4. Discuss the sustainability of the airline's competitive and operational advantages in the long run in the light of new competition and the stage of evolution of the industry in which it operates.
Ryanair continues to be the lowest cost airline in Europe. The firm manages to maintain its cost leadership despite the presence of other low cost airlines in Europe. The source of competitive advantage of the company is its ability to drive down costs to sustain low fares while at the same time remains profitable. How operations support competitive advantage of Ryanair is measured by five performance objectives: speed, flexibility, quality, dependability and low cost.
Speed: Ryanair is focused on secondary and regional airports, because they have less terminal delays, restrictions and congestion, making the service quickly.
Flexibility: Ryanair is increasing its operations in numerous country bases giving the customer new routes and frequency in flights around Europe and Morocco.
Quality: Ryanair has a third part agreements and personal staff to ensure that its aircrafts accomplish with all requirements. Also, Ryanair has a rapid and secure booking system.
Dependability: Ryanair has the best percentage among low-cost airlines related to punctuality, cancellations and complaints for luggage’s losses.
Cost: Ryanair maintains low wages, outsourcing activities at the airports with competitive contracts to decrease additional staff, maintaining a high load avoiding unused resources. Although fuel jet prices represented 39% of total operation cost in 2011, it does not affect flight prices. Ryanair sets forward contracts to buffer unpredictable fuel price fluctuation in short term.
Please join StudyMode to read the full document