1. Introduction
Ryanair is an Irish airline headquartered in Dublin, with its biggest operational base situated in London Stansted airport in the UK. Ryanair has grown massively since its establishment in 1985, from a small airline flying a short hop from Waterford to London, into one of Europe's largest carriers. Nowadays, Ryanair is Europe’s leading low-cost airline with 437 routes in 24 countries and an annual profit of ?306,712,000 (Ryanair, 2006). After a 20 per cent rise in passenger numbers during last six months, 2007 full-year net profits of Ryanair were re-set to rise 17.5 per cent to ?326 million which higher than the previous forecast ?305 millions (METRO,2007). Ryanair is one of the most successful airlines whether in terms of profits, number of flights, number of passengers flown. Its success has confounded many industry analysts. In order to understand Ryanair, following report will analyse its environments step by step and give appraisals.
2. External Environmental Analysis
In order to understand the influences of macro-environment for ryanair, we applied PESTEL analysis (see Appendix 1). There are several influences of macro-environment on ryanair within all their operating countries. First, Ryanair need to deal with political issues such as 911 U.S. terrorist attack and 07/07/2005 terrorist attack in London led the rapid decrease of passenger flow. As regard economic issues, the lack of current oil resource is to concern. Rising fuel costs are pushing more and more airlines into the red during last three years, it increase the expenses of Ryanair’s operation strongly. Within most of Ryanair’s transactions, we can see that the € is the main currency of their company (see appendix2), however this could benefit Ryanair’s cost such as aircrafts, ...