Ryanair Pestel

Table of contents

Complete a PEST(EL) analysis as preparation for a scenario planning exercise next week.

Political

Due to severe security measures, they had to cancel 279 flights and refunded 2. 7m€. A loss of 1. 9m€ in reduced bookings
Aer Lingus was fundamentally opposed to a merger with Ryanair, even if it raises its price
12. 6 % of the shareholding controlled by Aer Lingus, whose members rejected the offer by a 97% majority vote
Opposed to the BAA airport monopoly plans to build a 4bn gold plated Taj Mahal at Stansted

Social

Europe’s leading budget airline August 2006, Air Transport World magazine- most profitable airline in the world
72% negative response from a poll of readers of the Financial Times for one of its initiatives
In 2006, its employees count by more than 700, to 3. 500 people, comprising over 25 different nationalities
In 2006, it was voted the world’s least favourite airline because of the unfriendly staff, delays and poor legroom
The airline formerly refused to provide accommodation or meal vouchers when flights were cancelled or delayed, until it became illegal to do so in 2005

Environmental

Deploying more efficient aircraft that use less fuel and produce less pollution
Concerns about greenhouse gases from carbon emissions
Replace its fleet of old aircraft with new, more environmentally-friendly aircraft, reducing the average age of its fleet to 2. 4 years
New aircraft produced 50% less emissions, 45% less fuel burn and 45% lower noise emissions per sea

Economic

Its average paid was 49612€, a higher figure than any other major European airline
August 2006, Air Transport World magazine- most profitable airline in the world
Cost-cutting/yield-enhancing measures for passenger check-in and luggage handling could save more than 1€ per passenger
Web based check-in and priority boarding, save costs on check-in staff and airport facilities, as well as time
By tailoring rosters, they maximised productivity and time off for crew members

Technological

Web based check-in and priority boarding
Fleet of over 100 new Boeing 737-800 aircraft and firm orders for a further 138 new aircraft to be delivered over the next six years
Stronger passenger safety: body searched, banned from carrying liquids and gels in their carry-on luggage

Legal

Complying with EU regulations which impose a ceiling on pilot flying hours to prevent dangerous fatigue
In litigation with various airport over landing charges Accused it of misleading passengers on its website by exaggerating the prices of its competitors in making comparisons
Following flight cancellations due to increase in security measures, they decided to file two legal cases against UK government
In 2005, new legislation that offered compensation cost to passengers affected by delays, cancellations or denied boarding