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To deliver this value proposition in a profitable way, RyanAir uses key processes like short haul flights, a standard fleet, low commissions to travel agencies, contract management with secondary airports and neighbouring communities, no meals, tough negotiations, high-powered incentives, word of mouth advertising, an economies of scale.
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RyanAir managed to introduce a business model innovation in the heavy regulated airline industry. The value proposition is to provide low budget travels with significantly lower air fares. To deliver this value proposition in a profitable way, RyanAir uses key processes like short haul flights, a standard fleet, low commissions to travel agencies, contract management with secondary airports and neighbouring communities, no meals, tough negotiations, high-powered incentives, word of mouth advertising, an economies of scale. It also uses key resources such as a standardized fleet of 737s, a non-unionized workforce and spartan headquarters.
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