Ryanair and Marketing Strategy: Segmentation Introduction Ryanair was established by the Ryan family with a capital share of just £1‚ and a staff of 25. The company launched its first route in July with daily flights on a 15-seater Bandeirante aircraft‚ which operate daily from Waterford in the southeast of Ireland to London Gatwick. In order to operate in the tiny cabin of the aircraft‚ the first cabin crew of Ryanairs is less than 5ft. 2 ins. tall (Ryanair‚ n.d.). Ryanair
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Pergamon PII: European Management Journal Vol. 17‚ No. 1‚ pp. 20–38‚ 1999 © 1999 Elsevier Science Ltd. All rights reserved Printed in Great Britain S0263-2373(98)00059-0 0263-2373/99 $19.00 0.00 Case Study easyJet’s $500 Million Gamble DON SULL‚ London Business School‚ and Commentators‚ Constantinos Markides‚ Walter Kuemmerle‚ Luis Cabral. This Case Study details the rapid growth of easyJet which started operations in November 1995 from London’s Luton airport. In two years‚ it was widely
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service with a two-class cabin but at significantly lower fares. It stimulated a rapid growth of passenger traffic across the Irish Sea‚ much of it diverted from the sea ferries. On the London-Dublin route‚ where traffic had been stagnant for three years‚ passenger numbers more or less doubled in the next three years in response to the low fares introduced by Ryanair and to the lower fares forced on Aer Lingus and British Airways. But Ryanair was not profitable. Its unit costs‚ though lower than those
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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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relatively high. Ryanair being Europe’s largest low-cost carrier‚ the largest airline in Europe in terms of passenger numbers and the largest in the world in terms of international passenger numbers; would deter anyone in entering in to a competitive industry Bargaining power of buyers –is high as price sensitivity remains high. Buyers can either travel on legacy airlines such as British Airways or low-cost airlines such as Ryanair‚ this strengthens their bargaining power‚ however Ryanair can defend themselves
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Ryanair - The Low Fares Airline Strategic Analysis / 222621-0004 Strategic Management dr Maria Aluchna Ivan Martinov № 50170‚ e-mail: imartinov@gmail.com S. M. Sabbir № 50185‚ e-mail: ssmm0002@student.umu.se Assignment | 222621-0004 Strategic Management | Fall Semester 2010 | SGH Table of Contents 1. 2. Introduction ........................................................................................................................................... 3 Strategic Analysis .....
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business can select an appropriate strategy As a famous Irish airline‚ Ryanair is known for its low-priced airline services. This company has currently become the largest low-cost airline in Europe. In the mission statement of Ryanair‚ it clarifies that this business will continue providing ‘low-fare-no-frills’ flight services in order to become the most successful low-cost airline in the European market (Mayer‚ 2007). Ryanair has employed a range of approaches to reduce cost to the minimum. For example
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model (often called the “no frills” model in Europe – we tend to stick with the American vernacular) has been the subject of intense interest and study. The “Southwest effect”‚ basically the drop in fares that occurs when a low-fare airline begins serving an airport that had previously had no low-fare carriers‚ has become part of the vocabulary of air transportation. This paper looks at just how successful the low cost model is taken in it broadest context. In particular‚ while there have clearly
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UK‚ Ryanair‚ easyJet and Go are then outlined. The impact of the differences between these models is then assessed to see how they affect the cost base and productivity of the airlines. Finally‚ it is suggested that Ryanair’s model is most suited for the current conditions in the air transport industry‚ although easyJet’s model could be more favourable if conditions changed in the future. 2 The Low-Cost Model Southwest Airlines is recognised as creating the model for low-cost‚ low-fare carriers
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one of the world’s largest distribution groups. According to its official website‚ Zara treated the customer as the heart of unique business model. Ryanair is one of the world’s favorite airlines operating over 1‚500 flights per day from 51 bases on 1‚500 low fare routes across 28 countries‚ connecting over 168 destinations. Zara and Ryanair have been a great success in their own industry. Both of them are famous in their low cost comparing to its major competitors. This research is going to
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