During the last few years the low cost airline industry has notices a variety of landmark deals including those high profile acquisitions and mergers. The Ryanair airline has increasingly been becoming disconcerted about the growing threat from number of low cost no-frills airlines including Easy Jet, BMIbaby, Aer Lingus, DFDS Seaways. Against this backdrop of ever increasing competition, it’s imperative for Ryanair to initiate some far reaching changes in its HRM sphere (Simon, 2002). Cutting into existing niche market segments in the European Union has become too fashionable today because many of those airlines that venture into new market segments do so without paying much attention to the consequences of the unfolding scenario of competition.
While Ryanair is not alone in the budget airline market segment in Europe, there are formidable constraints faced by its rivals in the evolving strategic regulatory and competitive environments. For instance Ryanair’s own formidable marketing machine has not been able to overcome some of the very difficult issues such as the market/customer orientation strategy of rivals. Above all the competitor orientation strategy of rivals has forced Ryanair to bring down prices below a certain minimum.
The current market-centric performance of the Ryanair is determined by their internal and external environments. Thus Ryanair being an Irish low cost airline just focused on serving a niche market segment in Europe could have done still better to manage its HR function in the light of its strategically advantageous position. HRM involves such tasks as recruitment, training & development (T&D) of skills, employee relations, retention and motivation strategies, workplace culture and delegation of power, authority and responsibility. Effective HRM practices must be aligned with organizational outcomes such as internal value chain