Michael O’Leary, the CEO of Ryanair, is known worldwide for his various unconventional business tactics. He became the CFO of the Dublin-based airline in 1988, and while in that position, he helped develop Ryanair into Europe’s first low-cost airline. Once he was made CEO in 1994, O’Leary has done everything in his power to keep the airline’s fares low, by focusing on operational efficiency and cost-cutting, but without compromising safety.
O’Leary’s goals—to keep fares low, have quick turnaround times, and provide no-frills service— might not be the most ideal type of airline for every flier out there. That being said, Ryanair has set a standard in the industry that’s made air travel affordable for millions of Europeans.
O’Leary’s Cost-Cutting Strategies
Here are some of the ways O’Leary has helped make Ryanair what it is:
Under O’Leary’s watch, Ryanair’s fleet is limited to only a few types of planes. The airline buys them in bulk, allowing O’Leary to get them at a discount.
Airport Fee Negotiations
He’s also saved the airline millions of euros by negotiating discounts with airports for reduced landing fees (this works particularly well at small, regional airports that allow Ryanair to land for free, so the areas can get flights that will bring passengers [and their money] into their respective areas).
Publicity Stunts and Marketing Genius
O’Leary is well aware of how marketing and publicity can make or break a company. He’s a firm believer that “any publicity is good publicity,” so over the years he’s purposely announced outlandish ideas for his airline, from SRO tickets to pay toilets, simply because it gets Ryanair in the news, without having to pay a cent (well, a Euro) for publicity. I mean, what other airline CEO is going to pose like this during his own press conference? He’s also known for peppering his announcements with foul language and for making comments that he’ll later contradict. The results of those are, once again, free publicity that sometimes turn into sound bites that last for decades. Here are a few more popular ones (all courtesy of AZ Quotes):
Are we going to say sorry for our lack of customer service? Absolutely not.
We think passengers who forget to print their boarding passes should pay €60 for being so stupid.
Air transport is just a glorified bus operation.
We should try to eliminate things that unnecessarily p*ss people off.
The funny thing is, O’Leary’s creativity to cut costs and increase efficiency goes way beyond his airline.
O’Leary’s Taxi Scheme
Back in the early 2000s, the clever CEO reportedly bought a taxi license plate for his Mercedes-Benz S-Class car. He listed it under the name ‘O’Leary Cabs and that meant his car could be recognized as a taxi. And in Dublin, taxicabs are allowed to use the bus lanes.
You see where I’m going with this, right? Dublin is a big city and, like all big cities, it has its share of road congestion. But he was able to bypass all that traffic, and therefore save himself a boatload of time, since he was able to drive in the bus lanes. Well, be driven in the bus lanes – he hired a driver.
Of course, it was very “on brand” for O’Leary, but that didn’t mean he wasn’t called out for it.
The Irish Times reported back in 2003 that O’Leary appeared on a local radio station to defend his position.
O’Leary said that he fully complied with the regulations regarding taxis – it was metered, had a sign over it and even produced receipts – despite the Irish Transport Minister calling him (and others) out for abusing the law.
“It’s a black taxi, it’s registered in Mullingar (that’s a county town NW of Dublin), I’ve a PSV (Public Service Vehicle) driver who drives it for me and if they want to amend the regulations which says I’m allowed to pick up people in Dublin I’ll be happy to pick up people in Dublin – I’ll do it a lot cheaper,” he explained.
“Michael O’ Leary’s taxi is capable of exciting everybody,” he added. “And if you’re in Mullingar give me a call I’d be happy to look after you.”
For what it’s worth, O’Leary still has his one-man taxi company.
The Man, The Legend
Personally, I’m not a fan of people who try to flout the intentions of rules and laws, even if they’re not 100% breaking the law. Then again, I’m also not a fan of a person who calls people of size, environmentalists and the average Joe disparaging names, and he’s well known for doing all of that and more.
But I will give Michael O’Leary credit – he’s clever. And as unlikable as I think he is, he’s a damn good businessman who’s turned Ryanair into Europe’s most profitable airline. So he’s got that going for him.
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