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Management Organization Essay

1281 words - 6 pages

Management Organization

History of the company

Ryanair, now firmly established like the largest budget airline of
Europe, began to operate in the year 1985 with the launch of a daily
flight among the airport of Waterford in the southeast of Ireland and
the airport of Gatwick in London. The flight was carried out with a
turbo prop bandeirante with capacity for 15 passengers. The company
had compromised to carry out cheap flights and to make possible that
everyone, in Ireland and in the RU could travel by airplane, not only
the rich. In the first year, the 57 employees of the company
transported some 5,000 passengers in their unique route.

...view middle of the document...

For 1989, it counted with 350 employees, 14 airplanes (of four
different types) and transported 600.000 passengers a year but,
nevertheless, Ryanair lost £20 million in barely four years.

A new board of directors reorganized the air line among 1990-1991, and
relounged Ryanair as the first one of a new lineage of airlines "under
cost / without luxuries ", being based in the formula utilized for the
first time and with great success by Southwest Airlines in the United
States. They eliminated the routes that didn't produced profits,
reduced the network of routes from 19 to only 5, got rid of the
airplanes turbo prop, and reduced considerably the rates of the
remaining routes, offering 70% of all the plazas in the two lowest
rates. For 1991, Ryanair operated a fleet of six jets BAC 1-11,
employed 350 persons, transported 700.000 passengers for five routes
and, for the first time registered profits.

1997 was a historic year for Ryanair. Thanks to the deregulation of
the air transportation in all Europe the airline had, for the first
time, the freedom to open new routes toward Europe and, thus did it,
inaugurating services from the airport of Stansted in London to
Stockholm and Oslo as well and also from Dublin to Paris and Brussels.
To penetrate these markets, one more time, Ryanair offered rates 50%
under the cheapest offered by the national air lines. The passengers
responded with enthusiasm and in great volume to the unusual arrival
of low rates to the European market. Ryanair was the first economic
air line that offered regular flights from the UK to Europe and vice
versa. In 1997 Ryanair Holdings plc was launched also to the market of
Dublin and in New York permitting to its 700 employees to become
shareholders. For that, the airline was capitalized to a posted value
to GO£300 million and transported more than 3 million passengers a
year for all its 18 routes.

In the year 2000 the airline launched the largest travel Internet page
of Europe WWW. RYANAIR. COM, which barely three months after its
launch was receiving more than 50.000 reserves for week by means of
incredibly low rates that from £1 (more taxes) for a roundtrip bill
Glasgow-London and of £9 for a roundtrip passage Dublin-London. The
press of tourism has described like revolutionary the introduction of
the Lowest Fare Guarantee, no other airline guarantees to beat the
rate offered for the same city and to pay the double one of the
difference if a cheaper rate is found in another place.

Right now Ryanair is the budget airline with the lowest rates of
Europe, it operates 76 economic routes of rates to 13 countries
through Europe and this year it will transport more than 12 million

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