MCJR LIVESTOCK POULTRY FARM GROUP 17/01/2023

Laboratory Exercise Case Study Analysis

Using MS Word and MS Excel

Ryanair Case Study

Leader: Lusabio Jr. Robin A

Members:

Hebreo Marwin

Magpantay Christine Mae

Matutino Marissa

Morcilla Anna Clarissa

Pilar Justine Marie

Nazareno Mark Jonas

I. Background

Ryanair is Ireland’s low-cost airline with headquarters in Dublin and main operational hubs at Dublin
Airport and London Stansted Airport. Founded in 1984, Ryanair is considered to the largest European
airline based on scheduled passengers as well as the busiest international airline based by passenger
numbers. With a fleet size of over 360 aircraft of mostly Boeing 737-800 planes, the airline operates
flights to 32 countries all over Africa, Europe, and the Middle East. During 2011/2012 fiscal year, the
revenue as well as the profit of the airline rose, and it represents that the sales of airline is quiet unusual.
Ryanair earned more than American icon of low-cost airlines, Southwest Airlines, which generated more
than Ryanair last 2012. Airline of Ryanair begins its success with its capacity utilization. They focus on
costs minute detail where they know how to manage time and use extra time for meaningful purpose.
Flight attendants assure that there will be no trashes or even magazine left on the plane, and it will reduce
the time they can use it to clean the passenger's seat. They will use that extra time to load another set of
passengers for another departure. That gets plane back in the air faster, and the aircraft generate revenue
only when flying. The difference is substantial: a conventional airline might have a plane in the air for
eight hours a day, while the no-frills carriers average 11-12 hours per day in flight. In this effective way
the capital works 50% higher. They also implement selling tickets free from charges and just selling it as
low as 99 Euro cents. This captures the eyes of the passenger to come aboard. They reduce time for
boarding, but it increases the capital's productivity.

II. Statement of the Problem

a. Low price Strategy: A pricing strategy where a business delivers a product or service at an
affordable price to increase demand and capture market share. The cheap ticket rates offered by
Ryanair are intended to increase demand, particularly from those who have limited resources and
favor purchasing everything inexpensive.
b. The factors that contribute to the success of the company using its low-price strategy where they
are extremely efficient, they are procurement champions, and their advertisements focus on
price.
c. They must innovate, maintain high quality service, have excellent control over their operating
activities, and make an invention to flourish with a high pricing or premium price plan.

III. Areas of Consideration

The strength that will consider is how the employees perform their part just like their flight attendants
that was being responsible by cleanliness. Also, the airlines practiced an organized time to board and is
become a record holder in minimizing an aircraft's time on the ground. It is very unusual for airlines that
provides a quality offered service in a small price offered to avail. There are also weaknesses that give
limits to the company. Since it is low-cost airline the need of high technology must be approached to let
the company visions meets the innovation they want to implement. However, opportunities give Ryanair
more power to rely on the company and to make it more active, we have opportunities to takeover.
 Ryanair was known for low-cost airline and the modernization of the targeted market has been handled.
It means that the opportunity to take was to focus on how new generation opens an opportunity to the
business by which the company can consider the new trends in the consumer behavior. Also new
environment policies can develop a terrific opportunity for Ryanair. From allowing new technology
development the thing will gain more efficacy.

IV. Alternative Courses of Action

An almost 12hrs used of the plane can results to problems and defects with their airline, an airline
owner may experience frequent flight delays. In such a case, there is no choice but to invest more time,
money, and effort in proper maintenance. If an airline owner needed to get somewhere quickly and the
plane broke down, he would demand thorough maintenance and a thorough inspection. Having your
aircraft inspected ensures that you can rely on it to get you to your destination on time. Second, the
engine is replaced to maintain its quality or condition, and it must have a reserve so that the flight is not
disrupted; this is also a way to avoid damaging the plane and resting its engine.

V. Recommendation

The concept of performing maintenance on any type of aircraft is scary due to the complexity of flying.
However, by carefully monitoring the aircraft's performance and keeping track of flight hours, pilots may
keep their aircraft in the air for an extended period. Military aircraft maintenance procedures and
timetables are like those in the commercial aviation industry. Here are some maintenance tips for
preserving your aircraft's structural integrity. The annual inspection involves a careful inspection of
every component to look for cracks, excessive wear, and corrosion. After being put back together, the
aircraft is either given an engine run-up to look for leaks or is taken on a test flight. To ensure that the
aircraft is secure enough to operate for another year, the mechanic then signs the aircraft's
maintenance log.

VI. Problem Solving

Ryanair
Date Number of Passengers Distance in km
January 1, 201A 200 130
January 5, 201A 190 120
January 8, 201A 185 300
January 10, 201A 210 250

Date Number of Passengers Distance in km Total passenger-km

January 1, 201A 200 130 26,000

January 5, 201A 190 120 22,800

January 8, 201A 185 300 55,500

January 10, 201A 210 250 52,500

The total cost of transport PHP 800,000
Total passenger-km 156,800
Cost per passenger-km PHP 5.10

The total cost incurred by Ryanair Cost per passenger-km is P5.10

VII. Management Lessons Learned

Stated on the case above is this airline’s revenue is rose by 21% in its fiscal year which is a great sign.
They are a low-cost airline but still manage be profitable. Aside of being a no-frills airline which means
the passengers are just paying for the ticket and its advantage is it free ups time once the plane arrives
to its destination due to there is no other things gathered. On other planes they took more minutes to
clean up the storage where items are placed while Ryanair can use that time to fill up passengers for the
next flight. It also boosts the airtime of Ryanair airplanes due to lighter weight of the passenger it
carries. In that way they can be more productive. In that way, having a low cost and a faster time of
travelling, it can really attract a bunch of people especially for those who cannot patiently wait or
“mainipin”. It also has negative side, of course you paid for a low cost airline, you cannot expect of a
good services other than riding your plane faster to reach your destination or I can easily state it as you
are cannot be satisfied for the trip you are going to ride if you are a type of person that is perfectionist.

The main key take away of this case study is good capacity utilization Ryanair show how a low price
airlines sits at the top by efficient used of there facility, employee and Pricing strategy.