Ryanair is the most fascinating case study for the student of reputation management. Brilliantly successful and yet widely reviled.
Reputation theorists argue that truthfulness/honesty are key ingredients for long term reputation. With Ryanair it is always hard to tell where truth and fabulation meet. If you take Ryanair’s word for it: they never make a mistake and simply have to change their scheduling or drop airports because of new taxes or airport fees.
For example is Ryanair’s threat to reduce services at Shannon by 75% about the 10 Euro fees or because they are struggling to make the numbers – who can say (Irish Times). Likewise reductions in winter services was anything from 40% to 7% depending on how or who you listened to. (see Financial Times report)
Journalist reporting often makes it no clearer what is happening. For example when Ryanair announced it was terminating most of its schedule from Manchester airport, the Guardian reported that 600 jobs were threatened whilst the Telegraph simply stated 600 jobs to go.
One of the key attributes of Ryanair’s PR strategy is to draw attention to hidden costs in the system. Announcing their departure from Manchester they provided a telling narrative for why it was necessary: “Airlines have been reducing fares in this recession but the one static factor has been in relation to airport charges. It is a huge undertaking to fill planes on a rainy winter day in Manchester when you can fly them down to the Canary Islands from somewhere else,” they declared, never acknowledging that the landing charges of £3 was covered by the fees they charge for accepting debit card payments which costs Ryanair only pennies. As their own hidden costs rise, this could become a dangerous risk to their reputation for honesty. Complaining of Stansted charges, O’Leary declared, “”People have to pay £10 just for the privilege of getting on and off this rain-sodden and weather-beaten island,” but surely we could say something similar about getting an online check-in without which you cannot even get in the airport.
Ryanair’s strategy of blaming someone else rather than themselves helps to position themselves as “people’s champions”. It will unravel if customers begin to question the veracity of what Ryanair says – do they believe Ryanair or Manchester Airport. Ryanair will struggle to radically cut more costs in future even if they charge for toilets or make people stand. Driving up profits through charging more for luggage or checking-in does not seem, long term, the way to grow the brand.
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Ryanair – Winter Taxes
Ryanair is the most fascinating case study for the student of reputation management. Brilliantly successful and yet widely reviled.
Reputation theorists argue that truthfulness/honesty are key ingredients for long term reputation. With Ryanair it is always hard to tell where truth and fabulation meet. If you take Ryanair’s word for it: they never make a mistake and simply have to change their scheduling or drop airports because of new taxes or airport fees.
For example is Ryanair’s threat to reduce services at Shannon by 75% about the 10 Euro fees or because they are struggling to make the numbers – who can say (Irish Times). Likewise reductions in winter services was anything from 40% to 7% depending on how or who you listened to. (see Financial Times report)
Journalist reporting often makes it no clearer what is happening. For example when Ryanair announced it was terminating most of its schedule from Manchester airport, the Guardian reported that 600 jobs were threatened whilst the Telegraph simply stated 600 jobs to go.
One of the key attributes of Ryanair’s PR strategy is to draw attention to hidden costs in the system. Announcing their departure from Manchester they provided a telling narrative for why it was necessary: “Airlines have been reducing fares in this recession but the one static factor has been in relation to airport charges. It is a huge undertaking to fill planes on a rainy winter day in Manchester when you can fly them down to the Canary Islands from somewhere else,” they declared, never acknowledging that the landing charges of £3 was covered by the fees they charge for accepting debit card payments which costs Ryanair only pennies. As their own hidden costs rise, this could become a dangerous risk to their reputation for honesty. Complaining of Stansted charges, O’Leary declared, “”People have to pay £10 just for the privilege of getting on and off this rain-sodden and weather-beaten island,” but surely we could say something similar about getting an online check-in without which you cannot even get in the airport.
Ryanair’s strategy of blaming someone else rather than themselves helps to position themselves as “people’s champions”. It will unravel if customers begin to question the veracity of what Ryanair says – do they believe Ryanair or Manchester Airport. Ryanair will struggle to radically cut more costs in future even if they charge for toilets or make people stand. Driving up profits through charging more for luggage or checking-in does not seem, long term, the way to grow the brand.
Related posts: