(1) Describe and assess Ryanair’s launch strategy (In 1986‚ when they entered the Dublin-London route) Ryanair was launched at a time that did not seem highly favorable to the airline industry. As a matter of facts‚ in 1986‚ the market was still recovering from the aftermaths of the OPEC oil embargo and the 1979’s oil crisis which led to an important increase in the jet oil prices‚ along with a recession that cut demand for air travel and thus gave an impulse to the aircrafts’ cheaper substitutes
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Brief introduction to airservice Ryanair Ryanair Holdings was incorporated in 1996 as a holding company for Ryanair Limited. The latter operates an ultra-low cost‚ scheduled-passenger airline serving short-haul‚ point-to-point routes between Ireland‚ the U.K.‚ Continental Europe‚ and Morocco. Incorporated in 1984‚ Ryanair Limited began to introduce a lowfares operating model under a new management team in the early 1990s. See ―Item 5. Operating and Financial Review and Prospect - History
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Dogfight over Europe: Ryanair (A) 1) What is your assesment of Ryanair´s launch strategy? The Ryanair’s launch strategy was not the best for that moment. They began flying between Ireland and London‚ in a very saturated market‚ which competed with two strong companies owned by the government and with great experience: Aer Lingus and British Airways (who also had come together to improve their perform). And also entered the market independent carriers Such as British Midland. Another important
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your assessment of RyanAir’s launch strategy? Ryan Air’s launch strategy of only having one route from Waterford to Gatwick Airport was a smart move because they didn’t enter into a route that was competed for by other established companies. It 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
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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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Porter’s 5 Forces Before the idea of Ryanair or indeed any low cost carrier was even devised the European airways industry was‚ as already illustrated‚ highly regulated. Therefore post 1992 and deregulation‚ great changes came about. By identifying with Porter’s “five forces‚” one is able to ascertain what this meant for Ryanair within the European air transport market. These five factors are threat of entry‚ competitive rivalry‚ bargaining power of suppliers‚ bargaining power of buyers and the
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I.INTRODUCTIONThis report outlines the analysis of two low-cost airlines performance in Europe‚ namely easyJet PLC and Ryanair Hldgs during their financial year between 2006 and 2008. It examines the companies’ portfolio‚ future prospects and competitors to analyse the threats and opportunities facing their business. In conclusion‚ there is a recommendation whether to invest on easyJet and/or Ryanair’s shares. II.FINANCIAL AND NON-FINANCIAL RATIO ANALYSISIn terms of the completed financial analysis
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of the five forces Model 8.Porter in the airline industry/Ryanair Introduction The model of the Five Competitive Forces was developed by Michael Porter in his book Competitive Strategy: "Techniques for Analyzing Industries and Competitors" in 1980. Since that time it has become an important instrument for analyzing an organisations industry structure in the strategic processes. Porter’s model is based on the idea that a business strategy should meet the opportunities and threats in the organisations
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Airline industry‚ this is the most important force today‚ especially since the market is completely saturated. First Mover Advantage Ryanair were among the first movers because many copycat’ airlines have tried to follow suit. There are only two pan-European low cost operators where first mover advantage and scale and cost efficiencies gave the two largest players‚ Ryanair and Easyjet‚ a significant advantage. Since deregulation‚ of the 80 low cost operators that had begun operations‚ 60 had gone bankrupt
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Ryanair value chain analysis Ryanair strongly manages and forms relationships with various suppliers e.g. Boeing and food/beverages etc‚ to ensure goods are received of requirement standards and on time in-order to add value through out its value chain. In addition to this by forming strong relationships with Boeing‚ they are able to obtain spares and maintenance on favorable terms reducing costs‚ thus offering lower prices to passengers and safer flights (adding value). In-order to add
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