1. Alice Wang Joanna Chen Timmy Liu
Ryanair Case
Alice Wang
Joanna Chen
Timmy Liu

2. Current Situation Flights of Aer Lingus and BA ~60-70% full
Ticket price of 208pounds
Both Aer Lingus and BA went through periods of tremendous losses
Constant passengers of 500,000
3/4 million travelers opted for rail or sea ferries (price of 55pounds)

3. Ryanair's Plan made themselves comparable to the other airlines
Meals
Amenities
Differentiation from others
focusing intently on providing first-rate customer service
charging a single fare for a ticket with no restrictions
Fare of 98pounds

4. Potential Problems Ryanair's proposed price: 98pounds
Inevitable loss in the beginning
Long-run potential AC>AR (looking at BA)
only 44 seats available, high MC
Competition against established airlines
brand value/customer loyalty
Passenger skeptical of quality

5. Potential Successes Low price will attract
ferry/rail travelers
competitors' customers
If able to lower cost, price is sustainable
Easy entry due to deregulation
Low switching costs

6. Competitors' Response
BA does not have the capability to match Ryanair's price
Aer Lingus may, depending on its cost
Cut down expenses
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