The Sustainability of the Ryanair Model

This paper reports on Ryanair, Europe’s largest new entrant airline since deregulation. The author examines the sustainability of the Ryanair product, focusing on acceptability to passengers, the use of secondary airports, labor productivity and use of outsourcing, corporate culture, policy environment and legal and policy obstacles. The author discusses how the Ryanair airline product differs from the traditional airline product in Europe in terms of price and service standards. Another section addresses the use of secondary airports and their impact on passenger choice and airline economics. A final section covers the sustainability of the Ryanair model in terms of its product, consumer attitudes, secondary airport acceptability, its low cost base, and some external factors. The author concludes that the growth of the airline is expected to continue because of the popularity of low fares, the willingness of passengers to forego traditional airline services in order to avail of low fares and the ability of Ryanair to control and reduce costs. The low cost base of Ryanair is a function of a simple product, high productivity of the airline staff, and a policy of strict cost control over airports, aircraft suppliers, and distribution costs.

Language

  • English

Media Info

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Filing Info

  • Accession Number: 01003035
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 5 2005 10:11AM