RyanAir is in a lot of businesses, but they are definitely not in the airline business.  The airplanes they fly are simply the delivery mechanism for a lot of other services.  And since the airplane is the method of delivery, RyanAir has done everything they can possible do to reduce their per-plane cost. For example, they have

  • Maximized seat density, making it impossible for anyone with an inseam greater than 32″ to slouch in the seat.
  • Eliminated the removable safety-instructions card and replaced them with laminated labels on each seatback.
  • Eliminated the seat-back pockets so passengers won’t put trash in them, thus reducing the time to clean a plane.
  • Boarded and deplaned from both the front and the rear of the plane, thus reducing the airport turnaround time to about 25 minutes.
  • Standardized on a single style plane, the Boeing 737-800, to reduce pilot and crew costs.
  • Arranged for landing rights and terminal gates in the lowest-cost locations in Europe.

You may be asking, “If RyanAir’s not in the airline business, then what business are they in?”  Well, here’s a hint…

RyanAir Scratch Ticket Sales

Here’s my flight attendant from my latest RyanAir flight from Bristol to Dublin. Those cards in her right hand are scratch cards.  Yes, you, too, could win 1,000,000 Euros, which, by the way, are worth a lot more than $1,000,000 these days.

From the moment she checked us through the gate, until the moment I retrieved my slightly-damaged baggage, she worked constantly, jumping effortlessly from one business to the next. 

Here’s my partial list of RyanAir businesses that she supported:

  • Parcel delivery services
  • Gaming
  • Newspaper sales
  • Food and softdrinks sales
  • Alcohol sales
  • Airport transfer services
  • Car rentals (or Car Hires for those in Europe)
  • Advertising services
  • Catalog sales

I also saw 42 banner ads for alpine ski vacations covering the overhead bins and approximately 150 ads for Inviseo Media on the seat backs in front of us.

RyanAir Alpine Ski Vacations

My favorite ads were the ones for 2-for-1 specials on Bullseye Baggies of Super Premium Vodka that were taped like streamers below the bins.

Bullseye Baggies

If you go to the RyanAir website, you’ll find even more services, including airport parking, airport transfer tickets, concert and sporting event tickets, hostels and bed and breakfast rentals, and even utilities, as in gas and electricity.

Now, I’m not sure what all this means for startups, except to say that one clever company figured out that you can look like your in one business, while actually being in another (or several others).  It’s a good thing that RyanAir’s not in the airline business.  I hear that’s not very profitable these days.