Comparatively, Ryanair flies to Beauvais-Tillé Airport, which is almost one hour away from the city (Ryans 2009). 2006). Low-Cost Carrier Comparison: Ryanair vs. EasyJet Lori Zaino. In line with this low-cost strategy is a simplified pricing structure. Of importance, the company lacked a service advantage that would back up its cost advantage (Thompson 2005). Ryanair posted revenues of €4.325 billion in … Giving customers the leading offer in the airports they want to fly to. Abstract. Profit reinvestment is a common way that the airlines create value for their shareholders (Mennen 2005). Ryanair and Easyjet have always strived to support their market dominance by increasing passenger traffic through cost containment (Mayer 2008). & Williams, G. 2012, Air Transport in the 21st Century: Key Strategic Developments, Ashgate Publishing, Ltd., New York. This understanding shows where the corporate strategies of both companies converge. Customer service satisfaction . The business philosophy of easyJet is that money can be made on any route where a carrier can fly three times a day to a low-cost airport, based on a minimum market size. 1.1 Ryanair; 1.2 easyJet; Chapter 1. In the following years it started to serve several Source: Adapted from Aer Lingus (2013) Thus, for the consumers is difficult to distinguish two companies in the offerings, therefore in most cases consumer’ choices are driven by company’s brand, complimentary products and services or past experiences. In the 1980s, one Irish airline was renowned for its customer service. I’ve flown on EasyJet and Ryanair many times … Ryanair's secondary services are complementary meals and drinks, seat allocation and news papers. Strategy - A little different RyanAir vs Easy Jet . How many pages (words) do you need? EasyJets revenue per available seat kilometer (RASK) is an astonishing 63% higher than Ryanairs, reflecting its better product and network of primary airports. They operate a fleet of Boeing 737-800 jets, with an average age of around 7.4 years. Prices are for two people and all are without baggage, but including all other compulsory fees (such as credit card fees). For example, in 2014, both organisations reported increased passenger numbers (Wallach 2015). Based on these competencies, Ryanair has always argued that its success does not only depend on its low-cost strategy because its innovative on-time record and its value-added services also support its growth (O’Connell & Williams 2012). However, to get a correct understanding of this assessment, this paper demonstrates how both companies create value for their shareholders and reveals the strategic choices pursued by both organisations. Evidence of this fact emerges in Paris as a common destination for both airlines. Ryanair has always branded itself as an airline company that regards punctuality and efficiency as key segments of its service model (O’Connell & Williams 2012). The company has its routes in 168 destinations in 28 countries of the world (Ryanair, 2012b). O’Connell, J. It also realised that its low-cost pricing strategy could not sustain its business because the margins made from such a strategy were low (Malighetti et al. Mobility for airlines to move between groups is low. "Ryanair vs. Easyjet: Corporate and Competitive Strategy Analysis." This approach was a cost-saving strategy. Malighetti, P., Paleari, S. & Redondi, R. 2006, ‘Pricing strategies of low-cost airlines: The Ryanair case study’, Journal of Transport Geography, vol. Complementing its direct sales strategy is the paperless booking model. 20–38. However, because it could not protect this strategic approach from duplication by other airline companies, it lost a significant market share to other companies, such as Easyjet. Nonetheless, Ryanair commands a stronger market share than Easyjet does. Both airlines create value for the shareholders in the following ways. Both airlines have perfected this strategy by introducing new price reduction measures, such as paperless booking. To address the customer satisfaction issue, Ryanair launched the “Always Getting Better” (AGB) customer experience programme. The standard measure of unit cost in the airline industry is 'cost per available seat kilometer' (CASK). Another strategy is to fly to secondary airports to lower costs. Ryanair have responded aggressively to easyJet’s home markets. Die Kabinen beider Konkurrenten lassen sich wohl am besten mit dem Wort “eng” beschreiben. They’ve frequently been criticized for irresponsibly low fares, often flying people short-haul for EUR 10 or less. Was bei Airlines und Ihrer Bewertung immer besonders stark ins Spiel kommt, sind persönliche Erfahrungen, die ich in dieser Betrachtung sicherlich auch nicht komplett außen vor lassen werde. Both business strategies have similarities in many aspects such as low cost, credible brand, and business focus on short-haul travel. The companies have also strived to support their leadership positions and create value for their shareholders by maintaining operation efficiencies. Unfortunately, your browser is too old to work on this site. Thompson, J. Within this space, Ryanair and Easyjet are the two biggest low-cost airlines in the region (Elderman 2014; Dowling 2010). Then new CEO, Michael O’Leary, decided to change the carrier to an LCC. IvyPanda. Strong hedging strategy in place with a young fleet and solid financial fundamentals.
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