Low Cost Airline Ethics Audit
ETHICS AUDIT ON RYANAIR
Done By Hemanth Mutthukrushnun
This is an ‘Ethics Audit Report’ prepared based on the operations of Ryan Air studied from various videos available on You Tube and the public documents disclosed by Ryanair.
Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing exponentially over the last 15 years. It carried around 70 million passengers last year with profits of about 20 million pounds. It expects to carry approximately 73.5 million passengers in the current fiscal year.
The primary reason for it being able to achieve such huge profits despite its low cost is because of the number of customers who prefer to use the airline due to the cheap fares and the quick turnaround time of 25 minutes. By maximizing the time duration for which the flight is in air, Ryan Air is able to make more trips with the available fleet. It also avoids renting covered staircases in airports thereby reducing costs on the same. It does not offer facilities such as reclining seats and personal pouches thereby reducing the weight of the airline, hence reducing fuel consumption. It also made a master move soon after the 9/11 attacks by procuring cheap aircrafts from Boeing. It was a time when air travel was presumed to be dangerous and airlines were weary of procuring more aircrafts. Ryan Air struck the nail right on its head by making a decision to go for more aircrafts at a cheap rate and ended up making huge profits.
However, not all is well with the way Ryan Air is operating and making its profits. We will take
Done By Hemanth Mutthukrushnun
This is an ‘Ethics Audit Report’ prepared based on the operations of Ryan Air studied from various videos available on You Tube and the public documents disclosed by Ryanair.
Set up in the year 1985 at a capital of 1 pound with a staff strength of 25, Ryanair is today the World’s favourite and most commonly used airline which operates more than 1,400 flights per day from 44 bases and 1100+ low fare routes across 27 countries, connecting 160 destinations. Ryanair operates a fleet of 250 new Boeing 737-800 aircraft and is expected to increase it by another 64 in 2 years. Ryanair currently has staff strength of more than 8,000 people. Its passenger base has been increasing exponentially over the last 15 years. It carried around 70 million passengers last year with profits of about 20 million pounds. It expects to carry approximately 73.5 million passengers in the current fiscal year.
The primary reason for it being able to achieve such huge profits despite its low cost is because of the number of customers who prefer to use the airline due to the cheap fares and the quick turnaround time of 25 minutes. By maximizing the time duration for which the flight is in air, Ryan Air is able to make more trips with the available fleet. It also avoids renting covered staircases in airports thereby reducing costs on the same. It does not offer facilities such as reclining seats and personal pouches thereby reducing the weight of the airline, hence reducing fuel consumption. It also made a master move soon after the 9/11 attacks by procuring cheap aircrafts from Boeing. It was a time when air travel was presumed to be dangerous and airlines were weary of procuring more aircrafts. Ryan Air struck the nail right on its head by making a decision to go for more aircrafts at a cheap rate and ended up making huge profits.
However, not all is well with the way Ryan Air is operating and making its profits. We will take