Ryanair, headquartered in Dublin, Ireland, was the first of the European budget airlines, being modelled on the US carrier Southwest Airlines, and has enjoyed tremendous success under its current CEO, Michael O’Leary. It has kept to the short haul sector of the European market since its deregulation in 1997, with limited routes to North Africa, and with its low cost business model has created a sector for other competitors to enter. In October 2006, as part of a strategic review, Ryanair launched a bid for Aer Lingus, another Irish airline. However, industry regulation kept them from succeeding, although they retained their share until Aer Lingus was taken over by IAG in 2015.
Whilst the sector has become more competitive, Ryanair has continued to generate profits, more recently through a more focussed approach to customer service and extending into the business traveller sector. However, a strategy of market penetration has its limits, and Ryanair may need to secure new revenue streams for the future.
Using the associated case study, you are invited to assess whether their strategy in the short haul sector is sustainable, and where future growth may come from.
Report format, 2500 words (+/- 10%)
1. The work should be typed using double or 1.5 spacing, contain a header with author name and module code, numbered pages and be appropriately presented for 3rd year work.
2. The work should be in report format, and include appropriate sub- headings. Diagrams or tables may be used in the text, appropriately referenced. Longer tables/data should be added as an appendix.
3. The work should be properly referenced with Bibliography/Reference list at the end of the work (LBS standard referencing should be used).
4. Quotations should be brief, and appropriately marked and referenced (author, work, date and page number). Any longer than one sentence should be indented (1cm from each of the left and right hand margins). Inappropriately quoted work will be penalised.
5. Heavy reliance on a limited range of source material, badly referenced work, or heavy reliance on quotations, will be considered poor scholarship and penalised.
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