Ryanair is Europe’s largest low-cost carrier. The Irish airline was founded in 1985 and has developed into one of Europe’s most profitable airlines since. Ryanair owns more than 130 Boeing 737-800s. They fly to around 130 destinations within Europe and Morocco. CEO Michael O’Leary projects 70 m. passengers every year by 2011.
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Ryanair was founded in 1985 by the Irish Ryan family. Christy Ryan, one of the founders, was from Waterford and thought of an air service between Waterford and London, creating an opponent for the only two operating airlines at that time, Aer Lingus and British Airways. The service was started in July with a 15 seat Embraer turboprop aircraft.
In 1986, a second plane and a second route (Dublin – London Luton) were added, creating a direct competition with the two national airlines for the first time. As Ryanair charged less than half the price of the others, British Airways and Aer Lingus had to lower their fares as well.
In 1987, Ryanair wet-leased its first three jet planes, BAC 1-11 from Romanian Tarom Airlines. In the wake of the lease, 15 new routes were added.
Until 1991, passenger numbers continually increased, but due to harsh price battles and expensive services, Ryanair only created losses. At that point, Michael O’Leary became CEO. He went to America in order to study the Southwest model of low fares. When he returned, he immediately restructured Ryanair, introducing the single-aircraft-type model, highly frequented flights and abolishing in-flight meals, business class and landings at established airports. Thus he created Europe’s first low-cost carrier, which was able to compete with the subsidised national carriers dominating the market so far.
In 1994, the BAC 1-11 were replaced by Boeing 737s. Passenger numbers increased constantly, as well as the profits. One year later, when the fleet had reached a total of 11 737s, Ryanair flew more than two million passengers for the first time.
In 1997, the European Union passed the “Open Skies Agreement”, giving all airlines the opportunity to compete freely within EU borders. Ryanair reacted by enlisting at the stock exchange for the first time, adding four new destinations across Europe (Stockholm, Brussels, Paris and Oslo) and (in 1998) ordering 45 brand new 737-800s, worth more than two billion dollars.
The Ryanair website was launched in 2000. Only a few years later, online booking accounted for almost 100 % of sold seats, further cutting the operational costs. The route network was expanded continually, soon including almost every country in the European Union.
In 2001, in spite of the events of 9/11, the Irish low-fare airline continued to expand. They placed a huge order of a total of more than 250 new 737-800s (including options) between 2001 and 2003. Hubs were created in Germany, Belgium, Italy, Sweden and Spain.
In 2003, the unprofitable KLM subsidiary Buzz was purchased, immediately giving Ryanair several new routes. In total, 73 routes were added in the year 2003.
In the second quarter of 2004, Ryanair recorded the first losses in 15 years. They were, however, able to recover and expanded to the new EU members as well.
In 2005, the last 737-200s were replaced by 737-800s. In August of the same year, they carried more passengers than British Airways. A total of more than 30 million passengers made Ryanair one of the biggest European carriers.
In 2006, the first Pan-European routes were introduced, when destinations in Morocco were added. In October, Ryanair launched a takeover bid for Aer Lingus, in order to create one Irish airline, which was rejected.
By 2011, Ryanair intends to carry 70 m. passengers a year, thus they firmly ordered another 230 Boeings to be delivered until then. In order to reduce costs, they will be delivered without window shades, seat back recline and seat back pockets. Already today, the airline is Europe’s third largest, in terms of passenger numbers. Furthermore, Ryanair has been voted the world’s most disliked airline in 2006. Nevertheless it remains highly profitable.
The Ryanair fleet consists of more than 130 Boeing 737-800s with an average age of 2.7 years. The route network contains more than 130 airports in 20 European countries and Morocco.
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