What Ryanair’s controversial boss Michael O’Leary taught me about the importance of sticking to your guns - Rashmi Dube

We can glean valuable information from the conduct and business practices of others compared to ourselves, particularly as the landscape once again is shifting before our very eyes at a rate quicker than anticipated.

So, to compare oranges and apples I look to Ryanair and HBOS.

I once met Michael O’Leary in Leeds at an event. He was personable, unapologetic for his business model, and through his story, gave many entrepreneurs in the room hope that being different, being criticised and sticking to your guns of what you believe, despite the naysayers and the political and economic environment around you, can lead to success.

At present Ryanair looks like the cat that got the cream. It is currently outshining its main competitors EasyJet and British Airways.

In August alone they carried 16.9 million passengers - more than the same month before the onset of the pandemic.

There are factors involved which include the relaxation of travel restrictions and every person and their dog are wanting to travel, see the world and just have a holiday abroad. So, what is the secret?

Have they looked at a strategic approach overlooked by their competitors or is it as simple as location ‘location, location?’ Ryanair are based out of Stansted. The London outer terminal for flights may just have been a key ingredient in their success.

But there is also planning. In order to accommodate for anticipated increases in capacity, O’Leary invested in resources and purchased a Boeing 737. He also sits in a sweet spot.

People are going to want to continue to travel but with the rising cost of living, people are likely to trade down to his unapologetic no thrills or frills “stagecoach type of travel”.

He is under no illusion about the economic climate and is basing his approach accordingly. Ryanair doesn’t seem to put a foot wrong and for now, seems to appease most of their stakeholders.

Yet if we looked elsewhere in the world of business and finance, some of us could be confused by certain outcomes such as the recent announcement of the PRA and FCA that their joint investigations into former senior managers at HBOS plc concluded “to take no further action”.

With losses of £47 billion, the bailout was by all of us, the taxpayers. This seems particularly hard to stomach considering the average business suffering a major loss usually means poor management,

One is forgiven for thinking maybe conduct and good governance really don’t matter after all.

I think we are on the cusp of a brave new world where the stakeholders impacted by consequences of the bailout may start to think differently about their rights and losses and what action they can bring as a group.

So here we are comparing oranges and apples.

As a business based in Yorkshire, should I even give the light of day to either? I think so. The landscape is changing. We see the icebergs but what we can’t see is what sits behind them, and I think the issue of good governance practices and those making decisions shouldn’t be sitting so comfortably.

Rashmi Dube is a partner at gunnercooke llp