Ryanair A Presentation by Team Teamwork Christina Liu, Yanting Li, Ruth Lawanson

Launch Strategy First-rate customer service Small planes Efficiency Offering amenities comparable to Aer Lingus and BA Small planes 44 seat turboprop Efficiency 4 round trips per day

Launch Strategy Low cost No frills Single fare of I£98 with no restrictions

Launch Strategy Cheapest and unrestricted round-trip BA and Aer Lingus fares ≈I£208 If purchased one month in advance, discount fares = I£99 Ryanair’s publicized fare of I£98 is cheaper than the discount fares offered by its competitors, with no restrictions

Launch Strategy ¾ of passengers on the route from Dublin to London opted for a cheaper mode of transportation, such as rail or sea ferries Ryanair’s lower fare may attract passengers who currently aren’t willing to pay to travel by aircraft they can tap into a market that was previously out of reach

Launch Strategy Efficiency: Build a strong customer base Smaller aircrafts Less staff per aircraft Build a strong customer base Operate at a loss Build up reputation as a discount airline, then possibly raise prices

Response of Other Airlines BA and Aer Lingus are not in positions to cut prices to rival Ryanair’s fares Jobs Decrease in overall quality of service They offer services that Ryanair cannot Current service planes: a Boeing 747 versus a 44-seat turboprop Competitive advantage in reputation Government backing – can operate at a loss Business class

Conclusion BA and Aer Lingus will lose passengers, but the costs of reducing prices outweigh the benefits At this point, Ryanair will not seem much of a threat to these established airlines