Dogfight of Europe: Ryanair (a)
Dogfight of Europe: Ryanair (a)
DOGFIGHT OF EUROPE: RYANAIR (A)
Background and Ryanairs New Endeavor
After success of running a small 14 seat aircraft from southeast Ireland (Waterford) to Gatwick Airport outside of London Ryanair in 1986 decided to expand services and take on the Dublin to London route which traditionally had been dominated by larger carriers Aer Lingus and British Airways.
Competition: British Airways (BA) and Aer Lingus
Following is an evaluation of the services offered and the status of the Ryanairs main competitors around the time they decided to introduce their new service.
British Airways in 1986
Served 145 destinations, 68 countries
Nearly 80% of passengers passed through Londons Main Airport at Heathrow
. Besides turboprop (44 seat) had a fleet of 163 aircrafts including the Boeing 747 that could hold up to 400 passengers.
Heathrow catering on flights and provides own maintenance and engineering
Brand recognition
Aer Lingus 1984-1985:
Modest return on domestic and European routes
Operating losses on trans-Atlantic flights
Needs to Replace ageing jets
Brand recognition-(touts national development , jobs, contribution to Irish society)
Provides services such as maintenance and engineer training to other airlines
Diversifying into other industries to offset losses in other business units
R1ynairs launch strategy:
Ryanair hoped to gain foothold in the market by offering the following:
Offer meals and amenities comparable to what Aer Lingus and British Airways provided
Distinguish itself from the flag carriers by delivering first rate customer service
Charging a simple single fare for a ticket with no restrictions
1.) My assessment is Ryanair has a good launch strategy. In theory if they could offer the same amenities and first rate customer service at a lower price they will be very successful in this endeavor. They hope to capture part of the market away from their rivals by offering tickets at approximately 50% less (down from 208 pounds to 98 pounds) with no restrictions. Their competitors due offer a one month advance fair of 99 pounds however with restrictions which leaves less flexibility to the consumer. Flexibility and price are the key points that give Ryanair competitive