The Ryan Air Case Study Example | Topics and Well Written Essays - 2500 words

The Ryan Air - Case Study ExampleThis was an organic growth model.The respiratory tract makes money by reducing its costs at every point. This is the reason that disdain a drop in yields of 14 percent, it still achieved margins of over 20 percent as they carried 47% more passengers. The airline has strong sales promotions and heavy discounting. The airline owns rather than leases aircrafts but has been considering leasing at least one-third of its croak due to changes in the market conditions. It also makes money by oil hedging but since the oil prices were expected to decline in the year on a lower floor study, Ryanair decided not to hedge in 2004. To cope with the falling ticket prices, the airline hope to generate revenue by providing ancillary services such as satellite television and internet services, arcade games on rented laptops and screening favorite movies on television. They also earn through advertising on their website.However, despite the low fares, the airlines l oad factor stared declining and its share price had declined substantially. This requires that Ryanair reconsider its strategy and take decisions based on facts and figures.Ryanair has registered revenue growth in 2004 over 2003 but the net profit has declined by 14% during the same period (Appendix A). The airline has been consistently registering gain for 26 quarters but the profits brace declined in 2004 which has been primarily due to escalating fuel costs. The number of aircrafts operated commensurate with traffic growth as is evident from Appendix B. The net profits fork up declined as also the earnings per share (Appendix C) which has given the airline an adverse reputation with investors. The balance sheet shows that the equity base has declined while its total liabilities have increased.Economical low impact because again being within Europe, which has a stable economy and stable consumers. Denomination is Euro is another positive factor alter to economic stability. Ou tside of