STRATEGIC PLANNING - Essay Example

It was incorporated in 1985 (served only 5,000 passengers with 51 employees) to cater travelers from Waterford to London Gatwick, and since then it has experienced phenomenal business growth and expansion (now serving over 60 million passengers and have employees over 6,000) because of its highly effective low-priced business strategy. The company today enjoys the status of ‘World’s favorite airline’, has 41 bases and more than 1,100 routes across 26 nations and now has a fleet of more than 220 aircrafts of one kind (preferably Boeing 737-800 to minimize operational costs).

As part of its expansion policy, the company will induct more than 100 new Boeing aircrafts in its fleet to cater the pool of over 65 million customers (expected) in near future. (Internet: Ryanair.com) Strategy of governments to maximize their revenue by bolstering the Tourism Industry and attracting more people from other countries would create demand of traveling services of Ryan Air. However, Ryan Air could be affected by various political factors such as the adoption of ‘protectionism of domestic industry’ approach by various nations across Europe and America.

This is aimed to protect domestic jobs and employment opportunities by imposition of tariffs, taxes, anti-dumping duties etc. on operations of foreign airlines. This approach by different nations to secure their domestic airline(s) might increase the operational costs of Ryan Air, thereby resulting in reduction of demand. Changes in ‘licensing laws’ and increase in barriers to entry in new markets may also affect the airline’s growth strategy. Also, European Union has ‘abolished the duty-free access’ to airlines that would definitely increase the operational costs of Ryan air.

Also, the European Business article (2007) pinpointed the fact that European Commission impeded the expansion of Ryan Air across