Ryanair: The Transformation Process In The Airline Industry

2.0 Inputs - Transformation Process - Outputs

2.1 Inputs

Operations management concerns with the conversion of inputs into revenue-creating outputs through the transformation process (Mahadevan, 2010, p.5). Slack et al. (1995 cited in McMahon-Beattie and Yeoman 2004, p.30) mention that inputs are divided in transformed and transforming. Transformed are those that are transformed in some way and transforming inputs are those that are used to carry out the transforming process.

In the airline industry, we can distinguish six categories of inputs. Firstly, labour input refers to the number of employees a corporation has. Secondly, there is fuel input. Thirdly, the capital input includes the number of aircrafts a company owns through purchase

In the airline industry the transformation process of the main service is the flight itself. Consequently, the passenger during the flight is in transformation process. Another pivotal input for an airline is information which when it collected and estimated it is in transformation process.

2.2.1 Mass Service Process

As far as Ryanair is concerned the main objective is to expand passenger volume and capacity. The basic element that characterise the companies that utilise the mass service process is the high labour intensity combined with low level of interaction and customisation (Nickson,2007,p.12). Consequently, Ryanair in order to efficiently handle thousands of passengers daily it is necessary to use highly standardised services (Barnes, 2008, p.189). Additionally, Ryanair chooses to operate mass services process aiming to achieve economies of scale in order to maximise the margins. Figure 1 – The Service Process

Ryanair recruits employees through recruitment agencies. In order to provide its services, the Irish carrier is utilising standardised procedures and therefore, imposes specialisation on tasks with no intervention between different departments (Bamber et al., 2009, p.98).

Ryanair’s HRM is not excluded from the general aggressive cost reduction policy. For instance, Ryanair prohibits the employees to charge their phones so as to reduce costs further (Baum, 2006, p.146). Moreover, it does not provide training to its staff. In contrary, employees are obliged to pay for their training programs so as to succeed in the workplace (Ryanair.com).

It is wide known that Ryanair provides low salaries, which can only be balanced through productivity-based pay motives. For instance, it gives commissions for on-aircraft sales of products for flight attendants