Swot RyanairSTRENGTHS * A low cost company. Plus, operating costs per passenger were cut by 4 per cent and average fares fell * A partnership with Boeing in order to guarantee low maintenance costs. * Anew management team, led by Michael O’Leary who is very ambitious and firm. * “most profitable airline in the world” * Reduction of fuel consumption * Leader of opinion : permanent innovation copied by other low cost companies * High productivity of the staff * Emphasizes on Internet use | WEAKNESSES * The company is ready to sacrifice it all for growth. Indeed, Ryanair has a specific strategy that consists in transferring the costs to the passengers (the company has always tried to find ways of charging passengers for services once considered intrinsic to an airline ticket). * Ancillary services can annoy passengers * Bad reputation (misleading publicity, fat tax, toilet costs…) * Secondary airports which are sometimes far from cities) * Expensive manpower (high salaries) * Poor working conditions * Legal trouble |
OPPORTUNITIESEnvironmental : newer aircrafts that produce 50 per cent less emission, 45 per cent less fuel burn and 45 per cent lower noise emissions per seat. * The company is expecting a reduction in fares in order to beat its competitors who will be unable to follow Ryanair in this “bloodbath” * An increase in market share thanks to the demise of several carriers * The European market (the EU enlargement) * Launch of new routes : the company planned to open 146 new routes in 2010 * Ancillary services which can generate money | THREATS * The industry is not in very good shape (global economic recession, oil prices) * Competition (EasyJet) * European laws * Airbus doesn’t want to deal with Ryanair * Airport charges and government taxes * Passenger compensation (delays, cancel flights) |
SO : Overcome the image of a low cost company by being environmental-friendly
ST : Emphasize on innovation in matter of...