Summary: Ryanair- the low-cost and no- frills airline
Ryanair (founded in 1985) was providing scheduled passenger airline services between Ireland and the United Kingdom. The airline is competing with the carrier: Air Lingus (that had the monopoly position before) in 1990 the passengers’ volume has increased enormously but the company had to deal with a major lost and some other turbulence. To survive Ryanair restyled itself and became a low-fares, no –frills carrier. Micheal O’Leary was pointed as the leader of the management team.
In 2007 the CEO of Ryanair (Micheal O’Leary) announced a bid for its Irish rival, Air Lingus. Ryanair had already procured 19.2 per cent of the shares and what to merge with Air Lingus to achieve 80 per cent of all the flights between Ireland and the rest of Europe. Ryanair did it before with the Dutch budget airline, Buzz. This was a good opportunity and worked out well for Ryanair. The Air Lingus merging deal was not accepted. The Chief Executive of Air Lingus Dermot Mannion said that; ‘Air Lingus and Ryanair are revivals they are competing with each other for years, it is not possible to merge and work harmoniously together that is just not possible’ Ryanair would not increase the bid but it would continue to be a shareholder an to encourage Air Lingus to reduce costs and offer lower fares.
Because of this bid Ryanair want to establish its position as carrier not only European but also globally. Ryanair was announced as ‘the most profitable airline in the world’ in August 2006. By that time there was a growth in amount of passengers, amount of airplanes, net profits (12 per cent) and passenger revenues (27 per cent). Ryanair is continuing to offer the lowest fare is every market. And as Mich ...