Ryan Air
...a very well recognised Brand name.
- Benefits from low airport charges: these aid the low base Ryanair benefits form
- Has first mover advantage on regional airports: acts as a barrier to entry
- Internet site (94% booking) www.ryanair.com: lowers the cost of distribution as over the phone booking are more costly. Eliminates the need of travel agents
- High seat density
- All Boeing aircraft: a uniform fleet saves on maintenance and training costs
- Fast turn-around
- High service performance: punctual, high rate of flight completion, low baggage loss, these give a good image of the company’s reliability.
- Modernised fleet which leads to less expensive maintenance: will become more uniform with only one model (737-800), also newer planes will require less maintenance.
- High aircraft utilization: Ryanair flies its planes for longer thus generating more revenue from its assets.
- Fuel and other risks hedging
- Small headquarters: low on over beads
- Point to point: no hub and spoke, lowers cost as no through services required
- Leading low cost airline
- Strong revenue growth
- Business strategy
- Air Lingus possible acquisition
Weaknesses:
- Prone to bad press: Ryanair is perceived as arrogant and the slightest incident gets a lot of press coverage.
- Niche market: restricted expansion possibility
- Distance of some regional airports from advertised destination: over time customers may find this a big inconvenience.
- Poor service: people, skills.
- Ryanair is extremely sensitive to changes in charges (increase in fare value)
- Weakening employee relations
- Lake of scale
Opportunities:
- EU enlargement: there will be a lot of new destinations opened up
- Still potential to capture market share: The LCC market share could more than double
- Benefits from less exposure to geopolitical risks: as only really operates in Europe...
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