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Ryanair The “Southwest”Of European Airlines Introduction And Background

1207 words - 5 pages

Almost three decades ago, in July 1985, three brothers, Catlan, Declan, and Shane Ryan founded Ryanair airlines in the southeast of Ireland. Little did they know, it would become one of the most successful low- cost airlines in the whole industry. It started with just one leased fifteen seater plane that flew from Ireland to London’s Gatwick airport of which their father, Tony Ryan was the chairman. After the government deregulated air traffic to England, Ryanair got the license to operate from Dublin to London. At the end of that year, the airline had flown 5,000 passengers already. By the following year, it quickly started expanding with the purchase of two bigger but older planes. Since the very beginning the company maintained a low-cost strategy. They managed to provide fares that were 20% lower than what its main competitors were offering.
Later on, in 1986, it furtherly expanded 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 airline policy” that would eliminate such competition and would allow them to fly on separate routes. In 1990, Ryanair had expanded even more and carried 100,000 passengers in only one route. The Gulf War in 1990-1991 would impact the whole industry and represented losses for the airlines in the amount of 7 million irish pounds. Ryanair experienced many changes in management throughout these years, from Eugene O’Neil, to Declan Ryan, to P.J McGoldrick, then Patrick Murphy in 1991, and finally Conor Hayes the same year. In this year, Ryanair would report its first profit of 300,000 irish pounds since it was founded. The following year, the profits made were almost three times as much reaching more than 0.8 million irish pounds.
In 1993, Michael O’Leary, former COO would take the seat as CEO of the company until the present day. In the following two years, Ryanair would become the largest Irish carrier in every route it operated. New changes and new competition appeared in 1997, when the European Union deregulated the airline industry and a new airline arose, its name, easyJet, that would become its closest competition until today. Ryanair then, started new routes and came out with an Initial Public Offering that helped them raise $ 500,000 that would allow them to order 45 new Boeing planes. Three years later, Ryanair launched its website, which would help the company book its flights faster and more efficiently. Also, in the year of 2000, Ryanair started a partnership with Boeing that would allow it to increase its fleet to 44 planes in only two years.
Finally in 2003, the airline acquired Buzz, a low...

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