Ryanair is an airline company established in 1985 with its headquarters in Dublin set up by Cathal and

Declan Ryan in 1985. Ryanair started its activity with one 14-seat turboprop aircraft from Waterford
to London-Gatwick

In 1986 Ryanair announced, that they will start flying between London and Dublin. Since the first route
developed well, Ryan brothers decided to increase the list of routes with a new London-Dublin route.

They decided to operate 4 round trips per day with a 44-seat assuming that plane will be always full,
but the competitors running 60-70 % full. Ryanair announced 98 Irish pounds per ticket when the BA
and AL offering at 208 Irish Pounds. It was a really low price thats why new customers started to fly
with them instead of transporting by train or ferries. It was also faster and economic.

An important thing that distinguish Ryanair from others is that its employees would focus intently on
delivering firs-rate customer service and simple, single fare ticket with no restriction.

Startup losses in 1985 and 1986 totalled approximately I2 million. In 1987, however, the company
posted a profit of I1 million. By then, jet service to London had been approved, and Ryanair was
running a 104-seat jet on the Dublin-London route.

It tried to keep prices roughly 10% below the best prices offered by competitors. Customers
responded enthusiastically to the simple fares. Though Ryanairs passenger volumes grew rapidly, the
company soon began to accumulate large losses: I6 million in 1988 and I4.5 million in 1989

In 1989, the Irish Government instituted a policy of separating Aer Lingus and Ryanair. Of the two
Irish carriers, only Aer Lingus was allowed to serve London Heathrow and Gatwick, Manchester, and
Paris. Only Ryanair was permitted to fly to London Luton and Stansted, Liverpool, and Munich. Despite
the route separation, Ryanair continued to lose moneyup until the January, 1991, cash crunch.

On the verge of bankruptcy in 1991, the company had removed absolutely all frills from its service, cut
its costs to the bone, and dropped its fares to levels unheard of in Europe. Passengers flocked to the
low fares, and revenue and profitability rose quickly. A last-minute infusion of cash from the Ryan
family permitted Ryanair to make its payment to the Dublin Airport authority in January, 1991

Later in 1991, Michael OLeary was promoted from the position of Finance Director to become Deputy
Chief Executive of the struggling airline. Under OLeary, Ryanair cut its costs radically. Loss-making
routes were dropped and planes redeployed on a handful of remaining routes. The companys earlier
focus on customer service gave way to an obsession with cash. Efforts to preserve and generate cash
became paramount. All in-flight amenities, such as free coffee and snacks, were eliminated. Labor
contracts were renegotiated so that pay reflected productivity. Flight attendants, for instance, began
to be paid in part based the number of flights they flew and in part as a function of their duty-free
sales. The space behind seat-back trays was leased out to advertisers. As it eliminated amenities,
Ryanair dropped its fares substantially. Passenger volumes picked up. The company soon became a
low-cost, low-fare airline. Ryanair returned to profitability by 1992 and remained profitable.

Routes By September, 1999, Ryanair operated approximately 150 flights per day to thirteen locations
in the United Kingdom, four locations in Ireland, and sixteen locations in continental Europe. Also it
operates mostly on airports were not congested, making it easy to obtain landing slots and likely that
flights would land and depart on time.
Starting in late 1999, customers could also book flights via the companys web site, ww.ryanair.com.
On weekends, when many travel agencies were closed, the portion of tickets sold via the web site rose
as high as 70%.

Management emphasized that the no frills approach did not extend to its maintenance operations
and safety efforts. The company was proud that its 15-year operating history included no major
injuries to passengers or flight crew or damage to aircraft.

Ryanair advertised in newspapers, on radio, and on television. The company also relied heavily on
word-of-mouth advertising by satisfied customers. Many customers found their way to Ryanair not
because of advertising, but because they asked their travel agent for the absolute lowest fare.

The pilots earned 10% more than the typical pilot in the industry and flew 50% more sectors. Following
the initial public offering of Ryanairs stock in 1997, stock options were granted widely to employees.
Additional options were granted each year that net profit after tax grew by more than 20%.

Ryanair promoted largely from within the company, and the companys rapid growth created
numerous internal opportunities. One hundred and seventy-one employees, over 14% of the
workforce, were promoted in 1999 alone.

Full-service airlines such as Aer Lingus and British Airways had difficulty matching Ryanairs low fares.
By 1999, neither carrier was Ryanairs primary competition in the eyes of most industry analysts.
British Airways withdrew from the Dublin-London route in 1991, soon after Ryanair began its
turnaround.

In 2010 more than 90% of flights were on time, and we are very committed to constant quality
improvement. Ryanair gives additional value to its costumers with possibility to check-in online,
reducing the required time, waiting in lines and gives passengers a more comfortable traveling.

Conclusion :

To be Europes Leading Low Fares Airline with the objective of Number 1 For Customer Service. For
this the strategy will be No Frills, Low Cost Approach, Point-to-point Short Haul Flights and Regional
and Secondary Airports