In some ways, Spirit’s culture appropriately matches the company’s business model. Their corporate headquarters follows the same “no-frills” mantra they provide to their passengers. The concept of “low-cost” is spread throughout the company. However, one may expect the fun, modern and witty persona infused into the marketing campaign to translate to the out-bound side of the value chain, but it often doesn’t. Frequent complaints about customer service, flight attendants and logistical delays could lead one to speculate whether the ethos has spread universally.…
Competitive advantage is the ability of business that is hard to be impersonated. (Mooney and New Jersey, 2007,110) Since easyJet is British 2nd largest low cost carrier airlines in Europe, their only main competitors will be Ryanair which is placed on the first. Ryanair is an Irish low-cost airline that offers slightly cheaper air tickets as they land on the secondary airport. Its headquarters is located at Dublin Airport with its primary operational bases at Dublin and London Stansted Airports. According to the report of Top European Low Cost Airlines as of June 2008, easyJet achieved a total of 41.3 million passengers while Ryanair had a total of 53.3 millions passengers which are approximately difference of 10 millions passengers. While comparing easyJet to the third largest company, Flybe, that had only 6.9 millions passengers which created a huge gap between Flybe and easyJet. Hence, Ryanair is the only company that is able to compete with easyJet. (European Low Fare Association, 2008)…
budget sector. Business students at all levels enjoy this case and relate to it, since air…
There are businesses that in the start of the operation had a great investment and one of which is the airline industry which can perform in either local and/or international markets. This kind of service is one of the broad classifications of the business services. Part of the business operation should cater to personal needs of people or with rendering of a personal service. In this industry, the passengers or the travellers needs the efficiency in travelling in form of safe and friendly services. One of the organizations is Virgin Atlantic Airways that is considered as one of the leading airlines. Like the other companies that play actively in the international market, there are challenges and experience different changes in their operation. But unlike the other business’s ideas, the VAA believed in the option that it is more positive and much less risky to invest in a long-term change program to satisfy the need to grow in the future (Blue…
The organism metaphor is a living system existing in a wider environment depending on the workers various needs. There is no one best way to design or manage an organization. The flow of information between different parts of the systems and its environment is the key to the organization’s success. It is important to maximize the fit between individual, team and organizational needs. This metaphor represents the organization as an ‘open system’. Organizations are seen as sets of interrelated sub-systems designed to balance the requirements of the…
Ryanair was the first budget airline in Europe, modeled after the successful U.S. low cost carrier, Southwest Airlines. Ryanair is one of the oldest and most successful low-cost airlines in Europe, the third largest airline in Europe in terms of number of passenger and the largest in the world in terms of international passengers’ numbers. For this article, I had provided the 4 Ps, which is Product, Price, Place, and Promotion for Ryanair.…
Ryan air, an Irish airline started in 1985 by Ryan family with a capital share of £1 and a staff of 25. Over the past few years the company has shown tremendous ontogeny. Indeed it is Europe's largest low cost carrier and fastest growing airlines. Currently it’s operating more than 1,500 flights every day from over 50 bases and around 1400 low fare routes across 28 countries which connect 165 destinations.…
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.…
This article in Business Insider directly pertains to Virgin America, an airline company, who is trying something new with their passengers. Virgin America acknowledges that every time you are on a plane it is at best a very leisurely experience but many times air travel involves frustrating limitations for the passenger and more often than not the passenger is either staring out the window or watching the person next to them snore. Many passengers accept these limitations.…
The organism metaphor presents an image that organisations operate and function as an organic system that needs to be adaptive if it’s to survive. This metaphor is closely related to the human relations school of management theory.…
This essay is initially going to analyse the LCC (Low Cost Carrier) industry and subsequently focus on Ryanair, the world 's largest low cost international carrier (figure 1). The first part of the assignment is going to apply Porter 's five forces to the above-mentioned industry, then it will look at how the company competes in such environment, referring to Porter 's generic competitive strategies. Finally it will analyse how the company delivers on these competitive strategies concentrating on its methods of growth, its value chain analysis and its management and leadership.…
such as Ryanair in Europe or Southwest Airlines in the USA have gained considerable profits…
Ryanair Holdings (Ryanair) operates a low-fares scheduled passenger airline serving short-haul, point-to-point routes between Ireland, the UK, Continental Europe, and Morocco. The company offers more than 1,300 scheduled short-haul flights per day serving 155 locations throughout Europe and Morocco, with an operating fleet of 250 aircraft flying approximately 1,100 routes. The company was established by the Ryan family in 1985 operating daily flights on a 15seater Bandeirante aircraft from Waterford in the southeast of Ireland to London Gatwick. Since then, Ryanair has pursued an aggressive expansion policy, adding new routes and opening new centers of operation across Europe to become the world’s most popular airline for international flights, having flown 72.1 million passengers in FY2011. This is a highly commendable performance in a very competitive industry. Ryanair must compete with other low-cost airlines such as easyJet and Monarch, as well as with legacy carriers like British Airways and Lufthansa. This case study looks at how Ryanair has risen to become the world’s most popular airline.…
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, such as trains and ferries. Despite that high bargaining power of suppliers and threat of substitution products that made the external environment unfavorable, the Ryan brothers’ wish to launch their airline did not diminish. The company’s first service was launched in 1985 between the southeastern Irish city of Waterford and Gatwick Airport, located on the outskirts of London. One year later, the newborn company started operating between Dublin and the British capital. Two majors Airlines operated on this latter route at that time: British Airways and Aer Lingus, the Irish flag-carrier company. Moreover, some strong US airlines reached out for new routes into Europe after the deregulation of the domestic US airline industry, which made the pressure of competitors even more intense in the airline industry. Last but not least, charter flights, which thrived during the 1960’s to bypass the European regulations and to tap the increasing demand for leisure travel, were transporting 60% of all European passengers by the mid-1980’s.…
Ryanair has grown massively since its establishment in 1985, from a small airline flying a short hop from Waterford to London, into one of Europe 's largest carriers.…