ABSTRACT
Ryanair was established in 1985 but it was not until its 1991 restructuring that it took on the role of Europe’s first LFA. In 1990, Ryanair was serving 26 city-pairs and carrying 700,000 passengers but was in financial difficulties. A decade later the airline was serving 47 city-pairs, carrying 5.6 million passengers annually and operating at annual net profits of €72.5 million2 (up by 24 per cent since the previous year). By 2001, Ryanair had become the ninth largest airline in Europe, measured in terms of passengers carried (7.4 million to financial year ended 21 March 2001). Growth projections indicated that by 2004, Ryanair could overtake long established rivals and become the fifth largest airline in Europe. This tremendous growth is attributable to the nature and efficiency of Ryanair’s low cost operational model and senior management’s dogged determination to adhere rigidly to the low fare business model.
