RyanAir: The ' Southwest' of European Airlines|Business Strategy|Case Study|Case Studies

RyanAir: The ' Southwest' of European Airlines

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Case Details:

Case Code : BSTR059
Case Length : 14 Pages
Period : 1985 - 2003
Organization : Ryanair
Pub Date : 2003
Teaching Note : Available
Countries : Europe
Industry : Aviation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Ryanair's Competitive Position

Being the oldest low-cost carrier in Europe, Ryanair had some advantages over its competitors. For one thing, it had the advantage of experience, and secondly, its brand enjoyed good recognition. However, after the deregulation of air travel in Europe in the late 1990s, a number of startup airlines came up in the low-cost market.

Notable among the competitors was easyJet, the discount airline set up in 1995 by Greek shipping magnate, Stelios Haji-Iaonnou. EasyJet was based in London's Luton airport and competed on some of the same routes as Ryanair. In 2002, with the takeover of Go, easyJet beat Ryanair to the top position as the biggest low-cost airline in Europe. O'Leary declared that Ryanair would soon bounce back to reclaim its number one position. Although Ryanair and easyJet both operated in the low-cost segment and had similar operational models, there were some inherent differences between the two airlines. Firstly, Ryanair made a major portion of its profits by flying to secondary airports which were a long distance away from the main cities...

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Exhibit I: Low Cost Airlines in Europe
Exhibit II: Summary Table of Results (Irish Gaap) - In Euro
Exhibit III: Southwest Airlines
Exhibit IV: Punctuality Statistics
Exhibit V: Ryanair vs. Easyjet

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