Ryan Airways: To Shannon Sir

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Ryan Airways

To
Shannon Sir
About Ryanair
 Founded in 1985:
 2 Aircrafts

 Carried 82,000 Passengers


 Transformed to Low Cost Airline
 Rapid Expansion :
 169 Aircrafts
 794 Routes
 148 Destinations, Across 26 European Countries

 58 Million Passenger Annually


Key characteristics
• European destinations only
• No frills on aircrafts
• No complimentary food/drink

• Ancillary revenues:
a) Car rental b) Hotel business
Marketing performance

Price
 70% tickets sold at the lowest fare

 24% tickets sold at the higher fare

 6% tickets sold at the highest fare


Target Audience
94% of passengers are between 18-44 years old

Leisure Business

40%

60%

RyanAir’s pricing strategy appeals all market segments


Marketing objective
Low cost/high volume strategy

Basic
customer
service
Low cost
promotion Second
hand
aircrafts Cadet pilots –
No training
Low-cost promotion

In-house advertising
Simple and basic website
 Ads on the aircrafts/ in terminals

Direct marketing, no travel agencies


RYANAIR Competitive Advantages

  No Cargo Service
Online Bookings
  Bargaining Power
Point-to-Point Flying
  New Aircrafts
In-house Marketing
  Operations Denominated in
No Frills
 Reduced Turnaround Times Euro
 No Refund Policy
 Corporate Partnerships
RYANAIR Competitive Advantages(cont’d.)

 Limited Airport  Eliminating seatback


Transportation pockets
 Advertising on Airplanes  No blankets or pillows
 High Productivity  Airsickness bags
 High Service Levels distributed on request
 General Cost Reductions  Charges larger penalties
for overweight luggage
Ryanair’s Future Plans
Cutting Costs Revenue Enhancement
 No Reclining Seats,  Satellite Television
Leather Seats  Internet On-board
 Velcro Headrests
 Rented In-flight
 Carry-on Luggage
entertainment
Numbers of Success

6.000 employess 830 routes across 26 countries

58 million passengers
per year

105 million euros profit (end 2009)

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