Ryanair - business analysis. What is the strategic position of Ryanair and how to maintain and strengthen their position for the future?

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Summary Ryanair - the low fares airline

A new airline company was founded in 1985, namely Ryanair. This company was the first competitor for Aer Lingus. During the first years, they were actually "a full service conventional airline" . They had two different classes of seating and they leased three different types of aircraft. At the beginning of the nineties they turned there airline company from a full-service into a low-fares, no frills-carrier. The restyling had been based on the model of Southwest Airlines. Tony Ryan who was the founder of this company hired Michael O'Leary who was going to lead the new management team. As a result of the restyling in 1997, they were able to become floated on the Dublin Stock Exchange and the NASDAQ.

The family sold the company for IR₤56.7 million and purchased a stake of 61% for just only IR₤3.1 million. Michael O'Leary also purchased a stake, which was 17.9% for IR₤0.9 million. Another investment group (David Bonderman) invested IR₤1 million in equity and an IR₤24 million loan through Irish Air (vehicle company). In return they received a stake of 19.9%. David Bonderman, who was already chairman of Continental Airlines, became also chairman