SWOT ANALYSIS

STRENGHTS:
• Brand name: Ryanair through its 14 years in the LCC market has developed a very well recognised
brand name.
• Benefits from low airport charges: These aid the low cost base Ryanair benefits from.
• Has first mover advantage on regional airports (e.g. Charleroi): Acts as a barrier to entry
• Internet site (94% bookings) www.ryanair.com: Lowers the cost of distribution as over the phone
bookings are more costly. Eliminates the need of travel agents
• High seat density:
• All Boeing aircraft: A uniform fleet saves on maintenance and training costs
• Fast turn-around:
• High Service performance: Punctual, high rate of flight completion, low baggage loss, these give a
good image of the company’s reliability.
• Modernised fleet which leads to less expensive maintenance: Will become more uniform with
only one model (737-800), also newer planes will require less maintenance.
• High aircraft utilization: Ryanair flies its planes for longer thus generating more revenue from its
assets.
• Fuel and other risks hedging.
• Small headquarters: Low on overheads
• Point to point: No hub and spoke, lowers cost as no through services required.



WEAKNESSES
• Prone to bad press: Ryanair is perceived as arrogant and the slightest incident gets a lot of press
coverage.
• Niche market: Restricted expansion possibility
• Distance of some regional airports from advertised destination: Over time customers may find
this a big inconvenience.
• Poor service: people skills.
• Ryanair is extremely sensitive to changes in charges(increase in fare value)



OPPORTUNITIES
• EU enlargement: There will be a lot of new destinations opened up
• Still potential to capture market share: The LCC market share could more than double
• Benefits from less exposure to geopolitical risks: As only really operates in Europe
• Economic slowdown actually helps Ryanair- changes in corporate culture, ‘steals’ customers from
traditional carriers as they seek lower fares.



THREATS
• Dependence on oil markets: Fuel costs depend on the oil market.
• Dependence on economic cycle
• Increase of low fare competition
• European court decision: This may make expansion more difficult and costs rise in the future.
• Limited growth on the South European market
• Regional airports gain bargaining power for “second round”.
• Customers are very price sensitive
• Ryanair and Easy jet limit one another’s growth “rout wise”, need for peaceful coexistence,
or routes could become battleground(e.g.: London-Rome)
• Face increase in air traffic control charges. As more planes fly in the sky.
• Powerless to prevent introduction of duty for fuel or environmental charges: This would
reduce its growth potential as it relies on price stimulation.