to quickly gain market share. Last but not least important‚ thanks to his father’s money‚ they had sufficient financial resources to maintain their prices. How do you expect Aer Lingus and British Airways to respond? Why? Since‚ Ryanair will be providing comparable service for less than half the price‚ Aer Lingus and British Airways will have no choice but to lower their price. If they do not then it Ryanair will be running full flights and their flights would probably run at less than current
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Dogfight over Europe: Ryannair Dogfight over Europe: Ryannair 1- What’s your assessment of Ryanair’s launch strategy? Nowadays‚ the strategy of the airlines companies it’s easier to understand than before. What we want to say is that‚ at the beginning‚ the governments supported the Airlines; ant hey had the monopole of the flies. So they can fix the price but they could also fix the service that they were going to present to the customers. As we see in the
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have the common criteria of a low cost strategy‚ short flights and destinations mainly in Europe. The market share leader is Ryanair. Important competitors are EasyJet‚ Air Berlin and the two smaller airlines: Norwegian Airlines and Wizz air. Also Aer Lingus can be seen as a competitor‚ despite the share of Ryanair in the carrier. Due to the economic recession opportunities for budget carriers increased. By mid-2009‚ budget airlines accounted for over 35% of scheduled intra-European traffic. Different
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(Luton) route. Ryanair launched its service focusing on delivering first-rate customer service and lowest – simple‚ single – fare @ I£ 98‚ compared to I£ 208 full fare and I£ 99 discounted fare offered by competition‚ Aer Lingus and British Airways. Ryanair Executives believe that Aer Lingus and British Airways’ flights are typically 60-70% full on the Dublin-London route‚ which means that the Average Revenue earned per available seat is 60-70% of the total revenue. Also‚ the total number of air passengers
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and Gatwick)‚ Ryanair entered competition with British Airways and Aer Lingus to provide air travel from Dublin to London. They were able to complete with these well-established carriers by: A. focusing intently upon first-rate customer service and amenities comparable to BA and AL B. offering a simple ticket w/ no restrictions C. pricing of ₤98 in comparison to BA or AL price of ₤208 2. How do you expect Aer Lingus and British Airways to respond? Why? Both carriers were already well-established
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were able to operate a scheduled airline successfully with their 14 seat flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin-London route‚ a known lucrative route for British Airways and Aer Lingus. Ryanair planned to have unrestricted fares priced at I£98‚ while providing first-rate customer service. Ryanair chose to enter the market at a time when the consumer base needed a low cost alternative and the airline industry was being deregulated
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MGT 472; Strategic Mgt. Ryanair Case Study 1.) What are the characteristics of the European aviation environment at the time of the case? (20 points) When Ryanair was established in April of 1986‚ there were many factors to consider in order to properly assess their current environment. In order to attain a firm grasp of their current atmosphere‚ we must delve deeply into its external‚ general‚ industrial‚ and competitive facets. European aviation at the time was dealing with different
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Thank you for booking with Aer Lingus Seats Selected Prices are shown in GBP Flight | Seats | EI 25 London/Gatwick-Belfast City | 9B ‚ 9C | EI 28 Belfast City-London/Gatwick | 9B ‚ 9C | In certain instances seats may be changed for safety and operational reasons. Flight Details Flight Info. | Departing | Arriving | Fare | AER LINGUS EI25 non-stop | London/Gatwick 13:15 Fri 22 Mar 2013 | Belfast City 14:40 Fri 22 Mar 2013 | Low | AER LINGUS EI28 non-stop | Belfast
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flying between Waterford and Gatwick Airport[5] with the aim of breaking the duopoly on London-Republic of Ireland flights at that time‚ held by British Airways and Aer Lingus.[6] Embraer EMB 110 Bandeirante in 1988 In 1986‚ the company added a second route – flying Dublin–Luton International Airport in direct competition with the Aer Lingus / British Airways duopoly for the first time. Under partial EU deregulation‚ airlines could begin new international intra-EU services‚ as long as at least one
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Ryanair’s strategy is mainly focused on low costs and increase in market demand The current market is a stabilized market‚ with a duopoly amongst the two strong players: British Airways and Aer Lingus. Both airlines established routes in the lucrative Dublin - London markets and tap on profits from this route to finance their other less profitable operations. The demand for air travel between the Dublin and London has probably stabilized over the 10 years from the stagnant market share of half million
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