Ryanair Case Study
KEY FACTS AND STATS 2012
||Ireland and Europe
||1,600 routes; 30 countries; 186 destinations
||Over 300 aircraft; Boeing 737
- Before the Ryan family development of Ryanair, the LCC concept was not developed in Europe; Southwest Airlines by comparison was well established as an LCC in USA
- Very high fares prevailed in Europe; deregulation of European travel was envisaged but had not yet taken place (European Community)
- Tony Ryan had developed the largest aircraft leasing business in the world (Guinness Peat Aviation) and was a pioneer of the industry
- Tony Ryan and sons, Declan and Cathal, wanted to create new concept in airline travel to revolutionise travel between Ireland and Great Britain, and Europe.
What was achieved
- Ryan family developed Ryanair in 1985
- Initially commenced with an aircraft on Waterford, Ireland to London Gatwick route. Eyepopping >50% discount on fares
- Became upstart competitor - overcame many challenges and navigated many twists & turns
- Used insights from Southwest Airlines in USA
- Acknowledged as a pioneer - forging LCC model in Europe.
- Developed highly successful strategy of using secondary airports
- Became lowest cost airline in Europe. Multiple accolades
- Europe’s largest airline by passengers carried; over 300 aircraft and 82m passengers per year
- New 2013 Boeing order of 180 aircraft.
- LCC model works for consumers; #1 choice
- Lowest cost wins in long term
- Attention to detail; simplicity of processes and disciplined execution of the model is key
- Customer’s most valued metrics (beyond safety) – low fares, high punctuality, low lost bags. Ryanair leadership position on all measures.
- Ryan family founded airline; active involvement at all levels
- IPO in 1997 on NASDAQ
- Outperformed NASDAQ by 8x, 1997-2012
- Still shareholders