Ryanair Case Study

in 2018, Ryanair, based in Dublin, reported that it had carrii over 130 million passengers in i 2 rnonths to the end of March, 8 per cent more than in the previous year. Revenue had grown by 8 per cent and profit by 10 per cent This growtl was slower than in previous years, which management attributed to overcapacity in the industry, rising fuel costs, and to badly managing a new system for organising pilots' work. This led to many cancelled flights and to unrest amorgst pilots. who pressed the company to recognise their trade union Ryanair had always refused to do. Later in the year, it reported that profits for the first six months of the 20i9 financial year had fallen to billion. Revenue had risen but so had costs , including a 20 per cent increase to pilots, and ttE costs af cance lations and delays caused by strikes. The company predlcted that profits in the 201 g financial year would be lower than in 2018. Tony Ryan (19362007b the son of a train driver, left school at 14 to work in a Sugar factory and in 1954 joined Aer Lingus, the state-owned Irish airline, t work as baggage handler. By 1970, he Was in charge of the aircraft leasing division, lending Aer Lingus aircraft and crews to other airlines. This gave him the idea of creating his own aircraft leasing company, Which he did Without delay, In 1985, he founded Ryanair, With a Single aircraft flying between Ireland and the UK, to compete With his former The Gulf War in 1990 discouraged air travel and caused financial problems for Ryanair. Rather than close it, he and his senior managers (including Michael O'Leary. now chief executive) decided it would be a 'no-frills' operator, discarding conventional features ot air travel tree food, drink, newspapers and allocated seats, Staff (including pilots, ground staff and cabin crews) would serve customers who wanted a functional and efficient service, not luxury, In 1997, changes In European union regulations enabled new airlines to enter markets previously dominated by national carriers such as Air France and British Airways. Ryanair quickly opened new routes between Dublin and continental Europe, and between European cities: although based in Ireland, cent Of routes are between airports in other countries. Tony Ryan also turned Ryanair into a public company by selling shares to investors. In May 2018, the chairman of the board presented the company's results for the latest financial year. Measures of financial performance in recent financial years (ending 31 March) 2018 2017 Passengers (millions) : (2018)130.3 , (2017)120 Revenue (millions of Euros) (2018): 7,151 , (2017)6,648 Profit after tax (millions of Euros): (2018)1,450 , (2017)1,316 Earnings per share (Euros): (2018)1.2151 , (2017)1,053

1-What were the resources used by Ryan air?

2- 3 examples of external forces affecting the company's performance?