| Ryanair was heavily influenced by Southwest airlines in the past. Of course, Michael O'Leary took Southwest's model, and took it way further than the originators did. "To turn Ryanair into the profit-making machine it is today required strict discipline, together with inspiration from the United States. In the early 1990s, Ryan sent O'Leary to Texas to find out how Southwest Airlines, an upstart that was taking advantage of aviation deregulation, was making profits with lower fares. Southwest was one of a new generation of airlines undercutting their established rivals by doing away with the 'frills'. They only served snacks on board instead of full meals, for instance, hence the nickname peanut airlines. Southwest scheduled its planes and its staff for more flights each day, and it flew to smaller airports where it could negotiate cheaper landing charges. When O'Leary saw how Southwest was making money, it was a "road to Damascus moment," he says, "it was blatantly obvious that this was the way forward."" Source: http://www.bbc.co.uk/news/business-22888304 |