Goldman Sachs

The Goldman Sachs Group, Inc. NYSE: GS (referred to as GS, or just Goldman) is an investment bank. The firm was founded in 1869. Headquartered in downtown New York City at 85 Broad Street ([1]), Goldman operates globally with offices in leading financial centers, e.g. New York City, Frankfurt, London, Hong Kong and Tokyo.

Goldman is mostly involved in wholesale financial services, although it has a newer and growing Private Client Services arm. Its largest area of activity is proprietary trading, that is, executing trades for its own profit with its own money. In fact, investment banking accounts for only 5 percent of Goldman's profits.

Quick facts

  • Employed 20,722 people at the end of November 2004.
  • Pre-tax earnings in the 2003 fiscal year ending November 30 were $4.445 billion.
  • The CEO is Hank Paulson.

Lines of Business

Goldman Sachs is divided into three different lines of business: Investment Banking, Trading and Principal Investments, and Asset Management and securities services.

Investment Banking includes traditional investment banking, and mergers and acquisitions (M&A) advisory. Goldman Sachs is one of the leading investment banks, topping the league tables many times, especially in equity operations. In mergers and acquisitions, it gained fame historically by advising clients on how to avoid a hostile takeover. Goldman Sachs, for a long time during the 1980s, was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firm's reputation immensely. This segment accounts for around 15 percent of Goldman Sach's revenues.

Trading and Principal Investments is the largest segment and profit center for Goldman. This segment consists of the revenues and profit gained from the Bank's trading activities, both on behalf of its clients and for its own account (called proprietary trading). Many trades however are done for both reasons. Most trading done by Goldman is not a "bet" of a particular outcome in the market, but rather attempting to sell something for an incrementally greater amount of money it was forced to buy something for, in the process of acting as a market maker. Like the rest of the Investment Banking industry, this occurs primarily in the bond market. Around 65 percent of Goldman's revenues and profits are from this area. Upon its IPO, Goldman predicted that this segment would not grow as fast as its Investment Banking division and would be responsible for a shrinking proportion of earnings. The opposite has been true, however.

The final segment is Asset Management and securities services. "Asset Management" is an industry term for mutual funds, of which Goldman runs many. This segment accounts for around 19 percent of Goldman's earnings. "Securities services" is mostly a reference to Prime brokerage, which is a stock brokerage for hedge funds that executes many trades and is a particularly profitable division within Goldman Sachs.

History

Goldman Sachs was founded by Marcus Goldman as a business which assisted other businesses in borrowing money via commercial paper (very short term loans). It grew organically from this base, but suffered a major setback when it setup what would be called today a giant hedge fund (Goldman Sachs Trading Co.) in 1929 which crashed in the resulting great depression. This damaged its repuation for a long time.

Sydney Weinberg became the head of Goldman Sachs. He was a relentless salesman, trying to befriend as many leaders of top businesses and governments as possible. His close friendship with the Ford family allowed Goldman Sachs to arrange for the Ford IPO, the largest in the world at that time. This was a major coup for the company which enhanced its reputation greatly. Others at Goldman realized that essentially all new business was brought in from Weinberg, and so instituted an outbound sales force to attempt to become less reliant on Weinberg. This had never been done before in investment banking.

Gustave Levy took over after Weinberg. He came from the firms trading department, and got Goldman Sachs into the business of trading for its own profit (its major source of profit today). John Whitehead and Weinbergs son next took over. They commited Goldman Sachs to expand internationally.

Alumni of Goldman Sachs

Many former partners of Goldman Sachs have gone on to hold prominent public positions including Robert Rubin the United States Secretary of the Treasury under Bill Clinton, Jon Corzine currently a United States Senator from New Jersey, and John Thain currently the CEO of the New York Stock Exchange. Also, Steven Friedman was Chairman of George W. Bush's National Economic Council, incidentally the position Rubin held before moving to Treasury.

Another former partner, Jack Ryan (Senate candidate), withdrew from his bid for the open United States Senate seat in Illinois after embarrassing allegations about his sexual past.

Apart from political careers, alumni of Goldman Sachs seek entrepreneurship and excel there:

  • J Christopher Flowers, a former partner who set up J.C. Flowers & Company, he is a member of the Forbes 400 list.
  • Edward S Lampert, a former protégé of Robert Rubin and founder of ESL Investments, is a member of the Forbes 400.

Scandals involving Goldman Sachs

Joyti De-Laurey

Joyti De-Laurey was convicted eleven to one in April 2004 by a UK jury for stealing more than £4m by forging cheques.

A spokesman for Goldman Sachs described the thefts as "gross abuse of trust and an extremely unpleasant incident for all those affected". The Financial Times called her a "queen of deceit", Scott Mead, the executive whose signature De-Laurey forged, called her a "Picasso of con-men— she was brilliant". Another previous boss of hers, Ron Beller said she was "a very clever con artist". She also worked for Jennifer Beller.

Critics have suggested that the case has been over-stated, as forging cheques does not require exceptional intelligence. Also, claims that forgeries were exceptional are questionable as another witness to the case, Ms. Sophie Pemberton, who is another employee of Mead's, stated that Mead "never signed anything" and that she regularly forged his signature.

De-Laurey's story was made into a television movie broadcast by the BBC on June 8, 2005. Titled The Secretary Who Stole £4 Million, it starred Meera Syal as Joyti De-Laurey, and featured contributions from her friends, family and co-workers.

Misleading analysis of telecommunications companies

In a statement issued by William Donaldson, chairman of the US securities and exchange commission on October 31st 2003, he said Bear Stearns, Credit Suisse First Boston, Goldman Sachs, Lehman Brothers, Merrill Lynch, Piper Jaffray, Salomon Smith Barney, and UBS Warburg (now known as UBS Securities) ("UBS") issued research reports that were not based on principles of fair dealing and good faith and did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable bases in violation of New York Stock Exchange ("NYSE") Rules 401, 472 and 476(a)(6), and NASD, Inc., Rules 2110 and 2210 as well as state ethics statutes.

An analyst, Craig Kloner, when asked what his three most important goals for 2000 were, said "to get more investment banking revenue" ([2]) ([3]).

The Financial Times called it "the worst financial scandal in a generation". Donaldson fined Goldman-Sachs US$110m, and the investment banks as a whole $1.4bn ([4]) in the so called "global settlement".

Criticisms against Goldman Sachs

In 2002, Goldman Sachs paid US$ 1.65 million in fines for allegedly violating e-mail record keeping requirements. In 2003, Goldman Sachs paid US$ 110 million as part of the settlement over research improprieties when New York State Attorney General, Eliot Spitzer, fined Wall Street for bad behavior. In 2003, the company agreed to pay US$ 4.3 million in restitution and a US$ 5 million in penalty related to improper trading in US Treasury Securities and futures. In 2004, Goldman Sachs agreed to pay US$ 2 million to the Securities and Exchange Commission (SEC) for settling charges of promoting an IPO before the IPO registration became effective. The SEC also alleged that Goldman Sachs spoke to the media about an IPO by PetroChina before an initial registration was filed. Goldman Sachs also raked in hundreds of millions in fees for underwriting companies like PlanetRx.com, Webvan, etc., which later went bankrupt. Spear Leeds, a firm Goldman Sachs bought in 2000 and renamed as Goldman Sachs Execution & Clearing LP, had to pay US$ 45.3 million to the National Association of Securities Dealers (NASD) in 2004 to settle charges that it traded ahead of customers. In 2005, Goldman Sachs Execution & Clearing LP was fined US$ 1 million by NASD for hiding IPO allocations from the Depository Trust Corporation.

Diversity

Goldman Sachs received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report. In addition, the company was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.

References

Goldman Sachs: The Culture of Success. Lisa Endlich. Little, Brown and Company. 1999. ISBN 0316643734


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ISBN 0316643734. Ryanair's total firm orders stand at 230 and the newly ordered aircraft will be delivered in spring 2007 (ref: Air International, July 2005). 1999. On 13 June 2005 Ryanair confirmed a $286 million order for 5 Boeing 737-800 aircraft, which is a conversion of five existing options from an order in 2002. Little, Brown and Company. It currently has firm orders for an additional 225 Boeing 737-800 aircraft by 2010, with options on a further 193. Lisa Endlich. The Ryanair fleet consists of the following aircraft (at April 2005):.

Goldman Sachs: The Culture of Success. Ryanair's interactive destination map. In addition, the company was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine. The London-Dublin route is the busiest international route in the world after Hong Kong-Taipai. Goldman Sachs received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report. This is largely due to the number of Irish people who live in the UK – the amount of business and money traded between the two cities – and increasingly the number of Irish who use the route to make connecting flights to other places in Europe. In 2005, Goldman Sachs Execution & Clearing LP was fined US$ 1 million by NASD for hiding IPO allocations from the Depository Trust Corporation. Of all Ryanair's routes, the Dublin-London route remains both the busiest and the most profitable.

Spear Leeds, a firm Goldman Sachs bought in 2000 and renamed as Goldman Sachs Execution & Clearing LP, had to pay US$ 45.3 million to the National Association of Securities Dealers (NASD) in 2004 to settle charges that it traded ahead of customers. That's 11 km closer than the main Landvetter Airport. Goldman Sachs also raked in hundreds of millions in fees for underwriting companies like PlanetRx.com, Webvan, etc., which later went bankrupt. One exception is Gothenburg, Sweden, where Ryanair flies to the town's City Airport, 14 km from city centre. The SEC also alleged that Goldman Sachs spoke to the media about an IPO by PetroChina before an initial registration was filed. Most smaller airports Ryanair operates to are located farther from the city centres than their main airports. In 2004, Goldman Sachs agreed to pay US$ 2 million to the Securities and Exchange Commission (SEC) for settling charges of promoting an IPO before the IPO registration became effective. Ryanair has other bases throughout Europe, at Brussels, Barcelona Girona, Dublin (DUB), Frankfurt am Main (HHN), London Luton Airport, Liverpool, Milan (BGY), Prestwick (PIK), Rome (CIA), Shannon International Airport and Stockholm Skavsta Airport.

In 2003, the company agreed to pay US$ 4.3 million in restitution and a US$ 5 million in penalty related to improper trading in US Treasury Securities and futures. Its main hub is London Stansted Airport. In 2003, Goldman Sachs paid US$ 110 million as part of the settlement over research improprieties when New York State Attorney General, Eliot Spitzer, fined Wall Street for bad behavior. Ryanair currently serves about 200 routes between 104 airports in 18 European countries. In 2002, Goldman Sachs paid US$ 1.65 million in fines for allegedly violating e-mail record keeping requirements. Main article: Ryanair destinations. Donaldson fined Goldman-Sachs US$110m, and the investment banks as a whole $1.4bn ([4]) in the so called "global settlement". The last low-cost airline to compete directly with Ryanair on the UK/Ireland routes was Go Fly – which had to pull out due to mounting losses.

The Financial Times called it "the worst financial scandal in a generation". easyJet does fly from Aldergrove in Northern Ireland, but Ryanair does not operate there. An analyst, Craig Kloner, when asked what his three most important goals for 2000 were, said "to get more investment banking revenue" ([2]) ([3]). In September 2004, Ryanair's biggest competitor, easyJet, announced routes to the Republic of Ireland for the first time, begining with the Cork to London Gatwick route – until then easyJet had never competed directly with Ryanair on its home ground. In a statement issued by William Donaldson, chairman of the US securities and exchange commission on October 31st 2003, he said Bear Stearns, Credit Suisse First Boston, Goldman Sachs, Lehman Brothers, Merrill Lynch, Piper Jaffray, Salomon Smith Barney, and UBS Warburg (now known as UBS Securities) ("UBS") issued research reports that were not based on principles of fair dealing and good faith and did not provide a sound basis for evaluating facts, contained exaggerated or unwarranted claims about the covered companies, and/or contained opinions for which there were no reasonable bases in violation of New York Stock Exchange ("NYSE") Rules 401, 472 and 476(a)(6), and NASD, Inc., Rules 2110 and 2210 as well as state ethics statutes. Despite traditionally being a full-service airline, Aer Lingus began to adopt a low-fares strategy in 2002, leading to much more intense competition with Ryanair on Irish routes – Ryanair's most profitable. Titled The Secretary Who Stole £4 Million, it starred Meera Syal as Joyti De-Laurey, and featured contributions from her friends, family and co-workers. In 2004 approximately 60 new low-cost airlines were formed.

De-Laurey's story was made into a television movie broadcast by the BBC on June 8, 2005. Among Ryanair's main low-cost competitors are easyJet, Air Berlin, Germanwings and Transavia. Sophie Pemberton, who is another employee of Mead's, stated that Mead "never signed anything" and that she regularly forged his signature. [13] [14]. Also, claims that forgeries were exceptional are questionable as another witness to the case, Ms. The woman eventually went to court and won an award of £43,098. Critics have suggested that the case has been over-stated, as forging cheques does not require exceptional intelligence. She received the prize in 1988, but the airline refused to carry her free of charge on a flight in 2002.

She also worked for Jennifer Beller. In 2002 Ryanair reneged on a promise of free flights given as a prize to the airline's one millionth passenger, Jane O'Keeffe. Another previous boss of hers, Ron Beller said she was "a very clever con artist". A court ruling in 2004 judged that the responsibility should be shared by the airline and the airport owners [12]. The Financial Times called her a "queen of deceit", Scott Mead, the executive whose signature De-Laurey forged, called her a "Picasso of con-men— she was brilliant". However, the airline argued that this provision was the responsibility of the airport authority stating that wheelchairs were provided by 87 of the 93 Ryanair destination airports. A spokesman for Goldman Sachs described the thefts as "gross abuse of trust and an extremely unpleasant incident for all those affected". In 2002 it refused to provide wheelchairs for disabled passengers at Stansted Airport, hugely angering disabled rights groups [11].

Joyti De-Laurey was convicted eleven to one in April 2004 by a UK jury for stealing more than £4m by forging cheques. The airline has come under heavy criticism in the past for its poor treatment of disabled passengers. Apart from political careers, alumni of Goldman Sachs seek entrepreneurship and excel there:. In March of the same year, a Belgian court ruled that two sacked Belgian cabin staff who had been working out of the airport of Charleroi were entitled to protection under Belgian law, not Irish law as Ryanair had claimed [10]. Another former partner, Jack Ryan (Senate candidate), withdrew from his bid for the open United States Senate seat in Illinois after embarrassing allegations about his sexual past. Several successful actions have been brought against the company: On 25 January 2005 the Irish Labour Court guaranteed an investigation into allegations of victimisation of staff who wished to join a trade union [9]. Bush's National Economic Council, incidentally the position Rubin held before moving to Treasury. Staff are banned from charging their own mobile phones at work to reduce the company's electricity bill [8], even though the cost savings by such measures are insignificant.

Also, Steven Friedman was Chairman of George W. Ryanair has also come under fire from unions representing workers in the airline industry for refusing to recognise trade unions, and allegations of poor working conditions. Many former partners of Goldman Sachs have gone on to hold prominent public positions including Robert Rubin the United States Secretary of the Treasury under Bill Clinton, Jon Corzine currently a United States Senator from New Jersey, and John Thain currently the CEO of the New York Stock Exchange. Walloon authorities who offered the subsidies were considering appealing against the ruling because of the roughly € 45 million that the airline route brings to the area every year. They commited Goldman Sachs to expand internationally. In February 2004 the European Commission ruled that Charleroi airport gave Ryanair illegal subsidies and ordered the airline to repay roughly € 4 million of subsidies. John Whitehead and Weinbergs son next took over. The EC believes that subsidies from state-owned airports are a breach of European Union competition rules.

He came from the firms trading department, and got Goldman Sachs into the business of trading for its own profit (its major source of profit today). Ryanair receives subsidies from some European airports, a situation which has been investigated by the European Commission. Gustave Levy took over after Weinberg. Two of them are now in storage, and two have been sold off to other operators. This had never been done before in investment banking. The airline announced in October 2004 that the remaining -200s will be disposed of by November 2005. Others at Goldman realized that essentially all new business was brought in from Weinberg, and so instituted an outbound sales force to attempt to become less reliant on Weinberg. Ryanair argues that the planes are well maintained, but has already scrapped a number of them for technical reasons.

This was a major coup for the company which enhanced its reputation greatly. These aircraft date from the early 1980s and some industry observers believe that Ryanair has pushed them beyond their usable service life. His close friendship with the Ford family allowed Goldman Sachs to arrange for the Ford IPO, the largest in the world at that time. The airline has been criticised for the age of its elderly Boeing 737-200 aircraft, which were bought second hand from Lufthansa and Britannia Airways. He was a relentless salesman, trying to befriend as many leaders of top businesses and governments as possible. Michael O'Leary often states that the airline goes to extremes to make a point, an approach which has resulted in Ryanair's advertising occasionally being considered offensive [6] [7]. Sydney Weinberg became the head of Goldman Sachs. Ryanair does not employ an advertising agency, instead producing all its advertising material in-house.

This damaged its repuation for a long time. It is due to be implemented during 2005 under the State Airports Act 2004). It grew organically from this base, but suffered a major setback when it setup what would be called today a giant hedge fund (Goldman Sachs Trading Co.) in 1929 which crashed in the resulting great depression. (The break-up of Aer Rianta remains a high profile demand for Michael O'Leary. Goldman Sachs was founded by Marcus Goldman as a business which assisted other businesses in borrowing money via commercial paper (very short term loans). Also criticised are what are seen as vitriolic attacks on opponents, notably former Irish Minister for Transport Mary O'Rourke (1997-2002), who was personally ridiculed in a series of controversial newspaper advertisements when she refused to break up the state monopoly which then ran Irish airports, Aer Rianta (now largely restructured). "Securities services" is mostly a reference to Prime brokerage, which is a stock brokerage for hedge funds that executes many trades and is a particularly profitable division within Goldman Sachs. Etienne (Lyons)", but in other cases court actions have upheld the designated name of the route — this was the case for Frankfurt Hahn, over 100 km from central Frankfurt.

This segment accounts for around 19 percent of Goldman's earnings. Legal actions forced name changes on routes previously referred to as "Düsseldorf (Niederrhein)" and "St. "Asset Management" is an industry term for mutual funds, of which Goldman runs many. This service is now advertised as Malmö. The final segment is Asset Management and securities services. For example, the airline used to advertise a service to "Copenhagen", Denmark which actually flew to Malmö, in Sweden. The opposite has been true, however. Ryanair is often accused of flying to airports which, while cheap, are too far away from the cities they say they are serving.

Upon its IPO, Goldman predicted that this segment would not grow as fast as its Investment Banking division and would be responsible for a shrinking proportion of earnings. The airline refuses to provide accommodation or meal vouchers when flights are cancelled or delayed. Around 65 percent of Goldman's revenues and profits are from this area. Critics have accused Ryanair of poor treatment of customers whose flights have been cancelled [5]. Like the rest of the Investment Banking industry, this occurs primarily in the bond market. In a number of incidents it has responded stubbornly to relatively trivial matters, often to make a point about the constant need to avoid adding "frills" to its service. Most trading done by Goldman is not a "bet" of a particular outcome in the market, but rather attempting to sell something for an incrementally greater amount of money it was forced to buy something for, in the process of acting as a market maker. Ryanair has been heavily criticised for many of its practices in the past.

Many trades however are done for both reasons. In August 2004, the airline carried 20% more passengers within Europe than British Airways did. This segment consists of the revenues and profit gained from the Bank's trading activities, both on behalf of its clients and for its own account (called proprietary trading). The rapid addition of new routes and new hubs has enabled this growth in passenger numbers, and Ryanair is now among the largest carriers on European routes. Trading and Principal Investments is the largest segment and profit center for Goldman. Carrying under 0.7 million annually in its early years, passenger figures grew to 21.4 million in 2003. This segment accounts for around 15 percent of Goldman Sach's revenues. Ryanair's passenger numbers have grown by up to 25% every year for the best part of the last decade.

Goldman Sachs, for a long time during the 1980s, was the only major investment bank with a strict policy against helping to initiate a hostile takeover, which increased the firm's reputation immensely. However, it has been consistent with the growth of other no-frills airlines, such as Southwest and JetBlue, since the September 11, 2001 terrorist attacks. In mergers and acquisitions, it gained fame historically by advising clients on how to avoid a hostile takeover. In an industry where the survival rate is 1 in 10 and where even the giants such as American Airlines and Delta struggle to keep in the black, Ryanair's success has confounded many industry analysts. Goldman Sachs is one of the leading investment banks, topping the league tables many times, especially in equity operations. Revenues have risen from € 231 million in 1998 to some € 843 million in 2003, and net profits have increased from € 48 million to € 239 million over the same period. Investment Banking includes traditional investment banking, and mergers and acquisitions (M&A) advisory. After taking the rapidly growing airline public in 1997 he used the money raised to expand the airline into a pan-European carrier.

Goldman Sachs is divided into three different lines of business: Investment Banking, Trading and Principal Investments, and Asset Management and securities services. The driver of the growth has been Ryanair's CEO, Michael O'Leary. . Ryanair has grown massively since its creation in 1985, from a small airline flying the short hop to London from Ireland into one of Europe's largest carriers. In fact, investment banking accounts for only 5 percent of Goldman's profits. The aircraft will be delivered without window shades, seat back recline and seat back pockets, which result in savings of several hundred thousand dollars per aircraft and give continued savings through reduced cleaning and repair costs. Its largest area of activity is proprietary trading, that is, executing trades for its own profit with its own money. Some of these aircraft would be deployed at Ryanair's 12 European bases, others to 10 new bases they intend to establish over the next seven years.

Goldman is mostly involved in wholesale financial services, although it has a newer and growing Private Client Services arm. This is expected to allow Ryanair to increase passenger numbers from the 34 million expected in 2005 to 70 million in 2011 and creating 2,500 new jobs. New York City, Frankfurt, London, Hong Kong and Tokyo. In February 2005 Ryanair announced an order for 70 further Boeing 737-800 aircraft with an option for a further 70. Headquartered in downtown New York City at 85 Broad Street ([1]), Goldman operates globally with offices in leading financial centers, e.g. Since the accession countries joined the EU on 1 May 2004, Ryanair has opened new routes to three of the ten new EU member states. The firm was founded in 1869. However, the enlargement of the European Union in 2004 is expected to lead to more new routes as Ryanair and other budget airlines tap the markets of the EU accession countries.

NYSE: GS (referred to as GS, or just Goldman) is an investment bank. A modest loss of € 3.3 million in the second quarter of 2004 was the airline's first recorded loss for 15 years, indicating turbulent times in the low fares market. The Goldman Sachs Group, Inc. During 2004, Michael O'Leary warned of a 'bloodbath' during the winter from which only two or three low-cost airlines would emerge, the expectation being that these would be Ryanair and easyJet. Edward S Lampert, a former protégé of Robert Rubin and founder of ESL Investments, is a member of the Forbes 400. The airline launched two more bases in the first half of 2004, at Rome (Ciampino) and Barcelona (Girona), increasing the total to 11 hubs. Flowers & Company, he is a member of the Forbes 400 list. By the end of 2003, the airline flew 127 routes, of which 60 had opened in the previous 12 months.

J Christopher Flowers, a former partner who set up J.C. Expansion continued apace with the launch of a base at Stockholm (Skavsta), Sweden. The CEO is Hank Paulson. In April Ryanair acquired its ailing competitor Buzz from KLM, at a knock-down price. Pre-tax earnings in the 2003 fiscal year ending November 30 were $4.445 billion. In 2003, Ryanair announced the order of a further 100 new Boeing 737-800 series aircraft from Boeing, and in February a third continental base was opened at Milan-Bergamo in Italy. Employed 20,722 people at the end of November 2004. In 2002 Ryanair launched 26 new routes and established a base in Frankfurt-Hahn Airport, its European expansion firmly on track.

100 of these aircraft will have been delivered by the end of 2005. Later that year, the airline ordered 155 new Boeing 737-800 series aircraft from Boeing at what was believed to be a substantial discount, (taking advantage of the downturn in plane orders after the slump in air travel following the September 2001 terrorist attacks) to be delivered over eight years from 2002 to 2010. Ryanair launched a new hub of operation in Brussels Charleroi in 2001. Michael O'Leary claimed that it was his idea from the start.

Within a year the website was handling three quarters of all bookings, and now accounts for 95% of the total. Increasingly the online booking contributed to the aim of cutting flight prices by selling direct to passengers and excluding the costs imposed by travel agents. Some senior management saw the potential of online booking, but kept it low profile to avoid its elimination by the Chief Executive. The airline launched its website in 2000, with on line booking said to be a small and unimportant part of the software supporting the site.

The airline was voted Airline of the Year by the Irish Transport Users Committee and voted Best Managed National Airline by International Aviation Week magazine. Flush with new capital, the airline placed a massive US$2 billion order for 45 new Boeing 737-800 series aircraft in 1998. After a highly successful flotation of Ryanair on the Dublin Stock Exchange and the NASDAQ Stock exchanges, the airline launched services to Stockholm, Oslo, Paris and Charleroi near Brussels. After EU deregulation of the air industry in Europe in 1997, Ryanair was ready to take on the continent.


. It had become the largest carrier on all its routes. By 1995, thanks to the consistent pursuit of this business model, Ryanair celebrated its 10th birthday by carrying 2.25 million passengers. He is said to have a pugnacious and aggressive management style, using a flat management hierarchy whose ethos is to provide a low cost, reliable and competitive service.

He adopted a hands-on style of management, becoming well known for the fact that despite being Chief Executive, he regularly helped out with baggage handling on Ryanair flights at Dublin airport. Flights were scheduled into smaller airports, closer and more convenient for customers. He competed with the major airlines by providing a no-frills, low cost, flexible and reliable service. O'Leary returned convinced that Ryanair could make huge inroads into the European air market, at that time dominated by national carriers which were subsidised to various degrees by their parent countries.

O'Leary quickly learnt that the key to low fares was a quick turn-around time, no frills, and no business class, as well as operating only one model of aircraft. Ryan encouraged him to visit the USA to study the 'low fares/no frills' model being used by Southwest Airlines. He negotiated significant bonuses and profit-sharing deals for himself, conditional upon bringing the airline into profit. Michael O'Leary was charged with the task of making the airline profitable.

Passenger numbers continued to increase, but the airline generally ran at a loss, and by 1991 was in need of restructuring. With two routes and two planes, they carried 82,000 passengers in one year. In 1986 the company added a second route - flying Dublin-London Luton in competition to the BA/Aer Lingus duopoly for the first time. The airline began with a 15 seat turboprop aircraft flying between Waterford and London Gatwick with the aim of breaking the duopoly on London-Ireland flights at that time held by British Airways and Aer Lingus.

Ryanair was founded in 1985 by Irish businessman Tony Ryan. . Critics, meanwhile, have attacked its trade union policies [3], and have charged that it practises deceptive advertising [4]. Its supporters praise its commitment to exceptionally low fares, its radical management, its populism, and its willingness to challenge what Ryanair calls the 'establishment' within the airline industry (similar to its American counterpart, Southwest Airlines).

Ryanair is one of Europe's most controversial companies, praised and criticised in equal measure [2]. Ryanair has been characterised by rapid and continuing expansion, enabled by the deregulation of the air industry in Europe in 1997. Over the years it has evolved into the world's most profitable airline [1], running at remarkable margins by relentlessly driving costs down. It is Europe's largest low-cost carrier, operating 209 low-fare routes to 94 destinations across 17 European countries.

Ryanair (ISEQ: RYA) LSE: RYA (NASDAQ: RYAAY) is an airline based in Ireland. Ryan-Be-Fair. The financial operations of Ryanair. Ryanair Passenger Opinions.

Ryanair Fleet Detail. Ryanair. 76 Boeing 737-800 (further 6 on order). 1 Boeing 737-400.

7 Boeing 737-200. [15]. Subsequent media reports suggested that the man was going to hijack the aircraft and fly it into the United States Embassy in London. Ryanair Flight 685 from Stockholm's Vasteras airport to London Stansted in September 1, 2002 was delayed by several hours after a Swedish man of Arabic origin was detained after attempting to board the aircraft with a loaded gun.

The UK Air Accident Investigation Board recommended changes to training procedures for air-crew to allow better handling of similar situations in future. Subsequent investigations found that the air crew struggled to open the emergency doors, and some passengers were evacuated towards the fire. Ryanair Flight 296 (Boeing 737-800) from Dublin to London Stansted caught fire shortly after landing on February 27, 2002. Callsign: Ryanair.

ICAO Code: RYR. IATA Code: FR.

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