Ryanair History

Introduction

- Founded in 1985 by the Ryan family; headed by Tony Ryan.

- A new management team was created and led by CEO Michael O'Leary who was appointed by Tony Ryan.

- Europe's first low-fares, no-frills carrier, built on the model of Southwest Airlines, the highly successful Texas-based operator.

- Most profitable airline in the world on the basis of operating and net profit margin

- Delivered 12% increase in profit, despite a 74% increase in fuel cost

- Ancillary revenue grew by 36% (generating €7.70 per passenger, with very high margins).

- First floated on the Dublin Stock Exchange in 1997

External Environment Analysis

PESTEL

Political

- Most of Ryanair’s routes are in Europe where the political environment is quite stable.

- Local governments supporting for their own national carriers.

Economic

- Ryanair has been cautious in its outlook for 2007. Few things that could hurt Ryanair (along with the entire Airline industry) would be a downturn in the European economic, fuel prices going up, terrorist attacks etc.

- Jet fuel cost fluctuations are subject to unpredictable and volatile world events, and was dependent on hedging which are based on educated guessing.

- Saves costs by operating over secondary airports. In that way they avoid primary airport charges and extra costs.

Socio-Cultural

- Even though Ryanair is perceived to provide poor customer service, the cheap fares still make it attractive for the budget conscious customer.

- Ryanair’s cusomer service are seen as poor as their request for cancelled and delayed flights are not compensated as expected.

- Customers are key for further growth and amarket expansions and tus, social factors should be taken in consideration

Technological

- Ryanair has made full use of the internet technology to provide online booking and checking making their website one of the most heavily used websites.

- Potential for Ryanair to leverage their website traffic to sell/promote ancillary products.

- With modern technology, on board Internet connection and television can be offered to their customers and thus

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