Ryn Air Industry - Case Study Example

Following on from this I looked t the externl environment tht ffects Rynir, to get brief ide of the possible opportunities nd threts. Incresed Trde-union Pressure: with the cuisition of Buzz irline in 2003, Rynir hs undergone some mjor chnges in the mngement structure s well s in its stff polici. From 400 till 600 employess were dismismissed due to the Rynir's policy to dispose of the redundnd stff. Rynir mngement rgued tht the productivity of Buzz t 3,000 pssengers per employee ws uncceptble compred with 10,000 pssengers per employee t Rynir.

Rynir ws ccused by trde unions of telling stff to "ccept the cuts or else ". EU Expnsion: Before the cquisition, Rynir ws the biggest user of Stnsted, occupying 45% of lnding slots while esyjet/Go hd 26% nd Buzz hd 12%.xiv The merger thus sfegurded Rynir's position t Stnsted. Moreover, it gve Rynir UK ir Operting Certificte, which llowed the compny to fly from Britin to destintions outside the EU. Big lep towrds "open skies": The US hd signed open bilterl greements with Europen countries individully, dels which were seen s big lep towrd "open-skies".

ll crriers in the two countries concerned were given unlimited rights to operte trnstlntic routes between ny two destintions, with no frequency, cpcity or triff control. In ddition, unlimited Fifth Freedom rights were grnted, which llowed irlines to crry trffic between two foreign countries vi connections in their home country. Deprecition of US dollrs: this fctor served negtively for the compny s Ryrfir is Europen bsed compny nd the deprecition of dollr ment receiving fewer dollrs per n irline ticket which ment less profits.

Cncelled Flight Compenstion: Rynir did not provide compenstion or ccommodtion in cses of overnight dely or flight cncelltion, regrdless of the cuse of problem.Reimbursement of Delyed Pssengers: With no interline check-in service (whereby pssengers check-in for connecting segments offered by other irlines), customers who chose to connect flights did so t their own risk. Rynir would not ccept responsibility for missed flights even if they were due to the dely of incoming Rynir flights.SocilHigh-speed Trins: In 1996 Richrd Brnson's Virgin Group purchsed EuroBelgin irlines, chrter irline bsed in Brussels (Ntionl irport), nd trnsformed it into the first low-cost crrier in continentl Europe.

lthough its continentl loction initilly provided the compny with distinctive niche, by 2002 mnging director Neil Burrows did not expect this distinction to lst long: "There re more thn enough [LCCs] in the UK. They must expnd into Europend Virgin Express is lredy there."vii With the irport lmost hlf-empty fter the demise of Sben, operting on the minlnd hd its drwbcks: Virgin Express fced more competition for