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Under partial EU deregulation, airlines could begin new international intra-EU services, as long as one of the two governments gave approval (the so-called "double-disapproval" regime).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.O´Leary was charged with the task of making the airline profitable. Southwest Airlines 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 decided that the keys to profitability were low fares, quick turn-around times for aircraft, "no frills", no business class, and operating a single model of aircraft. He competed with the major airlines by providing a "no-frills", low-cost service.Similarly, net profits have increased from €48 million to €339 million over the same period.

In August 2005, the airline claimed to have carried 20% more passengers within Europe than British Airways.

Flights were scheduled into regional airports, which offered lower landing and handling charges than larger established international airports.

O'Leary as Chief Executive took part in a publicity stunt where he helped out with baggage handling on Ryanair flights at Dublin Airport.

On 13 February 2006, Britain's Channel 4 broadcast a documentary as part of its Dispatches series, "Ryanair caught napping".

The documentary criticised Ryanair's training policies, security procedures and aircraft hygiene, and highlighted poor staff morale.

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