Ryanair based in Dublin, Ireland, has been renowned in Europe as a firm that can make a profit on a $20 ticket by imposing numerous fees and surcharges. The airline has sought to be the lowest of the low-cost providers in the EU with a “no frills get you from point A-to-B-model.” More recently Ryanair is on record as saying it wants to be the “Amazon.com of travel in Europe” by bringing in competitors’ price comparison, hotel discounts, and even concert tickets.45 Check out the company website (www.ryanair.com) and consider the questions that follow.
1. If you were a competitor in the European market, such as British Airways or Lufthansa, how would you compete against Ryanair, knowing your cost structure would not allow price parity? If you were a low-cost leader like EasyJet, how would you compete against Ryanair?
2. What similarities and differences do you find about RyanAir compared to Jet Blue from the ChapterCase?