Download - Case Study R-Airlines JUDY

8/2/2019 Case Study R-Airlines JUDY

1/12

The main features ofRyanairs strategy

Low-cost

Using secondary or airports located outside citybecause the charge of secondary airports arelower than other airports.

The Ryanairs planes must to turnaroundapproximately 25 minutes. Optimum boardingtime.

Flying point-to-point, makes the plane needs lessworker and use hub-and-spoke system. Thatkeeping operation inexpensive.

Only 2 flight attendants per flight to save money.


2/12


No-frills Ryanair has already embodied through a list ofpolices

for the low-cost strategy. Its include fleet commonality,managed marketing costs, airport charges and route

policy. Ryanair use outsourcing to third parties in some daily

issues like aircraft handling, ticketing and handing.

Engines and heavy maintenance are contracted out

whereas the clerk of the company just carries outroutine maintenance.

Ryanair not only controls productivity but also keepsstaff cost down.


3/12


Paid-for extrasTo increase the Ryanair's sales and reducing cost, the

management providing auxiliary services.


4/12


Paid-for extras1. In-flight sales:

The in-flight sales include food,beverage, light snacks and water.

The in-flight entertainment also

charged. Baggage Check-in were not free, but

can bring food and drinks onboard

Use the cabin addressing system asadvertisement.

Flight attendants pay is tied to saleslevels.


5/12

The main features ofRyanairs strategy1. In-flight sales:

2. Websites:

Provide internet related service is a new way thatmaximize the sales levels. Offer travel-related service,

including train and bus ticket and travel insurance.


6/12


Online booking system:Ryanair.com

The online bookingsystem simplify thebooking process and cancontrol their own saleschannel.

Ryanair can maintaintheir own ticketreservation system,compare with the centralreservation system, thissystem saving 3% extra

cost.


7/12

The core competence of Ryanair

The lowest airplane farerates.

Ryanair has no frills, it cansimplify the work flow.

Large brand consciousness

Clear target focuses onparticular market segment

Variety and innovativestrategies on low-cost

Quick turnaround time


8/12


The ability to cut down costs to keep low fares while atthe same time remains profitableis their corecompetence.

The low cost and high subsidiary income: In the financial report of 2008, the company's non-fuel

fees fell by 3%.

In 2010 fiscal year, the company plans to reduce non-

fuel unit costs by 5%. The ancillary revenue growth 23% to 598 million, it

helped the company achieve annual revenue growthtarget.


9/12


1. Fleet Commonality

The flights in the fleets are Boeing 737,so that

the firm is able to reduced the maintain staffs

training fees and other accessories fixed cost.


10/12


2. Contracting Out of Services

Ryanair contracts out aircraft handling, ticketing,baggage handling and other services to thirdparties

so it can obtain competitive rates and multi-yearcontracts at fixed prices, limiting exposure to costincreases.


11/12


3. They has airport Charges and

Route Policy

The airport charges includelanding fees, passengerloading fees, aircraft parkingfees and noise surcharges.

The firm avoids congestedmain airports and chooses

secondary and regional airportdestinations successfullyreducing these fees.


12/12

References

Ancillary revenue growth as a business strategyat Ryanair.http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair

Ryanair, 2010. Investor Relations: FinancialReports.http://www.ryanair.com/en/investor/download/2009

Ryanair:the way to Low-cost Empire . http://www.airnews.cn/consultation/29154.shtm

l
http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.ryanair.com/en/investor/download/2009http://www.ryanair.com/en/investor/download/2009http://www.ryanair.com/en/investor/download/2009http://www.airnews.cn/consultation/29154.shtmlhttp://www.airnews.cn/consultation/29154.shtmlhttp://www.airnews.cn/consultation/29154.shtmlhttp://www.airnews.cn/consultation/29154.shtmlhttp://www.ryanair.com/en/investor/download/2009http://www.ryanair.com/en/investor/download/2009http://www.ryanair.com/en/investor/download/2009http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010http://www.slideshare.net/supersonicswan/ancillary-revenue-as-a-business-strategy-at-ryanair%20Accessed%2025th%20July%202010