ryanair plc a model for the prject

8/12/2019 RYANAIR Plc a Model for the Prject

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International Business and Trade

RYANAIR Plc.

Group members: student no.

Mahender Kumar 126196

!l"#er !nuoha 11$2

%ub"n Paul 126&21$

'(apn"l Patel 126$2)&

'ub*ect: Internat"onal +us"ness and ,rade

'ub*ect code: +M691)

-ecturers: Mr. Paul ,ae

Mr. M"chael Keal/

Mr. 'haun 0a/den ord count &$

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TABLE OF CONTENTS

Executive summery........,,,,

..3.

Operations management..................

...4.

3!perat"on unct"on

-business models of the company

-Cost control strategy

Five performance objective...........6.

Marketing management.........,,,

..

3mar4et"n5 strate5/

3mar4et"n5 m"

3mar4et pos"t"on

3tar5et mar4et

3porters "#e orces

3'!, anal/s"s

Financia! management.........,.

"6.

3rat"os

3d"#"dend pol"c/

3operat"n5 re#enues

3other "ncome

37I'8A- /ear 2&&9

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#ib!iograp$y...............

%%.

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Executive summary:

Purpose and scope o the report:

,he report states R/ana"rs strate5"es "n terms o operat"ons mar4et"n5 and ("ll also

loo4 at the "nanc"al aspect o the compan/. It demonstrates ho( the a"rl"ne ("ll ha#e to

perorm and on (h"ch actors mana5ement has to ocus "n order to sta/ "n a stron5 pos"t"on "n

the lo( cost mar4et. ,he +us"ness Plan ran5es rom an "ndustr/ anal/s"s to an "nternal

"nanc"al anal/s"s.

Resources used:

7or 4no("n5 the strate5"es pract"sed b/ the compan/ (e ha#e used the most recent

annual report ".e. o 2&&; and 2&& "nanc"al report

7or calculat"n5 rat"os the ollo("n5 spread sheets are used:

3 +alance sheet

3 8ash lo( statement

3 Income statement

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$. Fre%ue&t P!i&t#t!#P!i&t F'i()ts !& S)!rt#*au' R!utes:

R/ana"r pro#"des reuent po"nt3to3po"nt ser#"ce on short3haul routes to both

secondar/ and re5"onal a"rports "n and around ma"n populat"on area and tra#eldest"nat"on.

+. !" !,erati&( c!sts:

Mana5ement bel"e#es that R/ana"rs operat"n5 costs are amon5 the lo(est o an/

=uropean scheduled passen5er a"rl"ne. R/ana"r str"#es to reduce or control our o the

pr"mar/ epenses "n#ol#ed "n runn"n5 a ma*or scheduled a"rl"ne: BIC a"rcrat

eu"pment costsD B""C personnel product"#"t/D B"""C customer ser#"ce costsD and BIEC

a"rport access and handl"n5 costs.

-usi&ess M!e' !/ Rya&air

R/ana"rs bus"ness model "s #er/ s"mple. It oers the lo(est ares poss"ble to passen5ers.

In lo( pr"ce that ha#e poss"ble and "t pro#"des #er/ 5ood customer ser#"ce to the"r customer.

It mana5es to accompl"sh th"s throu5h a relentless ocus on costs. 0o(e#er the

A"rl"ne "s careul not to comprom"se saet/ and as o "n 2&&; has an acc"dent3ree record.R/ana"r "s =uropes "rst d"scount a"rl"ne and bene"t 5reatl/ rom the emer5ence o

F!pen s4"es dere5ulat"on across that cont"nent.

C!st C!&tr!' Strate(y !/ Rya&air

R/ana"rs t"5ht cost control "s the ma"n po"nt o "ts lo(3pr"ce strate5/. ,he ma*or elements o

"ts cost3control strate5/ are:

1. ,he >se o 'econdar/ A"rports:R/ana"r t/p"call/ "s not l/ to the ma*or a"rports "n

=urope but "nstead to secondar/ a"rports (h"ch are oten located some d"stance a(a/ rom

ma*or c"t/ centres. 7or eample R/ana"r ad#ert"se l"5hts to 7ran4urt but l/ to

0ahn about 12$ 4m a(a/ and s"m"larl/ used secondar/ a"rports near -ondon +russels

0ambur5 and 'toc4holm. R/ana"r@s secondar/ a"rports are located "n lo( econom"c areas.

2. Rap"d ,urnaround:R/ana"r ma"m"?e the ut"l"?at"on o "ts a"rcrat b/ turn"n5 around "ts

a"rcrat "n #er/ e( m"nutes cons"derabl/ aster than the "ndustr/ a#era5e. ,h"s (as

ac"l"tated b/ the lo(er tra"c at secondar/ a"rports.

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). Po"nt3to3Po"nt Rout"n5:All R/ana"r l"5hts are po"nt3to3po"nt ".e. are not connect ("th

other l"5hts. It a#o"ds the costs assoc"ated ("th passen5er and ba55a5e transer.

. A"rcrat: R/ana"r l/ ("th a s"n5le a"rcrat am"l/ the +oe"n5 ) and thus s"mpl"/ "ts

ma"ntenance process. ,he a"rcrat themsel#es are Fno3r"lls the/ are order ("thout ("ndo(bl"nds recl"n"n5 seats headrests or seat poc4ets.

$. In A"rplane 'er#"ce:Ins"de ser#"ce "s #er/ s"mple. ,he/ pro#"de normal oods to the"r

customer. 'o "t helps to R/ana"r to 4eep pr"ce lo(.

6. 'ta and !#erheads:R/ana"rs stas are non3un"on and sub*ect to t"5ht cost control

measures. P"lots and cab"n cre( rece"#e lo(er salar"es than the"r counterparts "n other

"ndustr"es but rece"#e s"5n""cant #ar"able compensat"on: cre( or "nstance rece"#ed

comm"ss"ons on on3board sales.

,he "#e perormance ob*ect"#es

Source: Operations Management, 5thedition by Nigel Slack et.al

1. 0ua'ity !2ective:

,he ual"t/ o the product or ser#"ce to the customer "s o paramount

"mportance to determ"ne the sat"sact"on o the customer. 'er#"ce ual"t/ o R/ana"r@s

"s normal the/ pro#"de normal ac"l"t/ to the"r customer because o lo( cost. ,he

a"rcrat themsel#es are Fno3r"lls the/ are order ("thout ("ndo( bl"nds recl"n"n5seats headrests or seat poc4ets.


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2. S,ee !2ective:

'peed "s also a ma"n success "ssue or o a compan/. 'peed means the t"me bet(een a

customer sett"n5 out on the *ourne/ and reach"n5 h"s or her home. R/ana"r@s has a record or

no plane dela/ the"r plane al(a/s reach on t"me so customer dont ace an/ problem o plane

dela/.

). 3e,e&ai'ity !2ective:

It means do"n5 th"n5s "n t"me or customer and pro#"de them ser#"ce (hen

the/ need. In R/ana"r accord"n5 to dependab"l"t/ 4eep"n5 the scheduled t"me table or

all po"nts on the routes and constantl/ pro#"des the onl"ne boo4"n5. As a report o

8=! customer are sat"s/ b/ th"s ac"l"t/.

. F'exii'ity !2ective:

7le"b"l"t/ means be"n5 able to chan5e the operat"on "n same (a/ as customers

demand. R/ana"r pro#"des po"nt3to3po"nt l"5ht on short3haul routes. People can tra#el

to nearest rom the"r dest"nat"on. R/ana"r has more le"b"l"t/ then customer

epectat"on. People also ha#e cho"ce o route (hen the/ tra#el b/ R/ana"r. It alsopro#"des the ac"l"t/ o l/ rom secondar/ a"rport to ma*or populat"on centre "n b"5

c"t"es ".e. -ondon.

$. C!st !2ective:

8ost "s the ma"n ob*ect"#e that co#ers the strate5/ o compan/ (h"ch compete

d"rectl/ on pr"ce. -o( cost are "s ma"n strate5/ o R/ana"r 8ompan/. It "s =uropean@s

no. 1 lo( are "ndustr/. ,he"r lo( pr"ce strate5/ (as the/ (ere purchase used a"rcratbut "n199; the/ started to purchase ne( a"rcrat +oe"n5 )3;&&D the/ use onl/ one

t/pe o a"rcrat.

Rec!mme&ati!&

R/an a"r "s 5ood "n pr"ce control (hen "t comes to the select"on o secondar/ a"rports

or the use o same leet o a"rcrats. +ut the ma"n "ssues no( a da/ "s to 5et control o

the r"s"n5 uel pr"ces. ,he compan/ (ho succeeds "n th"s al(a/s ("ns. In our #"e(s

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R/ana"r should hed5e uel pr"ces (hene#er "t 5ets to a lo(er po"nt so that "t does not

suer (hen the pr"ce o uel 5oes up. R/ana"r ollo(ed th"s strate5/ once "n 2&&$3

2&&6 and (as hu5el/ successul.

In toda/s (orld *ust oer"n5 tra#el ser#"ces m"5ht not be as pro"table or the

compan/ so R/ana"r should "ntroduce and 5"#e more attent"on to(ards lo( cost or

bud5et hol"da/s. ,h"s ("ll 5"#e a b"5 boost to the re#enue o R/ana"r. 7or hol"da/

pac4a5es R/ana"r can t"e up ("th hotels "n sp"te o bu/"n5 or bu"ld"n5 the"r o(n

hotels th"s ("ll reduce the r"s4 "n case there "s not much bus"ness.

R/ana"r has an ecellent record o be"n5 on t"me. It "s (a/ ahead o ull ser#"ce

pro#"ders "n th"s area. No( "t "s most "mportant or R/ana"r to ma"nta"n th"s status as

the compet"t"on "n the mar4et "s "ncreas"n5. R/ana"r should al(a/s use latest a"rcrats

to cut do(n l"5ht dela/s or techn"cal reasons. ,h"s ("ll also enhance customer saet/

and the "ma5e o the brand.

MAR4ETING MANAGEMENT

Mar5eti&( Strate(y

Mar4et"n5 strate5/ ocuses on (a/s "n (h"ch an or5an"?at"on can d"erent"ate "tsel rom "ts

compet"tors cap"tal"?"n5 on "ts d"st"nct"#e stren5ths to del"#er better #alue to "ts customers

B0ollensen 2&&)C. R/ana"rs mar4et"n5 strate5/ has been to establ"sh themsel#es as =uropes

lead"n5 lo(3ares scheduled passen5er a"rl"ne throu5h cont"nued "mpro#ements and

epand"n5 oer"n5s o "ts lo(3ares ser#"ce. R/ana"r a"ms to oer lo( ares that 5enerate

"ncreased passen5er tra"c ("th a cont"nuous ocus on cost conta"nment and operat"n5

e"c"enc"es. 0ere are the 4e/ elements (h"ch ma4e up R/ana"rs strate5/:

!" c!st strate(y: In order to st"mulate demand R/ana"r tar5et are consc"ous le"sure or

bus"ness tra#elers (ho m"5ht other("se not tra#elled at all or use other methods o transport

such as car coach or tra"ns. R/ana"r sells "t seats on a one3(a/ bas"s unl"4e most trad"t"onal

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carr"ers. R/ana"r sets "ts ares on the bas"s o the demand or part"cular l"5hts and b/

reerence to the per"od rema"n"n5 to the scheduled date o departure. &H o seats on a l"5ht

are sold at the m"n"mum a#a"lable are ass"5ned or the route once these are "lled the pr"ce

per seat r"ses.

F'i()ts !& S)!rt#*au' R!utes:,he or5an"?at"on reuent pro#"des po"nt3to3po"nt

l"5hts on short3haul routes to secondar/ and re5"onal a"rports "n and around ma*or populat"on

centers and tra#el dest"nat"ons. ,he a#era5e l"5ht t"me has been 1.1 hours ("th an a#era5e

route len5th o 6 4"lometers. R/ana"rs le( an a#era5e o appro"matel/ 1.9 round tr"ps

da"l/ per route. ,he cho"ce o onl/ l/"n5 short3haul routes allo(s R/ana"r to oer reuent

ser#"ce (h"le el"m"nat"n5 the necess"t/ to pro#"de r"ll ser#"ces other("se epected b/

customers on lon5er l"5hts.

R!utes:R/ana"r a#ours secondar/ a"rports ("th con#en"ent access to ma*or populat"on

centers Be.5. -ondon 'tansted A"rportC and re5"onal a"rports Be.5. +russels3 'outh 8harlero"

a"rportC. 7"rstl/ these ha#e more compet"t"#e access and handl"n5 costs but also pro#"de a

h"5her rate o on3t"me departures e(er term"nal dela/s and aster turnaround t"mes B"t "s

much u"c4er to land unload and reload passen5ers and lu55a5e and ta4e o a5a"n at smaller

less con5ested a"rports then at a ma*or a"rport such as Ja#entem or 0eathro( (h"ch ha#e to

accommodate man/ planes at the same t"meC. ,he ast turnaround "s a 4e/ element "n

R/ana"rs eorts to ma"m"?e a"rcrat ut"l"?at"on.

Maximi6i&( t)e use !/ t)e I&ter&et.


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C!mmitme&t t! Sa/ety a& 0ua'ity Mai&te&a&ce . R/ana"rs comm"tment to saet/

"s a pr"mar/ pr"or"t/ o the 8ompan/ and "ts mana5ement. ,h"s comm"tment be5"ns ("th the

h"r"n5 and tra"n"n5 o R/ana"rs p"lots cab"n cre(s and ma"ntenance personnel and "ncludes a

pol"c/ o ma"nta"n"n5 "ts a"rcrat "n accordance ("th the h"5hest =uropean a"rl"ne "ndustr/standards. Althou5h R/ana"r see4s to operate "ts leet "n a cost3eect"#e manner mana5ement

does not see4 to etend R/ana"rs lo( cost operat"n5 strate5/ to the areas o saet/

ma"ntenance tra"n"n5 or ual"t/ assurance.

Mar5eti&( mix

Pr!uct

R/ana"r ("ll cont"nue to oer the same ser#"ce (h"le "ncreas"n5 l"5ht reuenc/ and cho"ce

o routes.

Price

R/ana"r ("ll cont"nue to lo(er "ts ares. ,he 8ompan/ ("ll cont"nue to "ncrease the number

o seats "t sells or ree Beclud"n5 taes and char5esC. R/ana"rs 5ro(th "s dr"#en b/ the

("den"n5 5ap bet(een the"r 5uaranteed lo(est ares and the r"s"n5 ares o most o the"r

compet"tors (ho ha#e repeatedl/ "ncreased uel surchar5es o#er the last /ear.,h"s has been

the strate5/ or 5enerat"n5 5ro(th up to no( and has pro#ed #er/ successul.

P'ace

In order to d"scoura5e the rema"n"n5 e( passen5ers rom boo4"n5 #"a the call centres

R/ana"r has placed an etra char5e on call3centre boo4"n5s and "ntroduce reduct"ons or

onl"ne reser#at"ons.

Pr!m!ti!&

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R/ana"r used the "ntroduct"on o a ne( leet o +oe"n5 )3;&&s Fnet 5enerat"on a"rcrat

as an opportun"t/ to re*u#enate the "ma5e o the a"rl"ne. ,here "s a percept"on that because

R/ana"r "s a lo(3cost ser#"ce "t "s also a lo( ual"t/ ser#"ce. ,o correct th"s percept"on the/

launched an ecept"onall/ "ntense mar4et"n5 campa"5n Brad"o ne(spapers and tele#"s"onC.

,he/ also "ncluded a modern"s"n5 o the"r stas Lloo4 as (ell as the"r leet.

Pe!,'e

!#er the past /ear R/ana"r has created more than 1&& ne( *obs. ,he"r people ha#e been

promoted as the"r cont"nu"n5 5ro(th creates ne( opportun"t"es or career de#elopment. h"le

R/ana"r oer 5ood pa/ments the/ cont"nue to mana5e the"r rosters "n order to ma"m"se

the"r peoples product"#"t/ (h"le at (or4 but at the same t"me ma"m"s"n5 the"r t"me o.

R/ana"r product"#"t/ rema"ns h"5h as o#er the past 12 months R/ana"r carr"ed almost 1&&&&

passen5ers per emplo/ee a "5ure that "s some ten t"mes better than the"r pr"nc"pal

compet"tors across =urope.

Mar5et P!siti!&i&(

R/ana"r "s 4no(n as the lo(est cost a"rl"ne "n =urope. ,he/ can boast man/ No.1s l"4eD

I. No.1 or passen5er tra"c

II. No.1 or passen5er 5ro(th

III. No.1 or =uropean routes and bases

IE. No.1 or customer ser#"ce del"#er/ punctual"t/ l"5ht complet"on and e(est lost

ba55a5e.

E. =uropes /oun5est 5reenest cleanest leet o +oe"n5 )3;&& a"rcrat.

R/ana"r "s the most rad"cal lo( cost a"rl"ne that d"ers rom the closest compet"tor on the

5raph because "t uses secondar/ a"rports to lo(er "ts cost base.

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Tar(et mar5et

7are consc"ous le"sure bus"ness tra#elers

=uropean mar4et onl/

P!rter7s Five F!rces A&a'ysis

-ar(ai&i&( P!"er !/ Su,,'iers

0"5hD

+oe"n5 "s R/ana"rs ma"n suppl"ers

!nl/ 2 poss"ble suppl"ers o planes +oe"n5 and A"rbus

'("tch"n5 costs rom one suppl"er to the other "s h"5h because all mechan"cs and

p"lots (ould ha#e to be retra"ned.

+"55er a"rports (here R/ana"rs compet"tors operate ha#e 5reater bar5a"n"n5 po(er.

-o(D

Pr"ce o a#"at"on uel "s d"rectl/ related to the cost o o"l BR/ana"r controls these

throu5h hed5"n5C.

Re5"onal A"rports ha#e l"ttle bar5a"n"n5 po(er as the/ are hea#"l/ dependent on one

A"rl"ne.

-ar(ai&i&( P!"er !/ Cust!mers

,h"s "s h"5h becauseD

8ustomers are pr"ce sens"t"#e

'("tch"n5 to another a"rl"ne "s relat"#el/ s"mple and "s not related to h"5h costs Ball

a"rl"nes are onl"neC

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8ustomers 4no( about the cost o suppl/"n5 the ser#"ce

,here "s relat"#el/ no lo/alt/

Ne" E&tra&ts

0"5h becauseD

0"5h cap"tal "n#estment

Restr"cted slot a#a"lab"l"t/ ma4es "t more d""cult to "nd su"table a"rports.

,here ("ll be "mmed"ate pr"ce (ar " encroach"n5 on e"st"n5 -88 route.

7l"5ht Author"sat"ons

T)reat !/ Sustitutes

0"5h becauseD

No brand lo/alt/ o customers

No Lclose customer relat"onsh"p

No s("tch"n5 costs or the customer

!ther modes o transport are a#al"able

C!m,etitive Riva'ry

,he -88 mar4et "s h"5hl/ compet"t"#e

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Most cost ad#anta5es can be cop"ed "mmed"atel/

-o( le#els o e"st"n5 r"#alr/ as the t(o ma*or lo(3cost a"rl"nes ha#e a#o"ded d"rect

head to head compet"t"on b/ choos"n5 d"erent routes to ser#e

0o(e#er " an/ compan/ does dec"de to compete on the same bas"s as R/ana"r there

("ll be hea#/ pressure on pr"ces mar5"ns and hence on pro"tab"l"t/

Not much d"erent"at"on bet(een ser#"ces. Pr"ce "s the ma"n d"erent"at"n5 actor

S8OT A&a'ysis

Stre&(t)s:

+rand name: R/ana"r throu5h "ts 1 /ears "n the -88 mar4et has de#eloped a #er/

(ell reco5n"sed brand name.

+ene"ts rom lo( a"rport char5es: ,hese a"d the lo( cost base R/ana"r bene"ts rom.

0as "rst mo#er ad#anta5e on re5"onal a"rports Be.5. 8harlero"C: Acts as a barr"er to

entr/

Internet s"te B9H boo4"n5sC (((.r/ana"r.com: -o(ers the cost o d"str"but"on aso#er the phone boo4"n5s are more costl/. =l"m"nates the need o tra#el a5ents

0"5h seat dens"t/:

All +oe"n5 a"rcrat: A un"orm leet sa#es on ma"ntenance and tra"n"n5 costs

7ast turn3around:

0"5h 'er#"ce perormance: Punctual h"5h rate o l"5ht complet"on lo( ba55a5e lossthese 5"#e a 5ood "ma5e o the compan/s rel"ab"l"t/.

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Modern"sed leet (h"ch leads to less epens"#e ma"ntenance: "ll become more

un"orm ("th onl/ one model B)3;&&C also ne(er planes ("ll reu"re less

ma"ntenance.

0"5h a"rcrat ut"l"?at"on: R/ana"r l"es "ts planes or lon5er thus 5enerat"n5 more

re#enue rom "ts assets.

7uel and other r"s4s hed5"n5.

'mall headuarters: -o( on o#erheads

Po"nt to po"nt: No hub and spo4e lo(ers cost as no throu5h ser#"ces reu"red.

8ea5&esses

Prone to bad press: R/ana"r "s perce"#ed as arro5ant and the sl"5htest "nc"dent 5ets a

lot o press co#era5e.

N"che mar4et: Restr"cted epans"on poss"b"l"t/

enlar5ement: ,here ("ll be a lot o ne( dest"nat"ons opened up

't"ll potent"al to capture mar4et share: ,he -88 mar4et share could more than double

+ene"ts rom less eposure to 5eopol"t"cal r"s4s: As onl/ reall/ operates "n =urope

=conom"c slo(do(n actuall/ helps R/ana"r3 chan5es "n corporate culture Lsteals

customers rom trad"t"onal carr"ers as the/ see4 lo(er ares.

T)reats

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or the compan/s people are one source o susta"nable compet"t"#e ad#anta5e. In a ast3

chan5"n5 en#"ronment (here technolo5"cal "nno#at"ons and other strate5"es can be cop"ed "t

"s the human resources that br"n5 a susta"nable compet"t"#e ad#anta5e.

FINANCIA MANAGEMENT

In th"s se5ment (e ("ll anal/s"s the "nanc"al perormance o the compan/ throu5h the data

a#a"lable "n the annual report.

+us"ness perormance anal/s"s:

,hrou5h bus"ness perormance re#"e( (e ("ll 5a"n understand"n5 o the bus"ness and

pro#"de "nterpretat"on o result. 7or th"s anal/s"s (e are to use rat"o anal/s"s (h"ch ("ll loo4

at

- Pro"tab"l"t/

- ="c"enc/

- In#estment

- Gro(th

- 7"nanc"al structure

O,erati&( ,r!/it 9: !,erati&( ,r!/it sa'es

2&&;: $)&;& 21);22 O 1&& 19.9H

2&&: 1$ 22)6;;$ O 1&& 21.&9H

Pr!/it e/!re tax: &et ,r!/it e/!re tax sa'es

2&&;: );92 21);22 O 1&& 16.1H

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2&&: $1&) 22)6;9$ O 1&& 2&.16H

Pr!/it e/!re i&terest a& tax: P-IT sa'es

2&&;: $)&;& 21);22 O 1&& 19.9H

2&&: 1$ 22)6;;$ O 1&& 21.&9H

Pr!/it a/ter tax: &et ,r!/it a/ter tax sa'es

2&&;: )9&&; 21);22 O 1&& 1.)9H

2&&: )$6&& 22)6;9$ O 1&& 19.H

Rate !/ ca,ita' em,'!ye: !,erati&( ,r!/it t!ta' assets ; curr. iai'ities

2&&;: $)&;& 6)2$$1 3 1$$1$&

$)&;& &&1 11.2$H

2&&: 1$ $6)6; 3 119&12

1$ $)$1$ 1&.)1H

Retur& !& e%uity: ,r!/it a/ter tax e%uity

2&&;: )9&&; 6)2$$1 6.1H

2&&: )$6&& $6)6; .$$H

S!'ve&cy Rati!:

Curre&t rati!: curre&t assets curre&t 'iai'ities

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2&&;: 2);122 1$$1$& 1.$)

2&&: 2&9266 119&12 2.&2

Fi&a&cia' structure:

3et rati!: et et < e%uity

2&&;: 226;2& 226;2& Q 6)2$$1 26.);H

2&&: 2&))2 2&))2 Q $6)6; 26.&;H

St!c5 mar5et rati!s:

-asic ear&i&(s ,er s)ares: ,r!/it a/ter tax &!. !/ !ri&ary s)ares issue

2&&;: 2$euro ;cent.

2&&: 2;euro 2& cent.

3i'ute EPS:

3ivie& P!'icy

'"nce "ts or5an"?at"on as the hold"n5 compan/ or R/ana"r "n 1996 R/ana"r 0old"n5s

has not declared or pa"d d"#"dends on "ts !rd"nar/ 'hares. R/ana"r 0old"n5s ant"c"pates or

the oreseeable uture that "t ("ll reta"n an/ uture earn"n5s "n order to und the bus"ness

operat"ons o the 8ompan/ "nclud"n5 the acu"s"t"on o add"t"onal a"rcrat needed or

R/ana"rs planned entr/ "nto ne( mar4ets and "ts epans"on o "ts e"st"n5 ser#"ce as (ell as

replacement a"rcrat or "ts current leet. R/ana"r 0old"n5s does not thereore ant"c"pate

pa/"n5 an/ cash or share d"#"dends on "ts !rd"nar/ 'hares "n the oreseeable uture.

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Ad*usted pro"t ater ta eclud"n5 ecept"onal "tems "ncreased b/ 2&H to ;&.9m. Includ"n5

ecept"onal "tems pro"t ater ta decreased b/ 1&H to )9&.m compared to the pre#"ous /ear

ended March )1 2&&.

Pr!/it a/ter taxrose to ;&.9m due to a 2&H "ncrease "n passen5er numbers a 1H decrease

"n a#era5e ares B"nclud"n5 chec4ed "n ba55a5e re#enuesC and stron5 5ro(th "n anc"llar/

re#enues. ,he 5ro(th "n re#enues (as oset b/ a comb"nat"on o "ncreased a"rport costs

(h"ch rose b/ $H to )96.)m

O,erati&( reve&ues:

T!ta' !,erati&( reve&ues "ncreased b/ 21H to 21).;m compared to 2&& (h"ch (as to

22)6.9m (h"lst passen5er #olumes "ncreased b/ 2&H to $&.9m. ,otal re#enue per passen5er

"ncreased b/ 1H due to stron5 anc"llar/ re#enue 5ro(th.

A&ci''ary reve&ues cont"nue to outpace the 5ro(th o passen5er #olumes and rose b/ )$H to

;;.1m "n the per"od. ,h"s perormance relects the stron5 5ro(th "n onboard sales ecess

ba55a5e re#enues non3l"5ht scheduled re#enues and other anc"llar/ products. BIn March

2&& R/ana"r announced a ne( $ /ear hotel partnersh"p ("th =ped"a (h"ch added to the"r

re#enue.

Alon5 ("th the "ncrease "n the re#enue there "s an "ncrease "n the costs as (ell.

T!ta' !,erati&( ex,e&ses rose to 2166.1m due to the "ncreased le#el o act"#"t/ and the

"ncreased costs assoc"ated ("th the 5ro(th o the a"rl"ne part"cularl/ h"5her a"rport char5es

and sta costs. hereas "n /ear 2&& the cost (as 16$.2m. that means a total r"se o 2)H

"n operat"n5 epenses.

Sta// c!sts ha#e "ncreased b/ 26H to S2;$.)m. ,h"s pr"mar"l/ relects a )2H "ncrease "n

a#era5e emplo/ee numbers to $262. =mplo/ee numbers rose due to the 5ro(th o the

bus"ness and an "ncrease "n cab"n cre("n5 rat"os as a result o a ne( => (or4"n5 d"rect"#e.

3e,reciati!& a& am!rti6ati!& "ncreased b/ 1$H to S16$.)m. ,h"s relects net o

d"sposals an add"t"onal 2 lo(er cost Lo(ned a"rcrat "n the leet th"s /ear oset b/ a lo(er

deprec"at"on char5e o

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S9.6m due to a re#"s"on o the res"dual #alue o the leet to relect current mar4et #aluat"ons

and the

pos"t"#e "mpact on amort"?at"on o the stron5er euro #ersus the >' dollar.

Rate !/ 3e,reciati!&

Plant and eu"pment............................................................................................... 2&3)).)H

7"tures and "tt"n5s .............................................................................................. 2&H

Motor #eh"cles ...................................................................................................... )).)H

+u"ld"n5s................................................................................................................. $H

A"rcrat are deprec"ated on a stra"5ht l"ne bas"s o#er the"r est"mated useul l"#es to est"mated

res"dual #alues. ,he est"mates o useul l"#es and res"dual #alues at /ear end are:

Aircra/t Ty,e Numer !/ Aircra/t Use/u' i/e Resiua' =a'ue

+oe"n5 )3;&&s 12; 2) /ears 1$H o mar4et

#alue

Fue' c!sts rose b/ 1H to 91.)m due to a 2H "ncrease "n the number o hours lo(n

contrast"n5 that there "s reduct"on o ) to H "n uel consumpt"on result"n5 rom the

"nstallat"on o ("n5lets on +oe"n5 )3;&& leet.

Mai&te&a&ce c!sts "ncreased b/ )$H to $6.m due to a comb"nat"on o the 5ro(th "n the

(e"5hted a#era5e number o leased a"rcrat b/ 1& to )$ and the "ncreased le#el o act"#"t/

oset b/ the pos"t"#e "mpact o a stron5er euro #ersus >' dollar echan5e rate.

,here "s also a substant"al "ncrease "n a"rcrat rental cost route char5es a"rport and handl"n5

char5es

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Ot)er i&c!me:

Fi&a&ce i&c!me: Interest rece"#ablehas "ncreased b/ ))H to S;.&m or the per"od

pr"mar"l/ due to the "ncrease "n a#era5e depos"t rates earned "n the per"od part"all/ oset b/

a lo(er a#era5e cash balance.

Exce,ti!&a' items: Ga"ns on d"sposal o propert/ plant and eu"pmento 12.1m B1&.6m net

o taC arose on the sale o 6 +oe"n5 )3;&& a"rcrat dur"n5 the /ear 2&&;.

Fisca' >??@: /uture strate(y a//ecti&( t)e /i(ures.

R/ana"r has ta4en the ad#anta5e o the all "n o"l pr"ces and are no( hed5ed 9&H or

'eptember at T129 per barrel ;&H or U) at T12 per barrel "t "s cont"nued to bel"e#e that o"l

pr"ces rema"n sub*ect to "rrat"onal euberance.

,he dem"se o lo( are a"r tra#el "s a5a"n be"n5 pred"cted b/ h"5h are a"rl"nes l"4e

+A and others (ho are st"ll los"n5 short haul tra"c to R/ana"r. 0"5her o"l pr"ces (ont end

lo( are a"r tra#el "t *ust "ncreases the attract"on o R/an a"rs 5uaranteed lo(est ares as

consumers become more pr"ce sens"t"#e and s("tch a(a/ rom h"5h areVuel surchar5"n5a"rl"nes l"4e +A.

,he "scal /ear (h"ch "s ent"rel/ dependent on ares and uel pr"ces rema"ns poor. ,he

emer5"n5 econom"c recess"on "n the >K and Ireland caused b/ the 5lobal cred"t cr"s"s and

h"5h o"l pr"ces means that consumer con"dence "s plummet"n5.

!n the bas"s o our e"st"n5 uel hed5es U o"l pr"ces at appro. T1)& per barrel and a#era5e

ares all"n5 b/ $H or the ull /ear (e epect to record a ull /ear result o bet(een

brea4e#en and a loss o 6&m.

R/ana"r has one o the stron5est +alance 'heets "n the "ndustr/ and the bus"ness cont"nues to

be stron5l/ cash 5enerat"#e ("th o#er S2.2bn "n cash. "th the lo(est ares and lo(est cost

base "n the "ndustr/ R/ana"r "s the best pos"t"oned a"rl"ne "n =urope.

+I+-I!GRAP0Y

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ryanair plc a model for the prject

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