not been achieved by their competitors. How do you expect Aer Lingus and British Airways to respond? Why? Both airlines will have to cut prices to comply with Ryanair’s strategy which means a war of prices. The main reason is that the consumer always prefer to pay less for the same service‚ therefore‚ sales of competitors flights began to fall. Moreover‚ if we consider that this journey is one of the most profitable for Aer Lingus and British Airways‚ these companies need to adjust quickly before
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Introduction Michael O’Leary is the abrasive chief executive of Europe’s largest low-cost airline Ryanair . His dogged unrepentant style was a winning strategy for an upstart airline trying to establish itself. His obsession with cutting costs as well as trying to always put one over on the large national carriers is what makes him appear arrogant to most people. His press conferences are usually very theatrical; it is not unusual to see him dress up as any thing from the Pope to‚ a large Mobile
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strategy sustainable?..................................................................................4 Q3. Would you recommend any changes to Ryanair ’s approach?.......................................5 Q4. Should Ryanair continue to pursue the Aer Lingus bid?..............................................6 Q5. Evaluate the strategic leadership of Michael O ’Leary..................................................7 Conclusion.........................................................................
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COLOGNE BUSINESS SCHOOL (CBS) Case Study: Ryanair The future of the leading low fares airline Term paper for Transnational Management Summer Semester 2014/2015 Lecturer: XXX Anton Wischnewski BA12 in International Business / International Trade Student-No. XXX Table of Contents 1 Introduction ....................................................................................................2 2 Overview of Ryanair ..........................................................................
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in 1985‚ Ryanair adopted a two prong strategy of focusing intently on providing first rate customer service and charging a simple‚ single fare for a ticket with no restrictions. This generic strategy was in contrast with British Airways and Aer Lingus which focused on providing a wide variety in its’ choice of ticket offerings to cater to the different market segments and in diversifying its business to derive more sources of revenue. Ryanair’s strategy to focus on customers’ satisfaction
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“Discuss the relationship between EU competition policy and consumer interests with particular reference to the economic assessment of markets.” In this academic essay I will investigate various sectors both private and public that have been affected by of EU competition policies that focus on the consumer interests while considering the market. I will outline one case the was taken to Irish courts to enforce the competition authorities’ policies and one that was dealt with by the EU. “Competition
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6. What are the key success factors in the European airline industry? ---When addressing this question we find it worthwhile to remind students that a KSF is what any firm in the industry must do to be successful. Based on this definition‚ the following KSF’s apply to the European airline industry: (1) A reputation for safety – This is a fundamental KSF for any segment of the airline industry. If a firm is not viewed as safe by potential passengers‚ they will not use the carrier. (2) Offering
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fees Game Theory application for Strategic Analysis In Ryans’ case‚ the company should understand the market environment. Based on Game Theory‚ the best decision is depends on how competitors response to Ryans’ moves with strategic interactions. Aer Lingus and British Airways had two choices‚ either maintain the price or start a price war with Ryanair. Both of their cost structures were very hard to cut. However‚ if they did not reduce prices‚ they would lose customers. The purpose of this executive
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British Airways 1 Organisation Context (British Airways: 2009 – 2011) BA’s CEO‚ Willie Walsh‚ was appointed in October 2005. Before joining BA‚ Willie Wash guided Irish carrier‚ Aer Lingus‚ through the turbulence in the airline industry after the September 11‚ 2001 attacks. He successfully reinvented Aer Lingus as a profitable no-frills airline‚ while other established European flag carriers did not do as well. Walsh slashed costs by 30% and shed more than a third of staff and was quoted saying
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was a close flight and it was within the financial capabilities of the company to operate the flight for a profit. It also created brand awareness for the company which is very important when a small company like RyanAir is entering a market where Aer Lingus and BA pretty much own the market. 2. How do you expect the incumbents to respond? Why? I would expect the incumbents to lower their prices for tickets for the London-Dublin route to try and keep RyanAir from gaining a significant portion of
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