Virgin Atlantic And Ryanair Management Essay

The paper has been defining the case study regards to Virgin Atlantic and Ryanair. Critically, in this paper, discuss the state of affairs in the two organisations that are created or impacted by their leadership styles and behaviour. In addition, Using relevant leadership, management and motivation theory by compare and contrast the leadership styles of Richard Branson and Michael O’Leary (Taneja, 2008). The case looks at two organisations that have numerous resemblances as significant differences. The basic technology and systems behind every organisation might be extremely similar but the style and nature of management and its consequential impact on the technique persons work in these organisations believe, think and act have formed very dissimilar organisational cultures (Burke, 2011). Now, discuss it in the coming section;

Discussion

The big resemblance of them is that, Virgin Atlantic and Ryanair, both are the UK passenger air transport industry. Blaming the choice on Manchester Airport’s negative response to inferior its accuses, Ryanair is also switching or closing 9 of the 10 directs at present function from Manchester, by a defeat of up to six hundred jobs in the region (Bamber, 2011). Once, this news again carries divisive Chief Executive of Michael O’Leary into the publicity and offers an opportunity to contrast the organisational Ryanair cultures with Virgin Airlines (Rothkopf, 2009).

The air transport business of Virgin initiated in the long haul, a mostly transatlantic market which may be extremely gainful but is besides really competitive. As the business grew, offshoots were established as independent companies for instance, Virgin Blue in Australia and Virgin Express which has its hub in Brussels and serves up European destinations outside the UK and does not compete directly with Ryanair (Barrett, 2007). Ryanair started as a short-haul carrier and has remained so, focusing on European destinations from a small number of airports in the UK and Eire (Vries & Vlaar, 2005).

Figure :RyanairRyanair is well recognized as the Low Cost Airline’; the first thing that hits in its publicity material are the price and this is provided the core of its business strategy. The no frills come near means just that, even the in-flight food is incomplete to sandwiches and costs added (Jones, 2012). By contrast, Virgin draws passengers by the contribution of a better experience and is decisively situated at the superiority market end. Publicity objects accentuate comfort and style, and there is an in flight extras range which, yet at the financial system price range end, comprises in-flight drinks, food and amenity packs as flight socks, lip balm and eye shades (Rothkopf, 2009; Bamber, 2011). http://2.bp.blogspot.com/_4eOE8Kr3lbE/SpJPzitreYI/AAAAAAAAAG4/eJjzcVayFeQ/s320/Ryanair.jpg

In Europe, Ryanair functions the chief low-fare listed passenger airline, serves mainly short-haul and point-to-point routes. The compact has 30+ base airports and serves up across 26 countries more than 100 cities (Barrett, 2007). The corporation employs are greater than 6,000 and works a task force of supplementary than 200 Boeing 737 jets. The virgin has a less significant base at Manchester Airport (Taneja, 2008; Vries & Vlaar, 2005). The corporation seizes a “UK Civil Aviation Authority Type A Operating License”, which authorizes to carry cargo, passengers, and mail on aircraft between 20. Virgin Atlantic conceded approximately 5.1 million passengers and finished a yearly profit (Mayer, Ryley, & Gillingwater, 2012).

Figure :Virgin Atlantic British Airways healthy balance sheet has allowable to cope with the resistance to change from staff during the recession. Ryanair is a financially sound (Barrett, 2007). Therefore, it can take opportunities’ advantage to acquire cheap fixed assets. Virgin boss Branson has urged the fresh Government to memorize the significance of aviation to the United Kingdom wealth (Mayer, Ryley, & Gillingwater, 2012).http://2.bp.blogspot.com/_4eOE8Kr3lbE/SpJQ7AqZUsI/AAAAAAAAAHA/mkw4NGTpARM/s320/Virgin.jpg

Virgin tries unbreakable to build customer loyalty and gain repeat business through brand-related service values; Ryanair’s repeat business and for some customers the Ryanair experience is one which inspires the thought ‘never again’ is on price, not loyalty to the brand (Burke, 2011). These differences have a significant effect on the nature of employment relations and the psychological contract between the two companies and their employees (Gossling & Upham, 2012).

Ryanair does not bring out a recognized mission statement or vision, but the common mission is to merely carry on the chief small cost leader in the airline industry of the European and by 20110, carry fifty million passengers (Barrett, 2007). Executing vision is a purpose of numerous individual plans, counting a complete devotion to low down cost presentation in each part of the value chain, fast gate turns, non-union functions, performance-based motivation return plans, consistency in an aircraft type, and airborne to derived airports, which gives major savings for Ryanair (Morrellb & Merkert, 2012). Virgin Atlantic mission is to grow a gainful airline, where they love to fly and they love to work (Taneja, 2008).

British Airways: Willie Walsh – clearly autocratic has this allowed British Airway to achieve success? Clearly there are arguments for and against (Rothkopf, 2009). Arguments against comes from Virgin Boss Branson doesn’t agree and believes it has cost long term damage to British Airways (Lashley & Morrison, 2012). Virgin has experienced a ten percent add to in the primary half of 2010 in Air traffic. Ryanair: Michael O’ Leary again clearly autocratic (Jones, 2012; Mayer, Ryley, & Gillingwater, 2012). As a consequence of the leadership of O’Leary’s, Ryanair’s presentation has outperformed that of every one participant in Europe. In Virgin Atlantic, Sir Richard Branson thinks himself as a democratic leader (Jones, 2012).

In Europe, Ryanair is increasing market share by increasing presence. The organization is forcefully growing its path network as demanding to add ancillary revenue earlier than listed passenger profits (Taneja, 2008; Gossling & Upham, 2012). Virgin Atlantic seems to be increasing vacation capability at Gatwick and re-balancing the 30 to 70% Heathrow/Gatwick split to more like 50% (Jones, 2012; Bamber, 2011). Ryanair does not publish a formal vision or mission statement, but, the general mission is to simply continue to be the largest Low Cost Leader in the European airline industry and to carry 50 million passengers by 2010. Some of the reasons for this are because of the decision by the government to scrape the expansion of Heathrow by not allowing them to build a third runway. Virgin Atlantic is also expanding their routes into Africa – now offers five routes to Africa (Morrellb & Merkert, 2012; Barrett, 2007).

The cabin crews at Virgin Atlantic are to be supportive and convivial and they are vital brand image projectors and their job is partially to give confidence the powerful customer devotion which produces ongoing revenue (Bamber, 2011). The importance of staff as carriers of company values is clearly reflected in the recruitment material and other statements about the nature of work at Virgin Atlantic (Burke, 2011). At Ryanair, the cabin crew work for a supplier organisation called Crewlink. You can discover whether you qualify to apply for a job by answering a series of 11 online questions (Morrellb & Merkert, 2012). Successful applicants for cabin crew posts are trained at one of Crewlink’s centres and are expected to pay an up-front charge of €1,200 for the five- week course (or with a €400 deposit it can be offset against initial year’s salary at a total cost of €1,300) (Taneja, 2008; Burke, 2011). Students are not paid to attend the course; successful graduates get a three-year contract with Crewlink to work on Ryanair flights on a shift-work basis (Rothkopf, 2009).

Ryanair crew is not expected to make overnight stops at its destinations. Post-tax starting salary is listed as being £ 1,100 per month (£13,200 pa); Crewlink suggests that after the initial three years, and subject to satisfactory performance, a permanent job with Ryanair itself might be available at a salary of up to £25,000 pa (Lashley & Morrison, 2012). Staff must be flexible in terms of their work location across the 15 European centres and Crewlink does not guarantee the work if individuals specify a preferred work location (Morrellb & Merkert, 2012). The nature of customer relations, by contrast, might be more demanding at Virgin than at Ryanair staff and customers are together for longer and the brand image must be maintained (Barrett, 2007).

Conclusion

In this paper, readers can learn about the business of Virgin Atlantic and Ryanair. Basically, Ryanair has turned into significant profits for several years in a sector which is prone to disruption and financial loss and which has seen a number of brands disappear and Virgin also continues to go from strength to strength commercially. Other than, the cultures and values which get them off the ground could hardly be more different. By comparing and contrasting say that about the Ryanair, Michael O’Leary was selected as Chief Executive in 1985. Its cabin crew are working by a third party and this corporation thinks on the small haul in the European market. Ryanair has been composing obvious price, it is the core reason for achievement replicate a business. By comparing and contrasting say that about the Virgin Atlantic, it had founded in 1984 by Richard Branson. Virgin has been working to stable the customer loyalty by their services and provides quality of the service in the market. The cabin crews of Virgin are working by Virgin and they are choosing during an extensive staffing process.