PROCESS ANALYSIS OF RYAN AIR

Process Analysis of Ryan Air



Process Analysis of Ryan Air

Introduction

Airline Ryan air first flight in 1985, representing a tiny airline - the "home" business family Ryan. Starting flights cheap fares between Irish cities and London, the airline after 5 years were close to bankruptcy after failing to make a profit or for one year of operation. The appointment in 1990 as director of airline talented innovator and speaker Michael O'Leary was a turning point in the history of the company. Southwest Airlines O'Leary and his colleagues have carefully studied and applied in practice, the business model of low cost transportation of the American Southwest Airlines (Shankleman, 2007). Ryan air has become the first "low fare / no frills” airline in Europe, giving rise to low-cost revolution in the continent. Following the principle of "not enough to be a 10% discount, you need to be cheaper by 90%" new team Ryan air had a radical restructuring of the airline drastically reduce its expenditures. Boeing-737-200 Replacing the fleet by one aircraft type, refusal of 14 unprofitable routes and focusing only on the 5 remaining, the internal company reorganization, a significant reduction and simplification of tariffs. One year later, Ryan air for the first time managed to make a profit (Ryan air Official Website, 2011).

Discussion

Ryan air uses the market as a lever. Indeed, informing the market that its goals contribute to reducing costs and thus increasing its profitability, it provides induced rise in the price of its share price. A high stock price then put it away potential predators (predatory takeover of all aggressive). It also allows him to raise capital more important in cases of capital increase. This is the phenomenon of Ryan air which plays the stock market capitalization. 

It should be noted that Ryan air receives the market confidence: they are betting that Ryan air is a company of the future. Its dividend policy is such that Ryan air pays no dividend to its shareholders. They are reinvested in full in society to promote the development of the company mainly through increasing its fleet for its entry into new markets and expansion of its services. 

Ryan air Analysis

Forces

Flexibility of pricing policy permitted by an efficient yield management

Under a tariff policy as a result of sophisticated yield management performance, the profit on a flight begins beyond 50%, prices of the last seats, purchased before.

Quality of service-consumer:

Good punctuality, baggage loss very low, canceled flights uncommon. Ryan air itself as the No. 1 airline in terms of punctuality and the remainder in 2007 airline with the lowest rate of canceled flights. 

Stock performance, financial:

Growth is an absolute necessity for Ryan air. Indeed, the cost structure of these

Companies cannot be maintained unless it is supported by strong growth. 

Weaknesses

Social practices Mavericks:

Refuse / intolerance of unions: Ryan air is also highly publicized because it has social practices unethical to meet its precept of cost savings.

Furthermore, Ryan air's employees are required to purchase their uniforms at their own expense and we just forbid them to recharge their cell phones at their place of work to do electricity savings.

The company is too dependent on its market performance

Ireland v United Kingdom:

Ryan air's business could be affected by any event causing a decline in demand for air travel in Ireland or the UK, including in particular adverse changes in local ...