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Ryanair’s first cabin crew recruits had to be less than 5ft. 2ins. tall in order that they were able to operate in the tiny cabin of the aircraft!
As proclaimed on its website, Ryanair was Europe’s original low fares airline and is still Europe’s largest low fares carrier. In the current year, Ryanair will carry over 35million passengers on 288 low fare routes across 21 European countries. With 12 European bases and a fleet of over 100 brand new Boeing 737-800 aircraft and with firm orders for a further 125 new aircraft, delivered over the next seven years, Ryanair is ready for an awesome takeoff.
These additional aircraft will allow Ryanair to double in size to over 70 million passengers per annum by 2012 recording stupendous growth. Ryanair currently employs a team of 2,700 people, comprising over 25 different nationalities. Ryanair continuous to clock record passenger growth [Appendix 1]
Ryanair’s CEO, Michael O’Leary, has a vision of a world where the fare could drop to nothing, as local communities would subsidize the airline to bring a steady traffic of business people and tourists to their region. Rather than blending its low fares with some emotional benefits, Ryanair packs its brand with functional benefits such as punctuality and efficiency. In Ryanair’s words “At Ryanair, we guarantee you the lowest fares on the Internet. However, our success is due — not just to our low fares — but also a winning combination of our No.1 on-time record, our friendly and efficient people and our new Boeing 737-800 series aircraft”.
A successful example of a European no frills airline is Ryanair. It was established based on the assumption that the demands for short-haul air transport are price elastic. That means, if prices for flights are reduced, it is more appealing and therefore more people will fly. Ryanair strives to sell tickets at the lowest prices possible but at the same time promotes the fact that it is an on-time high frequency flyer.
Ryanair does not offer any frills. It is not in the business to offer luxury flying experience or gourmet in-flight meals or a memorable flight. Its mission is to offer flights that cater to mass transportation and simply a ‘point-to-point air service’ to its customers. It promises just that and offers nothing more.
Traditionally airlines based their assumptions on the fact that airline traffic grows in line with the economy and are catered towards the more affluent and that cutting prices will only lead to a decrease in revenues. With the introduction of the ‘no-nonsense’ concept to the European market, after its deregulation in 1992, Ryanair has been proved right repeatedly in its revolutionary concept. While traditional airlines used the hub-and-spoke methodology to fly, Ryanair introduced the point-to-point method of flying reducing waste enormously.
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