Ryanair economic analysis

This is part of its expansion strategy aimed at lowering the fares and growing the capacity of passengers from million annually to million by the year By flying to such airports, Ryanair has often tapped a whole new market in regions that previously had no convenient connection to the rest of Europe.

In many cases, Ryanair has opened up regions of Europe where previously there was little demand for air travel, stimulating traffic through its very low fares and creating monopolistic markets for itself, since other carriers would not be able to match its fares. Currently I am a logistics consultant for a start-up company.

In the airline industry, other airlines may not respond to the calls to be more environmentally friendly as they try make their finances look better in difficult economic times.

These changes may see Ryanair pass the cost to the customers. Therefore the political climate in this region affects its decisions.

Loss of competitor capacity discipline. Ryan charges the customers for various things such as in-flight meals, payment handling fees, wheelchair usage and online check-in BBC It has the direct relation with economy and trade cycles and the low cost airlines like Ryanair is less affected if compared with other airlines.

Further, travellers are making bookings at the last minute and ticket prices have fallen. Under such conditions, the company ought to have a unique understanding of its environment.

Due to price elasticity, increases in air travel taxes reduce demand. Better deal at Stansted with MAG. Comparative Economic Research, 12 3pp. Because the EU countries promote their national carriers, Ryanair has to develop alternative routes so that its profits do not dip.

The first route was with a seater Bandeirante aircraft. Company Profile Ryanair started operations in The company cuts cost through many ways such as using secondary airports, reducing the weight of their airplanes, reducing staff costs, removing bookings through travel agents and removing in-flight meals.

PESTEL Analysis of Ryanair

They think the free competition between the airlines can be threat to the state. The increased business model will likely need to change in an effort to reduce its carbon footprint. I have an excellent understanding of cases and impeccable research capabilities with focus on details.

The European Union has finished this trend as a result of liberalization of the airline industry. In general, these taxes represent a higher percentage of the price of a short haul ticket than a long haul ticket, making Ryanair potentially vulnerable to recent increases in air taxes in countries such as the UK.

Jonathan Alberto

Ryanair is the Irish airline and it is the low cost short haul airline, which is operating its flights on limited number of destinations. The video conferencing has provided the facility to people and especially to businessmen and they do not feel necessity to travel anymore and they can deal their business through this innovative technology.

An analysis of Ryanair competitiveness. Strategy and Leadership, 35 6pp. OrbitsE-Resource for Company Information Besides that, the number of passengers carried has also increased since financial year as shown in the graph below.in the industry, Ryanair has established itself as Europe’s cheapest airline.

With an average ticket price of €46, Ryanair has positioned itself much cheaper than main. 2. SWOT analysis on Ryanair Opportunity Inthe British government decided to expand and develop Stansted Airport.

Before this announcement, Ryanair just take over Buzz which is a budget airline based at Stansted airport.

Ryanair SWOT analysis – Michael O'Leary's maniacal focus on being the lowest cost producer

Because the airport will expand, it seems to be more passengers to use this airport. SWOT / TOWS analysis of Ryanair is a framework to evaluate the factors that create an impact on the airline industry at large and wield its influence on Ryanair. The SWOT analysis gives insights into the internal and external factors, namely, strength, weakness, opportunity, and threats of Ryanair.

The PESTEL analysis will help to understand the possibilities of market, the growth rate and the profit of the company in the current economic position within the country.

Political Factors The political system in the country and their relationships with other countries has great impact on the airline industry.

Ryanair – Economic Analysis Paper

Ryanair has tended to produce its strongest financial results in times of economic weakness through a combination of increased price sensitivity from passengers and capacity cuts from many competitors. The current outlook for continued economic austerity across much of Europe could provide a favourable backdrop for continued.

Data for passengers on route to London Source: CA airline/airport statistics The numbers of passengers traveling by LLC airlines are also increasing ever since its entrants as shown in the statistics below: Total annual alarm passenger movements In 1 Source: Commission for Integrated Transport The LLC market is an oligopoly market as there .

Ryanair economic analysis
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