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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.
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The main features ofRyanairs strategy
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.
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The main features ofRyanairs strategy
Paid-for extrasTo increase the Ryanair's sales and reducing cost, the
management providing auxiliary services.
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The main features ofRyanairs strategy
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.
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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.
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The main features ofRyanairs strategy
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.
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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
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The core competence of Ryanair
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.
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The core competence of Ryanair
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.
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The core competence of Ryanair
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.
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The core competence of Ryanair
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.
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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
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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