RyanAir Strategic Management Assignment Example | Topics and Well Written Essays - 3000 words

RyanAir Strategic Management - Assignment Example After the September 11th (9-11) terrorists' attacks on the world trade centre the airline industry has been trying to draw back its customer base. It has slowly regained its pre 9-11 customer levels. Some airlines are recovering from bankruptcies and lay offs within the industry. The airline industry has regained its consideration as the main way of travel for the tourism and business industries. Economic recovery in other industries such as tourism and conference hosting could benefit the airline industry if the industry responds with a marketing campaign promoting air travel to destinations that are popular for tourism and business industries. Post 9-11 the American airline industries recovery was assisted by special payments (bail-outs) from the U.S. government. This greatly affected European Union (EU) airlines. The lowering of ticket prices by the American carriers also affected the EU airline industry. A trans-Atlantic airline pricing agreement helped keep the EU airlines in business. In addition the EU agreed to allow European governments to provide payouts to their airlines (much as the American government did) to help them recover from the 9-11 related industry slowdown (World Airline News, 1). Although the airline industry may have recovered from its 9-11 reaction to the World Trade Centre attacks it is still affected by the ongoing wars in Afghanistan and Iraq. Security within the industry is much higher than pre 9-11 but there still remains the possible threat of another attack using the airlines as a target or tool of the attack. European Union airlines continue to compete with trans-Atlantic airlines from the United States and other North and South American airlines. Tourists are choosing to visit countries they believe "safe" such as England and Ireland rather than Middle Eastern or South West Asian countries. This is good for EU air carriers who benefit greatly by the increase in business. RyanAir's Development (History). Ryanair is an airline that continues to exploit the low cost air industry by providing some of the lowest fares in the industry. Ryanair is purposely modelled after the American airline South West Airlines and uses the no frills approach to providing air transportation. This means no in flight meals or snacks or such (for free). The airline provides basically a seat (or ride) only. Ryanair is headquartered in Dublin Ireland at the Dublin airport. It's only Irish competitor is Aer Lingus which is Ireland's national airline. Ryanair holds a 25% stake in Aer Lingus and makes no secrets about its interest in acquiring Aer Lingus. Ryanair currently has 232 low cost routes across 24 countries. Its reputation in the European Union is as the EU's first