consolidated with easyJet’s acquisition of Go and Ryanair’s takeover of Buzz, every month in the new millennium seemed to see the start up of new budget airlines and new routes or bases being announced. There were over 75 in autumn 2004. Leading players, easyJet and Ryanair, had orders between them for over 300 aircraft requiring both to more than double in size in the face of growing competition from new entrants, a fight back by established airlines and powerful tour operators. In the two and a half years
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Pricing strategies of low cost airlines Keith J Mason Air Transport Group Cranfield University K.Mason@Cranfield.ac.uk 1. Introduction Low cost airlines such as EasyJet, and Ryanair have developed quickly in the European market in the last five years. The UK market has seen the most dramatic development where by the summer of 2001, these carriers accounted for over 22% of the short haul capacity from London and were present in 58% of the 128 short haul routes operated from
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mainly by private individuals (average annual growth of 9.4% for leisure travelers between 1996 and 2003 [11], Figure 2), the industry has experienced rapid growth since then. Most notably, Irish airline Ryanair, formed in 1990, and British company EasyJet, formed in 1995, were able to shape the European market (Figure 3). Germanwings and Air Berlin are additional major players in the low-cost carriers (LCC) market throughout Europe. PEST Analysis The evolvement of the LCC industry in Europe was
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other airlines? [pic] Aim My aim is to investigate whether the low cost airline Ryan air (PLC) has and if so how does it maintain its competitive advantage. In my investigation I will be looking at other competing low cost airlines such as Easyjet as well as main stream international airlines such a British Airways. I will also be looking at how Ryanair has gone from nothing to being the No.1 low cost airline. Introduction Ryanair was founded in 1985 by Tony Ryan who in 1994 past it
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‘no-frills’ service at a lower price than the traditional service with food and entertainment which has been the mainstay of the major airline companies. The two companies which have developed the low-cost model most successfully in Europe have been easyJet and Ryanair. Both have enjoyed phenomenal growth, building market share at the expense of the major flagship carriers such as British Airways (BA) and Lufthansa, in effect revolutionizing air travel within Europe. Low-cost travel now enjoys a market
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The most important accounting statements not just for Ryanair and EasyJet but for all companies are profit and loss statements. Those statements are showing to the companies how many sales they have generated over a period of time and what expenses they have incurred. That’s why they need to know what are their direct and indirect costs and also fixed and variable cost and also what they mean and I will be talking about those in my essay. The direct and indirect cost are important as the companies
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Logical structure (10%) * Communication of information/literacy (20%) Introduction * What the question going to be answered is about * This essay aims to answer… and will refer to… and apply examples from the… industry * Body * Begin each paragraph with the main idea/ topic sentence * This tells the reader what the paragraph will be about * Make sure your reader understands the main idea by EXPLAINING or giving a definitions How to.. * Give some EVIDENCE to support
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motivating prospect. Why do you want to work for easy Jet? easyJet are the UK’s number one short haul carrier and to be a part of the organisation would be an honour. Having flown as a passenger I have experienced the personalised service from the crew and I would take pride to be a part of the ‘orange spirit’ with the ability to be able to add personal touches and make a customer’s on-board experience unforgettable. The easyJet culture appears to empower all employees within their role to be
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opportunities as they arise. Key Concepts: Generic Strategy (Porter, 1985) The Strategy Clock (Bowman & D’Aveni, 1995) 4–5 The importance of Generic (Business) strategies: Example 1/2 2004 2005 2006 2007 2008 2009 Increase (%) Ryanair EasyJet Lufthansa 26,6 24,3 50,9 33,4 29,6 51,3 40,5 32,9 53,4 49,0 37,2 62,9 57,7 43,7 70,5 65,3 46,1 76,5 145,5% 89,7% 50,3% British Airways Air FranceKLM 36,1 35,7 35,6 33,0 33,2 33,1 -8,3% 48,7 48,2
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per passenger is the lowest in Europe by some margin, approximately one third lower than that of easyJet... Lowest cost base. Ryanair’s cost per passenger is the lowest in Europe by some margin, approximately one third lower than that of easyJet. Excluding fuel costs, the difference is even starker, with Easyjet’s cost per passenger 67% above that of Ryanair. This unit cost advantage against easyJet stems mainly from airport and handling charges. This, in turn, comes from Ryanair's use of smaller
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