Hi. I am studying for a business degree here in Australia. I am curious. Why does Ryanair polarize people so? From a business point of view they are a success. From what I can see, they have transformed the European Shorthaul market from one which was dominated by expensive national airlines to one that meets the needs of millions of ordinary people. I have been studying their corporate governance especially around the safety aspects and balance sheet which seems sound and makes them a viable going concern. So what am I missing? I have no connection with Ryanair, i have just picked them as a case study for an assignment and stumbled on PPRUNE.
Why do people love to hate MOL? There is no law or stock exchange governance which says the CEO has to be likeable. On any measure of KPIs, Ryanairs strategy looks sound, especially their aircraft leasing business.
So what am I missing. I have flown with Ryanair a few years ago when I visited Europe. Yes the seating was cramped, the flight was full, but the cost was very low and the flight was on time. The list of extra charges was long, but even included, the flight was half the price of the next nearest operator. I felt I got good value from the contract, even if the experience wasnt overally pleasent. I chose price over comfort.
So as I say, what am I missing? Is it just that MOL has chosen to brazenly stoke the media to promote the airline that people dont like, or is he really compromising safety for profits? Or breaking local employment laws or stock exchange rules? I see no evidence for this, but please collect me.
I have studied their T and Cs which clearly states the contract you are entering into when you fly with them. Are many of the complaints because people mis understand this contract? If I was a Ryanair shareholder, to make my business model work , of course I would hold passengers to the contract they have entered in to.
Again I assure you, I am purely interested in Ryanair as a business case. I have no connection with them and I am not interested in promoting them or otherwise. Its just that the reaction to anything 'Ryanair' seems overly out of proportion. So what gives?
Could one argue that this is the mastery of MOL as CEO? the 'no such thing as bad news approach?' Constant promotion , good or bad, of Ryanair?
I reserve the right to use any of the replies in my business report on Ryaniar.
Many Thanks! Bruce.