Airline Pest Analysis

2700 words 11 pages

Ryanair is headquartered in Dublin, Ireland and operates a low-fare, no-frill scheduled passenger airline. Ryanair serves short-haul, point-to-point routes between Ireland, the United Kingdom, and continental Europe, making Ryanair Europe¡¦s largest low-fare airline. It has destinations in 13 countries with 76 low-fare routes. Its fleet consists of 21 Boeing 737-200s and 21 737-800s. Launched in 1985, Ryanair¡¦s growth has been extraordinary. Ryanair currently employs a team of 1500 people and will carry over 13 million scheduled passengers in the current year (2002). In 1986, Ryanair broke the high fare cartel, which was then operated by the two state airlines Aer Lingus and British Airways in the Dublin-London route. The
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All this because, Emirates kept to their plan for the year, except marginally reduced the schedules and severely restrained cost.

Competitor Positioning

The strategy of low fare/no frill by Ryanair was considered as an anytime-it-will-break bubble by many of its competitors. Most of the Ireland, Dublin, U.K and other Europe routes were dominated by the giants like British Airways, KLM, Lufthansa, South West, Easy Jet etc. But as a budget carrier, Ryanair set itself vigorous with steady growth ambition, which it hoped to achieve in various ways. This included, operating from regional and secondary airports, initiating additional routes from Dublin, London etc, penetrating into German market which was dominated by Lufthansa. Many other domestic airlines followed the path of Ryanair, but were unable to achieve the growth rate of Ryanair. Ryanair is also dead against state-aid to inefficient and loss making companies. In the aftermath of September 11th, there was speculation of state-aid to a number of loss making European flag carriers. Ryanair wrote to the European Commission, urging it not to alter its policy on state-aid to flag carrier airlines. Ryanair believes state-aid only promotes inefficiency. Ryanair welcomes any kind of healthy competition.

As for Emirates, it is based in Dubai and is perceived as a Middle Eastern airline. But in the Middle East there are no Airlines, which could be stated as


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