Sudent
MarketLine Case Study
Ryanair
The world’s leading low-cost airline
Reference Code: ML00001-086 Publication Date: March 2012
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
RYANAIR CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
ML00001-086/Published 03/2012 Page | 1
OVERVIEW
Catalyst
Ryanair Holdings (Ryanair) operates a low-fares scheduled passenger airline serving short-haul, point-to-point routes between Ireland, the UK, Continental Europe, and Morocco. The company offers more than 1,300 scheduled short-haul flights per day serving 155 locations throughout Europe and Morocco, with an operating fleet of 250 aircraft flying approximately 1,100 routes. The company was established by the Ryan family in 1985 operating daily flights on a 15seater Bandeirante aircraft from Waterford in the southeast of Ireland to London Gatwick. Since then, Ryanair has pursued an aggressive expansion policy, adding new routes and opening new centers of operation across Europe to become the world’s most popular airline for international flights, having flown 72.1 million passengers in FY2011. This is a highly commendable performance in a very competitive industry. Ryanair must compete with other low-cost airlines such as easyJet and Monarch, as well as with legacy carriers like British Airways and Lufthansa. This case study looks at how Ryanair has risen to become the world’s most popular airline.
Summary
Ryanair has redefined the airline industry with its low-cost operating model. In order to keep costs to a minimum the airline uses small, regional airports and operates as a point-to-point carrier, thus avoiding the costs associated with a hub-and-spoke service. The company’s adoption of a low-cost operating model allows it to pursue a price-led offering. Ryanair advertises itself as "The low fares airline" and has a price promise under which it will pay double the
Ryanair
The world’s leading low-cost airline
Reference Code: ML00001-086 Publication Date: March 2012
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
RYANAIR CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
ML00001-086/Published 03/2012 Page | 1
OVERVIEW
Catalyst
Ryanair Holdings (Ryanair) operates a low-fares scheduled passenger airline serving short-haul, point-to-point routes between Ireland, the UK, Continental Europe, and Morocco. The company offers more than 1,300 scheduled short-haul flights per day serving 155 locations throughout Europe and Morocco, with an operating fleet of 250 aircraft flying approximately 1,100 routes. The company was established by the Ryan family in 1985 operating daily flights on a 15seater Bandeirante aircraft from Waterford in the southeast of Ireland to London Gatwick. Since then, Ryanair has pursued an aggressive expansion policy, adding new routes and opening new centers of operation across Europe to become the world’s most popular airline for international flights, having flown 72.1 million passengers in FY2011. This is a highly commendable performance in a very competitive industry. Ryanair must compete with other low-cost airlines such as easyJet and Monarch, as well as with legacy carriers like British Airways and Lufthansa. This case study looks at how Ryanair has risen to become the world’s most popular airline.
Summary
Ryanair has redefined the airline industry with its low-cost operating model. In order to keep costs to a minimum the airline uses small, regional airports and operates as a point-to-point carrier, thus avoiding the costs associated with a hub-and-spoke service. The company’s adoption of a low-cost operating model allows it to pursue a price-led offering. Ryanair advertises itself as "The low fares airline" and has a price promise under which it will pay double the