Read the information supplied and answer the questions which follow. Ryanair CEO, Michael O’Leary, has apologised for the cancellation of flights. The airline admits it 'messed up the planning of pilots' holidays'. Source: Adapted from The Irish Times, 2017. (i) Illustrate your understanding of the term contingency plan. (ii) Outline the importance of planning for an airline such as Ryanair. Refer to strategic, tactical and manpower planning in your answer.

Leaving Cert Business Management Activities (Plan, Organise, Control): Read the information supplied an

Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 4(A) - 2018

Question 4(A)

Read the information supplied and answer the questions which follow. Ryanair CEO, Michael O’Leary, has apologised for the cancellation of flights. The airline admit... show full transcript

Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 4(A) - 2018

Step 1

Illustrate your understanding of the term contingency plan.

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Answer

A contingency plan is a backup plan developed to address potential future events or unforeseen circumstances that could disrupt operations. In the context of Ryanair, it is essential to have a contingency plan in place to mitigate the risks associated with pilot shortages during peak travel seasons. For instance, if a number of pilots decide to take holiday leave simultaneously, a contingency plan could involve having a reserve of trained pilots or arrangements with other airlines for temporary staffing. This ensures that the airline can continue to operate flights without significant disruptions.

Step 2

Outline the importance of planning for an airline such as Ryanair. Refer to strategic, tactical and manpower planning in your answer.

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Answer

Planning is crucial for an airline like Ryanair to ensure operational efficiency and profitability.

Strategic Planning

Strategic planning involves long-term planning focused on the major objectives of the airline. It is prepared by senior management to secure the long-term profitability and existence of the airline. For example, decisions like expanding routes or acquiring more fuel-efficient aircraft shape Ryanair’s future direction and competitiveness in the market.

Tactical Planning

Tactical planning is short-term and devised by middle management. It includes actions that help execute the strategic plan effectively. For Ryanair, this could mean optimizing flight schedules based on passenger demand or increasing the number of flights to popular destinations during peak seasons.

Manpower Planning

Manpower planning focuses on effectively utilizing human resources. For Ryanair, it involves ensuring an adequate number of pilots and cabin crew available at all times. Without proper manpower planning, staff shortages could lead to flight cancellations, as experienced recently. Therefore, having a structured plan helps align staffing needs with operational demands.