The data recording is done on the excel sheet. The data analysis and interpretation are also done by using the excel sheet. The gathered data is arranged and organized to the excel sheet. Then for analysis purposes, different tests are performed on the available data related to the financial records of the company. The excel formulas helped to calculate the profitability, efficiency, liquidity and financial leverage for Ryan Airlines for different quarters from 2010 to 2019. It helped to evaluate the performance of the company for the specified tenure of the year. All the above-given parameters are evaluated by using the excel formulas. The more the data analysis tools of the excel are used efficiently, the easier it is to evaluate the financial position of the said company under consideration. The data analysis tools, and the techniques are about making the efficient use of the excel formulas. The study topic “social impact of low-cost airlines in the European airline industry” is evaluated mainly by the ratio analysis which is revolving around the current study topic and the financial performance of the said company.

Summary of Social impact of low-cost airlines in the European airline industry

Chapter 3 of the current study is all about the discussion over the research methodology. The research design, research methodology, the population of the study, the sample size of the study along with the sampling strategy, methods for the purposes of the data collection & the tools for collecting the data for the said topic are discussed in detail in this chapter. It thus helps to get an insight into the data collection & analysis tools and techniques. The analytical tools which are used for making the calculations on the available data and perform the relevant tests are also discussed.

Chapter 4 of the current research work is about the results and the discussion on the outcomes being generated by using the data from the financial report of Ryan Airlines and the formulas of excel. In the next chapter, it is clearly discussed the market standing of Ryan Airlines. Based on these results it is tried to achieve the objectives of the current research work.

Results and Analysis of Social impact of low-cost airlines in the European airline industry

Ryan Air Financials

The financial statements of the low-cost airlines of Europe have been analyzed to understand how they are performing financially and how they impact the airline industry. For knowing the impact of low-cost airlines on the industry it is important to understand their financials. The financial ratio analysis of Ryan is presented below from which the profitability, efficiency, liquidity and financial leverage of the organization can be evaluated (SINHA, 2012).

Profitability of Social impact of low-cost airlines in the European airline industry

Source: (Morning Star, 2019).

In the above table the profitability ratios have been presented. The profitability ratios of Ryanair indicates that the corporation is generating profit (Spender, 2014). The net profit margin of the organization in the year 2010 was 10.22% which grown significantly in the upcoming years. The net margin has become 20.28% in the year 2018. Due to low-cost operations the corporation generatesa significant amount of profit. When the expenses of the airlines are low they have the chance to boost their profitability. The increase in sales and effective asset management are some of the reasons through which the company is generating a higher profit (Jonathan, 2010).

Liquidity of Social impact of low-cost airlines in the European airline industry

 Source: (Morning Star, 2019).

The liquidity ratios of the organization show how much cash or current assets the organization has for paying its short term obligations. The liquidity ratios of Ryanair are indicating that the organization has enough cash to pay its short term loans. It means that the organization won’t face any financial issue in paying back short term loans. However it can be seen that the liquidity position of the company is facing a downward trend and that should be a matter of concern for the organization (Campbell, Edgar, & Stonehouse, 2011).

Efficiency of Social impact of low-cost airlines in the European airline industry

 Source: (Morning Star, 2019).

The efficiency ratios of the organization indicate how efficiently the corporation is utilizing the assets for generating sales. In the above table the efficiency ratios of the Rayan air are presented in detail. If the efficiency ratios of the organization are analyzed critically than it can be said that the organization is utilizing its assets effectively for generating sales. However, there is still room for further improvement. By increasing the efficiency ratios, the organization can further increase its sales which will result in higher profitability of the organization (Fridson & Alvarez, 2011).

Financial Leverage of Social impact of low-cost airlines in the European airline industry

 Source: (Morning Star, 2019).

In the above table the financial leverage of the organization can be seen. It is evident that the debt situation of the organization is stable. The organization has not taken too much debt and the organization is in the position to pay back its debt efficiently (Kourdi, 2009).

Discussion of Results of Social impact of low-cost airlines in the European airline industry

By considering a number of channels, such as labor and student mobility, business travel, leisure tourism, etc., the report finds interesting results in terms of European connectivity and integration related to air transport in general and LCCs in particular. It appears that low fares have helped the creation of a new and growing market, as people who would have never traveled before are now travelling and this is connecting and integrating Europe.This study discusses the social impact of low-cost airlines on in the airline industry of Europe. The social impacts of the LCC (low-cost carriers) are observed in order to measure the behaviors of the customers and the reason behind the profitability of the airline's industry.

The expansion of low-cost carriers will induce an impact on the traditional airline routes and contains a network of the hub and spoke in the European industry. The chief difference between the traditional airlines and low-cost airlines falls into three classifications and three groups including operational savings, service savings, and overhead savings. This study also discusses the route of the low-cost airline industry along with its particular reason for low fares. It proves that low-cost airlines are not engaged in the utilization of illegal ways to run its operation but these are engaged in the utilization of several other secondary resources. 

The services are provided through secondary airports and there are two main advantages of using secondary airports (Diaconu, 2012). These airports are larger and tend to have fewer airlines in the services. These airports in Europe are less busy and therefore delay in services is due to congestion. In addition to other factors, low-cost airlines operate through a single type fleet.

The aim of the present work is to analyze the impact of low-cost services particularly the social impact of the low-cost airline industry. The low-cost airline services of Europe have an impact on the planning issues. The emerging trend of low-cost services in the travel market boosted the air travel demand without increasing the competition. The first services were provided by the Southwest airline company and they introduced a new strategy of fewer services at lower prices to the customers. The strategy bloomed suddenly in the air transportation market of the United States and Southwest Airlines settled the strategies for next services, nowadays the services are called low-cost airline services.

The model was later referred to as "The low-cost model”. This study discusses the initial stages of the invention and launching of low-cost airline services in detail and further on the objective of this study are developed by considering the case of the low-cost airlines Europe by considering its benefits and its effects on the social life of human being. The low-cost model is the deriving model in the business that is driving organizations towards low-cost airline services. The origin of the model is the US-based southwest airline company. The focus of the model is to reduce the cost and provide basis airline services to the customers.

The research study is focusing on social impacts that are particularly analyzed due to the low-cost airlines in the aviation industry of Europe. It explains how these airlines are impacted by the social impacts and perspectives of their valued customers. This study is critically analyzed the social impacts of the Ryan air that is the first low-cost airline in the European region. The airline companies in the three categories can be determined on the basis of the quality of services provided to the customers

The three types of categories of services can be listed as below,

1.      Transavia, Jet2, and Airberlin

2.      Ryanair, EasyJet, Wizz Air, and Norwegian

3.      Full-service carrier subsidiaries, for instance, Germanwings and Vueling

This list of companies is classified on the bases of low-cost carriers. The criteria for the selection of the companies are dependent on the services and remarkable differences in all the companies. But this study discusses Ryanair along with its financial analysis and complete financial report of various time span to predict it profitability and its social impacts on the airline's industry. It has been observed in this study in the light of several studies of the various authors that the benefits and social impact increase with reducing the cost of services as it led to more social benefits to the customers.

The cheap airline services present more benefits to the customers and the local community. The present research address a couple of research areas and research questions such as what are the effects of low-cost services on large and small scales? How the authorities are developing strategies in the planning process. The study purses the investigation about how the planning changed at different levels.  The impacts of the low cost are explained in effective manners in order to measure the benefits of the cheap services in out particular society for encouraging the aviation industry towards the cheaper rates for enhancing the trends of the quality services for the valued customers.

The services enhance the quality of life of European Citizens. The opportunities improved cohesion and enhanced the quality of life in the European Citizens. The increase in migration induces an impact on the social community. The research shows that low-cost airline is getting more attraction from the passengers as they are from long distance and work in the bigger cities. The research also identified the increasing interest of business people across the border. The statistical analysis conducted by BBC news demonstrated that the mortgage lender of Europe is changing due to cheap and low-cost airline services. The cheap services are opening new routes to bring the people.

There isa number of low-cost airlines that can be discussed in order to measure its social impacts on the aviation industry as well as their benefits for pubic/society. But in this study the Rayan air has been selected in order to measure its social impacts on the aviation industry. Because this is the first airline that has been introduced with the concepts of the low cost in the European market. It becomes one of eth most effective airlines in the European airline industry.

In early 1991 the low-cost schedule operator has been experienced in Europe at the time when the Irish air carrier with the name of the Rayan air has started its visit from the conventional regional airline by following the US low-cost pioneer Southwest Airlines. The Rayan air has started to copy this particular US low-cost pioneer Southwest Airlines. These services have been started by considering the huge leisure market inthe UK and Ireland. It has been observed in this study that airlines havea dramatic effect on the services in the entire region of the Irish Sea. Another phase of the rapid growth of the Rayan’s air has been involved carriers for building up a network for the inter and intra-European routes. These are liking with the third airport of the world named as Stansted along with more than 50under utilized. The secondary airports that were interlinked with several countries that have made it second-largest low-cost carriers across Europe.

Ryanair’s collaboration is leading towards the possibility of the report by consulting its financial reports along with the provision of quantitative data.  It is necessary to determine corporate collaboration offers rise for any particular bias in the various networks. All of these issues can be address in the following manner. The first one is related to the contributions of Ryanair that are fully transparent It includes how the data can be utilized which is provided by the Rayan air.

Secondly; CEPs have been fully independent that cannot be used only for the process of drafting this particular report and these all things can be utilized for selecting the sources of the data. At third this report is usually conducted to focusing on the particular theme that brings Europe most closely as compared to its commercial use. 

The research study conducted by using secondary source data collection that leads to the preexisting sources related to the data of the company. Most importantly; the annual reports of the Rayan’s air are utilized to analyze the social impacts of low-cost carriers in the airline industry of Europe.

As discussed in the study of Akgüç, Beblavý, & Simonelli, (2018) all these social impacts are the basis of the present research as the present study thoroughly considers the case studies. Three cases are considered as examples and to explore the benefits of low-cost airline services. The concern of the present thesis is to explore services provided in European airline service providers. Some of the notable low-cost carriers of Europe are listed as Lupton and Stansted, Gatwick, and London airports. The capacity is a constraint of airline services that can change the routes of services. The rapid growth of seats supplied to the customers and the number of flights in the low-cost services resulted in the high services on the basis of contracts (Akgüç, Beblavý, & Simonelli, 2018).

From the materials and methods perspectives of this research study it has been observed that this study has to use a particular research method for analyzing the case of the Rayan’s air in order to measure its social impacts in the airline industry of Europe. For this particular reason for the study; Based on the nature of the study it is confirmed that the nature of the current research work is quantitative. The methodology is better determined based on data nature. If we talk about the qualitative methodology, it can be said that the verbal data exist for the qualitative methodology.

The financial ratio analysis of Ryan is used from which the profitability, efficiency, liquidity and financial leverage of the organization are better evaluated. The financial leverage include the ratio analysis for the Cash & Short-Term Investments, Accounts Receivable, Inventory, Other Current Assets, Total Current Assets, Net PP&E, Intangibles, Other Long-Term Assets, Total Assets, Accounts Payable, Short-Term Debt, Taxes payable, Accrued Liabilities, Other Short-Term Liabilities, Total Current Liabilities, and Other Long-Term Liabilities.

The data collection is time-series. It means that the data which is used for the analysis purposes is collected for a specified tenure of the time. For the said purpose, financial reports are considered as the best fit to gather the data.The secondary data is also based on the already existing research articles which better served the purpose.It includes both the quantitative and the qualitative research method. In order to evaluate the research problem, the quantitative data is being used. It provides the numerical data which is later transformed into the usage statistics.  The gathered data is arranged and organized to the excel sheet. Then for analysis purposes, different tests are performed on the available data related to the financial records of the company. The excel formulas helped to calculate the profitability, efficiency, liquidity and financial leverage for Ryan Airlines for different quarters from 2010 to 2019.

The data has been analyzed by using Excel and calculating the various financial statements of the company in order to measure its impacts on the airline industry of Europe and it also explains its social impacts along with a particular reason. The financial statements of the low-cost airlines of Europe have been analyzed to understand how they are performing financially and how they impact the airline industry. The financial ratio analysis of Ryan is presented below from which the profitability, efficiency, liquidity and financial leverage of the organization can be evaluated. The profitability ratios of Ryanair indicates that the corporation is generating profit (Spender, 2014).

The net profit margin of the organization in the year 2010 was 10.22% which grown significantly in the upcoming years. The liquidity ratios of Ryanair are indicating that the organization has enough cash to pay its short term loans. If the efficiency ratios of the organization are analyzed critically than it can be said that the organization is utilizing its assets effectively for generating sales.  By increasing the efficiency ratios the organization can further increase its sales. It is evident that the debt situation of the organization is stable in the case of financial leverage.

Conclusion recommendations and future of Social impact of low-cost airlines in the European airline industry

Conclusion of Social impact of low-cost airlines in the European airline industry

By summing up the entire discussion it has been concluded that due to the low cost of the airline services the consumer had benefitted and they are enjoying all of these services in a good way. In terms of more competition they get a chance to enjoy cheaper services of the airline industry. The consumer is engaged in enjoying these services in terms of greater fares and diversity, more destination and particularly in terms of greater frequencies. No doubt; the middle-class population always prefers low-cost carriers despite it few lacking services.

Meanwhile; the low-cost carriers havetheir impact on the few of the greater airlines that engaged in providing these services in a similar field but at higher rates; few of these have impacts roundabout the 50% of the traffic that can be carried by the low-cost airlines that are newly generated. There are the few of evidence which can be considered as the evidence for the spoke and hub networks of the major carriers that are being adversely affected for any greater particular extent.The major important carrier’s feed can be easily squeezed for the particular certain routes which are usually used for the point to point competition from its low-cost carriers. While its indications are representing that these airlines are more similar for responding by reducing the size of the aircraft as compare to it routes that are selected and decided already.

It has been concluded that there are several issues related to policymakers of the aviation that are connected with the low-cost expansion sector. From the perspective of the social impacts; it includes mitigating environmental effects particularly the utilization of the secondary airports in order to reduce the cost of the services of the airlines' industry. There are large numbers of low-cost carriers that are engaged in providing the services for selected routes among the regional airports. Such kind of these airports isoften confronted along with tremendous growth of traffic that requires large capital expenditure for the investment infrastructure.

It is used to ensure the rights of the passengers that are upheld; particularly from the low-cost carriers that have various conditions of carriage which can compare with traditional carriers. It can easily useto ensure the level of maintenance by comparing it with the competitive playing field. These can easily use to maintain the higher safety standard in Europe that are engaged in increasing the crowd of skies. It is also used for organizing the allocation ever scarcer capacity for congested airports of Europe. It was observed by the financial reports of the Rayan’s air that the social impacts of the low-cost airlines are the positive signs in the airline industry. It means the concepts of low-cost airlines must be increased.

The possibilities for new entrants (new companies) have been opened up by the liberalization of the air traffic market in Europe. It offersa wide chanceto enter the market as well as competing with traditional manners by performing the airline operation in a good way by providing a new business model with the name of the low-cost model. It has been concluded that the low-cost business model is a good strategy to provide the chances to new companies to perform their services in order to offer the conveniences to the customers at cheaper rates.

There are several benefits for passengers relevant to lower prices that are brought by the model of the low cost. It provides greater choices along with faster developments of the regional and secondary airports. It provides benefits to the whole region by offering the new workplaces for transporting a substantially greater number of passengers for existing non-profitable airports. The negative impacts of air traffic can be reduced by the low-cost airlines o the environment by utilizing the modern, new and innovative aircraft. Because all of these aircraft are consuming fewer fuels. These aircraft have significantly lower emission of harmful substances for their environment.

Low-cost airlines have positive impacts because these airlines have low fares along with the air craft’s high occupancy rate. It also includes the accommodation of much larger amounts of the passengers for the aircraft according to the comfort of expenses. The substation shorter handling is also included in the benefits of low-cost carriers. But the traditional airlines offer high-level comfort to their valued customers along with additional baggageservices. It also provides good food in the aircraft.

Recommendation of Social impact of low-cost airlines in the European airline industry

There are several strategic decisions that are strongly recommended to the policymakers of the aviation industryand this established accoreding to the conclusion of this study. These are;

Throughout the year to attract the several LCCS as possible

·         To provides a wide range for the services of the no aeronautical as possible  and it cannot use only for the reason of improving the services of the business operation of the airports but it also can be utilized to engage the customers towards the good services of the business.  This can be used to increase the entire destination’s competitiveness.

·         Due to the arrival of the several LCCs (low-cost carriers) the possible sharpening of the seasonality can be reduced and the policymakers must focus on this. They must have to think about the ideas for the implantations of the set of measures that are aimed at attracting their arrival out of the peak season.

·         For example; fee reductions of the airports, subsidies and various other possible measures that can be used for making it is more interesting for extending the flying season. It includes the once most important which hasthe aim of the local destination for enhancements of supply.

Future implications of Social impact of low-cost airlines in the European airline industry

As this study is conducted by using the ideas of the various author and opinions of the individual expects it means it is possible to conclude that this research has suffered from the potential subjectivity. Therefore; there must be further research that must be focusing on the more accurate data for the financial indicators.However despite this limitation the research may be useful for understanding the effects of the LCCs’ presence on the overall airports’ performance.

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