Ryanair: PESTEL and Porters Five Analysis

Ryan appearance PESTEL and Porters Five Analysis1.0 IntroductionRyanair is an Ireland establish air demeanor club and it abstruse in commercial melodic phrase business since 1986, in act(p) scheduled passenger respiratory tracts, serving wretched tug and micros hump st while to steer routes primarily between Ireland, Britain and atomic number 63. It is the pi matchlessers of head start gear bed airline in europium and even until now Ryanair is the save airline that expands cheapest air f be to passengers exit round Europe. Micheal OLeary is the CEO of Ryanair, holds 4.6% stake of the troupe, His dynamic let out f atomic number 18 strategies a pertinacious with the evolution of Ryanair rescue had led to burst of many budget airlines and any(prenominal) of them had been bought by Ryaniar around Europe, simply because of their inability to compete with Ryanair. European aviation constancy is wider, besides squeezed with many incumbents that atomic number 18 in operation(p) both defraud haul and long haul routes. As European pithy haul airline food market discussion section is bell sensitive, Ryanair handles no neck ruffs scheme and charges oddment-place price from its customers. In establish to obtain better margin in the hapless f ar straighten outing market Ryanair held in a position of represent leader and fundamental humbled fargon system supports for rapid egression of its business. The strategic capabilities infrapinned by its unique resources and core competences argon the preliminary constituents for Ryanair to be a exist leader and offer low completes. This go a mien be explained in detail under below superlativeics about the feasibility of dissimilar strategic circumstances.2.0 External AnalysisThe comp leftoverium of Macro- surroundings explores core cause of cistron assess the nature of feats and immediacy. PESTEL analysis has been undertaken to evaluate the external environment of Ryanair.2.1 PEST EL Analysis(P)olitical/(L)egal circumstanceors Preferential Treatment of home base airlines in salwaysal(prenominal) countries, at the same time they prevent thriving foreign companies and communicate them in to a greater extent operational cost. Increased terrorists activities have prompted airline persistence to tighten security measures and whollyeged terrorist plots provide adversely affect flying turn-around time. Detrimental mental effects ar also possible collectible to any terrorists plots targeted on Ryanair. The rapidly changing g everyplacenment rules and regulations are an essential legal factor for Ryanair. This result be discussed in detail under suppliers dicker major(ip) ply.(E)conomic factors The instability in burn price cause major(ip) problem for airline industry. If they do non hedge, the furnish price advance is inevi duck and they need to find cost savings in parvenue(prenominal) spheres of business when the fuel price is soared. Ryanair was e redundantly much compromising to fuel price rises in the past. For example In the support quarter of 2008, when the fuel price was in its hike, Ryanair reported losings of $130 million long horse and it blamed a 71% annex in the price paid for fuel during the quarter due(p) to the abnormal surge of fuel price of more than than $ 1,100 a ton (K, Capel. transferline. The Telegraph, Feb 2 2009.).(E)nvironmental factors As the world is coping towards more and more greener, all g all overnments taking appropriate measures to discipline glasshouse gases from carbon outpouring which would lead to catastrophic sympathetic and economic consequences. Ryanair has net profit virtually in all European countries, so it is more undefended to all EU environmental rules and regulations. The mounting pressure on EU laws to tax aviation fuel and anticipated charges on environmental taint by airlines would have direct impact to Ryanair.(T)echnological factors Technological factors su ch as internet, innovative developments in telecommunications such as video conferencing, instant messaging, net conferencing etc. forget mean less need for travel, e supererogatoryly on scenarios such as business meetings.3.0 patience environment3.1 Segmentation and poseRyanair is positioned in the lowest fare segment and has least customer repair about among otherwise budget airlines in the European market. The market segment for its rivalries is broader with big geographical area including operations to chief(prenominal) airports, whereas Ryanairs networks are limited only to low cost tributary airports with smaller geographical area.Ryanair predominantly focuses on only pot who are desperate for low fare and it has no separate segment for people who want luxury military benefit or business class. Despite, Ryanairs continuous traffic make growth, come outs that the people wanting low fare in European market are tremendous and European market is for the low fare sho rt-haul carriers. Perhaps, noble air fare carriers nevery cope up nor sustain against low fare carriers. The warlike position is profoundly elaborated in section 3.2.3.2 Porters five forcesIndustry environment analysis figures out the foreseeing competitive pressure in European aviation and the advantageousness of the industry likely to be in prox. It explores the magnitude impact of panic of substitutes, Threat of Entrants, Rivalries in European market, bargaining power of supplier and bargaining power of customers.RivalriesThe proud rivalry impacts for Ryanair are from Easy Jet, Air Lingus, Lufthansa, Iberia, SAS, Airfrance, KLM and Air Lingus. Few airlines (Easy Jet, Air lingus and Lufthansa) the first trio of them are roughly more or less equal in size to Ryanair and round of their dressances are even better in terms of customer service. This is considered as a material little terror to Ryanair. Despite, among all short-haul carriers Ryanair is the cost leader with h aving gamyest market component in the European market. Although Ryanair has firmly improving its competitive advantage, the core dodging of the company is to maintain the operational cost as token(prenominal) and offer low fare to customers, which is virtually same among its rivalries, but the outstanding scenario is Ryanair forever bring ons new paths to bring down the operational cost .Threat of impertinent EntrantsThe short haul no frill airline market is a high-pitchedly profitable business in Europe so far, mend long haul market in Europe is experiencing gigantic losses like Air Lingus long haul airlines. So, the business scope in the short-haul market may attract new entrants. Although, European airline industry is de-regulated and open for both national and international companies, Airline business is not something like setting up a dot.com with minimum capital in anticipated profit. Hefty capital investment is required to memorise route, turn over, set up feath er aliment centre, building infrastructure etc in order to establish an operation. Industry knowledge and time associated with entry are significant for companies that want to start short haul airline business in Europe from other industries such as tourism and Rail instruction etc, but for airline companies from some other market like Asia, southwestern America, North America and Australia can trace out the European market in some extent and such huge investments also may be returnable for them.Threat of substitutesThe threat of substitute is possible threat for Ryanairs traffic growth as passengers tendency to switch to other gist of transport such as buses, trains and cruise. This kind of threat has medium effect over Ryanair, despite, the ubiquity of other means of transport to travel crossways European countries. Particularly rapid growth of data trackway network is considered to be a most influential substitute for short haul air travel across Europe. Congestion in airp orts and difficulties (such as boarding, airport pilgrimage) involved in air travel could cause passengers more likely to remove railway. Some government like U.K is veritablely funding for the magnification of high-velocity rail networks to and from Europe, especially to curb short haul carriers by means of heavier gross due to the pressure arising from the environmental groups to cut down carbon emission by domestic aviation. The government intervention to establish better rail links in other countries such as France, Germany and the Netherlands is more vulnerable to Ryanairs routes in those countries (Dan Milmo 2009. The Guardian. 5th Aug).Bargaining power of supplierAircraft Supplier In aviation Boeing and Airbus plays duopoly in manufacturing passenger aircrafts. Boeing is the main aircraft supplier for Ryanair, since its establishment. In terms of supplier bargaining power, Ryanair holds significant scale of power over Boeing, as it can easily switch to Airbus anytime in - shimmy of high price charged by Boeing. The recent Micheal O Learys announcement of negotiation with Air Lingus evidenced the high bargaining power over its Aircraft supplier (Sarah Arnott., 2008. Ryanair looks to order 400 aircraft in plans for massive expansion. The Independent, eighth Aug.). airdromes The enforcement of new rules and regulations by airport authorities are inevitable, eventually they have more reign on their bases with both short haul and long carriers airlines operational in any government airports. Ryanair has been either strongly protesting or recklessly withdrawing and switching its routes to alternative airports, at bases wheresoever it is experiencing significant problems. For example Recently Manchester airports Group refused to bring down its prices, which resulted Ryanair to imbibe nine out of its ten Manchester routes(Sarah Arnott., 2009. Price dispute sees Ryanair cut nearly all Manchester flights. The Independent, 18th Aug.). So, Ryanair can sw itch its destinations easily in case of its bargain does not take lead. Ryanair holds substantial power in the other spheres of suppliers such as staff recruitment agency, food providers and appurtenant harvest suppliers etc due to substantial availability of those kind of suppliers in the market.Bargaining power of customerEuropean market is almost saturated with many airline companies including premium service to economy classes. Bargaining power of customers is high as low budget airline a commodity today and front end of more substitutes in European market. Ryanair had shrunken the bargaining leverage to its fall into place with no other airlines could possibly offer such low fares, as the result that Ryanair is having extra-ordinary performance in traffic growth consistently category by year, but this growth is uncertain if Ryanair pushes its fare up. More people travel on Ryanair, because they like the fare and can easily afford it.3.3 Value Networks and Business Partner sIt is necessary to analyse appreciate creating areas in Ryanairs Industry value chain, which merges it competitive advantage by delivering those precious values to customers. harmonise to porter, 1985, Value chain of any organization comprises of two activities, primary and secondary activities. Primary activities are directly concerned with delivery of service and that includes incoming logistics, operation, outbound logistics, marketing, gross tax and services. The support activities include administrative infrastructure management, human resource management, technology and procurement.Inbound logisticsStock control of Food, beverages and Ancillary sale items Although, Ryanair is a no frills airline, it is making huge profit through the sales of food, beverages and Ancillary items. Ryanair manages strong relationship with dissimilar foods and beverages suppliers, in-order to receive quality puff up-worn goods and on time delivery, which adds value throughout its value c hain.Route pick and airport base Ryanair only selects low cost route with the apprehension of traffic growth. Ryanair has strong relationship with various airport authorities around Europe, thus they provide subsidies in exchange for high traffic and low fares.Jet fuel This is the most significant input that Ryanair has to scrutinize, as grand fuel contributes around half of the run cost. Well hedged contracts allow for minimise cost, so recent hedging arrangements adds value to get control of fuel cost in some extent.Aircrafts and Maintenance Deployment of single face aircraft Boeing 737-800.OperationRyanairs operational activities includes passenger check-In, lodge ancillary and catering items in the flights, baggage check-In, Hospitality, In-flight services and daily flight operations.Contemporary online check-in form reduces cost associated with staff and avoids passenger queues in airports, thus it provides convenient journey for passengers. This adds value by enabling quick turnover of flights and prompt minimum waiting time of flights at airports. Additionally, Ryanair has contractors at certain airports for ticketing, passengers and aircraft handling (Includes loading various goods into aircraft) as well as for engine repairs and heavy maintenance at competitive rates. (Ryanair, 2004. yearbook traverse 2008-2009. Online. Available at http//www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed 10 Jan, 2010) This third party contracts are more cost-efficient than Ryanair perform these activities itself. Productivity-based incentives, this includes sales bonuses for on-board sale of products by flight attendance to sum up ancillary revenue through reward mechanism and pilots are remunerated based on number of hours or sectors flown, which cuts unnecessary staff cost. Ryanair facilitate the physical exertion of onboard mobile and electronic device for its passengers in order to add value for customers.Marketing, Sales, Service s and Outbound LogisticsRyanair advertise its seasonal fares and other company related commercial advertisements on its fleet with zero advertisement costs. Furthermore special ticket offers are being advertised on its website to promote sales. In order to curb substantial operational cost and tackle high number of booking, Ryanair has introduced new Online Reservation System in attachment to the soldiers arrangement. The system new has been provided and maintained by an outside contractor, Navaitire. (Ryanair, 2004. Annual Report 2008-2009. Online. Available at http//www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed 5, Jan, 2010) It adds value for passengers by increase system speed and avoid Ryanair is being on exposure to the risk of solving system failure issues. There is no sales agent fit adds value on passengers fare and it adds value in terms of the diffusion cost aggregate nearly to zero and convenient journey for passengers. Online baggage claimi ng system for baggage lost passengers, which adds value to passengers as it is an easy way to claim their bags.4.0 Resources and Capabilities4.1 ResourcesResources allocation and capabilities development are the source to gain competitive advantage for a company, while the market and environment establish constraints and pressures. Resources of Ryanair are introductoryally what it holds as productive pluss and can be differentiated into three different forms, tangible, intangible and human resources. Capabilities are what it can achieve by exploiting opportunities in the external environment and efficient deployment of its unique resources that exist deep down the company to achieve competitive advantage.Tangible ResourceRyanair had 181 aircrafts in operation as of March, 21, 2009, among which 109 aircrafts were funded by The Export and Import Bank, 43 aircrafts were in operating lease, 20 of the aircraft in the fleet were treated as financially hired by Japanese operating leases with call options, 6 of the aircraft in the fleet were encumbered with commercial debt backing and three remaining aircrafts are in all owned by Ryanair without any finance related encumbrances. Ryanair also owns and operates six Boeing 737-800 flight simulators for the mean of pilot training. All the above are undestroyable assets virtually all of them were aircraft totalled to 3.6 billion Euros. Ryanair, 2004. Annual Report 2008-2009. Online. Available at http//www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed 4 Jan 2009. Even though many aircraft are encumbrances, will power accompanied with the bank loan gives greater independency and financially the cost involved in leasing arrangements is higher than being owner of aircraft.In addition to aircraft, administration offices in Dublin and East Midlands Airport, simulator and training centres are entirely owned by Ryanair. It also has leasehold property in eight airports for the purpose of flight mainten ance and an office building in Dublin Airport Business Park. The recent investment of 702 million Euros for the purchase of property, plant and equipment in 2008 is remarkable. Ryanair, 2004. Annual Report 2008-2009. Online. Available at http//www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed 4 Jan 2009.Ryanair serves over 1000 routes across Europe and Morocco from 40 airport bases, which is considered to be high in numbers compare to its rivalries. (http//www.ryanair.com/doc/investor/2010/q3_2010_doc.pdf, accessed on 15th Jan 2010). Airport bases served by Ryanair are ultimately considered as strategic assets due to its low cost.Financial ResourcesThe huge cash reserves held in the company of over 2.5 billion Euros will allow having abundant cash flow for its operation. interchange pile would financially leverage to take strategic decision in future expansion of business. Ryanair holds 93.15 million Euros worth of available-for-sale financial assets, which are not considered as an investment in an associate company due to deficient power of Ryanair to influence over the investee. And also, Ryanair is the biggest investor on its rivalry Aer Lingus with the acquired stake of 29.8% of Aer Linguss trade capital through private acquisition with the total aggregate cost of 407.2 million Euros. Ryanairs long term debt totalled to 2398.40 million as of 2009 annual report, which is an increase of 131.9 million from 2008 annual report. The latest debt increase is primarily due to financing of new aircraft, which will be delivered within two geezerhood as per the schedule.Ryanair, 2004. Annual Report 2008-2009. Online. Available at http//www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed 4 Jan 2009. impalpable resourcesRyanairs climbing traffic growth and established brand name are most consolidated and valuable intangible assets for the company that implant in its relentlessly flowing low fare strategies to lease huge profi t. In terms of operational prospective, minimum aircraft age of 3.77 years middling age of all its Boeing 737-800s is a unique intangible asset and no aircraft is more than 9 years old. The company also holds considerable intangible asset of landing rights that flows future benefit into the company.Human ResourcesThere are 6616 staffs on the gambol(p) at Ryanair as of March 2009, this includes 1041 additional experienced pilots contracted from study agencies to satisfy short term pilot requirements. The employees figure is constantly increasing year by year due to rapid expansion of the company. Ryanairs top management comprises of eight boards of directors, all of them are having more than 7 years of experience with the company and their remuneration including different appoint options scheme are available and based on experience, as well as their job position. David Bonderman, Chairman of the Board and handler, who has served more than 13 years with the company. CEO and Dire ctor of Ryanair, Micheal OLeary is the most valuable human resources in the company and he has been victoryfully leading the company for nearly two decades, as CEO since 1994. (Ryanair, 2004. Annual Report 2008-2009. Online. Available at http//www.ryanair.com/doc/investor/2009/Annual_report_2009_web.pdf. Accessed 20 Jan, 2010).4.2 CapabilitiesIn this section, we will discuss about the special knowledge and a skill feature by Ryanair in order to gain competitive advantage and the line success factors that positioned the company as cost leader.The companys innovative pioneer strategies to have got the operating cost low and its ability to carrying passengers at lowest fare requisite are the special capabilities it posses. Apart from these, the table below contains Ryanairs last three years operational data up to March 2009, which will demonstrate the operational capabilities during that period.The average yield per revenue passenger gnarl and average yield per available seat mil es are decreased in 2009 due to the intense competition and further reduction of average book passenger fare by approximately 4 Euros compare to the front years. Yield management is crucial for airlines as the gross profit of the company mainly depends on it, so achieving better yield would peradventure maximise Ryanairs profit. The fares of Ryanair need to be continuously monitored in a way that would crap demand, at the same time that would maximise companys profit. Ryanair has only little control over the fuel fluctuations like many other airlines, so increase in fuel cost is an unavoidable increase in operating expenses. The remarkable factor is the recent fuel hedging arrangements increased Ryanairs power to some extent to influence those cost aroused due to high fuel price. The next factor is cost per available seat miles, which is operating cost by available seat miles. This is one of the most success factors that gain competitive advantage for Ryanair, as it always being low compared to all other short haul airlines in Europe. In the table above, the increase in the operating cost in 2009 is mainly due to the rise in fuel cost. The low fare strategy is embedded in the companys capability and it is most valuable for the company by creating demand for its service. The constantly increasing load factors year by year, while the average booked passenger fare is decreasing indicates that the unique capability of Ryanair to make the traffic grow and how well it filling its seat through creating demand by stretching its fare to lowest possible. So the increased load factor is mainly due to decrease in the fares. One of the main mottos of companys CEO, Micheal OLearys is to maximise profit through selling ancillary products. Ryanair is the highest ancillary revenue making airline in Europe, which add extra profit for the company. need cabin crews through commissions to sell ancillary product, consistently increasing and introducing various ancillary produ cts and having many commission based related business are the main source for ancillary revenue. The number of airport served and average flight utilisation hours are some other measurable capabilities of Ryanair.The best service to the passengers in terms of punctuality of its flights and less baggage missing scenarios are in Top Priorities and it makes competitive advantage for Ryanair in its operation. In fact it has the policy of publishing its customer service statistics every month to show the leads from its competitors. The table below shows that the Ryanairs capability in terms of punctuality, Bags handling and journey completions among its few rivalries.4.3 Strength and intellectual assetsAll routes are point to point rather than transitional. Although it is easy to establish point to point routes for a short haul carrier, it enhances convenient journey to the passengers.Ryanair has entered into fuel hedging arrangements followed by the huge losses on 2008. The unprecedente d hedging arrangements will provide substantial protection against fluctuations in fuel prices, generally through forwarding contracts coating certain periods in the future.Ancillary services including non-flight scheduled such as Car hire, Hotels, Travel Insurance, in-flight sales, rail and bus ground transport services in its business model adds extra revenue for the company.Ryanair has direct sales channels the only way to book ticket nowadays is via the website or via Ryanair direct call centre. It helps to take out sale agents commission and special offers would directly reach the customers without any discrepancies.Ryanair has been deploying Boeing 737-800s, same fleet community in all its routes. The company can save training cost as all staffs are only be trained for one vitrine of aircraft and also saves on maintenance supplies and labour as only one type of parts and skills needed. High seat density of 189 seats per aircraft accommodates more passengers (compare to its o lder version Boeing 737-200A, which had only 130 seats per aircraft) and it tends to extra revenue for the company.The use of Secondary Airport with frequent transport medium to be cities for the purpose to keep its airport charges low and for high turnaround times. The well known scattered strategy of no frills such as, free food, drink, and lounges etc4.5 helplessnessEven though its fares are far cheaper than any other airlines in Europe, it is being severely criticised by many people for its extravagant out of sight charges. The basic reason for this criticism is advertising fares without the disclosure of most basic inevitable charges such as, taxes, online check-In or airport check-In charge(which is abysmally costlier than the online check-In), card surcharge other than master card (only possible way to pay as the booking can feasibly done through either website or call centre), administration fee etcRyanairs deliberate controversial advertisements and statements by its CE O such as charging one pound to use the toilets in flight, are practically generate additional free publicity for the airline, but significantly it depletes brand study and it often perceived as braggy impression among peoples mind.The poor customer service by its staffs employed and bring low treatment of passengers by its CEO, Micheal O Leary and the company are misleading companys composition for not even providing the basic services and rudeness involved in customer query replies are the weakness that embedded in its system. harmonise to the comments analysed from 280 websites, Ryanair came bottom of the ranking with minus 40 points. Poor customer service and extra cost the airline charge for check-in bags are the major complaints. Lisa Minot, 2008. Sun Air News Ryanair suffer Over Service. The Sun, 2nd Aug.The company is heavily addicted for traffic growth and rivalry led in European short haul market. Because of that growth, Ryanair is not able to identify the reputation and loyalty in its brand among passengers.5.0 strategic situationPerhaps, I have mentioned about 2.5 billion cash reserves in its financial resources. It has announce plans of start paying dividend from its cash pile to their shareholder from 2013. (Sarah Arnott, 2010. Ryanair to pay dividend from 2013. The independent, 8th Jan). Instead of paying dividend out of its cash reserves or by using companys profit, it should decide to deploy its cash reserves in its on-holding strategy towards long haul routes. The company will get significant future growth by launching long-haul transatlantic routes. According to CEO, Micheal O Learys statement, if Ryanair introduces long haul routes from Europe to six US destinations, two segments of seat will be offered, one lowest unprecedented economic class and ever high fare business class with extravagant services. This rational strategy will generate huge profit by luring essence economic-class passengers perhaps transatlantic passengers will w ant something cheaper in their tickets. The cheapest fare no frill for economic class passengers with onboard sale of everything from breakfast to dinner, beverage to entertainment would create substantial ancillary revenue. In spite the airline destinations must be in populated area or rich cities such as Chicago Midway Airport, Atlanta Hartsfield International Airport and Dallas Fort cost International Airport etc to fill up business class seats, other there is no logic in adding business class seats in long haul routes. Alternatively, it can choose rural destinations in US, but the business class passengers firmly transited to populated cities without any ride out and inconveniency by having alliance with US luxury short haul carriers.Although, I have mentioned Ryanairs 29.8% stake over Aer Lingus, its first supply ship in 2006 to acquire entire share capital of Aer Lingus was firstly blocked by European commission on competition grounds and the second bid in 2007 was also fa iled after the Irish Government (25% stack holder on Aer Lingus) said Ryanair undervalued the company, while the offer totalled 701 million. So, Ryanair is not yet planned to make any further bid in recent future, rather it aims to raise its cash reserves. Pilita, C, Vincent, B, 2010. Third Ryanair bid for Aer Lingus unlikely. Financial Times, 7th Jan. Perhaps, the acquired stakes consolidate its financial position over Aer Lingus for convenient takeover in the future, in case of any failure or the acceptance of further bid by Aer Lingus. In consideration to Ryanairs future growth in the vivacious market and anticipated transatlantic expansion, it has to press hard for a plane integration over Aer Lingus by raising the offer price from its last bid of 701 million. The acquisition of Aer Lingus is more likely to see tremendous expansion in European market by acquiring market share and implementing low cost operating strategy over it rivalry. In a situation when a competitor disap pears in the market, the competition gets ease for some instance. The acquisition also allow Ryanair to get easy access into the transatlantic routes, as Aer Lingus already operating flights to some major airports in the linked States such as, Houston (HOU), Houston (IAH), Indianapolis (IND), Columbus (CMH) and San Francisco (SNF) etc6.0 Strategic ChoiceIdentificationThe first choice what I suggest is Ryanair can expand its market through Related Diversification by the launch of new international routes from Europe to Selected Asian countries, such as India, Malaysia and Singapore. Ryanair will be able to grow its traffic by selecting core destinations such as Mumbai, Bangalore, Goa, Chennai and New Delhi in India, Kualalampur in Malayasia and Singapore. In the other end, Ryanair would be able to cover travellers and tourists from all European countries by setting up transit hubs in selected airports in Europe such as Frankfurt, Madrid, Milan, Glasgow and Dublin (So, flights from t he new market will land in those transit hubs and then passengers can reach their end destination by Ryanairs local network flights through transit from these airport) travelling to our selected destinations in Asia, as it already has firm and established operation in Europe.The above selected strategic choice would be demonstrated under Ansoff Strategic Direction Matrix Market/product choices.According to Ansoff Matrix (developed by Igor Ansoff, 1957) the above selected business is launching of new service in new market, so it will be categorized under Diversification. Although, Ryanair has an on-holding plan of introducing transatlantic routes, but not yet lunged, the new strategic choice is to undulate market share in developing nations. The assumed service in those markets is clearly business to consumer type of activity, as Ryanair directly engaged in carrying passengers or providing service directly to the customers.Ryanairs main targeting customer segment in the above three countries are tourists and passengers who are looking for low fares, as well as high fare over luxury service. The differentiations in fares with price premium for passengers perceive it as on luxury segment and without price premium for passengers perceive cost benefit under low fare segment. All the three countries are developing nations with low income, middle class and rich people. Among them, people who afford to travel to Europe are