I need help creating a thesis and an outline on The Low-Fares Airline. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Ryanair has continued to increase its share of air transportation in Western Europe, and, depending on definition, has increased its share of European passengers to a little over 7% in 2008. Ryanair states its own market share as 12% but excludes markets in which it has no presence, such as Russia, Ukraine, Turkey, Greece, and Iceland.

Rival company easyJet held a similar share of 7% in 2008, more than doubling its share since 2001. As consumer demand for low-cost travel and European city breaks boosted the low-cost sector both companies managed to take customers away from the full-service carriers, such as British Airways and Iberia. However, the full-service airlines continue to compete in the market where the short-haul flight is a connecting leg of a longer journey, such as, say, Lisbon-Madrid-Mexico.

In Ryanair’s home market of Ireland, the company competes with, but also is the largest shareholder in Aer Lingus. Between 2004 and 2007, traffic on Aer Lingus short-haul routes, all of which were to and from Ireland at the time, increased by 32%, whilst total Irish airport growth over the same period was 28%. It appears, therefore, that Ryanair did no more than maintain its share of the Irish market during this period. (Alessandro, 2008)

Both Ryanair and EasyJet will increasingly find that attracting new customers will become harder to achieve without expanding routes as new competition enters the sector. Although the market is awash with low-cost competitors, only the top three (including Air Berlin) have pan-European brand recognition and Ryanair’s cost base sets it apart in being able to offer very low fares. Moreover, many of its competitors, such a Wizz and&nbsp.Sky Europe, are losing money at present. In October 2007, IATA forecast that air travel in Western Europe is expected to grow at a CAGR of around 5% over the 2007-2011 period, which is broadly in line with the global average for the period. However, Ryanair, however, has forecast a CAGR of 14% in passenger volumes from 2007 to 2012.

Leave a Reply

Your email address will not be published. Required fields are marked *