Dogfight over Europe: RyanAir (A) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Question 1:

Ryan Air was founded by Ryan brothers in the year 1885. They had essentially grown up in the environment of airline industry and had received the information first hand from their own father. Their father Tony Ryan initially worked as a leasing manager for the airline company. In 1975, Tony Ryan the father of Ryan brothers co-founded an airline leasing company Guinness Peat Aviation and it pretty soon became the world`s most dominant aircraft leasing company. He had ten percent share in the company and it was more than enough to finance an airliner company as he was the one who invested capital in the company of his sons.

Ryan Air managers and analyst estimated that both the two airline they are going to compete with i.e. Aer Lingus and British Airways were operating roughly at sixty to seventy percent of their capacity in the proposed route between Dublin and London. According to some estimates about half a million passengers travelled between both the routes per year by air route. But that was only a fraction of the actual number of people who travelled between both the places were much higher to about three quarter of a million and these people preferred to travel by road. The airline option did provide them the opportunity for time consumption and better travelling experience but their prices were very high as compared to the ferry and train service.

It was this opportunity the company was trying to cash in. Their budgeted price per ticket was way economical and less than their two competitors. Their price per ticket was supposed to be 99 Irish pounds as compared to their counterparts whose price were 208 pounds.

The company decided to operate a forty-four seater smaller turbo propeller jet as they did not had the permission to lease and fly a bigger jet at that time, but the management was expecting to get the permission soon. The company decided to make four round trips per day and the policy it revised to compete against its rivals on the route was two pronged one.

Although the new route was profitable for RyanAir to operate as the stats suggested. The company does offer rather cheaper prices than that of their direct competitors and it could even attract some ferry and rail travelers as the price difference was pretty sluggish. But other than that it did not had anything else to offer to its customers.

QUESTION 2:

If the Ryan Air launches its services on the new proposed route than it will counter immense pressure and competition from both the airline companies British Airways and Aer Lingus as both these companies are already flying flights to this route and have dedicated resources on this route and the arrival of new competitor would force them to react and counter this new threat.

The prices that the Ryan Air are offering are much convenient and cheaper to afford by the consumers and relatively less then what these other two airline companies charge to their consumers. This move is predicted to attract a lot of population among the market that will be contested by these companies as the Ryan Air are also offering quality meals that the other two airline organization offer to their customers who fly with them.

The Ryan Air have also introduced a single fair policy. According to this new and different introduced policy the company will charge its customers with a single and fixed price per seat for a one-way travel ticket with no variations and fluctuation in it. This is bound to raise the stakes and competition in the market as many consumers will likely prefer a cheaper and convenient option to travel for the journey that takes only one hour of air travel.Dogfight over Europe RyanAir (A) Case Solution

Most of the Europe has remained the threshold of government run and state owned industries and same is the case of British Airways. It is the government owned Airline Company in the British Airline Industry and has diversified and expanded enormously on the blessings of the government. They today operate one of the most comprehensive and airline routes in the world. It is one of the most diversified and expanded airline company in the world presently making its aircrafts to roughly sixty eight countries all over the world to over one forty destination. Due to their extensive services the Heathrow airport has become one of the busiest airports in the airport with over eighty percent of the world`s passengers passing through it........................................

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