A SWOT analysis of an airline - RYANAIR This analysis is self analysis using few references on the airline for studying its SWOT aspect. SWOT - Strengths, Weakness, Opportunities,

1. Ryanair Airlines SWOT Analysis:
Challenges for Ryanair, answers for the same
Ryanair’s journey has not been a smooth run for the company over the years. Being in
business since 1985, it has carved a niche market for itself in being the most widely used
low cost airline today. Global recession of 2008 definitely affected Ryanair in a huge
way. Its scope to increase fares and increase volume of passengers was hit hard. Since
economies collapsed spending power of the regular consumer collapsed too.
In this paper we are going to discuss the challenges and threats Ryanair has to face and
what could be the probable recommendations for the same.
As new opportunities become limited the low-cost carrier market’s growth slows down
significantly. Ryanair must be prepared for the inevitable convergence of costs and
conditions, but it will still retain the ‘no-frills’ advantage of high seat density and aircraft
utilization coupled with lowest fares in any market. A SWOT analysis of Ryanair shows
that it would continue to dominate in the low-price market segment but it has to
expand to new routes and ensure services are going to better than before. Good
customer relations always help in creating customer value. This will require high
employee retention which is key to customer satisfaction. Ryanair has been previously
accused of being an adversely affected airline in the world with regards to
environmental issues with a shortfall of 2.8 tonnes in CO2 allowances. This is in turn
caused the airline loss of about € 40 million. Market conditions are always dynamic in
nature. Corporations have to constantly struggle to keep a foothold. To sustain and
expand in such a dynamic market requires critical analysis and planning on the part of
the any corporation. Hence growth will slow down. Ryanair’s competition with other
low-price airlines in such a market will require it to launch new routes and operations in
non-European regions. This would help it to carve a niche market not just in the Europe
but outside Europe as well like Turkey and Russia. This would require off-base (like crew
lodging in areas not having home bases) service operations increasing operational costs.
This will cut into its operating margins. At the same time, its improved services can have
a positive impact on the share prices. Since stock market earnings are always based on
expansions and high operating margins they will continue to be vulnerable to market
dynamics. Ryanair is already the leader in the lower price segment and it needs to cater
the rapidly growing value segment to have total domination. The value segment
constitute travelers interested to optimize time, comfort and price. Preferences would

2. have to be given to city-centric airports, convenient departure and arrival times, and
basic service. Competitors like EasyJet, Air Berlin, Basic Air, BMIBaby are catering to the
Value market segment. They have been successful in establishing slots at some primary
airports and providing basic cost effective services. Acquisition of Aer Lingus has not
only enhanced Ryanair’s expansion plans and market share but also helped it to stay in
the top position of being in the low-price segment.
The SWOT analysis given below explains how Ryanair can achieve its goals and mission
by capitalizing on opportunities and utilizing its strengths and eliminating its weaknesses
and threats.

3. STRENGTHS
Brand Name (25+ yrs) Poor service
Prone to bad press
Revenue Growth
Low airport charges Secondary airports too far away
Low distribution cost
Weak employee relations
Micheal O’Leary’s aggressive
Leadership High turnarounds (CO2 emissions)
No hub and spoke Misleading website
WEAKNESSES
Low maintenance Niche Market
Boeings
LCC market share can double
Fuel costs THREATS
EU enlargement
Increase in low fare airlines
Open skies agreement
Launch of new routes Customers are price sensitive
Fleet expansion Threats to security
OPPORTUNITIES
EU regulations
Increase in entrepreneurial activities Dependence on economic cycle