Ryan Air Case Study

This case study focuses on Ryan Air, a low-cost airline, and includes a SWOT and PESTLE analysis. It highlights the main problem of poor service and unsatisfied consumers, and suggests two management concepts to address the issue. The study emphasizes the importance of employee motivation and service improvement for the airline's success.

RYAN AIR CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................2
TASKS.............................................................................................................................................2
SWOT and PESTLE analysis for Ryan air..................................................................................2
Main problem facing by Ryan air which requires immediate attention.......................................6
Two management concepts and theories.....................................................................................7
Short summary on experience in writing report...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Employee motivation is key element of business success, without motivated work area,
firms could be placed in risky situation; they cannot be able to sustain & grow within its specific
sector. Motivated and inspire workers can lead to increased profit margin and productivity as
well as permit organizations to achieve higher degree of output.
The current study is based on Ryan air airline; it is one of the low cost firms in aviation
industry. This report explain Pestle and Swot analysis in context of firm, and also clarified main
issue that is facing company which requires immediate attention. Furthermore, this report
justified two management theories & concepts used to propose a solution to issue. At last, it also
defines short report on personal experience feel while writing this assessment.
TASKS
SWOT and PESTLE analysis for Ryan air
Strengths-
Lowest cost base is the strength of Ryan air, cost per seat and visitors is lowest in Europe
by some margin, approximately one third lower than that of other airlines such as Easy Jet.
Excluding fuel costs, the difference is even starker, with this airline cost per travelers 67% above
that of Ryan air. This unit cost benefit against easy jet stems mainly from handling and airport
charges, in turn comes from chosen organization use of lower cost airports, smaller with fast
turnaround times (Kanakaraj and et.al., 2018).
With more than 1500 routes across 28 nations in North Africa and Europe, Ryan air has
biggest short haul network of any carriers in Europe. Organization is number one by passenger
numbers, with almost 80 million. It derives a important cost advantages from their minute
turnaround, aid to create firm competitive edge. In many cases, this firm has opened up regions
of Europe where earlier there was little demand for air travel, exciting traffic through their low
fares as well as creating monopolistic markets for themselves, since other airlines carriers cannot
be able to match their fares.

Weakness-
Despite the truth that Ryan air is among the successful low cost airlines in the world,
their cost conscious focus creates a major of issues (Joureau and et.al., 2017). First of all, even
when this firm has been capable to grow each ear since their establishment, its market reputation
is far from being valuable in cost of their markets served; organization is frequently associated
with poor consumers’ services, unfair pricing practices that misguide passengers and tricky
service agreements to maximize ancillary revenues. While list sensitivity to seasonal fluctuations
as well as economic performances is the weakness of low cost airlines sector in general, as low
cost airline such as Ryan air primarily chosen by leisure travelers, any sudden change in need
will influence business earning across their markets. Firm is not diversified into other
complementary segments of sector, which increase Ryan air exposure to low cost travel demand
volatility.
Opportunities-
Apart from Brexit uncertainty, Ryan air possesses a variety of chances to sustain their
growth. Massive aircraft orders make firm able to strengthen their market image and position in
Europe while simultaneously decreasing their environmental impact as well as fuel consumption
through using of state of the art aircraft (Dodds and Butler, 2019). Along with this, while
feasibility of long haul low cost airlines is debated, analyst recommend that demand for
transatlantic long pull lights will increase their future, recently this market is dominated by
traditional flights with higher cost structure than airlines considering low cost business model, so
there will be unexploited growth chances for Ryan air. Further aircraft order is one of the best
opportunities for Ryan air, which they can grab in order to create strong brand image within
marketplace. Improvement in consumer services will be beneficial for Ryan air, as it help to
strengthen their market reputation as well as business growth.
Threat-
Ryan air faces a number of fierce competitions within aviation industry. Norwegian,
Jet2.com, Easy Jet, WOW air and Eurowings are some of the main competitors of organization
in low cost airlines markets in Europe (Raynes and Tsui, 2019). They face legal obstacles as
well, which directly impact on its profit margin and productivity. Some legal actions cause a

financial disaster for firm; it may damage their corporate position in market. Furthermore, it can
be said that these two threats affect airline business activities and practices negatively.
PESTLE analysis-
Political factor-
Political uncertainty is the main political factor that affects Ryan air productivity and
profitability (Raynes and Tsui, 2019). UK departure from European Union brings in important
uncertainty with regards to airline business environment. It creates many problems for firm to
sustain within industry, EU and UK differences make changes in law created for aviation sector.
Ryan air is managing in Europe stability of airline routes might be guaranteed. However,
political uncertainty, affect airline sector by establishing restrictions and regulations for instance
to establish European Union competition rule. It can be said that political problems are very
relevant in this sector which has been and still is under political uncertainty.
Economic factor-
Weakening of pound is a economic factor that created a strong obstacles and impacted
negatively on Ryan air profit margin. Airline sector, in return can experienced a squeeze on
visitors spending on leisure travel expenses, that directly impact on organization financial budget
rather than before. Currently, Ryan air focused on growth of short haul ability which will
increase air traffic in further year. However, the revenue for year declined as the investment
spent for ability growth. Pound weakening put short term impact on firm business negatively, in
which they can overcome by taking right action.
Social factor-
Passenger’s attitudes towards travel had changed widely in recent periods; they are
looking for safety in airlines and quality services while travelling. The poor consumer’s services
of Ryan air put negative impact on its brand image in market (Buaphiban and Truong, 2017).
Organization is unable to provide the best services to its passenger’s and also unable to meet the
needs of people. Changes in attitude of visitors put pressure on airline to make changes within
business practices according to needs, which help Ryan air to sustain within marketplace for
longer.

Technology factor-
Development in technological innovations and emergence of internet has created new
opportunity in aviation industry. Technology development and enhancement put positive impact
on Ryan air business growth as it help to generate more brand awareness within marketplace.
With the help of advanced technologies, this organization can develop their website or page to
share information about their passenger services which help to gain people attention towards
purchasing tickets. Furthermore, with the help of developing webpage in social media platforms,
airline management gets benefits to understand their clients’ needs and then make changes
accordingly.
Legal factor-
This factor includes equal opportunities, product labeling & safety, health and safety and
employment standards. It is clear that airlines needs to know what is legal and what is not in
order to run business successfully within aviation industry. Changes in employment related acts
or regulations put negative impact on Ryan air as they are not providing fair wages to cabin crew
members and criticize for ineffective relationship with their pilots. It may be creates legal
problems for company which is not appropriate for its business position.
Environmental factor-
Increasing concern of government and passengers about environment safety &
sustainability put high pressure on airline industry to perform towards reducing carbon footprint.
European Union passed regulations which mandates Ryan air to operate under EU emission
trading scheme. The legislation of EU government of emissions for airlines may impact on Ryan
air positively as it helps to increase cost of this airline. Ryan already work towards reducing
carbon emission, they take actions for making business more sustainable.
Main problem facing by Ryan air which requires immediate attention
Poor service and unsatisfied consumers-
Ryan air serves following 225 year around and seasonal locations in 41 nations. It is an
Irish budget airline with headquarter in Swords, Dublin. Organization founded in 1984 and has
since carried 1.1 billion visitors; nobody has died while traveling with Irish airline. Firm was

consider as the biggest European airline by scheduled passengers flown and carried more
international visitors than any other airline. All with all able information, the fact is that Ryan air
facing several issues, its industrial relations with cabin crew especially their pilots are fraught.
The organization is a no frills airlines offering low cost airfares and one of the great in their
industry, but there is a major issues existing inside firm that is issue of staff satisfaction, Human
resource and motivation are the issues faced by Ryan air which outcome into unsatisfied
passengers and poor service. The issues that can arise in company when workers are unmotivated
assure this will continue to occupy a big deal of administration attention and time. After
conducting above task, it has been identified that firm face issue going on with their labors. Ryan
air has come under difficult situation for refusing to consider unions and allegedly giving poor
working conditions. Employees make complain against their management, some workers are
restricted from charging their cell phones at workplace to reduce electricity bill of Ryan air.
Without charging smart phone staff would not be able to communicate with their family
members as well as friends, banned from charging creates negative image in mind of workers
about organization, it also create poor working situation for employees at work area while
performing their jobs. In addition with this, cabin crew members are not getting right wages
according to their expectations, they put hard efforts while doing their job but company is not
considering their performance which increase high employee turnover.
In context of these issues Ryan air had to take immediate action and give serious
attention towards it, because it directly impact on its profit margin as well as brand image within
aviation sector negatively. In order to sustain for longer and gain competitive advantage, it is
very important for Ryan air to retain skilled applicants with business and satisfy workers.
Organization motivate their staff by offering the best working place to them, they can provide
better facilities to its workers for example, allow employees to charge their phone and give some
time to feel comfortable and relax while long journey. It help to improve consumer service level
rather than before because unmotivated staff are unable to provide and deal nicely with their
passengers. Ryan air can compensate their worker and efforts solving their issues, they can hire
new HR manager who is able to understand needs and expectations of cabin crew. Furthermore,
workers relations in company are managed and handled through an in house employees relations
committee program, it precludes those on a common contracts from participating in discussion
about firm daily operations & further plans.

Two management concepts and theories
Vroom theory of expectancy-
This theory states that strength of tendency to work in an effective manner is dependent
on intensity of expectations that performance can be followed by a specific result and one appeal
of result to people (Chopra, 2019). So accordant of this theory, tendency of performing hard or
work well comes with wish of a possible reward that is expectation of something according to
hard work complete and when workers cannot get same they get demotivated as well and this is
the situation with Ryan air workers are underpaid and are not treated as an essential part of
airline which make them depressed and unable to focused on work which outcomes into high
employee turnover, poor passenger services and strikes. Vroom expectancy theory clearly states
that staff needs a source of enthusiasm and motivation to satisfy their desired and the largest
motivator in the world is salary or money and the biggest demotivator is also good incentive
because employees within company are work for money and they are unhappy when people get
lower as well as unfair wage than they expect or deserve. This theory will support human
resource manager of Ryan air to understand how individual group members make judgment
about behavioral alternatives in work area. They can then utilize this information as an input for
developing motivated workers. This theory is related to employee motivation; it was developed
by Victor H Vroom and extended by Lawler and Porter in 1968. It relies on assumption that
employee behavior is based on making a cognizant choice from a set of possible substitute
behavior. According to this theory, nature or behavior manager choose will always be one that
increase employees pleasure as well as minimizes their pain. It means that one of team members
can only choose right attitude when they perceive result of selecting this option is the most
valuable for them.
Elton mayo’s behavioral theory of management-
This theory shifted administration belief that workers were like machines and high
productivity was output of management’s drive for profit (Rivkin and Migdal, 2017). By using
this theory, Ryan air in context of their poor employees relations take appropriate step, they can
find out what motivates and inspires their workers to work harder as well as better than before.
This theory is suitable for problem discussed above. It depends on notion that management will
better comprehend human aspect to staff and treat them as significant resources to achieve set

aims and objectives of business. When Ryan air administration takes more interest in workers
safety and needs they can allow labor to feel like as most important part of special team.
As time goes on, thinking shifted and top authority started focusing at workers
satisfaction and performing conditions as was to increase productivity rather than past few years.
According to this management theory, manager studied staff performance under various
conditions to identify a connection. After determining connection, management builds effective
and good relationship with their employees. For example, Ryan air manager observe employees
performance during their working days. Then they give skilled applicants privilege like freedom
to share their opinion and also provide incentives for hard work. Furthermore, when management
had to do this, spend time and express their interest in staff personal well fare and appraise them
for a job well done, employees will feel more valuable and motivation to work harder. In fact,
their behavior towards day to day activities would be positive. Behavior is the best way a
individual conducts themselves towards other people. When manager or high authority of Ryan
air treated their cabin crew & other staff as humans more than machines, they react to their
specific situation in effective as well as positive manner. By showing the greater concern for
workers needs leads to higher motivation and satisfaction levels which lead to behavioral
modification in staff response to work.
Short summary on experience in writing report
While writing this report, I personally experience that employee’s motivation is very
essential, it play vital role in success and growth of business. It helps to build strong and skilled
team of applicants who are capable to contribute in achieving business objectives and aims. In
return it increases profitability of company as well as their productivity. From the above analysis,
I can see quite clear image of what is going on internally in Ryan air as most profitable airline
but still they are facing issues. With the help of writing this study, I had experience that workers
within organization were absolutely unmotivated and unsatisfied with what they were obtaining
from airline, running only for profitability would not take firm anywhere and they must take care
of its most significant resource that is their workers which it is not doing at all and this kind of
behavior outcomes are in front of it, cases poor service to passengers, high employee turnover
and strikes. All these things will never lead Ryan air to a better future.

From above analysis, I had identify and experience that Ryan air needs to focus on
employee well being for which they can take important actions and also improve their
management practices that help to satisfied its staff. I think that company need to make necessary
changes after considering the needs of employees which is quite beneficial in term of increasing
profit margin.
CONCLUSION
From above analysis, it has been summarized that Ryan air takes appropriate and right
decision in order to solve issue mentioned above. By focusing on employees well being,
organization handle the situation and improve consumer services rather than before.
Furthermore, it has been concluded that by implementing principles of two management theories,
Ryan air solve their issues and motivate staff. With the help of management efforts and attempts,
firm they can inspire applicants and create positive work environment at workplace.

REFERENCES
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