A developing market, the air transport industry is also very competitive, with rules of the game being completely transformed by the advent of lowcost airlines, first in the United States and then in Europe. Though Air France KLM is the world leader in the commercial air travel today, Ryanair has become the airline with the largest number of passengers in Europe. The growth of the low-cost segment does not seem about to stop. Lowcost companies continue to appear constantly.
Ryanair is the best known airline in Europe, because of its low fares with 26 bases and 632 routes operated in 27 countries. In France, Ryanair flies 92 routes to 12 countries from 22 airports.
By the end of March 2008, the company will own an entire fleet of 163 new Boeing 737-800 aircraft, and has placed an order for 99 new aircraft to be delivered over the next five years. Ryanair currently employs 5,000 people and is expected to carry around 50 million passengers in Europe and 5 million in France.
2007: - 38 low cost carriers appeared in Europe. These carriers travelled to 1300 destinations as opposed to the 25 000 covered by traditional companies.
- The number of passengers travelling by low-cost airlines increased from 5.55 to 7.85 million in France.
There was a 20% average increase in passenger traffic for low cost airlines as opposed to the 3 to 4.5% rise in traffic for traditional companies. The perfect cost control and operational management methods used today have helped low-cost airlines attain strong values on the stock exchange.
Low-cost companies "are increasingly being used by companies and businessmen. 76% of U.S. and Canadian firms increased their use of low cost airlines in 2004. The target clientele of low cost airlines are mainly low-income customers, but also includes a young crowd, which is on the lookout for "cheap" airfare on the Internet.
Ryanair is based in Ireland, and headquartered in the United Kingdom. It has 4 bases on the British Isles (London Stansted, Shannon and Glasgow). It is also located in Germany (Frankfurt Hahn), and Belgium (Brussels, Charleroi).
Tags: Ryanair, low-cost airlines, target clientele
[...] On May Ryanair's fleet consisted of 136 Boeing 737-800 aircraft, with a capacity of 189 passengers.145 Boeing 737-800 aircrafts have been ordered and Ryanair has a call option for 161 additional Boeing 737-800 aircraft It has built valuable partnerships to deploy the range of services (car rental, hotel reservation etc.) of the company on land (website) or on- flight (board sales). Competition Compared to its competitors, Ryanair pursues a strategy of cost leadership.This strategy directs all the company's efforts towarda a single goal: the minimization of total costs. [...]
[...] The target clientele of low cost airlines are mainly low-income customers, but also includes a young crowd, which is on the lookout for "cheap" airfare on the Internet. Establishment of Ryanair The company is based in Ireland, and headquartered in the United Kingdom. It has 4 bases on the British Isles (London Stansted, Shannon and Glasgow). It is also located in Germany (Frankfurt Hahn), and Belgium (Brussels, Charleroi). SWOT Analysis Forces Weaknesses Stops of short duration: 25 minutes The company is too Performance on the dependent on its market outcomes in financial market. the markets of Ireland / UK. [...]
[...] Communication Policy The axis on which the marketing of Ryanair is based, is the minimal support of client needs, which takes into account his transport, in order to make him eligible for an extremely attractive price. The marketing strategy is a combination of Ryanair's advertisements which are very simple, and contain virulent attacks against the competition, including the use of comparative advertising (see differentiation strategy discussed above). The company is well known for its controversial advertising slogans. Example Conclusion To conclude, Ryanair really stand out in its segment, and other companies are [...]
[...] Omnipresent and oppressive legislation The aviation sector is characterized by pervasive and oppressive legislations, any changes in which could have costly consequences and repercussions.For example, the introduction of taxation on intra-EU flights could weaken demand from the sector, as could the new environmental standards or the security checks resulting from the news (bombings, epidemics). These have the potential to increase airline costs, which would adversely affect the operation of the low-cost model. The components of its concept of servuction The client The customer base of Ryanair is mostly composed of youngsters. However, thanks to the access to major airports, Ryanair can attract business customers from companies aiming to limit the cost of travel. [...]
[...] It is clearly advisable for these people to smile and provide the best possible client experience. The Service The service allows "traveling in Europe at low prices". The price factor is essential to the company. With respect to quality, Ryanair is deemed the "low cost" company where comfort is most present. Ryanair's service is less complete when compared to traditional airlines, but offers more service than other "Low Cost” companies. On this point Ryanair, occupies an intermediate position with the new formula "middle cost company”. [...]
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