Ryanair Case Study

Introduction
Ryanair was formed in 1985 by the Tony Ryan family. Ryanair provide services between Ireland and the UK. They are the European’s largest and lowest carrier and they bring lowest fares on flights to all their destinations. With their lowest fares, Ryanair became one of the world’s leading and successful airlines.
Question 1
1.1. Financial issues and customer satisfaction issues (what are the ups and downs?)
According to O’Higgins (cited by Alan Wilson, 2012:491), Ryanair gives various addition services associated with its airline services, counting in-flight beverage, foo and commodity sales as well as internet services such as Wi-Fi. Ryanair also provides accommodation for its customers, car rental and travel insure which cover any damages or passenger injuries.
Giving these services on-line makes Ryanair maximise sales, while minimising unit’s costs. In 2010 Ryanair was number 12 when looking at the most visited websites in the UK, and EasyJet (their competitor) was number 10. Additional services considered about 22 percent of total operating incomes, compared to 20.3 percent in 2009. It dropped from 10.20 Euros in 2009 to 9.98 Euros per passenger in 2010.
Ryanair was voted of having the worst customer service out of Britain’s 100 biggest brands, it was given a customer satisfaction rating of just 54 percent and customers gave it only two stars in the categories of knowledge, staff attitude and dealing with issues.

Summarised consolidation income statement in accordance with IFRS 2010 (in Million Euros) 2009 (in Million Euros) Change
Operating revenue 2,988.10 2,942.00 2%
Net profit/ (loss) after tax 305.3 -169.2 280%
Adjusted net profit after tax 318.8 104.9 204%
Basic EPS (in euro cent) 20.68 -11.44 281%
Adjusted...

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...t Ryanair.
• Approving an effective departmental culture O’Leary has made and carried a low cost departmental culture and this culture is the core of Ryanair and influences on how it operates and conducts its business.

CONCLUTION

Ryanair has created a low cost culture and its whole organization has bought into this philosophy. The leadership at Ryanair practices what it preaches and it helps further reinforce the low cost message throughout the organization. But Ryanair needs to pay close attention to the risks highlighted in the Risk dashboard as it keeps on growing. Ryanair need to start planning for the future after Michael O’Leary. A low price strategy is a maintainable strategy as we can see from other and similar organizations like Ikea, Southwest, and Aldi etc. Ryanair’s low price strategy is a best fit for them and the future looks very bright for Ryanair.