Ryan Air is the largest airline in Europe flying over 180 million passengers every year and unlike most Airlines ryion a offers flights for as little as $9.99 but for every passenger who loves Ryan A's cheapap tickets there's another one who has sworn never to fly with them again ryion a is Infamous for charging ridiculous hidden fees taking passengers to unexpected destinations and changing their schedules at the very last minute and if you head to their social media accounts you'll find that instead of helping out ryion a often just trolls their passengers quite literally making memes
out of their complaints there are countless horror stories about flying ryion a but here's where things get weird behind the scenes everything ryion a does is actually genius even with such low prices they have one of the highest profit margins in the entire airline industry Ryan's Journey from a single plane to Europe's largest airline is fascinating so strap yourself in because the story of Ryan a is going to be a wild ride let me explain something to you I set the rules and you follow them [Music] blindly Tony Ryan began Ryan a in 1984 starting
off with just a single aircraft flying from Ireland to London however as they tried to expand and offer more Roots the business started losing more and more money so Tony asked his personal assistant Michael oi to take a look at the business and what he found was a mess of unmerciful proportions Michael's first assessment was that Ryan Air should simply shut down because it was losing Millions every year but Tony said that wasn't an option so Michael's next assessment was that Ryan a needed to completely restructure itself and cut down their costs by whatever means
necessary Tony trusted Michael so he asked him to help make Ryan Air profitable they agreed a deal where instead of a salary Michael would get 25% of any profits Ryan Air made over 2 million and Michael would lead the airline as chief executive given that Ryan a was losing Millions a year Tony doubted whether Michael would make any money at all from this deal however Michael realized that trying to offer a better service than the more established Airlines was not the right option and so the first thing Michael did was head over to America to
check out Southwest Airlines a company that was charging as little as $10 for some of their flights Michael wanted to study their process and figure out how they were offering fairs so cheaply and he was hugely impressed with what he saw Michael compared Southwest operations to a McDonald's every process from checking the plane before a flight to boarding the passengers to the inflight Services was optimized to increase efficiency and decrease operating costs when he returned from the US Michael was inspired and vowed he was going to turn Ryan air into an ultra lowcost airline that
offered customers rock bottom pric prices however many questioned with rock botton prices how is Ryan a ever going to turn a profit well Michael had a plan for that and the best way to see it in action is for us to take a flight with Ryan a as with all flights it starts when a customer buys a ticket but you can only buy Ryan a tickets online line that way the process is streamlined and they cut out travel agencies taking a commission ryion A's tickets are especially cheap but that's because customers are really only paying
for a random seat on the plane if you want to choose a seat so you can sit next to who you're traveling with that's extra and if you want to take any luggage other than a backpack that's extra too and these extra charges often amount to more than the ticket itself Ryan Air saves tons of money this way because most governments tax Airlines on the airfare but not the add-ons not just that it means Ryan a are always going to be at the top of price comparison searches as they're sorted based on ticket price not
including the extra hidden costs now when you're booking your tickets make sure you don't fill in any of your details incorrectly as Ryan Air can sometimes charge over €100 to make any changes articles have pointed out that it is cheaper to legally change your name and passport than to change names on Ryan air tickets when you arrive at the airport Ryan Air saves on staff cost to by not having any check-in desks and they'll charge a hefty fee to anyone that forgets to check in online after this the passengers head to the gate which might
be inconveniently far away airports charge Airlines less for using certain Gates and Ryan a always takes the cheapest ones next the passengers head onto the plane but instead of using a sky Bridge ryion a makes them take a bus and walk up the stairs because again it's cheaper once inside the passengers will see that there's no first class on Ryan a because having only one type of seat streamlines the cleanup process after the flight you'll also notice that the plane is absolutely crammed with passengers ryion a uses mostly Boeing 737s which typically seat around 170
passengers but Ryan a stuff around 200 in the same space the max that regulations allow this means you won't have much leg room and to make things worse the seats can't be reclined that's because these are the cheapest seats for Rion a to buy and maintain it also means some of their window seats don't have a window at all in the in case of seat 11a this is what you're getting next up the flight attendants give a safety brief but instead of your typical safety brochure the information is printed on the back of the seats
headrest this way there's no need for pockets on the back of the seats which makes cleaning up way faster and usually it's the flight attendants who do the cleaning themselves which dramatically reduces ryion staff Bill our people are our most important asset no they're our biggest expense then the pilot introduces himself over the speakers but they're probably not a ryion a employee instead of hiring Pilots the traditional way ryion air makes them start their own companies in Ireland and then hires them as contractors this way they can avoid paying for health insurance or Severance once
the plane takes off passengers will notice that there's no inflight internet or screens to watch movies on that's an unnecessary cost and if you want any food mid-flight or even just a glass of water you're going to have to pay nothing on the plane is free so Ryan Air turns what is an expense for other airlines into another Revenue new stream you won't be waiting long though the average ryion Air flight is just over 2 hours this is optimal for fuel efficiency and it also means a single plane can make upwards of six trips every
day which drives up r a's Revenue but when the passengers land they might find their further away from their destination than they hoped ryion a usually flies to secondary airports outside big cities as they charge much Lower Landing and take off fees for example the Ryan air ticket may say London but instead of flying to one of the main airports like Kei throw ryion a may go to Luton which is not even in London or in Barcelona ryion a uses an airport that's around 50 Mi away from the city and requires an hour and a
half bus ride it's less convenient for customers but ryion a gets much bigger discounts from the airports and many of these smaller airports become dependent on ryion a for business and so they give them incredible prices or another way ryion a gets discounts from airports is they'll just fly at the least popular times finally once the passengers have left ryion a begins unloading the plane cleaning it refueling it and rotating the crew this takes most Airlines ages but ryion air has streamlined all these systems so their planes are typically on the ground for just 30
minutes between flights and so that's a typical Ry Air flight and it's clear that operations are incredibly efficient to cut costs in every way possible however this sometimes means doing things that may seem counterintuitive for example you may think another way for ryion a to lower their costs would be to buy old the planes for lower pric but in reality they do the exact opposite Ryan Air always buys the newest planes available because long term they waste the least amount of fuel which is one of the largest expenses for an airline in fact ryion is
notorious for making massive orders of only Boeing 737s by buying a single model in bulk they can negotiate a lower average price per plane and then streamline their whole operation further because by only using one kind of plane it means they only have to buy one kind of seat and one kind of fuel they only have to to train one kind of crew on one kind of process these Ultra efficient strategies are why Ryan Air can charge less than €30 for their average flight and still clear an outrageous profit margin of around 35% sometimes whilst
most European airlines are lucky to reach 6% and the global average was barely 2.7% everybody looks at rer and they all look at it there's one secret there's you know oh they bought planes cheaply or oh they just treat people badly or they every single line of our operation is smarter lower cost are more efficient than almost every other line some other airlines have now copied some of these strategies after seeing how well they worked but very few Airlines take things as far as Ryan a however whilst these ruthless cost cutting strategies might be brilliant
in a business sense they have made Ryan a one of the most hated airlines in the world and Ryan A's response to this is far from ordinary before we get to the next chapter it's time to answer a question I get a lot how do I make these videos well a big part of that is down to today's sponsor story blocks a curated stock library with everything you need to create high quality video all in one place I've been using story blocks to help make my videos for years now and it has over a million
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story block subscription so you can download whatever you want with no extra fees so to get started with unlimited stock media downloads at on set price head to story blocks.com magnates or click the link in the description Michael oi Ryan a CEO has often made the news for some of his wild ideas about how Ryan Air could cut costs even further he said he wanted to charge passengers to use the bathroom remove toilets completely to add more seats introduce a fat tax and even sell standing tickets he pointed out these measures would allow ryion a
to offer cheaper flights which is ultimately what consumers want and in some cases there may be some logic to it it would make perfect sense to me to charge for toilet access one it would reduce the number of people who are bothering other passengers getting up and down going to toilet on board a flight and two I think we'd have fewer passengers using the toilet and we'd have less people queuing around the toilets on board the aircraft none of these ideas have actually happened though and Michael later said he'd often just say things they had
no intention of actually doing to help generate free marketing and we generated huge amounts of free publicity why because we no money for ad vertising with no money for PR so you needed some kind of loudmouth Patty to be out there saying outrageous things like charging for toilets yeah we're taking out the seats and standing room more none of which we actually plan to do but it a generated acres and Acres of free publicity Ryan a saved a fortune on marketing by Simply Having Michael do interviews and say outlandish things to get headlines which always
led to more people checking out Ryan's website and buying tickets for example when he was questioned why passengers are charged €20 just to print their boarding passes at the airport Michael replied well I think they should pay €60 for being so stupid he also said if drink sales are falling off we get the pilots that engineer a bit of turbulence that usually spikes drink CS another way Michael helped Ryan Air get free marketing was with Creative Promotions designed to get maximum attention we used out one of our first best ones was we did this Valentine's
Day promotion which was 69 for two however not everyone sees the fun side you'll find plenty of ryion a horror stories and tens of thousands of onear reviews some newspapers started having an entire column dedicated to Ryan a complaints as there were so many like a woman who has charged €300 for ryion a to print out her boarding pass but Michael has openly stated he feels customers paying cheap airfares have no right to complain when things go wrong he said we don't want to hear your So Stories what part A no refund don't you understand
another example was when hundreds of passengers were forced to spend the night at the airport after their flight was cancelled and many asked if Ryan a would provide accommodation Michael said absolutely not you booked a flight not a hotel one of their most controversial policies was forcing the disabled to pay up to 25 for the use of a wheelchair one lady said despite booking wheelchair assistance I had to ask a fellow passenger to push me to the departure gate and upon my return I sat for an hour waiting for assistance on the plane getting colder
and colder almost any other company would offer Goodwill gestures when things like this happen but instead Ryan a takes a different approach when you go to ryion A's social media you'll find that instead of helping out they're making memes from their passengers complaints for example when passengers complain they paid for a seat but didn't get a window Ryan a simply responds read that again but slowly you paid for a seat another asked them where their window was and ryion a replied pay for the baggage you've stored under your jump and then we can talk one
of their most viral posts was when a customer complained about the very narrow stairs Ryan a used and said I'll bring my own stairs next time but ryer responded bring your own plane next time some people questioned should a company be responding this way instead of apologizing but another said they charged extra for everything except Twitter roasts no regular Airline would ever do this but in ryion A's case it's actually a genius strategy ryion a has millions of followers and they're posts regularly go viral which directly leads to more ticket sales they've embraced their reputation
of being stingy as it means everyone thinks of them as the lowcost airline and as a result of all these strategies ryion a carries far more passengers than any other airline in Europe their typical airfare goes for less than €30 and they sold flights for as little as $4.99 they might not treat you like royalty but they're pretty honest about what they are love them or hate them they've given people the option to fly all over Europe at prices that are often cheaper than train tickets so there's no doubt they've made air travel affordable for
millions of people however remember how Michael compared their efficiency to McDonald's well that's because McDonald's pioneered something called the Speedy service system which is genius just click this video now to see what I mean I'll see you there
