Ryan Air Analysed

4351 Words18 Pages
12408951 Financial Analysis Part A Introduction For this assignment the author was asked to choose an international organization for a list that was given and analyse the organization and the market segment in which it operates. The author chooses Ryan Air to be the focus of his paper. Ryan Air was established in 1985 by Tony Ryan to operate as a low-cost airline from Ireland to London. In Ryan Air’s early years of operation, it struggled financially. The financial controller at that time Michael O’ leary had convinced Ryan to let him try and bring the company out of its financial difficulties. Southwest Airlines in the United States was the world's first low-cost airline. O'Leary introduced a strategy very similar to that of Southwest Airlines. These strategies saw a complete turnaround of Ryan Air losses and turn it into an it into a successful organization (Davy 2005: 3). Its operations have also expanded massively in geographical coverage: in the current financial year, Ryan Air operated 288 routes across 21 countries using 12 European bases, and plans to more than double its fleet in the next 7 years (www.ryanair.com). By operating low-fares scheduled passenger airline serving short-haul, point-to-point routes largely in Europe from some 45 destination in airports across Europe. Ryanair was the first low-cost airline to operate in Europe (www.ryanair.com). By 2011 Ryan air operated approximately 1,550 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe. Ryan air growth also included the acqusition of some 30% interest shares in Aer Lingus in 2006 (www.ryanair.com). Ryan Air strategy of using small regional airports for its operations helps keep costs lower but also means less traffic congestion for passengers travelling to the airports and less chance of delays. Short-haul flights mean that the

More about Ryan Air Analysed

Open Document