Ryanair: A Low-Cost Airline Revolution

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GLOBAL HOSPITALITY AND TOURISM ISSUES
By (Name)
Class
Professor
College
City and State

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Introduction
Christopher Ryan, Tony Ryan, and Liam Lonergan founded Ryanair in 1985, and the first
air travel was between Ireland, Waterford, and London Gatwick. The plane was small with a
capacity of 15-seats with few flight attendants were needed to be less than 5.2 meters tall. During
its first year of operation, the airline had 51 employees and at least 5,000 passengers, and it was
one of the smallest commercial airlines worldwide. Notably, the airline was established during a
time when regulations of European air travels were in place, and the latter intended to break the
duopoly placed on London-Ireland flights that were held by Aer Lingus and British Airways. In
1986, a new ruling by the EU influenced the partial deregulation of air travel that stated that
airlines could ply new international flightpaths as long as either of the nations accorded. Thus,
Ryanair opened a second route from London Luton to Dublin, which directly competed with the
“duopoly”. Unfortunately, the Irish administration declined licensing for the course to shield
“Aer Lingus”, although “Margaret Thatcher” and the British administration accepted Ryanair to
the route.
Currently, “Ryanair” charges 99 pounds for the Dublin-Luton flight which was a total
undercut on the 209-pound regulation rate provided by “Aer Lingus” and “British Airways”.
Despite Ryanair proffering only two short flightpaths, it became Europe’s cardinal “low-cost
carrier” (LCC), and altered the air travel in the continent through its pricing structure. The airline
went through swift expansion during the late 1980s; Ryanair acquired new commercial planes,
and expanded the routes it offered. The airline provided flights out of the “United Kingdom”,
and it became a significant industry contender on all primary flightpaths within the “United
Kingdom” (Geller, Folan, and Shain, 2013, p.4). Ryanair felt the need of becoming a serious

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contender to the existing airlines in Europe; this influenced the latter to introduce a regular flyer
scheme, and provided enterprise class seats. However, this did not work well for the firm.
Business Strategy of Ryanair that Attributed to its Success
Ryanair has established itself as a major commercial airline globally. The former utilizes
the “cost leadership” approach and makes a fine consumer base and market dividend in the
European market. Importantly, the primary mission of the airline is to use latest technological
driven planes to please their consumers. Thus, they try to provide superb services to all ages and
class of people at the cheapest charges. In addition, Ryanair offers the best work experience to
their workers, and treats everyone equally with the utmost respect. Conversely, the airline
considers its shareholders by providing them with a 2x of return on their investment, which
enhances the company’s performance in a positive direction. The firm offers 30 percent of a
higher return on taking measures for their particular financial resources. These goals assist
Ryanair is working efficiently and strategically outdo its competitors.
Ryanair’s Current Business to Consumer Approach and Internet Use
The primary strategy of Ryanair in approaching its customers is providing low fares that
are coupled with quality customers’ services. The airline offers consumers with regular point-to-
point flights on short-haul flightpaths, which minimizes operation levies, while maintaining high
productivity. Furthermore, they take advantage of the internet in serving customers (McGarrity,
2014). The company has placed emphasized on customer experience through using social
networking sites such as YouTube and “Twitter” to get in touch with its purchasers directly, and
promoting the marque in an engrossing, and affable manner.
Ryanair Maximizing Asset Use and Airport Use