Jan 16, · Summary Ryanair, one of the most famous low cost airlines, attracts attentions from people and researchers all over the world. As the financial crisis and the European debt crisis have an obvious negative influence on the global economy, the aircraft industry has experienced some decline for the last few blogger.comted Reading Time: 8 mins Ryanair orders 75 Boeing MAX aircraft ( in Total) Read news. H1 Results FY Available Now. View Results. Ryanair & Brexit. Read Q&A about Brexit. Welcome. Welcome from Michael O'Leary. Watch video. Performance. Latest Results. H1 FY22; Annual Report ; 20F Statement ; XBRL Annual Report F; Latest Results. Shares. Shares Missing: financial analysis Feb 21, · RYA Ratios. This table contains critical financial ratios such as Price-to-Earnings (P/E Ratio), Earnings-Per-Share (EPS), Return-On-Investment (ROI) and
Financial analysis of Ryanair and British Airways - Free Essay Example | blogger.com
Summary Ryanair, one of the most famous low cost airlines, attracts attentions from people and researchers all over the world. As the financial crisis and the European debt crisis have an obvious negative influence on the global economy, the aircraft industry has experienced some decline for the last few years.
However, both the sales and profits of Ryanair have increased during this period. In this essay, we will first analyse the external environment of Ryanair by using PESTEL Analysis Model. Then we will make an in-depth analysis about its strategic capability by SWOT model strengths, weaknesses, opportunities and threats. In the following part, we will compare Ryanair with its biggest competitor easyJet and critically access the effectiveness of its cost focus strategy. Finally we will give a conclusion of the whole result of our research and give some suggestions for its future development.
Introduction Ryanair was first established ryanair financial analysis by Christy Ryan, Tony Ryan and Liam Lonergan. Its headquarters are located in Ireland, while its primary operational bases are at London Stansted Airports and Dublin.
At the same time, Tony Ryan persuaded his financial advisor to assume the CEO. Then, Ryanair began to learn experience from Southwest Airline, and was the first one ryanair financial analysis introduce the cheap air carriers and mode into Europe. Profitability of consecutive years has made Ryanair to become the most profitable airlines in the world.
Findings and Analysis Environmental Analysis. Order custom essay Analysis of Ryanair with free plagiarism report. PESTEL Model is used in this report to give an overview of the six different environmental factors that the company has to take into consideration.
Firstly, political factors refer to the political organizations and relevant policies, laws, regulations as well as other factors which have the actual and potential impacts on operating activities Gillespie, The charge which was raised by airports of different countries has a significant effect on Ryanair. In addition, EU imposed a regulation on 17 Februarywhich asked airlines to provide standardized and immediate assistance for passengers who stayed at EU airports for delays, cancellations and denied boarding.
There are two interrelated economic factors that affect Ryanair. It created adverse economic situations such as high unemployment rates and severe credit crisis, which lead to the leisure spending and business ryanair financial analysis declining.
Ryanair's planned passenger volume growth has been restricted by this depression. Moreover, the continuing growth of fuel price is the greatest concern to this company, ryanair financial analysis. It is hard to control and predict the wide fluctuations of Jet fuel price and its increase demand. Thirdly, social factor refers to the historical development, cultural traditions, values, education levels, as well as customs and other factors of society where the organization belongs to Gillespie, It can be found in Ryanair's own report that Ryanair as well as other airlines are facing some social changes--threats from terrorist attacks, the continuing acceptance of the security budget suppliers and more price-sensitive business travelers.
These factors make up the social factors which affect Ryanair and aviation industry. Ryanair financial analysis, technological factors include not only the revolutionary innovation but also some relative new technologies, new materials and new ways of operating or management Ryanair financial analysis, For airline industry and airline companies, the contributions of technology could be separated in three parts: to ensure aviation safety, ryanair financial analysis, to improve the quality of services and to make operations more efficient, ryanair financial analysis.
Even Ryanair bought some of second-hand planes, these aircraft are all Boeingwhich could reduce the training fee for pilots and flight attendants Box, More important, Boeing's help to make the unitive structures of plants could decrease the possibilities of incorrect operations and the unsuited spare parts of aircrafts. Although Ryanair is widely regarded as a low cost airline, ryanair financial analysis, it is also one of the safest airlines.
As some of other airlines rely on the tickets agents, Ryanair built its own website and ticketing system. The cost of agency fee is reduced and the company could make control of the ticket service which could lead to some misunderstandings as some operators of tickets agents would treat customers in a worse mood. Furthermore, through operating the ticketing system, Ryanair itself, could make booking tickets and bounce easier and speedily.
Fifthly, ryanair financial analysis, environmental factors include ecological and environmental aspects. Countries in the world are faced with the enormous challenges of environmental issues, and sustainable development is an important way to solve this problem Gillespie, Although Boeing helps Ryanair to save fuel of airplane, it is not enough at the moment.
New energy sources such as biological energy source are in the experimental stage and should be used in the further, and most airlines have to adapt to the new development. Lastly, legal factors include discrimination law, consumer law, ryanair financial analysis, antitrust law, employment law, and health and safety law Gillespie, Ryanair's latest attempt to take over ryanair financial analysis Irish rival Aer Lingus is investigated by the European Commission over competition worries.
Ryanair also has problem with the government. This change leads to the increase of cost of daily operation of Ryanair. To cover the costs of the EU's new eco-looney ETS tax, the Ryanair has to raise the prices of tickets, which could make their prices less competitive, ryanair financial analysis. Furthermore, BAA, the owner of London's Heathrow airport, is seeking to sell Edinburgh after ryanair financial analysis a legal challenge to an order from the UK's antitrust regulator to break up the company, while the bid of Ryanair is rejected by BAA Rothwell, Strategic capability analysis SWOT Analysis Model ryanair financial analysis used to assess the strategic capability of Ryanair by ryanair financial analysis dimensions: Strengths, weaknesses, opportunities, threats.
Strength 1. Low-cost strategy The most significant strength of Ryanair is its low-cost strategy. It uses a young efficient fleet with low cost of ownership and industry load factors to increase benefit and gain high asset utilization.
Youngest fleet. Although the action is without permission and also costs damage, it still made the ryanair financial analysis become famous rapidly. Weakness 1. Overstep in increasing scale. Ryanair is too addicted to increasing scale.
This will cause the increasing of operating costs. With the growing of fuel and airport charges, the bigger scale of the company is, the more challenges it will be faced to. Most of people think this measure was not suitable and will give a bad impression on Ryanair.
Opportunities 1. New markets With the enlargement of the European Ryanair financial analysis, a lot of new destinations could be opened up. Skies agreement opened by Ryanair financial analysis could be a source for increased routes and passenger traffic inwards.
Besides that, future open skies agreements in Turkey, Tunisia and Georgia could make these interesting countries for the carrier, he added.
Benefits from economic recession. Threats 1, ryanair financial analysis. With the increasing of global oil price, fuel cost could be a burden for Ryanair and its expansion plans will be challenged by the high fuel price. Value market segment is being catered by an increasing number of competitors, such as easyJet, Air Berlin, Basic Air, BMIBaby. at some primary airports have been established by them Air Scoop, ryanair financial analysis, Ryanair have to compete directly with other low cost carriers in the near future.
At the same time, additional marketing costs and reduced yields from lower fares force Ryanair to promote additional routes. As a result, Ryanair was likely to encounter increased competition, and continue depressing yields, ryanair financial analysis, as airlines struggled to fill vacant seats to cover fixed costs. Customers are very price sensitive Because of the low cost strategy, the customers of Ryanair are much more sensitive to price, that means, any kinds of extra fees could make bad influence on its corporate image.
Introduction of duty for fuel and environmental charges Since Ryanair is powerless to prevent ryanair financial analysis environmental charges such as the tax on aviation fuel, its growth potential would be reduced as the unit costs would be increased. SO strategies 1. Ryanair should use the low-cost passenger ticker strengths to attract more customers.
Nowadays, ryanair financial analysis, global economic recession is a serious problem to all over the world, ryanair financial analysis, especially for Europe. Ryanair is a company most facing the European market. Customers now are more concern about the price. The company should catch this opportunity to occupy more market share.
ST Strategies 1. In the next few years, low cost airlines market expansion would probably slow down because new opportunities would be more limited. As growth slows, ryanair financial analysis, labor costs for the low-cost carriers will continue to rise as well as the level of oil prices. In order to achieve the aim to be the biggest player and keep its domination in the low-price market segment, Ryanair will have to expand into more popular routes coupled with retaining its differentiation strategy, such as purchasing newer, more fuel-efficient and environmentally friendly aircrafts and offering best customer services compared with its peer grouping in Europe.
Strategic Assessment The core strategy of Ryanair Airlines is cost-focus strategy. The company continuously keeps its cost ryanair financial analysis a low level to offer low-fares services. EasyJet is a Europe's leading airline comes from the United Kingdom, founded inwhich has remarkable positions in some key markets: No.
in Gatwick, Milan and Geneva; No. And easyJet is one of ryanair financial analysis leading lights of Europe's budget flight industry. million EasyJet? The ancillary strategy has been working well so far. However, the scheduled revenues which should be the primary business revenue of Ryanair were lower than its competitor easyJet, ryanair financial analysis.
It might be caused by the cutting routes strategy and lower average load factors, especially the cutting routes strategy carried out inwhich has already cut down rotes routes in Jet fuel is always variable and cannot be predicted previously. And jet fuel prices are dependent on crude oil prices, which are quoted in U.
In order to minimize its loss on fuel price change and currency rate, like many other airlines do, such as Southwest Airlines, Ryanair uses forward contracts to protect against fluctuations. It might be largely due to the aircraft it adopts. Ryanair uses single fleet type—Boeingwhich is considered to be one of the most fuel efficient fleet type, while easyJet has two types—Airbus A, A The single fleet type reduces the number and cost of aircraft components in stock, as well as its maintenance cost, ryanair financial analysis.
This may be a result of its promotion for ancillary revenue. In order to earn a widely range of revenue apart from scheduled revenue, Ryanair advertises its services in national and regional newspapers, ryanair financial analysis, as well as controversial and topical advertising Ryanair annual report, ryanair financial analysis, In addition, there is a strategy of transferring operating flights from high cost airports to low cost airports in winter in order to reduce cost in off season, ryanair financial analysis.
Actually, Ryanair always has a worse public image than its competitors due to its marketing strategy by making stunts.
Generic Strategies - Ryanair
, time: 12:41Ryanair SWOT Analysis Everything You Need to Know
As for the bargaining power of suppliers, it mainly results from the high dependence of airlines on fuel. Competitive analysis. Ryanair strives for operational efficiency and price leadership focusing on very cheap tickets, on time flights and fewer lost bags Jan 16, · Summary Ryanair, one of the most famous low cost airlines, attracts attentions from people and researchers all over the world. As the financial crisis and the European debt crisis have an obvious negative influence on the global economy, the aircraft industry has experienced some decline for the last few blogger.comted Reading Time: 8 mins Oct 13, · In a separate announcement, Ryanair projects a profit of 1 billion Euros in the financial year. Business Model: While other airline companies desperately cut costs during the pandemic, keeping costs as low as possible is at the core of Ryanair’s business model. Specifically, Ryanair keeps costs low by offering non-essential services as blogger.comted Reading Time: 8 mins
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