Dogfight over Europe: RyanAir Melissa Chen, David Gruen, How-Chin Liu, John Masline

RyanAir Launch Strategy Revenue Assumptions: An average of 70% capacity Runs 365 days in a year Price is I₤98 per passenger 4 trips a day Total Estimated Annual Revenue: I₤4,435,480

Launch Strategy Cont. Cost Assumptions: The staff cost is relatively less compared to BA Fuel costs remain the same Leasing and landing fees are more expensive relative to revenue received Profit margin is lower than the BA 6.9% Being a start-up, ideally, RyanAir should at least break even Their profit margin should be at most 6.9% (Same margin as BA), which would yield I₤306,048 of profit.

Things to Consider: They must keep their price low to maintain marketability They must also maintain customer service quality to match competitors There is an untapped customer base from ferry businesses Aircraft expansion should be considered in the near future.

BA and Aer Lingus Response No expected immediate response RyanAir would attract more customers from the rail & ferry rather than other airlines Too costly to match RyanAir’s price Limited capacity at RyanAir mitigates potential demand losses for BA/Aer Lingus (Max at 176 passengers per day)

Eyes on the Prize, Set for Success ;)