Ryanair has transformed itself from a traditional airline to a highly successful low-cost carrier using several strategies: operating on a low-cost business model that passes costs directly to customers; focusing on direct, point-to-point routes from secondary airports to reduce costs and increase load factors; and generating additional revenue through ancillary fees and services. The document provides an overview of Ryanair's history and business model, a PESTEL analysis of opportunities and threats, comparisons of costs to traditional carriers, and examples of strategies to further reduce costs and boost revenues through measures like charging for items previously provided free of charge.

1. Ryanair’s Analysis
Anthony Bellamy – Ingrid Bernard – Catherine Brebion – Jérémy Ogeix

2. Global Presentation
Business Model
PORTER Analysis
PEST Analysis
Futur plans
Conclusion

4. Source: European Low Fares Airline Association, 2009
1985
Creation
1991
Michael
O’Leary
Appointed
Transformed to
Low Cost Airline
1997
Floated on
Dublin SE
and
NASDAQ
2009
6369 employees,
25 different
nationalities

6. Using Hub& Spoke
network
Peak hours
Lots of delays
Complex fare structure
Non-stop point-to-point
services
High seating density and
load factors
Direct booking
No frills
Use of secondary airports
Full Service
(Traditional)
Low cost

7. 0 5 10 15 20 25
Other operationg costs
Flight crew
Cabin crew
Aircraft fuel and oil
Airport and ANS charges
Sales and reservations costs
Advertising and promotions costs
Station costs
Commission
Aircraft related costs
Passenger service costs
Low cost way Traditional way
(Cost per thousands of Revenue Passenger Kilometres)

8. Resource-
Based View
(Inside out)
Marketing
view
(Outside in)
Low Cost Airline
Business Model
(Passes the
costs directly to
Ryanair’s
customers)
Variety of
Destinations
&Routes
Competitive
Advantage
Competitive
position

10. General Cost Reductions
One Class Travel
Point-to-Point Flying
No Refund Policy
No Frills
Highly Successful Ancillary Service Offering
Online Bookings

12. Threat of New Entrants
LOW
Threat of Substitute Products
MEDIUM
Clients’ Bargaining Power
HIGH
Suppliers’ Bargaining Power
HIGH
Industry Competitors
HIGH

13. 1. Lufthansea
Passengers – 70m
2. Ryanair
Passengers – 70m
3. Air France/KLM
Passengers – 77.4m
4. EasyJet
Passengers – 60m
5. British Airways
Passengers – 46m

18. Cutting Costs
Revenue Enhancement
No Window Blinds
No Reclining
Seats, Leather
Seats
Velcro Headrests
Use of mobile
phone
Internet On-board
Rented In-flight
entertainment

19. Ryanair’s business model has some limits
but the market offers lots of perspectives:
Low cost Airline Business Model has
restructured European Aviation Industry
Innovative way of advertising the business
Creative alternative revenue generation

20. Thank you!