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Management Organization - RyanAir.

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ESEI Management Organization Laura Mansilla March 1st 2004 Rafael Garc�a 1stBBA History of the company Ryanair, now firmly established like the largest budget airline of Europe, began to operate in the year 1985 with the launch of a daily flight among the airport of Waterford in the southeast of Ireland and the airport of Gatwick in London. The flight was carried out with a turbo prop bandeirante with capacity for 15 passengers. The company had compromised to carry out cheap flights and to make possible that everyone, in Ireland and in the RU could travel by airplane, not only the rich. In the first year, the 57 employees of the company transported some 5,000 passengers in their unique route. In 1986, Ryanair broke the placard of high rates operated then, in the route Dublin-London, by the two national airlines, Aer Lingus and British Airways. Between 1975 and 1985, the route Dublin-London had been stopped in, more or less, a 1 million passengers per year and was characterized for charging one of the most expensive rates in Europe. In 1985, before Ryanair to appear, the normal price of the roundtrip bill Dublin-London was of �209. ...read more.


did it, inaugurating services from the airport of Stansted in London to Stockholm and Oslo as well and also from Dublin to Paris and Brussels. To penetrate these markets, one more time, Ryanair offered rates 50% under the cheapest offered by the national air lines. The passengers responded with enthusiasm and in great volume to the unusual arrival of low rates to the European market. Ryanair was the first economic air line that offered regular flights from the UK to Europe and vice versa. In 1997 Ryanair Holdings plc was launched also to the market of Dublin and in New York permitting to its 700 employees to become shareholders. For that, the airline was capitalized to a posted value to GO�300 million and transported more than 3 million passengers a year for all its 18 routes. In the year 2000 the airline launched the largest travel Internet page of Europe WWW. RYANAIR. COM, which barely three months after its launch was receiving more than 50.000 reserves for week by means of incredibly low rates that from �1 (more taxes) for a roundtrip bill Glasgow-London and of �9 for a roundtrip passage Dublin-London. ...read more.


The company is constantly growing by opening new routes and buying new planes, and all this with an innovative style that for some is considered as a radical management, since it challenges the "establishment" within the airline industry. Opening new routes and buying new airplanes will create and is already creating more than 3.000 new positions of work in Ryanair, including more than 800 pilots, above 2.000 cabin crew members and more than 800 positions in the sectors of engineering and operations. These will bring a new era of efficiency for costs and Ryanair will grow to a rate of 25% annually offering lower rates. For Ryanair there are many people outside the company that has influence over it. Obviously the most important ones are the clients, all the people that choose to fly through Europe using Ryanair. Other stakeholders of Ryanair are the company that sells them the airplanes, their competitors, the governments of each country, and also the media, among the most important ones. Ryanair is competing not just with other budget airlines, but also with well established airlines; probably these ones are the ones that can affect the most the performance of the company because they have a lot of power and they are feeling threatened by Ryanair. ...read more.

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