Southwest Airlines, Low-cost carrier Pages: 6 (1773 words) Published: October 13, 2013
Current Situational Analysis
Mission/Vision Statement
Ryanair’s mission statement (Exhibit 1) provides various elements contributing to its company. Ryanair offers low fares that generate increased passenger traffic to benefit its passengers, people, and shareholders. As one of Europe’s largest airline providers, Ryanair continues to specialize in short haul routes between secondary and regional airports. Ryanair’s vision statement (Exhibit 2) demonstrates its leader and reputation by modeling itself on US low fare pioneer Southwest Airlines. Although Ryanair does not have a published mission and vision statement, its website statements imply one. External Analysis

The opportunity to offer lower fares than competitors is one of Ryanair’s strategies. As the availability of oil decreases, the price of it will increase, and as a result maintaining lower prices for customers will be difficult for Ryanair (Exhibit 3). As Ryanair operates mostly in Europe, the forces outside Europe are the ones they are concerned about such as OPEC. Government regulation such as the Department of Transportation’s legislature EU261 affects Ryanair because it forces airlines to pay compensation to passengers as well as cover other costs in circumstances beyond the control from runways (Byles 66). Air travel tax means every departure from Ireland will cost ten Euros. In the economic environment, Ryanair has commended to consumer’s needs for cheaper prices. For the most part, customers do not care about luxuries to pay high prices for them. Technological advances such as self-service passenger check in kiosks have proven to be innovative, quick and easy. Currently, Ryanair has a three-year contract with Ingenico to prove this service. Industrial Analysis

The competition in the airline industry has influence every aspect of the value chain such as positioning, brand equity, promotions, pricing, products and services offered. The European airline industry faces competition from other airline companies like easyJet, Air Berlin, Germanwings and IAG. In Exhibit 4, competitors against Ryanair prove to provide better factors such as price, customer service and innovation. However, some existing competitors are in a sustainable position because of lower fares or better customer service. Airline faces competition from ground transportation such as high-speed rail systems that are highly accessible for Europeans and tourists. Americans traveling internationally have increased, supporting the role for European airlines to meet American satisfaction as well (Exhibit 5). Overall, the airline industry is rapidly changing with advancing technologies and changes in consumer and government preferences. Internal Analysis

Ryanair Holdings, plc is a pioneer in European discount air travel because of its low fare, no-frills air transportation through its main subsidiary, Ryanair. The carrier flies to about 160 destinations, including more than two-dozen in Ireland and the UK. Overall, it serves more than 25 countries through Europe, plus Morocco. Ryanair specializes in short haul routes between second and regional airports. It operates from more than forty bases. The carrier maintains a fleet of about 270 Boeing 737-800s. Ryanair is known for its customer hostility however highly focusing on its profits (Byles). As well as offering flights, Ryanair offers ancillary services. Ryanair continues to have a strong brand image and bargaining power in airport deals. The company’s CEO, Michael O’Leary, demonstrates aggressive and innovative leadership as well as constantly improving Ryanair’s low-cost strategy. O’Leary has served as CEO since January 1, 1994 and has restructured Ryanair around the Southwest Airlines mode. There are nine directors who are independent under the standards set forth in the NASDAQ rules. Financial Analysis

Ryanair reported a 26 percent increase in profits to €401 million, compared to €318.8 million in the year ended March 31, 2010....
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