1. Case 1- Ryanair takes control over the shy in Europe
- Deregulation, safety standards, certificates (airplane certificates, operating certificates, certificates for airline personnel, airport certificates)
- Recession, price of crude oil, interest rates
- People’s lifestyle changed, they have many chances by airplane that like by bus. They require less service and get lower price.
- Internet as a way to book flights, check-in, and check flight status. - Always new and improved software for airlines.
- New technology for airline employees.
- New pilot training courses.
- New security technology.
- Contrails, engine emission, airport noise, FAA Environment policies
Legal factors ( less important)
1.2 Five Forces
Threat of new entrants
- Virtually impossible
- Requires a lot of capital
- Too many competitors
Bargaining power of customer
- Customers have over five airline to choose
Bargaining of suppliers
- Dominated by Boeing and Airbus
Threat of substitute products
- Passenger could by trains, cars or ship depend on their purpose .
Competitive rivalry within an industry
- Demand for air travel is inelastic because there are many airlines to choose form. - The economy is bad in the European therefore it is harder to draw in customers.
- Average fleet age
- Fleet strategy
- Leading position
- Low cost leader
- Innovative cost reductions
- First-mover advantage
- Strong public image
- Range of ancillary services
- Established routes/ network
- Established market share
- Biggest and profitable in Europe
- Distance of secondary airports form main location
- Brand is strictly linked to a low cost model and maintain the position could be challenging - Market extremely sensitive to price...
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