Samuel Djahanbani Justin Widjaja Dan Dewees Ryan Air Case Samuel Djahanbani Justin Widjaja Dan Dewees

What is Ryan Air? Founded by Cathal & Declan Ryan funded in 1985. Funded by Tom Ryan, senior employee of Aer Lingus and significant share-holder of Guinness Peat Aviation. Operated a 14-seat turboprop plane between Waterford Ireland and Gatwick London airports. By 1986, obtained a license to fly between Dublin and London.

Ryan Air’s Launch Strategy Build credibility and gain flight license Provide competitive price compared to the well-established airline companies. Non-restricted ticket Focus on the first-rate customer service.

Likely Response from Aer Lingus and British Airways Sell off a portion of its company to fund the purchase of new jets. Loosen/eliminate restrictions on tickets to attract more customers. Lower ticket price to something comparable to Ryan Air in order to wrestle more of the customers away.

Likely Response from British Airways Accommodate Ryan Air because it is a small entrant compared to BA. Improve customer service and ticket availability. Probably, lower ticket prices. But, that is unlikely as it would lower BA’s overall profits overall than it would when accommodating Ryan Air.

Costs for AL & BA to Retaliate Increased advertisements to spread word on changes Further training costs for existing employees in hopes of increasing customer service Costs of increasing scale for London-Dublin route

Ryan Air Made Money? Specific flight route, the lucrative one (London-Dublin) Captured more revenue as they attracted the marginal customers who were looking at a cheap fare travel. Simple, no-restriction ticket.