Etude de cas : Ryanair

Étude de cas Entreprises & gestion Management organisation

Date de publication :

05/01/2007

Langue :

Anglais

Format :

.doc

Nombre de pages :

13 pages

Niveau :

avancé

Consulté :

29 fois

Avis client :

non évalué

Validé par :

le comité Oboulo.com

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Sommaire :

Sommaire

European Airline Market
The Swot Analysis
Porter's five forces
What changes would you recommend to Ryanair's approach?

Résumé :

The European airline industry was one of the most heavily regulated and protected sectors. For the most part, carriers were state-owned and enjoyed a legal monopoly over domestic traffic. Governments used to control entry to foreign companies by means of restrictive bilateral Air Service Agreements (ASA). And only the carriers registered in each signatory state were allowed to operate commercial services. But in general, the countries allowed only its state-owned flag carrier.
In 1980, the European Community took some new measures in order to liberalize the intra-European air service. This deregulation, aimed to substantially reduce the EU member states' ability to restrict their market entry to foreign companies. Since April 1997, European airline companies have been allowed to provide passenger services on domestic routes within EU member states, even if it is not its registration country (e.g. Nice-Reims served by Easyjet).
At the beginning, the instauration of airlines deregulation has favoured the flag carriers that have monopolized the market. But later, it has permitted other companies to appear and compete against the state-owned flag carriers. It is the case of ryanair, the Ireland-based company, which is the most successful Low Cost Company (LCC). In its last year (2005) the company has transported 35 million passengers. Moreover, the company has the best operating margin around 25% (see table 2).
Growing at an annual rate of 20%, LCCs already control a market share of around 7 per cent of the EU market, in terms of passengers' number, with an increase of around 14% forecast for 2007. However, as we can see in table 1, their market penetration still differs significantly among EU member-states compared to Ireland and the UK.