Ryanair
Case study on low cost airlines (RYANAIR)
Preliminary questions: 1. What are your first impressions regarding Ryanair? 2. How would you characterize its marketing strategy?
Ryanair (ISEQ: RYA, LSE: RYA, NASDAQ: RYAAY) is an Irish low cost airline, with headquarters at Dublin Airport and its largest operational bases at Dublin Airport and London Stansted Airport.
Ryanair operates 182 aircraft on 729 routes across Europe and North Africa from its 31 bases.[1] The airline has been characterised by rapid expansion, a result of the deregulation of the air industry in Europe in 1992 and the success of its low cost business model. Ryanair is the third largest airline in Europe in terms of passenger numbers[2] and the world's largest in terms of international passenger numbers.[3]
Financials and history and key points
Financial overview
Ryanair has grown since its establishment in 1985, from a small airline flying a short hop from Waterford to London, into one of Europe's largest carriers. After taking the rapidly growing airline public in 1997, the money raised was used to expand the airline into a pan-European carrier. Revenues have risen from €231 million in 1998, to some €843 million in 2003 and net profits have increased from €48 million to €239 million, over the same period.
Half year profits for the period ended 31 October 2007, included ancillary revenue of €252 million.[4] This activity was associated with the sale of car hire, hotels and travel insurance, as well as on board sales and excess baggage revenues. Ancillary revenue now accounts for just over 16% of total revenues.
Early years
Ryanair was founded in 1985 by Christy Ryan (after whom the company is named), Liam Lonergan (owner of an Irish tour operator named Club Travel) and noted Irish businessman, Tony Ryan, founder of Guinness Peat Aviation and father of Cathal Ryan and Declan.[5] The airline began with a 15-seat Embraer Bandeirante turboprop aircraft, flying between
Preliminary questions: 1. What are your first impressions regarding Ryanair? 2. How would you characterize its marketing strategy?
Ryanair (ISEQ: RYA, LSE: RYA, NASDAQ: RYAAY) is an Irish low cost airline, with headquarters at Dublin Airport and its largest operational bases at Dublin Airport and London Stansted Airport.
Ryanair operates 182 aircraft on 729 routes across Europe and North Africa from its 31 bases.[1] The airline has been characterised by rapid expansion, a result of the deregulation of the air industry in Europe in 1992 and the success of its low cost business model. Ryanair is the third largest airline in Europe in terms of passenger numbers[2] and the world's largest in terms of international passenger numbers.[3]
Financials and history and key points
Financial overview
Ryanair has grown since its establishment in 1985, from a small airline flying a short hop from Waterford to London, into one of Europe's largest carriers. After taking the rapidly growing airline public in 1997, the money raised was used to expand the airline into a pan-European carrier. Revenues have risen from €231 million in 1998, to some €843 million in 2003 and net profits have increased from €48 million to €239 million, over the same period.
Half year profits for the period ended 31 October 2007, included ancillary revenue of €252 million.[4] This activity was associated with the sale of car hire, hotels and travel insurance, as well as on board sales and excess baggage revenues. Ancillary revenue now accounts for just over 16% of total revenues.
Early years
Ryanair was founded in 1985 by Christy Ryan (after whom the company is named), Liam Lonergan (owner of an Irish tour operator named Club Travel) and noted Irish businessman, Tony Ryan, founder of Guinness Peat Aviation and father of Cathal Ryan and Declan.[5] The airline began with a 15-seat Embraer Bandeirante turboprop aircraft, flying between