Ryanair

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  • Topic: Aer Lingus, Ryanair, London Gatwick Airport
  • Pages : 2 (447 words )
  • Download(s) : 141
  • Published : October 16, 2011
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In April 1986, the Ryan brothers announce that Ryanair will offer service between Dublin and London, a route dominated by Aer Lingus and British Airways. AL and BA offer a range of tickets with varying restrictions and varying classes of service, but the least expensive, unrestricted round-trip fares were priced at IL208, far higher than the IL98 that Ryan Air announced. Ryanair’s strategy to launch a single far no restriction ticket at such a low price will gain market share quickly as well as possibly obtain some of the 750,000 travelers that opt to use rail and sea ferries for IL55.

 | Before Ryanair| Retaliate I (Price ↓ 25%, increase load by 10%)| Retaliate II (Price ↓ 40% Load ↑20%)| Accommodate (Prices ↔ Load ↓ by 35%)| Revenue|  |  |  |  |
Price| 166.5| 124.88| 100| 166.5|
Price+Load| 166.5| 137.36| 120| 108.23|
Operating Expenses|  |  |  |  |
Staff| 35.7| 35.7| 35.7| 35.7|
Depreciation & Amortization| 8.6| 8.6| 8.6| 8.6|
Fuel & Oil| 31.8| 31.8| 31.8| 31.8|
Engineering & other aircraft costs| 9.8| 9.8| 9.8| 9.8| Selling| 18| 18| 18| 18|
Aircraft Operating Leases| 3.4| 3.4| 3.4| 3.4|
Landing Fees| 11.7| 11.7| 11.7| 11.7|
Handling charges, catering & other| 16.6| 16.6| 16.6| 16.6| Accommodation, Equipment| 19.5| 19.5| 19.5| 19.5|
Subtotal| 155.1| 155.10| 155.10| 155.10|
Operating Profit| 11.4| -17.74| -35.10| -46.88|
| | | | |
* Assume Operating Expenses stay the same| |

 | Aer Lingus and British Airways| Ryan Air w/ no increase in load| Ryan air w/ increase of 20%| | Revenue|  |  |  | |
Price| 166.5| 98.00| 98| |
Price+Load| 166.5| 98.00| 117.6| |
Operating Expenses|  |  |  | |
Staff| 35.7| 21.01| 21.01| |
Depreciation & Amortization| 8.6| 5.06| 5.06| |
Fuel & Oil| 31.8| 25.44| 25.44| |
Engineering & other aircraft costs| 9.8| 5.77| 5.77| |...
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