2 Conclusion 3 References 3 Introduction Ryanair is an Irish airline, which follows the model of Southwest airlines, adopts the low-cost model in Europe, Ryanair started its business by flying short route from Waterford to London, and now it is one of the largest airlines in Europe. Under the leadership of Michael O’Leary, Ryanair’s profit grew from €48m in 1997 to €339m in 2012. Ryanair proved that the low-cost model is an effective model to be used in Europe, it became the role model in Europe to use that model. However, it faced some hurdles in its way and still has some challenges to deal with, due to the high competition between airlines and trying to provide the lowest fares with the lowest costs possible. In the coming sections, we will see how Ryanair dealt with those challenges and how it adapted its strategy to continue growing in Europe.
The value of this order exceeded €6bn. and signaled Ryanair’s ambition to continue to be the largest low fares airline in Europe as well as the lowest fare airline in Europe. Ryanair became No.1 in Europe of customer service beating all other European airlines for punctuality, fewer cancellations and least lost bags. Rapid expansion of Ryanair right across Europe continued. In 2003 the airline acquired Buzz, the Stansted based loss making airline from KLM in April, which they closed for a month and then re-launched on 13 former Buzz routes in May at half the fares previously charged by Buzz.
SOUTHWEST AIRLINES The United States of America is a top destination for tourism, and according to the Readers ' Choice Awards, it is the third best country to visit. The wide variety of attractions and activities spread in the innumerous cities of this large country, created the need of an efficient transport network to facilitate travel within the US. One of the offers is the flight connections, mainly through low-cost companies. In 2016, the North American airlines industry registered a market value of $186.8 billion, as a result of the 940 million passengers carried. In such competitive industry, players must stand out with innovative strategies, paying even more attention to “the management of customers, who are not simply consumers of the service but can also be integral to its production” (Frei, 2008).
Brand name has made the customers stick to Ryanair as it fulfills all their needs and wants. Even though this company has suffered severe financial crisis in 1990, after restructuring in which they adopted the Southwest Airlines business model, Ryanair became the pioneer of the low-fares model in Europe. On the other hand, another strength that can be highlighted from this airline is that they are charging for ancillary services. Ryanair also has been categorized as the “Ancillary Revenue Champs’ by the 2010 Amadeus Guide to Ancillary Revenue. Although they charged for the services, these attract more customers as they are available at single platform.
15 to 20 years for Delta (April 1, 1193) to reflect in the aircraft replacement strategy. The change is reducing the depreciation expense and would reduce the expenses by a similar amount each year over the remaining life. This leads to an increased profitability due to an accounting
easyJet uses cost advantage as well as network positions in strong markets to deliver low fares and operational efficiency on point-to-point routes, with their people making the difference by offering friendly service for their customers. Southwest Airlines The airline, a U.S. budget airline, was established in 1967 by Herb Kelleher as Air Southwest and then adopted its current name, Southwest Airlines, in 1971 where it began operating as an intrastate airline wholly within the state of Texas. Southwest Airlines is the largest airline in the world by number of passengers carried per year (as of 2009). It maintains the third-largest passenger fleet of aircraft among all of the world 's commercial airlines. According to the U.S. Department of Transportation 's Bureau of Transportation Statistics, Southwest Airlines has carried more customers than any other U.S. airline since August 2006 for combined domestic and international passengers.
The strategic decision in 1990 to restructure their company and adopt a low cost low fare business model similar to that of South west airlines in Texas has proven to be profitable one both for Ryanair and its passengers. By constantly changing their model, Ryanair has been able to stay ahead of their competitors. Their switch to online booking only, quick turnaround times and expensive access luggage policy helped to revolutionise European air travel. A key strategic decision not to recognise trade unions spared Ryanair the upheaval of industrial unrest experienced by their competitors, E.g Aer Lingus and Air France, increase in productivity and profits. In recent times, Ryanair have introduced a new business strategy to target the business class traveller.
Ryanair is Europe 's largest low-coast airline and based in Ireland. This is a public listed company who are trading on Dublin and London as well as New York Stock Exchange stocks. It is committed to low-cost airfares and introducing competition to the European flag airlines and air transport market growing alliance. It has the ability to provide passengers with the industrys lowest fare is dependent to a large extent, the low-cost and high efficiency of the airport. Ryanair is Europe’s Number one airline, carrying over 130m customers p.a.
As many people began to travel with the low prices of tickets, Indian domestic income has increased, beside the raise of tourism potentials in the country. Numbers will increase obviously once IndiGo extent the international routes to more than 5 in the future. IndiGo is concentrating on the lower and middle class of people as its main target group. It seems to be that IndiGo has succeeded to attract those people and make money out of them. By its efficient management and operations, and marketing strategies, it became the leader of the LCC market in India with a profit of $51.67 million in 2014.
In addition, the availability of information is really high and with the emergence of travel portals who guarantee that they can search for the lowest fares out of all the options available and book it for the client with just a click which even provides the ease of purchase, the bargaining power of the buyer is increasing Frequent flyer programme and online duty free purchase services can create customer loyalty and reduce the threat of customer switching over to other airlines to some extent. Low buyer concentration can also reduce the power of buyers. Competitive Rivalry (High