The Main Threat Of Ryanair

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The main threat of Ryanair faces its operation system, the rising cost of fuel and the growth of the airline industry. Every expense grew of the fuel, increasing activity levels, and cost associated with the growing airline industry all posed a threat to Ryanair. For fuel, expenses increased by 37%, increased spending on the route increased by 22%, and airport expenses and handling increased by 18%.

Ryanair also has a poor reputation on customer service, but Ryanair has succeeded in lower prices with low customer satisfaction. However, Ryanair has been working to improve customer service and better serve customers, Ryanair still cares about the poor passenger experience, with the low prices customers will repeat and Ryanair can grow their revenue. Ryanair also is the fastest growing and most profitable airline in Europe. Because of that, the economy of Europe sees Ryanair through institutional-based views there are several opportunities and threats faced by the company. Ryanair has a lot of new opportunities from the formal aspects of European institutions as well as much of a threat.

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The main Ryanair success was due to the liberalization of air transport in Europe which began in 1992 when the Council of European Union Ministries practiced liberalization. A licensing procedure was also established, EU carriers have generally been able to provide service in domestic routes within any EU member state outside the home country in which the airline. Ryanair is subject to both Irish and EU regulations.

In response to the implementation of EU and Ireland laws and international standards on air transport, The Irish Transport Department (DOT) requires compensation for passengers for any condition called Ryanair ‘unfair and discriminatory’. These rules require compensation or assistance to any who denied boarding, canceled flights and long delays trusted Ryanair beyond the control of any airline. This poses a major threat to the company strategy depends on getting the side while providing a low cost.

Managing ethics as an informal aspect of institutional views is something that poses many threats to Ryanair. The company has been accused of many practices including misleading advertisements that they own in their unethical published ethical codes. According to the Advertising Standards Authority, several complaints have made against the company, the BBC reported back in 2008 that the company was making excessive demands on their flights and prices. An advertisement in 2011 was criticized for promoting trips to places under the sun while the company served in places where sunlight was only about three hours a day. Overall Ryanair has admitted their offense in advertising, I believe is the correct response if they are guilty. Ryanair needs to take more consideration into their ads and advertise the right ads that will not confuse their customer or they may face customer losses in the future.

Plus, for the cost pressure from monopoly suppliers such as air transport and air traffic control, as well as income pressure from buyers with low flight networks also threatens the Ryanair business model. Ryanair must react with this threat by aggressively raising airfares to maintain its competitive advantage.  


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