European Pioneer of Budget

Airline Travel

Presented by:
Group-3
Prabal, Amrita, Sonu,
INDIAN INSTITUTE OF PLANTATION Pawan, Pradeep.
MAMAGEMENT
 Issues
• Aer Lingus opposed to merge with Raynair.
• Fuel cost.
• Entertainment resisted by the passengers.
• Staff cost and productivity.
• Passenger service cost.
• Airport charges and Route Policy.
• Terrorism and security.
• Environmental Concerns.
• Industrial relations.
• Safety Issues.

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT
 Scenario
 Founded in 1985:
 2 Aircrafts

 Carried 82,000 Passengers

 1991: Michael O’Leary Appointed

 Transformed to Low Cost Airline
 1997: Floated on Dublin SE and Nasdaq
 Rapid Expansion (2008 Figures):
 169 Aircrafts

 794 Routes

 148 Destinations, Across 26 European Countries

 58 Million Passenger Annually

Source: European Low Fares Airline Association,2009
INDIAN INSTITUTE OF PLANTATION
MAMAGEMENT
 Scenario
Ryanair came as Alernative to Aer Lingus.
•
Motto of combining with Aer Lingus.
•
Turbulence in 1990.
•
Restructuring of the organization.
•
Introduction of the Low Cost/Low fare Model.
•
Became worlds most profitable airline.
•

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT
 Strength Weakness
•Low cost Leader •Poor Employee Relations
•Innovative Cost Reduction •Volatile Customer Relations
•First-mover Advantage •Antagonistic Relationship with
•Established market Share Competitors
•Strong Public Image •Dependence on Michael
•Established Routes/Networks O’Leary
•Range of Ancillary Services

Opportunity Threats
•Further growth
•Advanced Cost Reduction •Increased Competition
•EU Expansion •Industry Criticism
•Expansion of ELFAA •Trade Unionism
•Substitute Transportation

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT
 Suggested Strategy
• 3rd Parties cover cost
-Sponsorship/Advertisement
-Holiday Providers
• Value added Services to the customers.
• By making strategic alliance with other airlines Co.
• Better Passenger Services.
• Better Employee Relations.
• Ethical Business

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT
 Implementation
• Encouraging 3rd Parties to invest in Ryanair.
• Providing no additional charges for additional baggages.
• By using centralized airports.
• Elimination of entertainment system.
• Use of better management practices to minimize the
compensations.

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT
 Possible Challenges
• Fuel price hikes
• Trade Unionism.
• Existing competitors
• New Entrants.

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT
Thank you!

INDIAN INSTITUTE OF PLANTATION

MAMAGEMENT