Presentation on
Southwest vs Ryan Airlines

COURSE
Strategic Management
MBA -6403

Our Team
Members • Curtesy
Special Thanks to sir,
Dr.Ahsanul Islam
Department of Management
Shanto-Mariam University of Creative Technology
Md. Asif Miah
(Group Leader)
Id:-231503011
Israt Jahan Mukta
Id:-231503010
MD. Hasibul Hasan Rifat
ID : 231503023
Md Shams Mahmud
Id : 231503024
Syed Nur Ul Anawar
Id:-231503025
Md. Nomanul Haque
Id:-231503041

Introduction:
• Southwest Airlines and Ryanair are two of the world's
largest low-cost airlines. Southwest Airlines, founded in
1967, is the world's largest low-cost carrier based in the
United States, while Ryanair, founded in 1984, is the
largest low-cost carrier in Europe. In this presentation,
we will compare and contrast these two airlines,
examining their history, operations, strengths,
weaknesses, and future prospects.

Description of Southwest
Airlines:
• Southwest Airlines is an American airline based in
Dallas, Texas, that operates flights throughout the United
States and several international destinations. It is known
for its low fares, extensive route network, and customer-
friendly policies. Southwest operates a fleet of over 700
Boeing 737 aircraft, making it one of the largest
operators of this type of aircraft in the world. Southwest
has consistently been ranked as one of the top airlines in
the United States for customer satisfaction and on-time
performance.

Description of Ryanair:
• Ryanair is an Irish airline based in Dublin, Ireland, that
operates flights throughout Europe and North Africa. It is
known for its extremely low fares, no-frills service, and
point-to-point routes. Ryanair operates a fleet of over
400 Boeing 737 aircraft, making it one of the largest
operators of this type of aircraft in Europe. Ryanair has
been criticized for its customer service and fees, but it
has also been praised for its low fares and punctuality.

Questions:
★ What are the main differences between Southwest
Airlines and Ryanair?
Southwest Airlines and Ryanair are two airlines that operate in different regions and have different
business models. Here are some of the main differences between the two:
• Business Model: Southwest Airlines is a low-cost carrier that operates in the United States, while
Ryanair is a budget airline that operates in Europe. Southwest Airlines focuses on providing low
fares with high-frequency flights on domestic routes, while Ryanair focuses on offering low fares
with a no-frills approach to air travel.
• Route Networks: Southwest Airlines has a domestic network that covers more than 100
destinations across the United States, while Ryanair operates across Europe, North Africa, and
the Middle East, with a focus on short-haul flights.
• Fleet: Southwest Airlines operates a fleet of Boeing 737 aircraft, while Ryanair operates a fleet of
Boeing 737-800 aircraft.

Questions
• Ancillary Services: Ryanair offers a range of ancillary services such as priority boarding, extra
legroom seats, and onboard meals for an additional fee. In contrast, Southwest Airlines offers free
snacks and non-alcoholic beverages on all flights, and does not charge for checked bags.
• Customer Service: Southwest Airlines is known for its friendly and accommodating customer
service, while Ryanair has been criticized for its strict policies and charges for various services.
• Pricing Strategy: Ryanair uses dynamic pricing, meaning that ticket prices fluctuate depending on
demand, while Southwest Airlines offers a more consistent pricing strategy.
Overall, both airlines have different strategies and approaches to air travel, with Southwest Airlines
focusing on low fares and customer service, while Ryanair offers a no-frills approach with a focus on
cost-cutting and ancillary services.

Questions
★ How have Southwest and Ryanair been able to maintain
low fares while still providing a high level of service?
Southwest Airlines and Ryanair have been able to maintain low fares while still providing a high
level of service through different strategies.Southwest Airlines achieves low fares by focusing on high-
frequency flights on domestic routes, which enables it to achieve economies of scale. The airline also
has a simplified fleet of Boeing 737 aircraft, which reduces maintenance costs and enables it to
negotiate better deals with suppliers. Additionally, Southwest Airlines has a point-to-point route
network, which eliminates the need for expensive hub-and-spoke operations.
To provide a high level of service, Southwest Airlines focuses on friendly and accommodating
customer service. The airline also offers free snacks and non-alcoholic beverages on all flights and
does not charge for checked bags, which can help attract customers who are looking for value.
On the other hand, Ryanair achieves low fares by implementing a range of cost-cutting
measures, such as charging for checked bags, using secondary airports, and offering a no-frills
approach to air travel. The airline also uses dynamic pricing, which means that ticket prices can
fluctuate depending on demand, allowing the airline to optimize revenue.

Questions
To provide a high level of service, Ryanair has invested in online booking and check-in systems,
which can help reduce costs and improve efficiency. The airline also offers a range of ancillary
services, such as priority boarding and extra legroom seats, for an additional fee.
Overall, both Southwest Airlines and Ryanair have been able to maintain low fares while still
providing a high level of service through different strategies. Southwest Airlines focuses on providing
friendly customer service and achieving economies of scale, while Ryanair uses cost-cutting measures
and dynamic pricing to optimize revenue.

Questions
★ How have Southwest Airlines and Ryanair adapted to the
challenges posed by the COVID-19 pandemic?
The COVID-19 pandemic has had a significant impact on the aviation industry, including Southwest
Airlines and Ryanair. Both airlines have implemented various strategies to adapt to the challenges
posed by the pandemic.
Southwest Airlines has implemented several measures to ensure the safety of its passengers and
employees, including enhanced cleaning procedures, mandatory face masks, and social distancing
measures. The airline has also adjusted its flight schedules and route network to reflect changes in
demand.
In addition, Southwest Airlines has implemented a range of customer-friendly policies to help retain
customer loyalty, such as extending the validity of Rapid Rewards points, allowing customers to cancel
or change their flights without fees, and offering travel credits to customers who cancel their flights.
Similarly, Ryanair has implemented a range of measures to ensure the safety of its passengers and
employees, including enhanced cleaning procedures, mandatory face masks, and social distancing
measures. The airline has also adjusted its flight schedules and route network to reflect changes in
demand.

Questions
Ryanair has also implemented a range of cost-cutting measures to reduce its expenses during the
pandemic, such as reducing employee salaries, deferring aircraft deliveries, and suspending non-
essential capital expenditures.
Overall, both Southwest Airlines and Ryanair have adapted to the challenges posed by the COVID-
19 pandemic by implementing measures to ensure the safety of their passengers and employees,
adjusting their flight schedules and route networks to reflect changes in demand, and implementing
cost-cutting measures to reduce their expenses.

Questions
★ What challenges do Southwest and Ryanair face in the
future, and how will they address these challenges?
Southwest Airlines and Ryanair face several challenges in the future, which they will need to
address to remain competitive and maintain profitability. Here are some of the main challenges and
how they may address them:
1) Increasing Competition: Southwest Airlines and Ryanair face increasing competition from other low-
cost carriers, which may put pressure on their profitability.To address this, both airlines may need to
continue to innovate and find new ways to reduce costs and improve efficiency.
2) Rising Fuel Costs: Fuel costs are a significant expense for airlines, and any increase in fuel prices
can impact their profitability. To address this, Southwest Airlines and Ryanair may need to continue to
invest in more fuel-efficient aircraft and find new ways to reduce fuel consumption.
3) Changing Consumer Preferences: Consumers' preferences and expectations are constantly
evolving, and airlines need to adapt to these changes to remain relevant. Southwest Airlines and
Ryanair may need to continue to invest in new technology and offer more personalized services to
meet consumers' changing needs.
4) Regulatory Changes: Changes in regulations, such as new environmental regulations or changes in
trade policies, can impact airlines' operations and profitability. Southwest Airlines and Ryanair may
need to adapt to these changes by finding new ways to reduce their environmental impact and adjust
their operations accordingly.

Questions
5) Economic Uncertainty: Economic uncertainty can impact consumer demand for air travel, and
airlines may need to adjust their operations to respond to changes in demand. Southwest Airlines and
Ryanair may need to find new ways to increase revenue and reduce costs during times of economic
uncertainty.
• In summary, Southwest Airlines and Ryanair face several challenges in the future, including
increasing competition, rising fuel costs, changing consumer preferences, regulatory changes,
and economic uncertainty. To address these challenges, both airlines may need to continue to
innovate and find new ways to reduce costs, improve efficiency, and meet consumers' changing
needs.

Comparison:

Comparison:
• Southwest and Ryanair are both low-cost airlines, but they have
some significant differences. Southwest focuses on the domestic
market in the United States, while Ryanair focuses on the European
market. Southwest has a more customer-friendly approach, with no
fees for checked bags, free snacks and drinks on flights, and a more
relaxed boarding process. Ryanair has a no-frills approach, with
fees for checked bags, snacks and drinks, and a more rigid boarding
process.
• In terms of financial performance, both airlines have been
successful. Southwest has consistently been profitable since its
founding, while Ryanair has also been profitable for most of its
history. However, Ryanair has been criticized for its aggressive cost-
cutting measures, which have sometimes led to customer
complaints and negative publicity.

Criticisms:
• Southwest and Ryanair have both faced criticism over
the years. Southwest has been criticized for its outdated
fleet, lack of assigned seating, and occasional flight
cancellations. Ryanair has been criticized for its
customer service, fees for everything from checked bags
to boarding passes, and aggressive cost-cutting
measures.

Recommendations:
• Both airlines could improve their customer service by
investing in training for their staff and by being more
transparent about their fees and policies. Southwest
could benefit from updating its fleet with newer, more
fuel-efficient aircraft, while Ryanair could benefit from
offering more amenities to customers, such as free Wi-Fi
and in-flight entertainment.

Conclusion:
• Southwest Airlines and Ryanair are both successful low-
cost airlines, but they have different approaches to
serving their customers. Southwest focuses on providing
a high level of service at a reasonable cost, while
Ryanair focuses on providing the lowest possible fares
with few frills. Both airlines face challenges in the future,
such as rising fuel costs and increased competition, but
they are well-positioned to continue their success in the
coming years.

References:
• Southwest Airlines. (n.d.). About Southwest. Retrieved
from https://www.southwest.com/html/about-southwest/
• Ryanair. (n.d.). About Ryanair. Retrieved from
https://www.ryanair.com/gb/en