Company Overview: Ryanair is the largest low-cost carrier in Europe. The company operates over 2,000 flights per day and carries more than 110 million passengers each year. Find out more about Ryanair SWOT analysis & competitors.
The Ryanair group employs over 10,000 people. It has its head office in Dublin and its registered office is near Shannon Airport in County Clare. The group’s primary executive offices are located at Airside Business Park in Swords, Dublin.
The airline primarily flies within Europe, but it also has long-haul services to North Africa (from Madrid), Israel (from London Stansted), Boston (from London Stansted), and Florida (from Edinburgh).
Services offered:
Ryanair operates flights on some of the largest European airports, while also operating non-stop services via London, Paris, and Frankfurt to many smaller airports (some with only one daily service). Ryanair has launched new routes to Copenhagen and Rome in 2010. The airline is expanding its long-haul network by 7 percent per year. Ryanair operates both narrow-body aircraft (Ryanair A320) and wide-body aircraft (Ryanair Boeing 737).
The airline is renowned for its “no-frills” approach.
Company Strength:
1. Cheap Tickets:
Ryanair offers the lowest ticket prices in Europe, and its customers pay for only what they need (no fees).
2. User-friendly website:
Ryanair has a simple website with no superfluous information, which appeals to customers who like to book spontaneously without having to read through all the terms and conditions. The airline’s website also offers “click and collect” services at London Gatwick Airport that allow customers to buy their tickets online and then pick them up from the airport, providing them with another option for traveling cheaply.
3. Advertisement:
Ryanair is known for launching new routes quickly, so it can keep introducing new consumers to its low-priced flights. The company advertises heavily on television and in newspapers to attract new passengers.
4. Expansion:
Ryanair has begun to expand into international markets, providing passengers with affordable flights to Tel Aviv, Copenhagen, and Rome. The airline announced that it is also planning non-stop flights to Montreal in 2012.
5. High-yield regions:
Ryanair flies to over 100 destinations in Europe, including popular holiday locations such as Venice and Paris. Ryanair flies from London Stansted Airport as well as from Edinburgh Airport and Glasgow Airport. Many of the airline’s flights begin and end in one of Europe’s most visited cities (London or Dublin). Ryanair is expanding into new areas such as Finland and the Czech Republic.
Weaknesses:
1. Price increases:
Ryanair increased its prices by 8 percent in early 2018, a move that caused customers to complain about paying too much for their tickets. Customers have also complained about the last-minute price hikes due to the high demand for seats on popular flights, which Ryanair does not release beforehand.
2. Airline ennui:
Ryanair’s low fares attract many new customers, but the low-cost airline is known for its “annoying” advertisements and annoying passengers during check-in and boarding. Some European media outlets cite Ryanair for being an unpleasant air carrier.
3. Internet check-in:
Ryanair’s website allows users to make “click and collect” purchases of their tickets without having to use a credit card or pay any extra fees (anyone who purchases tickets online can pick them up at the airport).
3. Customer service:
In February 2012, Ryanair suddenly raised its cancellation fee from £25 to £100 despite having previously advertised that the amount had been set at £50. In February 2011, a Ryanair customer was unable to return home as his flight was delayed due to a strike, and the airline offered no compensation for the inconvenience.
4. Safety record:
In 2017, a passenger on a Ryanair flight from Barcelona to London DFW Airport died after going into cardiac arrest during a medical emergency. The company responded by saying that “the entire safety record of this airline is second to none.”
5. Small planes:
Ryanair’s planes are small and cannot transport as many passengers as larger carriers such as Virgin Atlantic and British Airways. Ryanair’s fleet consists of Boeing 737-800s and Airbus A320s, which cannot transport everyday passengers on long flights. The airline has been criticized for operating too few planes, especially during peak seasons such as the summer holiday season.
6. Student fares:
In 2015, Ryanair offered student fares with certain restrictions in Europe between €1 for a single ticket and €2 for a return ticket in some cases. The company subsequently had to restrict the number of flights that the students could make with the discounted tickets due to high demand.
7. Voted Europe’s Least Liked Airline:
Ryanair was voted as Europe’s least liked airline by Airlines Guide in 2015, 2016, and 2017. The website stated that “Ryanair’s reputation as a low-cost airline is now waning as customer service levels have been declining.”
Opportunities:
1. Shuttle service:
In October 2018, British Airways announced they were partnering with Ryanair on a new scheduled service across Europe from London Stansted Airport to Barcelona. The two carriers will offer a daily one-stop connection between the two airports in less than three hours, cutting transit time by up to 90 minutes in the process.
2. International markets:
Ryanair’s best market is still in Europe, but the company is working on increasing its presence in international markets such as Israel and Rome. Ryanair opened a call center for customer service in Israel, which reflects the company’s efforts to add more international destinations to its roster.
3. Route expansion:
Ryanair expects to expand its route network by 4 percent each year in the future. In early 2018, Ryanair announced it was planning to add new destinations in Europe, Latin America, and Asia over the next five years, including an expansion from London Stansted Airport to Milan Linate. The airline has also expressed interest in adding non-stop flights from London Stansted Airport and London City Airport to remain competitive with British Airways during busy periods.
4. Marketing:
Ryanair is known for its extensive advertising and marketing campaigns, including television commercials that appear during peak travel periods such as summer. The company has recently been working with the World Wildlife Fund to further promote sustainability and improve conservation efforts, such as promoting responsible drinking during holiday months.
5. Low-cost carriers:
Ryanair’s low-cost model has allowed it to grow quickly without competing with larger carriers such as British Airways or Lufthansa. Other low-cost carriers such as Easyjet and Norwegian Air Shuttle have begun to follow Ryanair’s lead in offering budget flights.
Threats:
1. Losses:
In 2018, Ryanair said it had made a loss of €1.7 billion ($2 billion) for the financial year, with revenues up 7 percent to €5.4 billion ($6.6 billion). The airline has been forced to cancel many of its higher-profit flights due to continuing losses and high fuel costs.
2. Competition:
Ryanair has faced increased competition from other airlines such as Norwegian Air and Wizz Air in its home market and emerging low-cost carriers such as Norwegian Air Shuttle and easyJet in Europe and North America.
3. Low-cost airline competition:
In early 2018, EasyJet announced that it had begun a “fare war” against Ryanair by lowering some of its airfare prices. EasyJet told investors that it planned to lower its airfare prices by 15 percent in the UK and Germany during the summer (compared to previous years).
3. Operating cost:
Hauling large aircraft on long flights is expensive. Ryanair reportedly spends about €2 billion per year on fuel (about $2.3 billion at the time). Ryanair plans to decrease its operating costs by increasing the number of workers, employing more engineers and mechanics, and improving the company’s maintenance procedures.
5. Traditional airlines:
Ryanair has been a pioneer in developing a new market segment in air travel, a low-cost airline with a focus on less-frequent routes and offering a limited selection of seats with no-frills, but it has been criticized for not being willing to change its business model based on customer feedback.
6. Planes:
Ryanair has decided against ordering new aircraft that would be larger than the Boeing 737 aircraft it already operates, which is reportedly costing the company an additional $2.5 billion in revenue each year. The airline has maintained that its current fleet of aircraft allows it to continue to offer flights at low cost, but it is unclear how long the company can operate under this model.
7. Providing better customer service:
Ryanair’s prices often win over consumers who value low fares, but many travelers are frustrated by the airline’s policies and customer service issues.
Major Competitors:
1. Lufthansa:
Lufthansa is one of Europe’s largest airlines and is larger than Ryanair. Lufthansa’s main competitors include Easyjet and Ryanair. Lufthansa has recently been focusing on improving its customer service and revamping its image as a more premium brand, after facing legal action from customers who claimed that they had been treated poorly by the airline.
2. Southwest Airlines:
Southwest Airlines was founded in 1971 as Air Southwest Co., which later became the low-cost carrier Southwest Airlines Co. The airline now has over 100 cities in 41 states and Mexico, with major hubs at Dallas Love Field, Houston Hobby Airport, and Chicago Midway International Airport.
3. Qatar Airways:
Qatar Airways was founded in the late 1980s and became a member of the Oneworld alliance in 1997. The airline serves 120 destinations with a fleet of more than 200 aircraft.
4. Virgin America:
Virgin America is a low-cost, low-fare airline that began operating in August 2007 after being spun off from Virgin Atlantic. It is based in Burlingame, California, and operates flights to Boston, New York City, Los Angeles, San Francisco, Seattle, and Washington D.C., among other cities in the US.
5. Aer Lingus:
Aer Lingus is Ireland’s national airline that flies between Dublin Airport and 48 destinations across Europe and North America. The company has thirty Boeing 737-800 aircraft, with plans to upgrade its fleet to include twenty-one Boeing 737 MAX aircraft by 2020.
6. Air Berlin:
Air Berlin is an airline based in Berlin that offers flights to destinations in Europe, North Africa, and the Middle East. The company also operates flights under the Niki brand. It was Germany’s second-largest airline until it entered administration in August 2017.
7. Wizz Air:
Wizz Air is a Hungarian low-cost airline founded in 2003 that flies between Eastern European cities and other destinations across Europe. The airline also offers its fleet of private jets for charter flights.
8. Vueling Airlines S.A.U. (Vueling):
Vueling Airlines S.A.U. was founded in Barcelona in 1999, and it is the second-largest Spanish airline after Iberia. Currently, the company operates flights to 70 cities in 17 countries across Europe and North America with a fleet of more than 150 aircraft.
9. Norwegian Air Shuttle:
Norwegian Air Shuttle offers scheduled flights to over 100 destinations in Europe, Africa, North America, and South America under the Niki brand. Norwegian has expanded its network rapidly since launching operations in 2007 with over 130 airports in 65 countries currently served by scheduled flight services.
10. Emirates:
Emirates is the largest airline in the Middle East, with over 150 aircraft flying to over 140 destinations in more than 80 countries. The airline serves London Gatwick Airport, which is Europe’s second-largest international airport.
11. American Airlines:
American Airlines is one of the world’s largest airlines and had operating revenue of $40 billion in 2017. It operates 6,700 flights daily on 995 aircraft to more than 350 destinations across five continents, making it one of the largest airlines in both domestic and international routes. The airline was founded in 1930 by American Airways (which eventually merged into today’s American Airlines) and TWA (which eventually became today’s Trans World Airlines).
How does the future look for Ryanair?
Ryanair has weathered strong competition from Iceland, Norwegian Air, and Wizz Air and continues to operate successfully in the saturated European market. With a new online booking service, Ryanair hopes to continue offering low fares, but it faces new competition from EasyJet and EasyJet and is losing market share to Lufthansa’s base on lower fares. It is also facing pressure from more expensive leisure carriers such as British Airways or Virgin Atlantic Airways.
Conclusion:
During the last two decades, Ryanair has become one of Europe’s largest low-cost airlines, but this success has come with many challenges. The airline’s long-term strategy is to maintain low costs by adding more new routes at airports with lower costs while reducing its costs through outsourcing and focusing on offering the best possible service on its core routes. Ryanair still faces immense pressure from competitors eager to take market share, however.
Ryanair is one of Europe’s largest airline companies. It operates flights to 2,200 destinations in more than 190 countries.
Some Frequently asked questions and answers:
1. What is the current CEO’s Name?
A. The current R. (Bob) Dudley is the CEO of Ryanair.
2. Is Ryanair the only airline to offer seats with a complimentary draught beer?
A. Nope, several airlines offer such drinks and drinks like water and soft drinks in their flights like Virgin Atlantic, Air Canada, KLM and Delta Airlines, and others.
3. Do they accept Cash on demand (CoD)?
A. Yes, they do accept cash on demand forever in our fleet for all of their regular scheduled flights within Europe and Ireland.
