Ryanair & the European Airline Industry The European Airline Budget

Macroeconomic factors such as fuel prices, the advantage of a recession (which makes customers price-conscious), and the regulatory environment are all shifting in unfavorable directions for Ryanair. Since the company has few other barriers to its markets than low costs, developing differentiation of services is required to keep the market share it already has.

In particular, the free tickets will be seen as a direct threat to competition. They can be used better, though, as promotions, compensation for marketing research, and fringe benefits for underpaid workers.

Finally, the company should reduce its risk exposure through developing customer loyalty. This is especially true of routes where the new, larger planes will be bringing more seats to fill and more expenses to pay.

Ryanair has established itself as the lowest priced airline in Europe through a low-cost strategy. They have been quite successful in acquiring new destinations and defending them, reaching customers through low-cost methods, and maintaining financial health. However, the attraction of customers through a low-cost method is not sustainable in a

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d, planes. The maintenance on rented and leased planes is not able to be capitalized, so expenses must be recognized as they are incurred. Other expenses include retraining crews and refitting maintenance facilities. The corporate culture at Ryanair is also coming under scrutiny. The formation of a union by the flight crews would place Ryanair in danger of strikes and lockouts, restrictions on the number of flights per employee, and possibly raise the costs of wages and benefits. Stockholders insistence on increased management is increasing overhead costs. Safety concerns raised by old planes, tired pilots, and schedules which possibly encourage dangerous airport ettiquette are all damaging our public relations. Competitive Advantages and Future Strategies: The core competencies that will carry Ryan into the next decade will be its financial health, its low-cost booking and easy-to-use internet purchasing site, and its well-established reputation as the lowest-cost airliner. Ryanair should take this mix of competencies and shift its focus from a cost leadership to a differentiating focus. The first step is to find out what type of consumer is most often using its services. The CEO often speaks of the business t
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Some common words found in the essay are:
Future Strategies, Threats Financial, North American, Report Ryanair, Edlin Lawmakers, Budget Sector, Advantage Ryanair, Low-Cost Strategy, European Union, Macroeconomic Environment, customer loyalty, predatory pricing, airline industry, price wars, low debt, ryanairÆs competitors, financial health, risk exposure, core competencies, oil production, developing customer loyalty, rising oil prices, porter michael competitive, rented leased planes, free press 1998,
Approximate Word count = 2393
Approximate Pages = 10 (250 words per page)

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