RyanAir Holdings (RyanAir) is engaged in the aviation industry. It provides low fare scheduled passenger airline services between Ireland, the UK and Continental Europe in the form of short haul and point to point routes. It conducts business operations through one business segment named low fares airline-related activities. The company principally operates in Europe.
This report presents an in-depth business, strategic and financial analysis of RyanAir Holdings plc. The report provides a wide-ranging insight into the company, including business constitution and operations, executive biographies and key competitors.
Ryan air was founded by Tony Ryan in 1985 with capital of an Irish pound (1.30 €) and 25 employees. The average age of Ryan air's fleet is 3.1 years at April 7, 2009. On October 2, 2009, Ryan air's fleet consists of 250 Boeing 737-800 with capacity of 189 passengers each.105 Boeing 737-800 aircraft are on order and Ryan air has a call option for 161 Boeing 737-800 extra. In September 2010, the fleet has 254 aircraft and in February 2011, the company has received its 300th single-aisle.
To save on maintenance costs and operating aircraft, Ryan air's fleet is composed of a single model of aircraft, the Boeing 737-800. The airline placed an order with Boeing for 306 new Boeing 737-800. The firm orders should be delivered by 2012.
BUSINESS PLAN FOR RYAN AIR (FOR 12-24 months)
If I was a Managing Director of Ryan Air and was asked to design a program, planning to develop it, for the 12-24 months to achieve the objectives lay down, and to meet the targets I will plan as follows;
Targets for financial - profit margins
Ryan air is getting awareness day by day and growing with an expected rate and it has always keep its customers retain and have try its best to make them satisfy.
As a managing director I will keep forecast for next 24 months net profit to rise between 300 million and 350 million Euros. Before forecasting this amount we have analyzed the market performance of the first two months and asked our stakeholders to maintain their cost to keep down as much they can, so that we can achieve our projected net profit.
I will raise the fares up to 10% not more than this because if we raise our fares more than 10% there will be a chance that our customer will be distracted to other Airlines. So we have to try to make our other indirect costs low and maintain our fares. As we are also known for “low Cost Airline” and we have to maintain perception of the people to achieve success and our forecast net profit. (Association of School Business Officials International 2000 P.105-111)
To achieve targets set we also have to make our on-going monitoring to see where we are failing and make ourselves correct. Financial ongoing monitoring (which is measured when and where) and to analyze cash flow (monthly, quarterly) by focusing on: