@2010The Ryanair AirlineIntroductionRyanair is an airline company based in Europe with its headquarters in Dublin. The airline industry in which this company operates has been described by many as a very fascinating and unique industry. This is an industry that had been accorded a lot of government protection through various forms of controls up until the year 1980. The Ryanair Airline Company is one among many companies that plunged in to the airline industry on the deregulation of the controlling polices that created room for a lot of competition.
The Ryanair airline was founded by Christy Ryan in the year 1985. At its inception, this airline company owned a fifteen seat aircraft of the Embraer Bandeurante Turboprop model. This airline has rapidly grown since its inception in to one of the largest airline companies in the entire Europe. Its growth has always been characterized by rapid expansion especially on the deregulation of the government control policies alongside its model of being a low cost carrier. At the moment, Ryanair is Europe’s largest carrier with regard to the number of passengers. Ryanair is also the largest airline with reference to passenger numbers on the international arena.
This airline has rapidly established itself from what was a minor short haul airline in to a very giant airline company. The deregulation of policies by the European government represented a very ample opportunity for this airline. This came after the airline managed to successfully trade its shares on both the Dublin and the NASDAQ stock exchange between 1992 and 1999. This was at the same time when the airline managed to expand its operations to various destinations including Stockholm and Oslo.
The year 1998 saw the airline investing a lot of its revenue in to the purchase of various aircrafts including 45 Boeings of the 737 model. The expansion of the airline has overtime translated in to the increase in the level of its operations alongside the increase in the number of necessary facilities. Analysis of the Current Business Environment Affecting the Airline Industry The aviation industry is very competitive. It is an industry that demands the stake holders to incorporate appropriate business strategies.
With reference to the Ryanair airline, a number of aspects are elucidated on the need to have appropriate strategies. The Ryanair airline company is not only the leading airline in Europe but also a leader in air industry innovations. Competition is an aspect that is common to all business set-ups. The Porter’s five forces model of competition describes how a number of forces influence competition (Rigas 2006). Any airline company in the European aviation industry faces the great challenge of competition coupled with the volatile pricing of jet fuel and the dominance of price sensitive customers (Gilligan et al 2003).
Generally the European aviation industry is highly threatened by the high bargaining power of various suppliers alongside the threat of various substitutes and new products. This has been further intensified by the open skies policy that has been adopted by the European Union. The concept of deregulation was such a great boost to the level of competition in the European aviation industry. This was more appreciated by a number of low cost carriers like the Ryanair airline company.