RyanAir:
Flying Too Close
to the Sun?
Key Issues
-
Rostering Crisis
External Pressure (Customers / Passengers)
Future Growth
Rostering
Crisis
-
Mismanagement of Pilot Scheduling
Mass Flight Cancellations
Public Backlash
External
Pressures
-
Growing Dissatisfaction with poor service and rigid
policies
-
Brand Reputation damage due to delays,
cancellations, and lack of transparency
Future
Growth
-
Overdependence on Cost Leadership Model
-
Struggles to attract and retain skilled staff
-
Need for innovation & digital expansion to stay
competitive
Case Analysis
Threat of Substitutes –
Moderate
Porter’s 5
Forces…
Threat of New Entrants – Low
Rivalry – High
Bargaining Power of
Suppliers – High
Bargaining Power of Buyers –
High
General Environmental Analysis
Technological
●
"MyRyanair had 43 million users, helping the airline
sell hotels, cars, and tickets more easily."
Political/Legal
●
"Pilot strikes and flight cancellations happened
because Ryanair didn’t plan properly for union
demands."
Economic
●
"Ryanair’s fares dropped from €46 in
2013 to €39 in 2018 to stay competitive."
Demographic
●
"Launched Family Extra and Business Plus to
reach new customer types."
Environmental
●
"The new 737 MAX aircraft would cut fuel use by
16% per seat."
Business-Level Strategy Analysis
Cost Leadership Strategy
Offers the lowest fares in Europe by
keeping costs as low as possible.
It doesn’t try to offer luxury, just
the cheapest and most efficient
way to fly.
Key Ways Ryanair Achieved
Cost Leadership:
Single Aircraft Type (Boeing 737)
Secondary Airports
No-Frills Service
Direct Sales Model
High Aircraft Utilization
Fewer unions (before 2017)
Strategic Shift:
“Always Getting Better” Program
What they did:
Why?
In 2013, Ryanair faced customer
dissatisfaction and stagnating growth.
Improved customer service (e.g., 24-hour grace period, clearer policies).
Invested in digital platforms (app, website, personalization).
Launched new segments:
Family Extra (families)
Business Plus (business travelers)
This preserved cost leadership while improving customer experience.
VRIO
R & Cs
V
R
I
O
SCA
Low-Cost Operating Model
✅
✅
✅
✅
✅
Non-Union HR Model (Pre-2017)
✅
✅
❌
❌
❌
Ancillary Revenue System
✅
❌
❌
✅
❌
Ryanair Labs & Digital Infrastructure
✅
✅
✅
✅
✅
Airport Relationships & Scale-Based
Bargaining Power
✅
✅
❌
✅
❌
Alternatives
Develop Digital Ecosystem and Expansion
of Ancillary Revenue Stream
-
Further development of the
MyRyanair Platform
Leveraging modern technologies
such as AI in tandem with existing
systems
Rebrand Around Sustainability and Reputation
Repair
-
Repair reputation through public campaigns
Leverage already existing AGB program as a
base to launch consumer focused initiatives
Use real customer experience to promote the
refocus on consumer experience
Recommendation
Deepen its digital ecosystem and expand ancillary
revenue streams
➢
Leveraging the MyRyanair platform
○
➢
Integrating AI along with its existing CRM systems
○
➢
personalized offers and efficient cross-selling of
services
■
accommodation, insurance, car hire, and event
tickets
diversify revenue, improve customer retention, and scale
its operations efficiently
New Advertising Campaign
Implementation Plan…
● Goal: Strengthen operations, enhance digital
ecosystem, and grow ancillary revenue
● Timeline: 3 Phases – Short, Medium, and
Long Term
● Focus: Cost leadership + operational stability
+ customer experience
:
Phase 1 - Internal Realignment
(0 - 6 Months)
Centralize crew scheduling with AI-powered rostering system
Sign structured union agreements across key markets
Improve internal communication and HR responsiveness
Goal:
●
Reduce flight cancellations by 40%
●
Resolve labor unrest fully
Phase 2 - Digital Expansion
(6 - 18 Months)
●
Leverage MyRyanair platform for personalized cross-selling
●
Integrate AI into CRM systems for better customer targeting
●
Enhance app and website UX for smoother booking journeys
●
Goal:
○
Increase ancillary revenue per passenger from €17 to €22
○
Improve repeat bookings by 15%
Phase 3 - Revenue
Diversification & Branding
(18 - 36 Months)
Launch tiered fare model (Basic, Plus, Flexi Plus)
Introduce business bundles via Business Plus
Roll out branding campaign: “Reliable. Efficient. Ryanair.”
Goal:
●
30% adoption of premium fare tiers
●
15% improvement in brand favorability
Thank You!