1. UNIVERSITY OF WARSAW
Faculty of Management
CASE: Dogfight over Europe: RyanAir (A)
Evaluate Ryanair Entry Strategy
Group names:
Jasone Argintzona
Katarina Kokoškova
Pablo Perez Sanchez
Rebecca Pouchain
Alexandra Vernoy

2. Evaluate Ryanair Entry Strategy
The airline industry belongs to one of the prosperous industries in the world. The
breakthrough of this industry distinguishes for the period after World Wars, when demand for
travelling was high. Therefore we may specify many airlines in Europe at that time. With the
time airline has become important travel mean. For instance, Air France, Lufthansa or British
Airways had a great position in industry. However these airlines were not successful because
they had to face some unexpectable issues like unprofitability, inefficiency and consumer
dissatisfaction with prices. Airline industry is said to be industry which is mainly based on
fixed costs, so British Airways revenue was focus on staff, selling and fuel expenses.
Ryanair’s goal is establish itself as leader in low-fares scheduled passenger airline through
continued improvements and expanded offerings of its low-fares service. Ryanair aims to
offer low fares that generate increased passenger traffic while maintaining a continuous focus
on cost-containment and operating efficiencies.
Ryanair officially came to air market in 1985 with its main purpose to connect
travelling between Dublin and London. Its main goal was to compete with other airlines,
which belonged to favourite ones at that time of need of travelling. Because of the fact
Ryanair brother’s father had worked for Irish company Aer Lingus.
In order to be a leader in air industry, Ryanair focused on three important strategy.
First, RyanAir wanted to be leader in low fares, which means that RyanAir offer a low price
compare to competition airlines (98pounds). These low fares are said to be designed to
stimulate demand especially from leisure and business travelers. Its strategy implies in
seeling seats on a one way basis. Thus RyanAir eliminate minimum stay requirements from
all travel on Ryanair scheduled services, regardless of fare. RyanAir also sells million round
trip passenegers flew the route each year.However RyanAir had to fight with lower fares of
ferry and rail. Due to these means of transport RyanAir’s total passengers had been stagnant.
That’s why may conclude as RyanAir major competition in travel industry.
The second important strategy which RyanAir used was connecting with reliable
customer service. Ryanair’s strategy is to deliver the best customer service performance in its
peer group. Ryanair wanted to distinguished from other airlines company, so it focused on
better punctuality, fewer lost bags and fewer cancellations than all of the rest of its peer
grouping in Europe.
Third important RyanAir strategy is dealing with frequent short flights. Ryanair
provides frequent point-to-point service on short routes (the first one London-Dublin) to

3. secondary and regional airports in and around biggest population centers or travel
destinations. Thus RyanAir wanted to be profitable, because it offered four round trips with
44 seats on this way with reasonable price(fare) of 98 pounds. RyanAir did not have any
permission on longer routes at that time. Based on this fact Ryanair was allowed to offer
frequent service, otherwise expected by customers on longer flights.
Last but not least we may specify the strategy of low cost. Because of the fact
Ryanair offers direct routes it tried to avoid the costs of baggage transfer and transit passenger
assistance costs. In general RyanAir’s costs belongs to the lowest costs in Europe. RyanAir
wanted to make an effort in control expenses with main focus on customer service costs,
personnel productivity and aircraft costs.
To sum up the RyanAir Strategy we may say that RyanAir is said to be a leader in
airline industry, it tries use strategies friendly to its customers in order to compete with other
means of transport. Thus it tries to reduce main fixed costs. A small role in success of
RyanAir plays also small familiar cooperation with Aer Lingus as father like long worker in
this company, had been experienced with airline industry.