Ryanair Case Study Financial Analysis

Although exact details are unknown of those future regulations governing air traffic between the UK and other EU countries, in case agreements fail to ensure restriction-free flights between the UK and EU, this political outcome could reduce EU airlines access to the UK market (and vice versa, UK airlines would also lose their unrestricted access to the EU) (Aviation Voice, 2017).

Ryanair is an airline registered in Ireland (Ryanair, 2017), however, as the airline maintains large bases in the UK, unfavourable Brexit outcomes could negatively influence not just Ryanair, but other low-cost airlines' operations in the UK (Kilpatrik, 2017).

Increased competition has and will continue to force Ryanair to reduce fare prices.

· Costs: Regulation, although beneficial in some regards (cut-price deals), has also been costly for Ryanair.

In reference to the social changes occurring in the airline industry, there is a growing evidence that only those airlines will survive that are able to integrate digital channels into their distribution and marketing strategies (Accenture, 2017). Generation X) placed less emphasis on technology, however, for Generation Y travellers, technology is extremely important (Accenture, 2017).

Generation Y travellers have the desire to remain constantly connected with their social environment, which suggests that airlines need to adopt a different digital communication strategy to reach out to their target audience (PWC, 2016).Even if Ryanair is using a modern and fuel efficient aircraft fleet, there is a growing distress regarding low-cost airlines contribution to carbon emissions (Griffiths, 2015).The legal challenge the European airline industry is facing revolves also around the Brexit referendum (FT.com, 2017).This range reflects discrepancies on whether Ryanair has solid business model and fundamentals as well as numerous issues that plague not only Ryanair, but the airline industry as a whole.These issues are as follows: · Competition: Regulation permitted the entrance of start-up carriers, which, when combined with the excess capacity and the potential for high returns, has led to increased competition.We use cookies to make interactions with our website easy and meaningful, to better understand the use of our services, and to tailor advertising.For further information, including about cookie settings, please read our Cookie Policy .In addition to the political and the economic uncertainty of the UK, details about the future aviation laws governing UK flights (in the EU) are unknown (FT.com, 2017).In the case of the hard Brexit scenario, airlines with flights between the UK and EU countries will be subject to restrictions that could reduce the demand for air travel between the UK and the EU (Tovey, 2017).Although the firm maintains a bullish outlook, there are diverging opinions regarding the valuation of the firm among investors.The valuations of the firm vary widely, with stock price estimates ranging from €3.05 to €7.57.


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