1. Dogfight over Europe: RyanAir
Melissa Chen, David Gruen, How-Chin Liu, John Masline

2. RyanAir Launch Strategy
Revenue Assumptions:
An average of 70% capacity
Runs 365 days in a year
Price is I₤98 per passenger
4 trips a day
Total Estimated Annual Revenue: I₤4,435,480

3. Launch Strategy Cont. Cost Assumptions:
The staff cost is relatively less compared to BA
Fuel costs remain the same
Leasing and landing fees are more expensive relative to revenue received
Profit margin is lower than the BA 6.9%
Being a start-up, ideally, RyanAir should at least break even
Their profit margin should be at most 6.9% (Same margin as BA), which would yield I₤306,048 of profit.

4. Things to Consider:
They must keep their price low to maintain marketability
They must also maintain customer service quality to match competitors
There is an untapped customer base from ferry businesses
Aircraft expansion should be considered in the near future.

5. BA and Aer Lingus Response
No expected immediate response
RyanAir would attract more customers from the rail & ferry rather than other airlines
Too costly to match RyanAir’s price
Limited capacity at RyanAir mitigates potential demand losses for BA/Aer Lingus (Max at 176 passengers per day)

6. Eyes on the Prize, Set for Success ;)