A combination of competitor capacity restraint, slower growth from Ryanair including capacity cuts over the winter and competitor fuel surcharges has allowed Ryanair to raise its average fares over recent years, while still retaining a significant price discount. Ryanair has a fleet consisting of a single aircraft type, the Boeing
Hire Writer Moreover, the governments show that they want to encourage competition in this industry when the Irish government rejected a takeover of Are Lingua by Ryan in Reuters.
Conduct Ryan conducts its business by cutting costs and lowering air fare prices. The company cuts cost through many ways such as using secondary airports, reducing the weight of their airplanes, reducing staff costs, removing bookings through travel agents and removing in-flight meals.
The company commits to the basic service to their customer which is flying them from one place to another without delays. Any ore than that, the customers will be charged.
Ryan charges the customers for various things such as in-flight meals, payment handling fees, wheelchair usage and online check-in BBC The company also charges their staffs for training and interview sessions to reduce staff costs Creator Since Ryan aims to provide the lowest air fare prices, they maximize airplanes capacity by removing business class and first class space.
There are no pricing agreements arranged between other LLC operators, therefore, the prices of tickets varies. Non-price competition also exists in the LLC market. Ryan commits to provide customer service and flight punctuality. Performance The revenue of Ryan has been increasing from financial year to Although the revenue has been increasing, the company made a net loss of?
This was due to an increase in oil prices and has increased the operating expenses. OrbitsE-Resource for Company Information Besides that, the number of passengers carried has also increased since financial year as shown in the graph below.
How to cite this page Choose cite format:PEST analysis of Ryanair. Print Reference this. Disclaimer: This could be due to the economic recession, because every customer who flies now wants the cheapest deal.
This could be key to Ryanair’s success mainly in the future as they can focus on becoming a cost leader. Sep 29, · The Economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them.
2. SWOT analysis on Ryanair Opportunity In , the British government decided to expand and develop Stansted Airport. Before this announcement, Ryanair just take over Buzz which is a budget airline based at Stansted airport.
Because the airport will expand, it seems to be more passengers to use this airport.
Ryanair has tended to produce its strongest financial results in times of economic weakness through a combination of increased price sensitivity from passengers and capacity cuts from many competitors. The current outlook for continued economic austerity across much of Europe could provide a favourable backdrop for continued .
Ryanair SWOT Analysis Strengths Ryanair was the first airline established in Europe following the low-cost airline business model, hence the organisation has a large amount of accumulated expertise in the industry (Creaton, ). Sep 29, · The Economist offers authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them.