Ryanair Formula

SIBN
6 th February 2012

World’s Favourite Airline!
Lowest Fares/Lowest Seat Costs in Europe
No fuel surcharges….Guaranteed!
No. 1 Traffic – 75m
No. 1 Cover – 1,400+ Routes and 50 Bases
No. 1 Custr Service - Most on time flights
27th Year of strong growth
- Fewest lost bags
- Fewest canx
No.1 Intl. Sched. airline – “World‟s Favourite”
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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The “Ryanair Formula” – Lower Fares, Lower Costs
Low cost, more efficient, bigger aircraft
High people productivity through incentives
Lower maintenance costs on new aircraft
Higher utilisation / lower costs at secondary airports
More flights per day per aircraft
Internet sales of 99% = lowest S&M costs
Profitable ancillary sales reduces costs
Lower costs = lower fares = higher growth & profits
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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The “Ryanair Formula” Dublin - London
Dublin – London Passenger Growth 1980 - 2008
Millions
5
4
3
2
1
0
Ryanair start
1980 1986 1999 2000 2005 2007 2008
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
PAX
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The “Ryanair Formula” London - Barcelona
Millions
London – Barcelona Passenger Growth 2001 - 2008
5
4
3
2
1
0
Ryanair start
2001 2002 2003 2004 2005 2006 2007 2008
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
PAX
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Ryanair - Spain’s Favourite Airline
11 bases
22 airports
500+ routes
38m pax p.a.
38,000 jobs
€5bn savs p.a.
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Ryanair Effect -Ryanair Spain Effect in Spain
PAX M
40
30
20
10
0
04 05 06 07 08 09 10 11 12
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Ryanair Effect - Madrid
Launch „06
14 a/c
43 routes (12 doms)
5.3m pax p.a.
5,300 jobs
€680m savs p.a.
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Ryanair Effect - Barcelona
Launch ‟10
11 a/c
32 routes (13 doms)
4.4m pax p.a.
4,400 jobs
€520m savs p.a.
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Ryanair Effect - Palma
Launch „07
5 a/c
52 routes (8 dom)
3m pax p.a.
3,000 jobs
€380M savs p.a.
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Ryanair – The World’s Favourite Airline
50 bases
166 airports
28 countries
1400+ routes
1500+ daily departures
286 737-800‟s
Youngest fleet (av 2y)
75m pax p.a.
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Business Definition
Product is a commodity
Others can enter business cheaply
Therefore we must do it better
Continuous improvement
Continuous cost reduction
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Cost Reduction
The only competitive advantage is to be the lowest cost
operator
Champion cost control
Celebrate cost reduction
Every cost item is examined
Highlighters
Ice
Stationery
Distribution / Internet
Travel
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Simplify
The process
The way we manage
The way we communicate
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Communications Strategy
Clarity
Same message for all groups
Reinforce the indicators of success
Cost control
Load factor
Punctuality
Share price
Growth story
ABSOLUTE IMPORTANCE OF INDIVIDUAL CONTRIBUTION
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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What we don’t do…
No published organisation charts
No published mission statement
Minimum meetings
No e-mail culture
No intranet
No offsites
No endless moving of responsibilities
No voicemail
No useless initiatives
No navel gazing
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Management Practice
Weekly meetings
Action
Weekly reports
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Ryanair Fleet & Traffic to double by 2012
Fleet & Traffic Growth to 2012
A/C Fleet Traffic
Firm Options Pax Growth
2007 133 - 43m 22%
2008 163 - 50m 19%
2009 204 - 60m 20%
2010 239 - 70m 17%
2011 249 30 76m 9%
2012 262 40 83m 9%
Plan to double fleet, pax and profits by 2012
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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Future of Airline Industry
Massive Consolidation
4 Big Players
AF / KLM / Alitalia
Lufthansa / Swiss / SAS / Austria
BA / Iberia
Ryanair
No Room for Small Independent High Cost
Airlines
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair
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