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O´Leary was charged with the task of making the airline profitable.O'Leary quickly decided that the key to profitability was low fares, quick turn-around times for aircraft, "no frills" and no business class, as well as operating a single model of an Irish low-cost airline founded in 1984, headquartered in Swords, Dublin, Ireland, with its primary operational bases at Dublin and London Stansted airports.

The Irish government at the time refused its approval, to protect Aer Lingus, but Britain, under Margaret Thatcher's deregulating Conservative government, approved the service.By 1995, after the consistent pursuit of its low-cost business model, Ryanair celebrated its 10th birthday by carrying 2.25 million passengers.In 1992, the European Union's deregulation of the air industry in Europe gave carriers from one EU country the right to operate scheduled services between other EU states and represented a major opportunity for Ryanair.The rapid addition of new routes and new bases has enabled growth in passenger numbers and made Ryanair among the largest carriers on European routes.In August 2005, the airline claimed to have carried 20% more passengers within Europe than British Airways.

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