Ryanair was founded 1985 as the first low-cost airline offering service between Ireland and the U.K. More established rivals Aer Lingus and British Airways, with origins as government-owned and -subsidized companies, had higher costs, allowing Ryanair to undercut their prices. After two years, Ryanair turned a profit. But Aer Lingus responded by halving fares and tripling capacity, leading Ryanair to the doorstep of bankruptcy in 1991. In this case students discuss Ryanair's turnaround strategy, its return to profitability in 1992 and its competitive position a decade later.
Case ID: 090517