Irish Airline: Ryanair Essay

1645 words - 7 pages

Ryanair an Irish airline founded in 1985 has seen huge growth with workforce of just 25 to now over 9000 skilled professionals, branding themselves as Europe’s only ultra-low cost airline they are always looking for new ways too save on costs and increase on profits. This essay will draw upon, at what point they become ‘un-ethical’ i.e. the extra charges they add to the total bill e.g. a £160 charge for a name change in high season (Ryanair.com 2014,a), They have even been accused of carrying less emergency fuel to improve both fuel efficiency and competiveness (The Economist, 2013). Then justify what is morally right and wrong from the views of different ethical theories and stakeholders, in particular egoism and utilitarianism because these two theories will exhibit totally different views. Which will show different perspectives of a single action can be both ethical and un-ethical at the same time depending how you look at it.

Smith argues that there are two fundamental goals in nature in all life forms: “the preservation of the individual and the reproduction of the species” (Bragues, 2009, p. 453, para 2). Essentially the theory is based around the form of compulsive selfishness. This is similar to Michael Friedman’s approach to individualism because of the similarities between the self-interested motives of the egoist, and the legal obligation of a firm to produce the highest profits and shareholder wealth that it can, which is exactly what Ryanair are doing, adding extortionate charges for example a 2% charge to the total bill when using a credit card (Ryanair.com, 2014, b). According to this theory Ryanair is acting ethically because they are composing a morally appealing result for society through the ‘invisible hand’ of the marketplace (Adam, 1793). A major criticism of egoism is the fact that it provides completely different approaches to life as being identical (Crane and Matten, 2010), for example a young professional partaking in the use of recreational drugs every evening is just as admirable as the young professional staying behind after work to keep ahead of his colleagues, providing they have followed their desire. As you can see this now creates this divide between initial desire and long-term interests i.e. health in the example I used, because its not in the long term health interests of the young professional to take recreational drugs, yet is an initial desire. This can be applied to Ryanair, because the extra charges they have in place initially giving them an increase in profits and bettering their margins, yet potentially damaging their brand for the future, having said that they are increasing their revenue year on year (Markets.ft.com, 2014). Ryanair haven’t just added additional charges, they had even drawn up plans for stand-only aircrafts to increase their margins even further; this fortunately this was not passed (Milmo, 2012).

Ryanairs approach to corporate social responsibility is one very much self indulged...

Find Another Essay On Irish Airline: Ryanair

Analysis of the external environment of "Ryanair –"Southwest" of European airlines" case

1722 words - 7 pages governmental instability in Europe as a concern regarding passenger volumes or flight destinations. Political factors in our case are:-Irish government policy from September, 1989. This policy were known as "two airline policy" valid for three years and was directed at benefiting both Irish carriers Aer Lingus and Ryanair. The new policy ruled that the two major Irish airlines will not compete on any international route and they both had to have

SWOT analysis of Ryanair

2408 words - 10 pages million loss and was forced to completely restructure. A new CEO - Michael O'Leary - was charged with making the airline profitable. He visited the USA to study the 'low fares/no frills' model being used by Southwest Airlines. O'Leary quickly decided that the key to low fares was to implement quick turn-around times for aircraft, "no frills", and no business class, as well as operating a single model of aircraft (Ryanair About Us n.d.). Despite

Ryanair's Business Level Strategy: A Cost-Leadership Strategy

2491 words - 10 pages industry. (Hill and Jones 2004 ). Ryanair's cost-leadership strategy is based on the intent to outperform competitors by doing everything it can to establish a cost structure that allows it to provide its air travel service at a lower unit cost than they can. At the very heart of this strategy is the intent to keep its fares as low as is conceivably possible and thereby live up to its name as "The Low Fares Airline". Ryanair, in pursuing this cost

Analyze the European airline industry, with implications for the budget sector, and especially Ryanair

9466 words - 38 pages proceedings against The Irish Airline Pilots Associations in an effort to stop a campaign organised by the International Transport Workers Federation (ITF) to highlight the company's anti-union practices. The ITF has analysed facts and figures, and looked into hundreds of emails received from staff. In December 2004 and January 2005, Ryanair faced serious strike threats in Girona, Spain; as baggage handlers at the airport, organised with the

This is a report about analysis of Ryanair. Including the marco and mircoenviroments anlysis and suggestions in 2008

4135 words - 17 pages . IntroductionIntroduction to the RyanairRyanair is the Irish low cost company. Its headquarters is in Dublin and its largest operational bases are at London Stansted Airport and Dublin International airport.Ryanair operates 166 aircraft on 729 routes across Europe and North Africa from its 31 bases. The airline has been characterized 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

An Evaluation of Ryan Air

4283 words - 17 pages Task A-IntroductionRyanair Europe's Leading Low Fares Airline is an Irish airline with headquarters in Dublin and its biggest operational base at London Stansted Airport in the UK. It is Europe's largest low-cost carrier. As of 31 July 2007, Ryanair operates 516 routes across 26 countries from 26 bases. Ryanair has been characterised by rapid expansion, a result of the deregulation of the air industry in Europe in 1997. Ryanair is the third

RyanAir Business Model/ Effect of Recession / Future trends / Recommendations

7123 words - 28 pages respective values of $20 billion and $12 billion in 2011.4. Key competitorsThe major players that compete against Ryanair are旴ritish Airways Plc旳ir France KLM旳litalia-Linee Aeree Italiane S.p.A.旹asyJet Airline Company Limited昄ufthansa旴mi旳er Lingus Group plc旳ustrian Airlines Group旾beriaAer Lingus Group PIc (AL) is owned (85%) by the Irish government. They fly about seven million

Ryanair: Objectives and Risks

3256 words - 13 pages remainder of the fiscal year till March 2006. It would apparently need to monitor fuel prices with a view to hedging for summer 2006.Ryanair is also committed to safety and quality maintenance. Its management over the years have given priority to this area. Commitment involves training pilots, cabin crew, maintenance personnel and also, maintaining its aircraft in accordance with the highest European airline industry standards. As cited in its website

This report is about IT industry of Ireland

2447 words - 10 pages -commerce sites locally, which are servicing the local and international marketplaces with products from their Irish manufacturing plants.The Irish online travel market is forecast to grow by 130% from $13 million in 2000 to $30 million in 2001. Ryanair, Ireland's second airline, launched its e-business site in January 2000. It quickly became one of the most successful airline sites in Europe with over 2.5 million passengers booking online within

Reinventing the airline business: no-frills ailines

7910 words - 32 pages simply for the convenience of the airline.c.Southwest model in Europe: EasyJet.comEurope was slower to follow the deregulation path but the introduction of more open skies from 1987 onwards has led to a number of success stories, particularly EasyJet and Ryanair showing how a new organization can break into what had previously been a restricted marketplace.The low-cost, no frills airline easyJet owes its existence to the development of

British Airways plc

4933 words - 20 pages industryThe airline industry has undergone significant restructuring in recent years. Airlines, formerly rivals in a highly regulated industry, have become opportunistic seekers of co-operation. In today's world, mega-carriers and small airlines are working together rather than competing with one another. Forms of co-operation include sub-contracting, code-sharing, franchising and the formation of global marketing networks. Such alliances allow

Similar Essays

Ryanair Irish Low Cost Airline: Current Market Position

1521 words - 7 pages Ryanair is one of Irish low cost airline, with headquarters in Dublin International Airport and its largest operational bases at Dublin International Airport and London Stansted Airport. It currently employs a team of 5,961 people, comprising over 25 different nationalities.Ryanair began operations in 1985, carrying over 5,000 passengers on its lone route between Waterford Airport (South Eastern Ireland) and London Gatwick in its first year

Ryanair Marketing Strategy Essay

929 words - 4 pages Ryanair airlines low fare concept was conceived by three Irish businessmen in 1984 who wanted to break up the duopoly of the major airlines between Ireland and England. The strategy was simple in nature; offer lower prices than any competitor on the same route. Ryanair began operations in 1985 with a single 15 seat turboprop aircraft operating one route between Waterford, Ireland to London, England. The fare was only €99 ($138), less

Ryanair The “Southwest”Of European Airlines Introduction And Background

1207 words - 5 pages when it acquired a 85% stake in London European Airways that allowed it to get its requisite license. Ryanair now started flying also to Amsterdam and Brussels, but these routes were short lived and had to be abandoned. By 1987, the airline repositioned itself, and was flying to 65 different locations across europe. Its first main competitor for about a year was Aer Lingus, another Irish Airline. Then the Irish government would create a “ two

Swot Analysis Of Ryanair Holdings Plc

1200 words - 5 pages This report is based on Ryanair Holdings PLC which was established in 1985. “Ryanair obtains permission from the regulatory authorities to challenge the British Airways and Aer Lingus' high fare duopoly on the Dublin-London route. Services are launched with two (46-seater) turbo prop BAE748 aircraft” (Ryanair, ND). Ryanair Holdings PLC is an Ireland based airline which is the largest low fare airline with 32 bases & over 800 low fare routes