Ryan Air Pest Analysis: Technological Factors

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The goal of this paper is to provide a pest analysis of the contribution of technological factors toward the success of Ryan air. This analysis presents various external factors likely to hinder this airline company from normal operations. Expansion in technological factors has led into the adoption of online booking services in Ryan air.

Expansion of technology is performed with regard to the Porter’s five forces of competition because of the increased competition in the airline industry. To attain a competitive advantage, Ryan air operates a low cost approach. To attain the implicated competitive advantage and at the same time maintain low costs of operations, aircrafts in this company and designed and build by Boeing.

Technological factors

Technology refers to the process implicated in changing the inputs of a company into outputs:

Technological factors for this company revolve around the fleet.
Ryan air’s fleet comprises of a collection of 735 aircrafts (Sheth 590).
These aircrafts are owned by the company contrary to other airlines that prefer to lease aircrafts.
Owning aircrafts as opposed to leasing ensures the capitalization of maintenance costs on the company’s balance sheet.
The company sources spare parts and various maintenance services with regard to economies of scale.

The importance of technological factors in enhancing the operations of Ryan air

Expanding technology enables this company to attain new markets through the use of online booking.
These factors enable the company to earn a competitive advantage.
Identify mechanisms of reducing costs.

Aircraft maintenance services

To enhance its commitment toward safety:

The company uses very qualified aircraft maintenance personnel.
Provides adequate training to aircraft maintenance personnel.
Adheres to European Union Industry standards.
Despite that the company wishes to enhance a cost-effective approach in the maintenance of its fleet, the top management of this company does not explore the low cost strategy with regard to aircraft maintenance.
The company acknowledges the use of very qualified personnel and a very effective quality assurance team for the supervision of aircraft maintenance services.
The company strictly adheres to the regulations of the European standards of aircraft maintenance alongside standards formulated in the European Aviation Safety Agency (Data monitor 1-3).
Besides forming part of the EASA with regard to 145/JAR, this airline is an approved contractor of aircraft maintenance services.
Most of the routine aircraft maintenance services are performed by the company itself.
In addition, the company conducts constant checks on its fleet.
The checks are performed before take-off and during transit at some of its major bases.
Most of the repair and aircraft maintenance services required when its aircrafts are within any of airports served by the company are offered with regard to the provisions of the Part 145/JAR 145.
These provisions cater for aircraft maintenance provision contracts.
Most of the company’s fleet return to its bases every evening for examination by qualified engineers.

In 2002 the company indicated plans to expand its aircraft in-house maintenance potential by developing two-bay hangar services in one of its bases in Glasgow (Davey 1-2). This facility was meant to enhance light C checks on its fleet. In 2003, the facility launched its operations. At the moment, this facility has been developed further to cater for A checks on the company’s 737-800 aircraft.

In addition, the facility can perform two light C-checks in a week (Alle and Schmitz 145). This enables the company to enhance in-house flight checks. However, the company does not have the full potential to conduct most of the heavy maintenance checks. This explains why it is considering the possibility of engaging service providers from Poland, Venezuela, and Turkey.

Current service providers on aircraft maintenance services contracted by Ryan Air

To enhance the provision of adequate aircraft engine maintenance, Ryan air entered into a 10-year engine maintenance agreement with General Electric (GE).
The agreement was an inclusive aircraft maintenance contract involving engine overhaul and repair.
This contract was to cover repair and maintenance of CFM56-7 engines used in most of its Boeing aircrafts, especially the 737-800 fleets.
This agreement was geared at enhancing partnership between GE and Ryan air for the purpose of promoting a wide access to quality aircraft engine maintenance at relatively reduced costs.

Aircraft maintenance services in Venezuela

The aviation industry in Venezuela has undergone rapid expansion with numerous aircraft maintenance providers. Among the major service providers are Elite Air Services. This company offers;

Cargo and commercial passenger aircraft maintenance services.

Other services offered by this service provider include

Provision of Marshall Procedures.
Corrective procedures for maintaining aircraft parts.
Aircraft quality assurance inspection
Routine servicing of aircraft
Trains and offers skilled personnel to help the flight crew.

Additional services include

Inspecting fuel appliances.
Fuelling and defueling of planes.
Aircraft manual revisions.

Aircraft maintenance services in Turkey

There are two major aircraft maintenance facilities at Ankara Guvercinlik airport.
The first hangar facility is located between Sefakoy and Yesilkoy (Jiang 431).
Unlike, Poland, and Venezuela, Turkey has a long history of aircraft maintenance.
The maintenance services offered in Turkey are diversified and can accommodate different types of aircrafts.
The maintenance services in Turkey have been approved by the Joint Aviation Association.
This association established the compliance of the aircraft maintenance services in Turkey to stipulated regulations.
The Turkish airline received a certificate of compliance to the Joint aviation regulations in 1996 and is authorized to provide international aircraft maintenance services.

Aircraft Maintenance Services in Poland

Most of the airline maintenance services in Poland are provided by both state and private service providers.
Among major service providers are ARP, a state owned corporation that has acquired most shares in nearly all aircraft maintenance service companies.
Aircraft maintenance service provision in this region is not very developed and offers limited international services.

Conclusion

Aircraft maintenance is an essential determinant of flight safety, which adds on to determine the competitive advantage of an airline company. This possibly explains why Ryan air is willing to invest heavily in aircraft maintenance despite operating a low cost approach in its major service provision. The choice of this company to invest in Boeing aircrafts is an added advantage with regard to enhancing the competitive advantage.

To foster the safety of passengers and the durability of its aircrafts, the company uses its highly qualified aircraft maintenance personnel to perform in-house checks. In addition, the company has also outsourced services of other companies, such as GE to perform major engine checks.

The choice of an appropriate service provider will enhance safety and quality service provision. Considering, Venezuela, Poland, and Turkey, the later has a better range of aircraft maintenance services to offer.

Works Cited

Alle, Michael, and William Schmitz. “Ryanair plc.” Séminaire d’elaboration d’un Business Plan 2004: 1-45. Print.

Data Monitor. Ryan air holdings plc. Data Monitor Europe: London, 2008. Print.

Davey, Jenny. “Ryanair has earned its wings – investors should set autopilot.” The Times, 6 January 2006:1. Print.

Jiang, Hudson. “Competitive strategy for low-cost airlines.” Asia Pacific Management Conference 13.1 (2007): 431-436. Print.

Sheth, John. “The future of relationship marketing.” Journal of Services Marketing 16.7 (2002): 590-592. Print.

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