During the three following years (from the '87 to '89) Ryanair grew quickly and inaugurated many new routes among Ireland and the UK, enlarged his floats with the acquisition of jets BAC 1-11 and airplanes ATR 42 Turbo Prop. Although the passengers, attracted by the low prices, responded in crowd to Ryanair, it did not exercise an effective control of costs and the company only accumulated losses. For 1989, it counted with 350 employees, 14 airplanes (of four different types) and transported 600.000 passengers a year but, nevertheless, Ryanair lost £20 million in barely four years.
A new board of directors reorganized the air line among 1990-1991, and relounged Ryanair as the first one of a new lineage of airlines "under cost / without luxuries ", being based in the formula utilized for the first time and with great success by Southwest Airlines in the United States. They eliminated the routes that didn’t produced profits, reduced the network of routes from 19 to only 5, got rid of the airplanes turbo prop, and reduced considerably the rates of the remaining routes, offering 70% of all the plazas in the two lowest rates. For 1991, Ryanair operated a fleet of six jets BAC 1-11, employed 350 persons, transported 700.000 passengers for five routes and, for the first time registered profits.
1997 was a historic year for Ryanair. Thanks to the deregulation of the air transportation in all Europe the airline had, for the first time, the freedom to open new routes toward Europe and, thus 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. The press of tourism has described like revolutionary the introduction of the Lowest Fare Guarantee, no other airline guarantees to beat the rate offered for the same city and to pay the double one of the difference if a cheaper rate is found in another place.
Right now Ryanair is the budget airline with the lowest rates of Europe, it operates 76 economic routes of rates to 13 countries through Europe and this year it will transport more than 12 million passengers. This summer Ryanair will operate with a fleet of 44 airplanes Boeing 737.
PEST
Mission and Vision
The mission of Ryanair is to keep the lowest fares among all the other European airlines and to have a friendly and efficient service that satisfies the clients needs.
The vision to the future of Ryanair is to keep going up and be Europe’s largest airline in the next six years.
Goals and Objectives
To achieve their mission and aspirations, Ryanair is doing many things. They describe it in this way: “Superb cost management. Landing in airports that don't rip you off. Free seats when we're feeling generous. No frills on your flight — but we'll sell you food, drink and gifts. Punchy advertising that sometimes gets us in trouble. And we take on the High Fares guys when they try to block our routes and airport management when they want to charge us too much.”
This is how Ryan air is going up, and to be the largest company in Europe in the next years, they are going to acquire up to 150 new planes Boeing 737 – 800. This it is the greatest purchase of 737 of new Generation never carried out and will convert Ryanair in the largest operator of airplanes 737 of new Generation, as well as the airline with the newest fleet of Europe.
Strategy and Stakeholders
Ryanair has been considered since 1999 and for the following years as the airline best managed in the world. 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.
