Ryanair is an Irish flying company which was founded in 1985 by the Ryan family. The initial capital invested constituted to just £1. The business vision and mission of this flying company is to offer affordable flights across Europe. It has grown from a small family company to a big quoted company with over 40 million passengers a year. Ryanair is owned by different investing companies, so despite the family company background it is not family-owned. As the flying business is presently going through a turbulent phase, our interest lies in the future of Ryanair and how the company wishes to weather the economic tsunami. The fuel prices are constantly on the rise and the markets are intense with competition at its brim. If weathering this much of inconsistency in the airline industry is unfathomable, there are many more such challenges to be encountered. It is observed that security issues are also preparing the flying business to face more trying situations. Studying the airline business in depth especially one of the leading airline companies across Europe (Ryanair) is an interesting and engrossing area. Therefore, analyzing Ryanair's strengths and its opportunities to nullify the effect of its weaknesses and threats is what our study will focus on. As a well known fact, if Ryanair's ordinary shares are primarily quoted on the Irish Stock Exchange Limited, how would it grapple with the bearish market?
[...] Another barrier could be the number of operators in the market. Indeed, there are already a lot of companies so if a new company wants to get in it needs a different concept which will differentiate the offer and could attract the clients of the other companies. The most important threat comes from other low-cost companies operating in the rest of the world and from Airlines companies operating in Europe. Indeed, the latter can easily creates a subsidiary in the low-cost Airlines because they already know the market. [...]
[...] Ryanair expects unit operating costs. Thus we can see by putting this effort into its investment on aircraft, Ryanair has much confidence that both its short-term and long-term growth is ―manageable and sound‖. Analysis of Ryanair Part Financial Analysis We analysed the latest financial statement of the year ended on 31 of March 2006. It's the first time Ryanair presented its financial statement according to IFRS Highlights These figures give an image of the size of the company as well as its profitability and balance sheet structure. [...]
[...] But the company never made a big secret out of these matters and tells on its homepage barefaced that it will continue to do everything to keep it fares as low as possible. The key figures and forecasts seem to proof that the business concept of Ryanair is working and the company is the biggest on the LCC market with the highest profit by far. Considering the plans to install more hubs and the big orders for more airplanes it can be expected that Ryanair will continue its aggressive expansion and marketing strategy also in the future. [...]
[...] This makes it the cheapest airline company and it attracts more customers but being profitable and to generate profit to shareholders is even more difficult with this principle. Fuel prices are only expected to grow, so it is interesting how Ryanair will meet this principle in the future. Operating margin Ryanair's revenue, operating profit and net profit have been constantly growing for years. Only operating margin has decreased. One reason to this is the growing fuel costs. Increasing operating costs make the business less profitable and the company has to increase its revenue even more to get the profit out of it. [...]
[...] The reason for this success seems to be the very clear position on the market and the image the company created from the very beginning. It is also the only company which only targets secondary airports and it also uses only one type of aircraft to keep the maintaining costs as low as possible. But Ryanair is also a very controversial company. It was the target of several issues concerning the treatment of employees, handicapped persons and was also accused of blackmailing airport companies which were unwilling to cooperate. [...]
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