Environmental Factors Affecting Ryanair Essay

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Two external environmental factor that challenge Ryanair Company to remain competitive in the airline industry are:
LEGAL SEGMENT
Legislation process influence environmental regulations with which Ryanair must comply and implement in the organization. Legal forces are concern since it will influence the structure policy and regulations of the company and pressure for leaders and employees to ensure that new legal is in the line with mission, vision and objective of Ryanair. The legal forces are critical for successful operations in Ryanair as largest airline and provide lower fare among the other competitors. It might needs changes in the course of business of the Ryan air must follow according to the new legislation to avoid legal problems and need a lot of effort to implement it.
Ryanair is known as Europe`s largest low cost-carrier and second largest airline, but some changes in legislation had threaten by affect Ryanair difficult to maintain the profit, raise cost of operation and provide lower cost to the customers. There is lot of new government regulation that need to be complying by Ryanair in this year. First regulation is related to Irish Aviation Authority (IAA) which Ryanair aircraft must have a Certificate of Airworthiness that had been issued by the IAA and this certificate
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It shows that Ryanair`s customer interested with services from Ryanair and they willing to pay in exchange for having cheap fares. In 2010, Ryanair is recognised as one of the “Ancillary Revenue Champs” with revenues in 2009 is €663 million and Ryanair`s ancillary revenues grew by 21 per cent to €802 million 2011. It shows that they are very committed in execute the solution to cover up the DOT

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