Ryanair vs. Easyjet Price Comparison
Ticket Price Comparison of Ryanair & Easyjet in the European Market
Ron D’Alli
Embry-Riddle Aeronautical University The European Airline industry’s growth dramatically changed after deregulation phased into the European market. Prior to deregulation, bilateral agreements between host countries in Europe existed, and typically each country had a national airline (Airline Operations & Management, 2014). The industry stagnated and costs were very high for air travel. Deregulation in Europe was phased in beginning in 1987, and concluded in 1993 (Airline Operations &Management, 2014). After deregulation, airlines were able to operate routes without restrictions, and pricing for tickets was not controlled. Similar to the U.S., a proliferation of failures and bankruptcies occurred. A new breed of air carriers developed out of deregulation and became known as Low Cost Carriers (LCCs). Two airlines emerged in the LCC war in Europe, Ryanair (RYAAY), and Easyjet (EZJ). Both airlines adopted the business model of Southwest Airlines in the U.S., and focused on cost reductions. Southwest flies point-point versus a hub, and utilizes much greater efficiency and turnaround time at the airport thus maximizing aircraft utilization. Both Easyjet and Ryanair operate a younger fleet than Southwest, average age of about 5.5 years compared to 11.7 years for Southwest, ideally resulting in lower operating costs with newer more fuel efficient aircraft (AirlineFleets, 2014). Easyjet’s operations differ from Ryanair in a few key areas. Easyjet flies to mostly primary airports, where Ryanair flies to secondary airports to further cut costs (Easyjet/Ryanair, 2014). Easyjet also offers a “flexi fare” for mostly business travelers that allows for specified changes to a ticket without additional fees. (Easyjet, 2014). Ryanair has perfected the art of ancillary charges, and everything from checked luggage, reserved seats, beverages, snacks, priority boarding, comes with an
Ron D’Alli
Embry-Riddle Aeronautical University The European Airline industry’s growth dramatically changed after deregulation phased into the European market. Prior to deregulation, bilateral agreements between host countries in Europe existed, and typically each country had a national airline (Airline Operations & Management, 2014). The industry stagnated and costs were very high for air travel. Deregulation in Europe was phased in beginning in 1987, and concluded in 1993 (Airline Operations &Management, 2014). After deregulation, airlines were able to operate routes without restrictions, and pricing for tickets was not controlled. Similar to the U.S., a proliferation of failures and bankruptcies occurred. A new breed of air carriers developed out of deregulation and became known as Low Cost Carriers (LCCs). Two airlines emerged in the LCC war in Europe, Ryanair (RYAAY), and Easyjet (EZJ). Both airlines adopted the business model of Southwest Airlines in the U.S., and focused on cost reductions. Southwest flies point-point versus a hub, and utilizes much greater efficiency and turnaround time at the airport thus maximizing aircraft utilization. Both Easyjet and Ryanair operate a younger fleet than Southwest, average age of about 5.5 years compared to 11.7 years for Southwest, ideally resulting in lower operating costs with newer more fuel efficient aircraft (AirlineFleets, 2014). Easyjet’s operations differ from Ryanair in a few key areas. Easyjet flies to mostly primary airports, where Ryanair flies to secondary airports to further cut costs (Easyjet/Ryanair, 2014). Easyjet also offers a “flexi fare” for mostly business travelers that allows for specified changes to a ticket without additional fees. (Easyjet, 2014). Ryanair has perfected the art of ancillary charges, and everything from checked luggage, reserved seats, beverages, snacks, priority boarding, comes with an
References: Cook, C. & Billig,B.. (2014). Airline operations and management. Embry-Riddle Aeronautical University Ryanair. (2014). About us. Retrieved from www.ryanair.com/en/about/fleet/ Ryanair. (2014). Airfare research. Retrieved from www.ryanair.com Yahoo Finance. (2014). Ryanair h1 results. Retrieved form www.yahoo.com/finance Easyjet, (2014). Company. Retrieved from www.easyjet.com Easyjet. (2014). Airfare research. Retrieved form www.easyjet.com Reuters. (2014). Easyjet profit forecast disappoints market, shares fall. Retrieved from http://uk.reuters.com/article/2014/uk-easyjet-resutls-id Airline Fleets. (2014). Fleet age of easyjet. Retrieved form www.airlines.net/ageflottel/easyjet Airline Fleets. (2014). Fleet age of southwest. Retrieved form www.airlines.net/ageflottel/easyjet Airline Fleets. (2014). Fleet age of ryanair. Retrieved form www.airlines.net/ageflottel/easyjet