Low Cost Strategy: Case Analysis of Ryanair Airline


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Low-Cost Strategy: Case Analysis of Ryanair Airline

Low Cost Strategy: Case Analysis of Ryanair Airline


Ryanair Airline is one of the oldest airline companies and was started in 1985.The company was formed by three brothers namely; Declan, Catlan, Shane Ryan. The airline was founded with an aim of offering low-cost services to its passengers between Ireland and London. Tony Ryan who was their father, was the chairman of Guinness Peat Aviation Company, and through his position he leased them a fifteen seater turbo prop commuter plane to enable them start their operations. After Ryanair was formed, UK and Irish governments signed a new agreement that was to de-regulate air traffic between the two countries. The Irish government decided to give license to a second Irish operator on the route from Dublin-London and Ryanair was awarded the licence.Ryanair had managed to transport 5000 passengers and had a staff of 57 within the first year.Ryanair then purchased two more planes which were 24 seaters to enable them to meet operational requirements.