and amenities that were comparable to what is provided by Aer Lingus and British Airways. ------------------------------------------------- 2. Evaluate Ryan Air’s entry strategy: When entering the market‚ the Ryan brothers took into account these factors: 1. Potential routes and customers: They started off by focusing on competitors’ most lucrative routes (Dublin-London route is reputed to be quite lucrative for both Aer Lingus and British Airways). They also took into consideration other
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Ryanair Case Analysis 1. Porter’s Five Forces Analysis Substitute: In this industry‚ there are high substitution power because if one airline decides to raise prices then customers are going to switch to a cheaper airline company. The majority of passengers are price sensitive and have the option of taking other forms of transportation such as the rail or ferry. Customers are willing to travel longer if they can pay for a cheaper fare. The round fare for ferry and rail is 55
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In that year‚ they announced the commencement of service from Dublin and London. On this route‚ British airways (BA) and Aer Lingus were already operating. This route is considered to be the lucrative and competitive route in Europe. Ryanair claimed to give first-rate customer service at I£ 98. The price posed by Ryanair was cheaper as compare to price posed by BA and Aer Lingus. Ryanair was founded by Cathal and Declan Ryan with the help of their father‚ Tony Ryan‚ who invested I£ 1 million. Ryanair
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ARTICLE IN PRESS Journal of Air Transport Management 11 (2005) 259–272 www.elsevier.com/locate/jairtraman Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair‚ Aer Lingus‚ Air Asia and Malaysia Airlines John F. O’Connell George Williams Air Transport Group‚ College of Aeronautics‚ Cranfield University‚ Bedfordshire‚ MK43 OAL‚ UK Abstract Direct competition between full service airlines and no-frills carriers is intensifying across
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1) Do you believe Ryanair’s entry into Dublin-London route was successful? Yes‚ Ryanair’s entry into Dublin-London route could be counted successful. Ryanair‚ which has been operated since 1985‚ is a small and rather domestic company compared to Aer Lingus and British Airways (BA). They will operate a turboprop that contains 44 seats‚ that takes 4 round trips per day. Unlike the two giants‚ Ryanair is not under the restrictions from the government‚ and have single fare for ticket. Therefore‚ the main
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Case study on low cost airlines (RYANAIR) Preliminary questions: 1. What are your first impressions regarding Ryanair? 2. How would you characterize its marketing strategy? Ryanair (ISEQ: RYA‚ LSE: RYA‚ NASDAQ: RYAAY) is an Irish low cost airline‚ with headquarters at Dublin Airport and its largest operational bases at Dublin Airport and London Stansted Airport. Ryanair operates 182 aircraft on 729 routes across Europe and North Africa from its 31 bases.[1] The airline has been characterised
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DogFight over Europe: Ryanair Global Business Strategy What is your assessment of Ryanair’s launch strategy? Is it sensible? Will it succeed? We believe that Ryanair’s launch strategy was successful and we will justify this statement with information that was provided in the Ryanair’s case. To begin with‚ Ryanair airline was not that hard to establish for Cathal and Declan Ryan because of the capital that Ryanair’s founders managed to get from their father‚ Tony Ryan‚ who was a co-founder of
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Market ShareMARKETGROWTH Stars -Ancillary products like in flightshopping‚ non-flight scheduled services etc. offers a very high margin Question Marks -Ryanair’s investment in Aer Lingus stock could loose money for it‚ as Aer Lingus has all the problems of a legacy carrier with very less benefits of a large legacy carrier (e.g. economics of scale) Cash Cows -Lucrative short hop
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quickly gain market share. Last but not least important‚ thanks to his father’s money‚ they had sufficient financial resources to maintain their prices. 2. How do you expect Aer Lingus and British Airways to respond? Why? The entry of a new competitor represents an entry price below the market’s price. Aer Lingus and British Airways had two different choices to react: maintaining their current level of prices‚ or start a price war with Ryanair. But both companies have a significant disadvantage
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Ireland and London. In 1986‚ Ryanair launched its route from Dublin to London to challenge British Airways and Aer Lingus‚ the two dominant airline carriers on that route‚ by offering fares at lower prices. With two routes in operation‚ Ryanair carried 82‚000 passengers in its first full year of operation. By 1993 Ryanair has carried over 1 million passengers. In 1995 Ryanair overtook Aer Lingus and British Airways to become the biggest international scheduled route carrier in Europe. The Organization
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