Ryanair Low Fare Airline

6261 Words Jun 8th, 2010 26 Pages
Executive Summary

This paper seeks to explore the marketing techniques utilised by the low cost airline, Ryanair.

Specific analysis of its target market will identify that whilst its cost leadership strategy is hugely successful in its appeal to the mass market, closer analysis of the increasing ‘budget business traveller’ segment reveal opportunities for further industry growth poignantly amidst the current economic climate.

Analysis of Ryanair’s market position as ‘Europe’s largest airline carrier’ shows that the airline is currently market leader and cost leader. This is in sync with the business operation of the ‘no frills’ concept extrapolating a low cost, high volume market yield.

A specific insight into Ryanair’s
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This model focused on supreme price differentiation through reducing overheads and operational inefficiencies, in particular;

• Flying one type of plane to cut engineering costs

• High frequency flights

• Quick airline turn- round

• No free meals or drinks on board

• No seat assignment

• Abandon Air mile schemes

• Keeping overheads down

• Point to point service

• Short flights

• Flights to secondary airports.

Emergence of Ryanair

Witnessing the success of Southwest model and its potential, it wasn’t long until its success was imitated in other continental markets.

In Europe, the emergence of this new niche market in the 1990’s saw the expansion of two relatively new operators adopting the Southwest business model; Ryanair and Easyjet.

“There is no secret to the success of Ryanair! Offering the lowest costs in Europe and the best customer service; that is why 67million people will fly with us!” Michael O’Leary

Founded in 1985, Ryanair has grown exponentially to become Europe’s largest airline carrier. Currently the airline services 830 low fare routes across 26 European countries. Operating in a sector suffering from several external factors such as the war in Iraq and subsequent rises in the cost of fuel, the recession and the ensuing impact on the disposable income of the consumer, the
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