Business Model of Ryanair
by Ruslan Kakenov
Flight: Barcelona - Rome
Company
26/09 27/09 28/09 29/09 30/09
Iberia €137 €97 €112 €97 €112
Alitalia €137 €137 €137 €137 €137
Ryanair €89 €69 €69 €56 €56
Total scheduled passengers carried in 2010, millions
How does Ryanair make profit at lower
prices?
Ryanair’s Business Model
Lower the costs
Optional fees
E-commerce & advertising
Lower the costs
Standardized aircrafts (Boeing-737)
Contracting out of services
Airport charges
Staff costs and productivity
Marketing costs
Airline&rail fares from Barcelona
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Distance (km)
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Traditional airlines Low cost airlines 2002 rail fares
Optional fees
Priority Boarding €5
Admin fees €6
Add bags €15-45
Infant fee €20
Musical equipment €40
Sports equipment €40
Change Flight €50
Name change €110
If someone wanted to pay £5 to go to the toilet I would carry them
myselfMichael O’Leary, Ryanair CEO
E-commerce & advertising
Hertz car rental
In-flight sales
Travel related e-services
Travel related e-services
Accommodation
Insurance
Bus&train tickets
Cruises, golf etc
Drawbacks of the model
Unprotected employees
Low comfort & fair customer
service
Much reliance on ancillary revenue
Legal issues
Questions
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