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Ryan Air: Analysis Using Swot & Porter's Five Forces

2073 words - 8 pages

Chapter 11.1IntroductionRyanair is the largest low fare airline in Europe. Operating through its carrier Ryanair, the company runs flights to around 120 destinations across Europe, including airports in Denmark, Germany, Norway, and Sweden. For the fiscal Year 2003, Ryanair recorded revenues of e842.5 million; an increase of 35% over 2002.It has a fleet of approximately 45 Boeing 737s and transports over fifteen million customers a year. Ryanair is headquartered in Dublin Ireland, and has a workforce of about 1900 employees.(Datamonitor)1.2Background and HistoryRyan Air Began operations in 1985 with the launch of a daily flight on a 15 seater aircraft between Waterford air port in the south esat of Ireland and London the companys first year , with only 57employees, it carried just over 5000 passengers in on its one route.Over the next three Years it expanded Rapidly opening Many new routes between Ireland and the UK, and increased the number of jets in its fleet. However whilst customers continued to fly Ryanair, for the low airfares the cost were not controlled ,and the company continued to accumulate losses . By 1989, the company employed 350 people, operated 15 aircraft and carried 600000 passengers a year, but still recorded losses of 20 million pounds in four years.(Datamonitor)Under a new management team a major overhaul of the airline was undertaken in 1990/91, with Ryanair re-launched as a low fares-no frills airline , adopting the formula pioneered by southwest Airlines in the US. Non-profitable routes were eliminated, the network was cut back from 19 to just 5 routes. Some aircraft were disposed of and airfares across the remaining network were substantially reduced with 70% of all seats offered at the two lowest fares. By 1991, Ryanair was operating a fleet of six aircraft, employing 350 people, carrying 700 passengers on just five routes , and it had recorded its first ever profit.Over the next couple of years, schedules on the key Dublin-London route wrew increased average air fares were lowered and new routes were launched from Dublin to Birmingham, Glasgow, Manchester, and Gatwick. The number of customers continued to grow, thanks largely to Ryanair's low fares. By 1994,Ryanair employed over 500 people and carried 1.5 million passengers per annum.Over the following three Years a further fifteen Boeing 737-200 aircraft were purchased bringing the number of aircraft in the fleet to 21. to coincide with this expansion of the fleet it opened new routes between Ireland and the UK, and increased frequencies on all routes. As a result in 1995, it had become the biggest passenger of 2.25 million per anum.1997 was a milestone year for Ryanair. With the full European Union air transport deregulation the airline was free for the first time to open new routes to Continental Europe. Services were launched from London Stansted to Stockholm and Oslo, as well as from Dublin to Paris and Brussels. The company offered fares which were...

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