Evaluating Ryanair's Environment Post-Brexit, Covid-19, and UK Tourism Recovery Case Study

Evaluating Ryanair's Environment Post-Brexit, Covid-19, and UK Tourism Recovery

introduction: Evaluating Ryanair's Environment Post-Brexit, Covid-19, and UK Tourism Recovery

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The report is made to develop an understanding about the internal micro and macro business environment. The aim of the study is to evaluate the significance of the internal business environment indicates entire features or forces that have anadditionalexpressconsequence on the day-to-day operation of the case organization. The major element in the internal atmosphere is the audience, distributors, investors, monetary institutions and the company's staff. Another term this report in explaining the micro business environment, which indicates the atmosphere which is directly connected with the organization to ad impacts on the daily functions of the business straight away (Popescu,et.al 2016). It is a collection of powers or features to facilitatein front to the firm and can impact the presentation as well as every dayperformanceof thecorporation.

The macro business environment highlights the main external and uncontrollable features that impact the decision-making of the company. An organization does not function separately in its organizational atmosphere, but at the same time also poses a hazard to the firm.  There are six elements of a macro business environment such as the demographic, financial, ecological, technical, political and cultural atmosphere. This report also explained the UK government's tourism recovery plan and Ryanair's internal, micro and macro environment in positive and negative conduct (Stoyanova and Angelova, 2018). This report also gives an overview of the company such as its direct and indirect rivals and business structure and leadership team etc.

Section 1

An overview of Ryanair

Ryanair Holding Plc is the biggest airline group in Europe, the businessoperateadditional 400 Boeing 737-800 aircraft, with a particular 737 – 700 used mainly as anagreement jet. It is one of the lower cost carriers, the company provides booked flights to more than 13,00 destinations (Ben Ameur and Louhichi, 2022). Ryanair's legal structure includes one administrative and 10 Non-administrative directors.  The firm's majority of the board is non-executives, and each is considered through the board as an independent. Ryanair’s headquarter is located in Swords, Dublin, Ireland. In the company, there are 17,000 people currently working in 66 nationalities. Ryanair offers lower cost, no frills traveling to European places. The company also provides food or drinks on board. But these services and products are provided at affordable prices there is no free food or drinks on the flights.

Sector and industry of operation –

Ryanair is a less-costly airline that functions in the airline industry, especially the business airline sector. The firm functions short-haul flights all over Europe, North Africa, and many more. The company functions in the exclusive transportation industry and competes with other airline companies. Ryanair is also dealing with Hertz car rental and several hotel businesses, so it can earn a commission on upselling.

Size of the company –

The company is holding 6.478 Billion in revenue in the ending month of December 21, 2022, and it rise its revenue by 48.27% every year. The company's market share price is 15.18 EUR and total market capitalization is 17, 284.93 EUR and its volume is 91,278.

Figure 1: Company image

Main competitors of Ryanair airlines –

Ryanair’s direct and indirect rivals are easy Jet, Wizz Air, Aer Lingus, and Vueling Airlines. The company is 2^nd rank in CEO scores on comparably vs its rivals.

organizational structure and leadership team –

Ryanair's business framework consists of an 11 people’s board that involves the CEO or chairman, the CFO and Pilot, promotion and consumer examination group which is answerable to the CEO, and the individual resource, finance, engineering, Customer service, and officially permitteddepartment. The company applies the centralized operational business structure, which consists of security and quality, energy effectiveness, sustainability and CO2 emissions, and worker administration, training, and social (Tetlow and Stojanovic, 2018). The firm has 31 years of safety and security records in the industry, it is indicating that safety is their major concern which includes giving similar safety kits, training and inner broadcasting systems. Ryanair also invested in business-leading management systems.

Section 2

The impacts of Brexit and the Covid-19 Pandemic on Ryanair's internal environment

Ryanair has faced huge losses in the firm’s 35-year history, after the restrictions of COVID-19 and global lockdowns. The airline fluctuated to an 815 Million euros loss in one year as compared with a 1 billion euros profit before the pandemic. After the passenger number rushed by 81% it was the most challenging year to face (Jones, 2022). According to Europe's biggest discount airline travelers, numbers were deducted to 27.5 million in 2020 from 149 million earlier (Ryanaire, 2023). The airline industry blamed European governments for their poor figures or losses. During the COVID-19 pandemic, the European government levied lockdown and restrict the traveling of uncoordinated flights with a small notice.

Brexit has led to major alterations in airline ownership guidance and regulations. Now airlines from the UK and European must be retained and efficiently measured by UK or European nationals, they must have licensed in their own country. Ryanair and other airlines in the UK and Europe benefitted from the EU open skies contract empowering flights to shift freely in Europe. Unlike various other industries, the airline sector cannot depend on World Trade Organization guidelines (Victor, et.al2021).

The impacts of the UK government’s recovery table on Ryan air’sinteriorsurroundings

In November 2020, as a member of the World Travel Taskforce report, the UK government gave the commitment to print a Tourism Recovery Plan in 2021. The recovery plan shows an essential milestone in the regaining of the tourism industry from the pandemic (Meyer,et.al 2022). The UK government's recovery plan can have several effects on Ryanair's internal atmosphere. Some possible impacts are given below:

Raised demand: One of the most vital elements of the UK government's recovery plan is to rise the economy by raising demand. if successful, this could outcome in more travelers traveling through flights which could rise demand for Ryanair's business and ultimately enhance the organization's monetary condition.

Pricing forces: However, the raised demand could also outcome in a more competitive pricing atmosphere as other airline businesses, both less-cost and higher service, may also be seeking to capitalize on rising demand. This could encourage pricing pressures for Ryanair and affects its profitability and revenue.

Financial support: The UK government's recovery plan involves monetary help for businesses impacted by the COVID-19 epidemic (Kaushik and Guleria, 2020). Ryanair could possibly take benefit from this support, which could enhance its monetary condition and support it weather the effects of COVID-19 on the airline sector.

Section 3

The impacts of the UK government’s recovery plan on Ryanair’s micro-environment

Regulatory alteration:UK government also includes the modification in regulations in their recovery plan, which affects the airline sector, such as alterations to taxes, fees or emission norms. Ryanair may require to accept its functions and manage its strategy to meet the terms of these transitions, which could acquire extra costs.

Travel restrictions:The UK government’s recovery plan is related to limiting the spread of COVID-19. Government impose some restrictions and rules regarding travel, which impacted the company’s business (Gupta,et.al2019). Such as, the ban on global travel reduced the demand, and also restrictions on national travel was affect Ryanair's flight booking within the UK.

Financial support: The UK government's pandemic recovery plan involves economic help for businesses that were affected by the coronavirus disease. Ryanair benefited from this help, and as a result, the economic condition of the company was improved.

The impacts of Brexit and the Covid-19 Pandemic on Ryanair's micro-environment

Ryanair, a low-priced airline located in Ireland, has been exaggerated by both Brexit and the COVID-19 epidemic in several ways –

Brexit: Brexit has had a vital impact on Ryanair’s micro atmosphere due to alterations in rules and policies (Hohlmeier and Fahrholz, 2018). some of the effects of Brexit are:

Modifications in rules:After Brexit, the UK is not a member of the European Union's single airline market. This indicates that The company, Irish aviation, has had to deal with new rules and guidelines when flying to and from the UK. Ryanair has to achieve a UK air operator certificate to stay in the business within the UK, which was a time-taking and costly procedure.

Transition in demand: Brexit has also affected demand for traveling in flight. The improbability due to Brexit and the UK's budget has led to a fall down in demand for passengers who travel on flights (Nižeti?, 2020). This has affected the firm's profitability and revenue.

The pandemic has had a huge influence on Ryanair’s micro atmosphere –

Decrease in demand:The COVID-19 epidemic has influenced the demand for traveling through flights such as the decrease in demand around the globe. Several nations have banned international borders, and travel restraints have been put in place, creating difficulties for the public to travel (Bloom, et.al 2018). This has outcome in a huge decrease in Ryanair's business margin profit gain.

Section 4

The impacts of PESTLE factors on Ryanair’s operations

Political: With Ryanair’s global operations, it adopts global agreements like the Warsaw Convention, The Hague Convention, and the Vienna Protocol. The transportationenormous is also hoped to bear many travels, duties, and air travel rules levied by the government to fight the coronavirus epidemic.

Economic:global travel restrictions have affected a massive drop in travelers, the decrease in international travel impacts Ryanair’s share to drop by 7.6%. During the pandemic, Ryanair faced a 99% fall down in its bookings from April to June 2020 due to the restriction on global traveling. As an outcome of this decline, the airline industry suffered a net loss of around 217 million dollars. The effects of this loss were worst with Ryanair and due to this company fired 3000 employees or 15% of its staff to reduce the losses. After travel restrictions over, the company was hoped to restart at least 70% of its business be and for the pandemic hit (Maneenop and Kotcharin, 2020). Constant and everydayrecall of the travel ban kept back them from approachingduring with this preparation. As a result, the company suffered financial deficits and reduces its human resources.

Social:The target market of the Aviation sector is to influence the occupational employees and people who mostly enjoys holidays through travelling to different country, with some nations, slowly reducing the restrictions on global travel. Visitors are not starting again to book their flights for holidays. Commercial travel, on the other hand, was not started at that time and due to this, Ryanair was still facing difficulties in its business.

Technology: Despite the financial deficit, Ryanair is at a halt seeking ahead, the transport is prepared for a post-epidemic country when there will be an estimated flow of in-flight demands. During the pandemic, the company was planning to close a buying deal for Boring 737 MAX aircraft worth 17 billion dollars in November 2020. Ryanair also hoped to functioned the first 30 to 40 of these aircraft during the summer of 2021 (Ryanaire, 2023). These new purchases will place the company ahead of its rivals, but the political and financial environment was still based on health agencies at this point. The achievement and existence of the airline are still relying on the international public health condition.

Legal: Ryanair primarilyasked about the obligations of travel banns by the Irish government. Company’s senior leadersclaimed that the 14-day measure restriction of travelers inward bound the Irish state, and the guidance next to unnecessary travel are illegitimate. The high court of Ireland refused Ryanair's appeal and supported the travel instruction and the program restrictions, perceptive that the measure restrictions on travelers are simply guidance.

Environmental: Thetransport business is responsible for the huge involvement to greenhouse gas emissions. Transportation individually is liable for 28.2% of entire greenhouse gas emissions (Matovi?, 2020). This is mainly produced by the burning of fossil energy for plants. As an outcome, the Aviation sector has been highly criticized for its constantly huge carbon footprint.

Conclusion

A business atmosphere is a groupof all inner and outer elements such as workforce, customers' requirements, and expectations. A suggestion for Ryanair to enhance considering the micro, macro, and internal analysis is that the company should prepare for the situations like COVID-19 pandemic in the near future so it will not face huge financial losses in its business. This report concludes that Ryanair face huge losses during the pandemic and due to this company firing 3000 employees; it is required for the firm to reserve a percentage of profit for the future to fight this type of situation.

Ryanair can benefit from the UK government's tourism recovery plan by taking economic support from this recovery plan. This report also explains the company's business overviews such as Ryanair's key events, services, and legal structure. To support the businesses, UK government offers a recovery plan to reduce the impacts of Brexit and the Covid-19 epidemic. It also includes the impacts of pestle factors on the company's functions. The UK government's recovery plan helps in improving Ryanair's financial position. The company also faced some difficulties during Brexit because Ryanair is operating its business in London and due to this company required a license for its business.

References

Ben Ameur, H. and Louhichi, W., 2022. The Brexit impact on European market co-movements. Annals of Operations Research, 313(2), pp.1387-1403.

Bloom, N., Bunn, P., Chen, S., Mizen, P., Smietanka, P., Thwaites, G. and Young, G., 2018. Brexit and uncertainty: insights from the Decision Maker Panel. Fiscal Studies, 39(4), pp.555-580.

Gupta, A., Gupta, N. and Gupta, M., 2019. British Airways-A SWOT and PESTLE Analysis-The impact of Europe 2020 policy. NOLEGEIN-Journal of Corporate & Business Laws, 1(1), pp.1-11.

Hohlmeier, M. and Fahrholz, C., 2018. The impact of brexit on financial markets—Taking stock. International Journal of Financial Studies, 6(3), p.65.

Jones, P., 2022. A review of the UK’s tourism recovery plans post COVID-19. Athens Journal of Tourism, 9(1), pp.9-18.

Kaushik, M. and Guleria, N., 2020. The impact of pandemic COVID-19 in workplace. European Journal of Business and Management, 12(15), pp.1-10.

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Ryanaire, 2023. Our People (Online) Accessed <https://corporate.ryanair.com/about-us/our-people/> accessed on 16-02-2023.

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