Ryanair was set up in 2000 as a low-cost airline operating from a number of regional airports in Europe. Using these less popular airports was a much cheaper alternative to the major city airports and supported Ryanair's low-cost service, modelled on existing low cost competitors. These providers had effectively transformed air travel in Europe and, in so doing, contributed to an unparalleled expansion in airline travel by both business and leisure passengers. Ryanair used one type of aircraft, tightly controlled staffing levels and costs, relied entirely on online bookings and achieved high levels of capacity utilisation and punctuality. Its route network had grown each year and included new routes to some of the 15 countries that had joined the EU in 2004. Ryanair's founder and Chief Executive, John Sykes, was an aggressive businessman ever willing to challenge governments and competitors wherever they impeded his airline and looking to generate positive publicity whenever possible. John is now looking to develop a strategy which will secure Ryanair's growth and development over the next 10 years. He can see a number of environmental trends emerging which could significantly affect the success or otherwise of any developed strategy. Ryanair has seen its fuel costs continuing to rise reflecting the uncertainty over global fuel supplies. Fuel costs currently account for 25% of Ryanair's operating costs. Conversely, the improving efficiency of aircraft engines and the next generation of larger aircraft are increasing the operating efficiency of newer aircraft and reducing harmful emissions. Concern with fuel also extends to pollution effects on global warming and climate change. Co-ordinated global action on aircraft emissions cannot be ruled out, either in the form of higher taxes on pollution or limits on the growth in air travel. On the positive side European governments are anxious to continue to support increased competition in air travel and to encourage low-cost operators competing against the over-staffed and loss-making national flag carriers. The signals for future passenger demand are also confused. Much of the increased demand for low-cost air travel to date has come from increased leisure travel by families and retired people. However, families are predicted to become smaller and the population increasingly aged. In addition, there are concerns over the ability of countries to support the increasing number of one-parent families with limited incomes and an ageing population dependent on state pensions. There is a distinct possibility of the retirement age being increased and governments demanding a higher level of personal contribution towards an individual's retirement pension. Such a change will have a significant impact on an individual's disposable income and with people working longer reduce the numbers able to enjoy leisure travel. Finally, air travel will continue to reflect global economic activity and associated economic booms and slumps together with global political instability in the shape of wars, terrorism and natural disasters. John is uncertain as to how to take account of these conflicting trends in Ryanair was set up in 2000 as a low-cost airline operating from a number of regional airports in Europe. Using these less popular airports was a much cheaper alternative to the major city airports and supported Ryanair's low-cost service, modelled on existing low cost competitors. These providers had effectively transformed air travel in Europe and, in so doing, contributed to an unparalleled expansion in airline travel by both business and leisure passengers. Ryanair used one type of aircraft, tightly controlled staffing levels and costs, relied entirely on online bookings and achieved high levels of capacity utilisation and punctuality. Its route network had grown each year and included new routes to some of the 15 countries that had joined the EU in 2004. Ryanair's founder and Chief Executive, John Sykes, was an aggressive businessman ever willing to challenge governments and competitors wherever they impeded his airline and looking to generate positive publicity whenever possible. John is now looking to develop a strategy which will secure Ryanair's growth and development over the next 10 years. He can see a number of environmental trends emerging which could significantly affect the success or otherwise of any developed strategy. Ryanair has seen its fuel costs continuing to rise reflecting the uncertainty over global fuel supplies. Fuel costs currently account for 25% of Ryanair's operating costs. Conversely, the improving efficiency of aircraft engines and the next generation of larger aircraft are increasing the operating efficiency of newer aircraft and reducing harmful emissions. Concern with fuel also extends to pollution effects on global warming and climate change. Co-ordinated global action on aircraft emissions cannot be ruled out, either in the form of higher taxes on pollution or limits on the growth in air travel. On the positive side European governments are anxious to continue to support increased competition in air travel and to encourage low-cost operators competing against the over-staffed and loss-making national flag carriers. The signals for future passenger demand are also confused. Much of the increased demand for low-cost air travel to date has come from increased leisure travel by families and retired people. However, families are predicted to become smaller and the population increasingly aged. In addition, there are concerns over the ability of countries to support the increasing number of one-parent families with limited incomes and an ageing population dependent on state pensions. There is a distinct possibility of the retirement age being increased and governments demanding a higher level of personal contribution towards an individual's retirement pension. Such a change will have a significant impact on an individual's disposable income and with people working longer reduce the numbers able to enjoy leisure travel. Finally, air travel will continue to reflect global economic activity and associated economic booms and slumps together with global political instability in the shape of wars, terrorism and natural disasters. John is uncertain as to how to take account of these conflicting trends in