(Luton) route. Ryanair launched its service focusing on delivering first-rate customer service and lowest – simple‚ single – fare @ I£ 98‚ compared to I£ 208 full fare and I£ 99 discounted fare offered by competition‚ Aer Lingus and British Airways. Ryanair Executives believe that Aer Lingus and British Airways’ flights are typically 60-70% full on the Dublin-London route‚ which means that the Average Revenue earned per available seat is 60-70% of the total revenue. Also‚ the total number of air passengers
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and Gatwick)‚ Ryanair entered competition with British Airways and Aer Lingus to provide air travel from Dublin to London. They were able to complete with these well-established carriers by: A. focusing intently upon first-rate customer service and amenities comparable to BA and AL B. offering a simple ticket w/ no restrictions C. pricing of ₤98 in comparison to BA or AL price of ₤208 2. How do you expect Aer Lingus and British Airways to respond? Why? Both carriers were already well-established
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were able to operate a scheduled airline successfully with their 14 seat flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin-London route‚ a known lucrative route for British Airways and Aer Lingus. Ryanair planned to have unrestricted fares priced at I£98‚ while providing first-rate customer service. Ryanair chose to enter the market at a time when the consumer base needed a low cost alternative and the airline industry was being deregulated
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MGT 472; Strategic Mgt. Ryanair Case Study 1.) What are the characteristics of the European aviation environment at the time of the case? (20 points) When Ryanair was established in April of 1986‚ there were many factors to consider in order to properly assess their current environment. In order to attain a firm grasp of their current atmosphere‚ we must delve deeply into its external‚ general‚ industrial‚ and competitive facets. European aviation at the time was dealing with different
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not been achieved by their competitors. How do you expect Aer Lingus and British Airways to respond? Why? Both airlines will have to cut prices to comply with Ryanair’s strategy which means a war of prices. The main reason is that the consumer always prefer to pay less for the same service‚ therefore‚ sales of competitors flights began to fall. Moreover‚ if we consider that this journey is one of the most profitable for Aer Lingus and British Airways‚ these companies need to adjust quickly before
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Introduction Michael O’Leary is the abrasive chief executive of Europe’s largest low-cost airline Ryanair . His dogged unrepentant style was a winning strategy for an upstart airline trying to establish itself. His obsession with cutting costs as well as trying to always put one over on the large national carriers is what makes him appear arrogant to most people. His press conferences are usually very theatrical; it is not unusual to see him dress up as any thing from the Pope to‚ a large Mobile
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Thank you for booking with Aer Lingus Seats Selected Prices are shown in GBP Flight | Seats | EI 25 London/Gatwick-Belfast City | 9B ‚ 9C | EI 28 Belfast City-London/Gatwick | 9B ‚ 9C | In certain instances seats may be changed for safety and operational reasons. Flight Details Flight Info. | Departing | Arriving | Fare | AER LINGUS EI25 non-stop | London/Gatwick 13:15 Fri 22 Mar 2013 | Belfast City 14:40 Fri 22 Mar 2013 | Low | AER LINGUS EI28 non-stop | Belfast
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in 1985‚ Ryanair adopted a two prong strategy of focusing intently on providing first rate customer service and charging a simple‚ single fare for a ticket with no restrictions. This generic strategy was in contrast with British Airways and Aer Lingus which focused on providing a wide variety in its’ choice of ticket offerings to cater to the different market segments and in diversifying its business to derive more sources of revenue. Ryanair’s strategy to focus on customers’ satisfaction
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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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fees Game Theory application for Strategic Analysis In Ryans’ case‚ the company should understand the market environment. Based on Game Theory‚ the best decision is depends on how competitors response to Ryans’ moves with strategic interactions. Aer Lingus and British Airways had two choices‚ either maintain the price or start a price war with Ryanair. Both of their cost structures were very hard to cut. However‚ if they did not reduce prices‚ they would lose customers. The purpose of this executive
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