COLOGNE BUSINESS SCHOOL (CBS) Case Study: Ryanair The future of the leading low fares airline Term paper for Transnational Management Summer Semester 2014/2015 Lecturer: XXX Anton Wischnewski BA12 in International Business / International Trade Student-No. XXX Table of Contents 1 Introduction ....................................................................................................2 2 Overview of Ryanair ..........................................................................
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2 | Analysis | 3-7 | Problems | 7 | Solutions | 8 | Conclusion | 9 | References | 10 | Word Count: 2061 Introduction Ryanair was founded in 1985 by the Ryan family‚ which was headed by Tony Ryan. It was the first budget airline in Europe‚ modeled after the successful US carrier‚ Southwest Airlines. It was founded to provide scheduled passenger airline services between Ireland and the UK‚ as an alternative to then state monopoly carrier‚ Aer Lingus. At the beginning‚ Ryanair was a full
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Instructor’s Manual 368 © Pearson Education Limited 2005 CASE TEACHING NOTES Ryanair – The Low-Fares Airline Eleanor O’Higgins 1. Introduction Ryanair was the first budget airline in Europe‚ modelled after the successful US carrier‚ Southwest Airlines. The case offers students the opportunity to evaluate the strategy of Ryanair against the backdrop of the European airline industry and the burgeoning budget sector. Business students at all levels enjoy this case and relate to it‚ since air
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ANALYSIS OF RYANAIR LTD. IN EUROPE OBJECTIVE The objective of this report is to The aim of this report is to analyse Ryanair using appropriate economic tools and models such as Structure- Conduct- Performance Model‚ Porter’s Five Forces and PESTEL Analysis. Recommendations will then be provided based on the analysis. INTRODUCTION TO RYANAIR Ryanair is an Irish airline founded in 1985 by Tony Ryan who teamed up with Christy Ryan and Liam Lonergan to set up the airline (Creaton 2004). The company
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Ryanair was founded in 1985 by the Ryan family to provide scheduled passenger airline services between Ireland and the UK‚ as an alternative to the then state monopoly carrier‚ Aer Lingus. It started out a full service conventional airline‚ with two classes of seating and leasing three different types of aircraft. However despite growth in the passenger volumes financial problems were of a growing concern. In its fight to survive the airline went through a dramatic restyle to become Europe ’s first
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Introduction Ryanair is one of the most profitable low-cost and low-fare airlines in the world. Even though it was merely bankruptcy in 1991‚ it could stand up and become very successful by 1999. An issues was what led Ryanair to huge losses in 1991‚ how did it re-gain its position‚ and what lay ahead in the next century. Analysis Prior to 1991‚ Ryanair had suffered from continuous losses from 1985 to 1989. The first reason that put it into this situation was that it tried to position itself
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transportation for this route. Ryanair recognized the profitability of the Dublin-London route‚ which was the only route that was profitable for Aer Lingus. While the direction of British Airways and Aer Lingus‘business models diversified worldwide‚ Ryanair saw an opportunity to streamline its costs by specializing on this specific route. Ryanair introduced a low cost‚ unrestricted fare‚ which undercut BA and Aer Lingus by £110 per ticket‚ while still focusing on first rate service. Ryanair was able to offer
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Ryanair Case Analysis 1. Porter’s Five Forces Analysis Substitute: In this industry‚ there are high substitution power because if one airline decides to raise prices then customers are going to switch to a cheaper airline company. The majority of passengers are price sensitive and have the option of taking other forms of transportation such as the rail or ferry. Customers are willing to travel longer if they can pay for a cheaper fare. The round fare for ferry and rail is 55
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Competitor analysis While taking a closer look at the competitors in the European airline market it is visible the there are two main groups of airlines. One group consists airlines with a low cost strategy‚ and the other group are the mainstream carriers. This last group exists of a few companies who have severe problems with the structurally sickness of this industry. Only Lufthansa made a net profit. BA‚ Air France-KLM and Scandinavian Air Systems all made severe losses‚ due to declining traffic
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RYANAIR Introduction This essay is initially going to analyse the LCC (Low Cost Carrier) industry and subsequently focus on Ryanair‚ the world ’s largest low cost international carrier (figure 1). The first part of the assignment is going to apply Porter ’s five forces to the above-mentioned industry‚ then it will look at how the company competes in such environment‚ referring to Porter ’s generic competitive strategies. Finally it will analyse how the company delivers on these competitive
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