Assessment of Ryanair's launch strategy

Method of Operation- Selective in

short term and incremental in

long term

Had enough wealth to launch

an Airline

Aviation was the natural choice available for

Ryan Brothers

• Two Distinguished Factors: Improved customer services and single fare pricing technique with no restrictions.

• Targeting that segment of people for whom airline was a costly affair and providing them low cost and time saving mode. Symbolically lower rate of I£ 98 as compared to, I£ 99 - I£ 208 offered by Aer Lingus and BA

CONTD….• Ryanair's strategy to launch airline with low prices, would

certainly get it the market share quickly. But, the success of this strategy would require Ryanair to manage the expenses and keep costs low.

• Ryanair has decided to offer full service (meals and amenities) while offering lower price. This would definitely put strain on the costs.

• Moreover, they are planning to get a larger aircraft. This will increase aircraft maintenance costs as they will have to service 2 different types of aircrafts.

• For Dublin –London flights :To generate profit, Ryanair planned to run four round trips per day on a single route, would give them the ability accommodate (365x44x4) i.e. 64,240 passengers per year.

• Also it is important that Ryanair focus on this route turn it profitable before they decide to expand to other routes. Growing too fast will increase costs further.