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PUSAN NATIONAL UNIVERSITY INDUSTRIAL ENGINEERING

Index

� Introduction

� History

� Service charter

� Results

� Success factor

� How come cheap airline are so cheap?

RYANAIR.COM

http://www.airtravelinfo.kr

http://www.hansfamily.kr한가족

http://blog.naver.com/ceo119라이언에어, 불친절이 성공 비결 [이덕형]


� How come cheap airline are so cheap?

� Characters

� Value Chain Reaction

� Passenger’s Strategy

� Brilliant O’Leary

� Instead of +

� Matter of consideration � Filtering

Daum café [대한항공 88동기회]

시장점유율의 신화 [리처드 미니터]

공짜경제학 [나준호]

카오틱스 [필립 코틀러]

Introduction

� Ryan family founded in ‘1985

� Headquarters in Dublin Airport, Ireland

� CEO Michael O’Lealy (1993 ~)

� Revenue : € 2,714 M, Profit : € 391M in ‘2008

� Lowest fares/seat cost in Europe

� No fuel surcharges+Guaranteed!

� No. 1 for EU traffic

� 66M pax


� 66M pax

� 7,000 employees

� 202 Boeing 737-800 (+110 next 2.5 years)

� No. 1 Coverage

� 26 Countries - 36 Bases

� 151 Destinations - 950+ Routes

� No. 1 Customer service

� Best punctuality

� Least lost bags

� Fewest cancellations

History

Set up by Rayn family

share capital ₤1, Staff of 25

cabin crew less than 5ft. 2ins

15-seater Banderirante aircraft

Pax:5,000 People(y/e);51

1985

Turbo prop BAE748(46seats)

on the Dublin-London route

launch fare of ₤99

vs. BA/AL’s ₤209


1986


1985

Price competition with BA/AL

₤20m in losses & reducturing

Rayn family reinvestment ₤20m

Copying the southwest airlines

Single aircraft, no catering

Reducing fares ₤99 � ₤59


1990

First Boeing 737

replace the old BAC1-11s

Start new services

Dublin � London Gatwick

replacing Aer Lingus pulled off the route

Pax:1,666,000 People(y/e);523

1994

History

Overtakes AL/BA

Largest pax airline

on the Dublin-London route

Largest Irish airline

for Dublin

Ten years old

Exceed 2m pax

for the year, 1st time

1995

Flotation on the

Dublin & NASDAQ

Employees be sitting on

over €100m

Mark the best punctuality statistics

for Dublin-London route(76.1%)

AL(75.7%) BM(66.0%) BA(61.0%)

Pax:3,730,000 People(y/e);659

1997


1985

Pax:2,260,000 People(y/e);523Pax:3,730,000 People(y/e);659

RYANAIR.COM

Europe’s largest booking website

50,000 bookings a week

Provide the lowest car hire, hotel,

travel insurance, rail services

Sponsor the Skynews Weather report

Pax:7,002,000 People(y/e);1,2622000

History

1985

Establish 1’st European base at Brussels Charleroi

With “Maninkin Pis”

“PISSED OFF WITH SABENA’S HIGH FARES?”

Pax:13,419,000 People(y/e);1,547

Establish 2’nd European base at Frankfurt Hahn

Finished high fare monopoly of Lufthansa

Overturns Lufthansa’s attempts to block low fare competition

1m German consumers Response lowest airfares

Aircraft order with Boeing 45~125 firm, 125 options

Pax:19,490,000 People(y/e);1,746

2002


Pax:19,490,000 People(y/e);1,746 2003

42.5m pax in the year

100th Boeing 737-800 be delivered

Launch Web check-in service

Becomes the world’s first airline

Carry more 4m international pax

“no fuel surcharges ever”

436 low fare route across 24 countries

Pax: 30,946,000 People(y/e);2,7002006 ~

LOWEST FARES AND PASSENGER SERVICE CHARTER

1. Offer the lowest fares at all time on all routes.

� “Double the Difference”

2. No fuel surcharge guaranteed

3. Honour the agreed fare after payment

4. Notify passengers of known delays, cancellations and diversions.

� on/off-line.

5. Minimise the numbers of passengers facing delays.

� less than one bag per 1,000 passengers carried to zero

6. Allow reservation changes.


6. Allow reservation changes.

7. Respond quickly to passenger complaints and provide prompt

refunds. � within 7 working days from the date of receipt.

8. Take measures to speed up check-in.

9. Minimise the number of passengers who are involuntarily denied

boarding.

10. Provide Passenger Information

11. Ryanair will provide the following information to passengers at the

time of booking. � Schedule, Airport & Terminal, Fare

Half Year Result - Nov. 2009


Success factor - Branding


How come cheap airlines are so cheap?


How come cheap airlines are so cheap?

런던

중앙예약시스템사용료

4.5%


런던시티공항이용료

160만원정도

히드로공항의1/3

Total

13% / 건

여행사

수수료

5~7.5%

4.5%항공사시스템유지비

1%

Characters - Expedient , Showmanship, Zapper, Warrior, Character!


Value Chain Reaction

No Counter/Staff

No Agency

Web Check-In

No missing


Fast Turnaround

1st come 1st seatNo Waiting Time

No Free BaggageNo Allocation

Reduce weight

Value Chain Reaction

No CateringNo Waste

No Seat PocketNo Magazine


Fast Turn-around

Reduce StaffReduce weight

Passenger’s strategy?


1. 여행일정조기확정

2. 가능한빨리예약(4~5개월전)

3. 위탁수하물미지참

4. 15Kg이내개수최소화

5. 휴대수하물 10Kg이하철저준수

6. On-Line Check-In

7. 일자변경대신재구매

8. 절대비행기놓치지말것(보안검색불문)

Brilliant O’Leary


Next….?

Instead of +

mileage service

lever or button at seat

riveting

passenger’s strategy

standing room(?)

short breath


fortunate upgrade

azura-souvenir

promotion

penalty

bill

announcement

Matter for consideration � Filtering(Positive)

� From customer’s point of view

� Connect the value � 1 + 1 > 2


� Discerning eye � Strategic thinking

� Powerful driving

Matter for consideration � Filtering(Negative)

� Expedient � a means to an end

� A conduct unbecoming to a gentleman


� Compare customer’s satisfaction with profit

� Trap of high turnover ratio

http://www.airtravelinfo.kr/xe/9531

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