The World's Favorite Airline

One of the most interesting European and Irish success stories of recent years is Ryanair. This low cost airline dominates the low fare market in Europe and is THE largest passenger carrier on the continent. It is also profitable which makes it virtually unique. Half-yearly profits of €215m while down 47% down on last years interim profits are very impressive, this despite the fact that fuel costs doubled from €392.7m to €788.5m. Unlike virtually every other airline, traffic grew by 19% to 32m and wait for it average fares fell - yes that is right, average fares FELL by 4% to €47.

How does Ryanair do it? Primarily because of an unrelenting focus on being THE low cost carrier in Europe. The airline does not mess about. It is not interested in being just a low cost carrier. Its overarching, never deviated from goal is to be THE low cost carrier. Led by Chief Executive Michael O’Leary, Ryanair has grown from being a weak, poorly capitalized airline twenty years ago to an absolute industry behemoth. O’Leary is not your typical suave Wall Street type of CEO. He is foul-mouthed, disdainful of government and European Union officials and an arrogant (normally correct) critic of other airlines to whom he loves sticking it to. Ryanair has literally lifted what was the BA tagline “The World’s Favorite Airline” and now uses it at investor presentations and in financial results, because it can legitimately make this claim based on passengers flown.

O’Leary is also brilliant (or at the very least produces consistently brilliant results.) Ryanair studied Southwest in some detail and has learned a lot from this great US airline. Much of the Southwest financial discipline, aircraft policy - 737s only, low cost airports etc. has been copied from Southwest.

One quite visible difference is customer relations. Southwest has a well deserved reputation for treating customers like gold. Ryanair has a well deserved reputation for treating its customers – well – let’s put it this way – not like gold. O’Leary though will tell you that his airline keeps it customer promise better than any other airline – “We will fly you there and back for the lowest price BUT don’t expect us, to provide you with a nice cup of tea and a biscuit (cookie to US readers) or a smile or a food coupon when your flight is delayed for three hours because of bad weather- because we don't promise that!
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As a keynote speaker, my Brand Promise is E4: Educate, Energize, Entertain AND Easy to work with. Why mention this? Well log onto the Ryanair investor relations site to hear Michael O'Leary at the half yearly conference. I promise you, you will get the first three E’s from this man. No one will ever say he is Easy to work with. But if you want a lesson in focus, clear sighted vision and quality execution, you will find few better examples in the commercial world.