1. Ryanair A Presentation by Team Teamwork
Christina Liu, Yanting Li, Ruth Lawanson

2. Launch Strategy First-rate customer service Small planes Efficiency
Offering amenities comparable to Aer Lingus and BA
Small planes
44 seat turboprop
Efficiency
4 round trips per day

3. Launch Strategy Low cost No frills
Single fare of I£98 with no restrictions

4. Launch Strategy
Cheapest and unrestricted round-trip BA and Aer Lingus fares ≈I£208
If purchased one month in advance, discount fares = I£99
Ryanair’s publicized fare of I£98 is cheaper than the discount fares offered by its competitors, with no restrictions

5. Launch Strategy
¾ of passengers on the route from Dublin to London opted for a cheaper mode of transportation, such as rail or sea ferries
Ryanair’s lower fare may attract passengers who currently aren’t willing to pay to travel by aircraft
they can tap into a market that was previously out of reach

6. Launch Strategy Efficiency: Build a strong customer base
Smaller aircrafts
Less staff per aircraft
Build a strong customer base
Operate at a loss
Build up reputation as a discount airline, then possibly raise prices

7. Response of Other Airlines
BA and Aer Lingus are not in positions to cut prices to rival Ryanair’s fares
Jobs
Decrease in overall quality of service
They offer services that Ryanair cannot
Current service planes: a Boeing 747 versus a 44-seat turboprop
Competitive advantage in reputation
Government backing – can operate at a loss
Business class

8. Conclusion
BA and Aer Lingus will lose passengers, but the costs of reducing prices outweigh the benefits
At this point, Ryanair will not seem much of a threat to these established airlines