Ryanair was established by the Ryan family with a staff of 25. Its first route was launched in 1985 with a 15-seat aircraft ferrying passengers between Waterford in Ireland and London. In 1986, Ryanair launched its route from Dublin to London to challenge British Airways and Aer Lingus, the two dominant airline carriers on that route, by offering fares at lower prices. With two routes in operation, Ryanair carried 82,000 passengers in its first full year of operation. By 1993 Ryanair has carried
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successful so far? To survive in the highly competitive business, the firm should be position itself uniquely. In 1991, European still didn’t have a low-cost airline. Since the airfare is pretty high, only the upper-class that can afford the pricy ticket can accessible to this service. Ryanair’s strategy is to capture the middle-class customer, which are price sensitive, by lower the airfare to get more customer. Ryanair is also the first one who capture this market segment by dropped its fares to the
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1. Analyze competitive environment prior to the entry of Ryanair. Generally, the airline industry is not very attractive. Barriers to entry are fairly low in this business, as deregulation made it easier for new entrants to lease planes and pick off the more profitable routes of the major carriers. Moreover, airports are public property so new airlines could get access to gates and resources. In addition to being able to lease planes, maintenance, ground crews and other aspects of the service
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Overview of the Company Ryanair started in year 1985 with only 57 staff members and with one 15 seater turboprop plane from the south of east of Ireland to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002). In 1986, inspired from the story of David and Goliath the company go after the big guys for a slice of the action and end up smashing the Aer Lingus or British Airways high fare cartel on the Dublin-London route. The staff increased from mere 57 to 120 staff
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Ryanair – The low fares airline: Whither now? Main Problems Ryanair’s growth rate is affected by macroeconomic factors such as the recession, as seen in 2010 when Ryanair saw a 200% increase in profit and traffic growth, as the low fares became attractive for those suffering from the current climate. Uncertainty still remains regarding the economic climate; problems would arise if it continued, as passengers would reduce spending restricting the company’s passenger volume growth. If the economic
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How did the deregulation of air transportation in Europe foster entrepreneurial behavior and innovation in the European airline industry over the last twenty years? Case studies: SAS Airline & Ryanair Master Thesis in Entrepreneurship and Dynamic Business Contexts Spring 2007 Supervisor: Håkan Bohman Entrepreneurship Master Program Authors: Gilles Helterlin and Nuno Ramalho Acknowledgements We would like to express our gratitude to all who have contributed to the realization of this
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------------------------------------------------- Strategic Management ------------------------------------------------- ------------------------------------------------- Ryanair Q1. The business model framework is composed of several items; the price, the services, the distribution/the communication, human resources, organization/management, and operation/processes which should all be serving the strategy that the firm wishes to pursue. The following explains how Ryanair has been able to offer low fare
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(i. e. Sabena, Swissair). Other, more solid carriers (i. e. Lufthansa, United, British Airways, American) were left with no other choice but to form alliances. 2 In addition, the phenomenon of deregulation forced leading carriers to take strategic decisions in order to avoid significant loss in market share. With the signature of open skies agreements that liberalized the rules of the international aviation industry, new entrants were soon to make their appearance on the domestic and long-haul
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Airline industry has been faced with stiff competition due to the increased number of airline companies in the sector. The study will focus on the strategies that are deployed by Ryanair Airline Company, Air Berlin Company and Easy jet plc in ensuring that it meets with the competitiveness in the economy. The strategies for Ryanair Airline include; Low fare, Best Customer service, Short-haul route and destination, Reduction of operating costs, Internet services in its reservation system and Quality management
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Human Resources: Human Resource Management describes the function of managing company’s staff members. "A strategic approach to managing employment relations which emphasizes that leveraging people's capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices." Bratton, J. & Gold, J. (2003) It is important part of a company’s management team and it evolves from an administrative
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