Ryanair Largest Low-Cost Airline Explanation Essay Example
Ryanair Largest Low-Cost Airline Explanation Essay Example

Ryanair Largest Low-Cost Airline Explanation Essay Example

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  • Pages: 3 (605 words)
  • Published: October 3, 2017
  • Type: Case Study
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Ryanair's success is attributed to the efforts of its founder, Ryan, who transformed the airline from a small full-service carrier into the largest budget carrier in existence. Their main focus is on maintaining their position as the leading low-fare airline while also keeping costs in check.

By implementing a new strategy for reassigning riders on a limited budget, Ryanair has achieved the dual goals of providing affordable fares and cutting costs while also expanding profitable ancillary services. The success of this endeavor can be attributed to the involvement and influence of the O'Leary family, specifically Michael O'Leary who serves as both head of the management team and a shareholder in the airline company. O'Leary's unwavering commitment to generating profits and fostering growth ensures that Ryanair maintains its position as the leading low-cost carrier. The value of the shares will continue to be lucrative

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if they remain high, which is only possible through Ryanair's ongoing profitability. Given his influential role in shaping company policies, Michael O'Leary is widely recognized for possessing significant power.

David Bonderman, President of Ryanair and leader of Irish Air, brings unique perspectives and actively participates in Ryanair's operations. He prioritizes the company's profitability and success. However, it is important to acknowledge that his level of authority may be perceived as lower than Michael O'Leary's. Additionally, Irish Air has provided equity and a loan to Ryanair, resulting in their acquisition of shares in the company.

Despite having specific objectives like profitability and revenue generation, Ryanair does not give high priority to travel agencies. The company primarily relies on its own distribution channel for ticket sales. However, when it comes to expanding into new routes, utilizing travel

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agencies can be advantageous as it helps potential clients become aware of the new destinations offered by Ryanair. Furthermore, these agencies have their own distribution channels that hold value in situations like system disruptions or unforeseen circumstances.

Travel agencies themselves have little interest in Ryanair due to their low profits, especially since Ryanair has reduced commission rates for travel agencies. As a result, the expectations and concerns of travel agencies are minimal and their influence is low, despite Ryanair's desire to use this distribution channel. Trade Unions: Ryanair does not acknowledge these unions, which has caused tension between Ryanair and both the Irish government and the EU. If employees feel they are not treated well or are unsatisfied with any policies regarding Ryanair, they should join Trade Unions.

Every employee or the majority of employees at Ryanair are satisfied with their employer, which means Trade Unions may show interest in Ryanair but have no power. The company recognizes the significance of employees and their power. If employees are not satisfied, they will not perform effectively. To ensure their satisfaction, efforts and solutions must be sought.

Europium: The EU is important for Ryanair as it has influence over critical decisions and policies that directly impact the airline's operations. The EU's power is demonstrated through determinations such as duty free shopping regulations and legislation preventing airports from offering preferential deals to certain airlines. While the EU's involvement in the company appears low, they have no specific expectations.
Airports: Ryanair is of interest to airports due to the large number of passengers it brings, resulting in increased revenue. The airline acknowledges this and will negotiate for lower access fees accordingly.

EU

legislation has made it impossible for airports to discriminate by offering different concessions to different airlines. This will lead to reduced negotiation power. Ryanair holds the perspective that airports do not possess significant power.

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