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Thursday, September 28, 2017

Ryan Air Re-positions Vacations Like A Cruise Ship's Makes Seasonal Changes

A seasonal adjustment not caused by climate but by under planning has caused Ryan Air to cancel flights through March 2018. This affects about 400,000 of its passenger customers over the same period of time. Since Ryan Air has captured a market for 129 million travelers in its vast airline system, the impact affects only a small percentage of its customers over the next six months. The margin of customers inconvenienced is amounts to  .62% of its customer base for the next six months or about 99.4% of its passenger will not be affected.

The problem stems from scheduling adequate  vacation time slots for it pilots and crews. The perfect work storm has occured and there is no way out of the fix until it sorts out vacation schedules while at the same time expanding new staffing resources. The flight cancellations directly affects Ryan Air's revenue stream for those estimated 400,000 customers who will not travel with the airline during the next six months. This lost revenue stream has altered several of Ryan Air's aspirations for fleet expansion and further canceling a merger with Alitalia from Italy.

The set back should be a one -off problem during 2017-2018 flying season. Ryan Air expects to resume its full-on growth program by 2019 as it finds more pilots, crews and air frames for its growth. Having a better control for its vacation scheduling by March of 2018 should right its operational ship.

Ryan Air is no longer considered a small player in the airline business as any kind of operational mishaps of this nature tend to spell big financial impacts, if not addressed ahead of time.  

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