Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Ryanair: the low-fares airline - future directions?

No description

J Stefan Crespo - Donaire

on 16 December 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Ryanair: the low-fares airline - future directions?

Overview of Ryanair

Ryanair: the low-fares airline - future directions?
Porter's 5 Forces
SWOT Analysis
Situation & Problems
Case Study
Ryanair: The low-fair airline Future directions?
Francisco Bayona
Fernanda Canevaro
Nelia Carrasco
Stefan Crespo - Donaire
Guillaume Denis

- Europe´s leading budget carrier

- Stuck to the low cost / fare model

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

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

- Ancillary revenue grew by 36%


•Low fares
•Ancillary Revenue
•No frills


•Vulnerable to rising fuel prices
•Represents 35% of the operating costs
•Regulation by the European Union
•Legal problems with the holding in Aer Lingus
•Marketing controversial news
Ryanair's Positioning Strategy
- Price -->
Premium - Competitive

- Features --> Original - Customized -

- Quality --> Excellent -
- Acceptable

- Support --> Comprehensive - Standard -

- Availability --> Restricted -
- Universal

- Reputation --> Prestigious - Respected -

•Secondary airports

•Fleet commonality

•Maximize aircraft utilisation

•Cheaper product design

•Minimize personnel costs

•Customer service costs
Cost Reduction Strategy

•Expand into central & eastern Europe

•Continue aggressive acquisition

•Increased ancillary revenues

•Focus on after sales

•Renovate and making major changes to the customer service

•Internet ticketing (e-commerce)
Alternatives to the proposed strategy


> Ryanair is the 1st low-fares airline in Europe
> The company enjoyed growth and success
> Complicated environment

How create added-value and sustainable strategic advantage?

Using internal resources to manage difficulties and threats.
Cost reduction and relevant positioning.
Find new solutions: expand in eastern EU, focus on services (After-sales, customer care, e-tickets, etc.)

It was the 1st Airline to charge for check-n luggage & in-flight food & beverages- since then, ALL budget Airlines have followed suit
Options for road-transport and high-speed rails that don't charge for luggage
After plan to purchase 100 aircraft from Boeing between 2013 & 2015, Ryanair sought to open negotiations with Airbus
Signed Memorandum of Understanding with COMAC (Chinese aircraft manufacturers)
76 Million Passengers in 2012; consistently reporting earnings in excess of 20%
We are in times when lowest-cost producer wins
Ancillary services (in-flight food & beverages, check-in luggage charges, & online distribution of accommodation & car rentals)
Growing criticism of extra charges, like check-ins, making Ryanair more expensive than competitors
Customers vote with their feet by choosing Ryanair for 4 tenets of customer service: low fares, good on-time record, few cancellations, & few lost bags
Airlines had seen no economic profit over a 40 YEAR period till 2012
Flights are to secondary & regional destinations (which are significantly further away from city centers)
6 European Airlines closed in 2012 (which included Spanair and Malev)
Ryanair took the opportunity to open a new base in Budapest, & expanded bases in Spain
Full transcript