Four years later, the company lost $20 million dollars. Later in 2011, the company had grown to attract 75.8 million passengers who boarded their planes, leading to generation of a whopping $4.2 billion in revenues. After years of exponential growth, the company finally resolved to offer their customers very low airfare rates, though a storm sparked when the company introduced many unreasonable charges.
Raynair unmatched low prices brought the company to a status of global fame, because its services were 2-3 times cheaper than what similar companies charged. However, the truth of the matter is that this airline company had introduced so many hidden fees and services to boost its revenue and recover from the extremely low prices. This issue attracted a lot of controversy regarding the legality of what Raynair was doing and whether its business plan and procedures was really ethical. In a nutshell, Ryanair’s hidden charges are certainly unethical. It is very strange, for example, to realize that a customer is charged a fee for not checking-in online. Raynair introduces so many hidden charges and hides them under their “low priced tickets”. This unethical practice, unfortunately, can taints its reputation and reduce its customers base.
If Raynair’s purpose is to maximize shareholder’s returns, violating the rights of employees and customers to achieve its goals is a violation of its ethical responsibility. Raynair airline is a corporate entity, which is legally considered to be a corporate person, entitled to rights and responsibilities, just like any other person. ...Show more