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O'Leary returned from a visit to 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.

He competed with the major airlines by providing a "no-frills", low-cost service.

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.

After a successful flotation on the Dublin Stock Exchange and the NASDAQ Stock exchanges, the airline launched services to Stockholm, Sandefjord Airport, Torp (110 km south of Oslo), Beauvais–Tillé and Charleroi near Brussels.

The airline launched its website in 2000, with online booking initially said to be a small and unimportant part of the software supporting the site.The airline has been characterised by its rapid expansion, a result of the deregulation of the aviation industry in Europe in 1997 and the success of its low-cost business model.Ryanair's route network serves 34 countries in Europe, Africa (Morocco), and the Middle East (Israel and Jordan).With two routes and two planes, the fledgling airline carried 82,000 passengers in one year.Ryanair passenger numbers continued to increase, but the airline generally ran at a loss and, by 1991, was in need of restructuring including the closure of Ryanair Europe/London European.Under partial EU deregulation, airlines could begin new international intra-EU services, as long as at least one of the two governments gave approval (the so-called "double-disapproval" regime).

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