• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Impact of increasing oil prices on Ryanair

Extracts from this document...

Introduction

Impact of increasing oil prices on Ryanair "Oil prices almost doubled in Q1 from $61 to $117 (per barrel) as our fuel bill rose 93% to �367m. Fuel now represents almost 50% of our total operating costs compared to 36% last year." (Ryanair, 2008: 1) Following this statement from Ryanair first quarter results report 2009, I will analyze fuel prices as an external economical impact affecting Ryanair's total operating costs. "Ryanair is Europe's largest low fares airline" (Ryanair, 2008: 3) carrying "approximately 58 million scheduled passengers" (Ibid.). To critically evaluate the various impacts upon the company, we have to examine the positive as well as the negative aspects linked to this issue executed in the subsequent SWOT analysis. ...read more.

Middle

From an internal point of view many employees will be dismissed due to the launch of "self-service check-in kiosks" (Ibid.). Opportunities of Ryanair being loyal to their promise of never charging the customers for higher fuel costs attract additional new customers who turn "to less-expensive carriers" (Niththyananthan, 2008: B2). Introducing cheaper and fuel efficient aircrafts (Ryanair, 2008) does not only cut the company's operating costs but also contributes to a global environmental sustainability. Ryanair is planning to "continue to absorb higher oil costs, even if it means short-term losses" (Ryanair, 2008: 1). As stated in our opening quote from Ryanair (2008) fuel expenditures amount to 50% of the operating costs and according to various sources the average price of crude oil per barrel is expected to rise in 2009 for example, the Deutsche Bank forecasts the barrel price at $120 (Meyer, 2008). ...read more.

Conclusion

The only main difference resides in a positive future perspective from the company's point of view opposed to an inopportune outlook from the public media. Although Ryanair's CEO Michael O'Leary is very confident about his forecasts managing the operating costs, the global economic situation does not verify his actions. The airlines operating income increasing due to a higher number of customers is not a situation sustainable over a long-term because of the coherent decline in quality of service as mention above. From my personal perspective I think Ryanair is using a substantial marketing strategy intended for attracting customers in recession time of the travelling market. Yet, it is very perilous and can result in a bigger problem then assume. The information provided was up to date, very useful and sufficient to objectively evaluate the situations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Information Systems and Communication section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Information Systems and Communication essays

  1. Marked by a teacher

    Database Coursework on a Vehicle Rental System: Analysis

    5 star(s)

    Due to the computerised nature of the proposed system, there will be data validation methods in place to minimise data entry errors by having strictly defined parameters in place to determine whether the data entered is acceptable or not. * The modification of information: - In the current system, if

  2. Internet statement investigation of supermarkets

    Therefore I will develop the syntax method and hopefully gain more results. There are 2 methods I can add to my statement so that my results will narrow. With my statement I can additionally add a plus sign which will only list pages that include the word.

  1. Cunha & Ribeiro Ltd: Stock Control & Invoice Database

    The Current System Fact Recording: 1 In order to confirm the problem given to me by Mr. Ribeiro, I have devised the following questionnaire for him to answer that also contains the answers that he has given me: 1. Is your current system electronic or paper-based?

  2. Systems Analysis

    - Follows on from RAD but is a method that manages jobs between workers and software analysts * Top Down - Allows the developer to break a system to show it how it deals with data processing through a level 0 to level 2, where level 2 and system is analysed through a data prospective, going in depth.

  1. This report seeks to study the social phenomenon of Short Messaging Service (SMS) and ...

    This led them to develop the mobile communications technology, known as the Global System for Mobile communication (GSM), from the ground up "as a system for analog voice with modulated digital capabilities built in." [3] SMS was then created as part of this GSM standard as "a way of sending call set-up information to mobiles from an SMS center."

  2. Alarm Systems Analysis

    Proximity Sensor - These sensors are made in two halves, and a signal is activated if the two halves are moved away from one another. They are often seen on windows. The Peterson's could use sensors like these to activate a signal if their windows are opened when the alarm

  1. The Impact of Mobile Phones on social Interaction

    The pressures associated with mobile phones .................................44 6.6 Mobile phones as a business amongst 13-18 year olds .......................45 7. Conclusion ..............................................................................46 8. Appendices ..............................................................................49 8.1 Questionnaire 1 .....................................................................50 8.2 Questionnaire 2 .....................................................................53 8.3 Focus Group questions ............................................................55 ACKNOWLEDGEMENTS Firstly, I would like to thank my supervisor, Professor Cliff McKnight for his support and advice throughout my project.

  2. Feasibility Report

    And hardware like a scanner can be used, to scan in important business documents i.e. financial issues. o The integrated software like Microsoft Office, will allow the owner, the administration staff and the kitchen staff to complete general day to day activities on screen.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work