i. Valuable Capabilities
Ryanair, an Ireland airlines company capturing the hearts of its customer by offering lower fares to those targets fare conscious leisure and business travelers who might be otherwise use a substitute form of transportations. The increase cost of lifestyles nowadays will make the customer to prefer the low-cost options as much as possible. Even though the company is known to be one of the low-cost airline company in Europe, the company also focus on a better customer service such as emphasis on better punctuality, fewer lost bags, and fewer lost bags, and fewer cancellations. The company is unique in in terms of providing “Child Free” flights to customer in response to customer demand and willingness to pay for high …show more content…
This can be proved by the company such as Boeing, the world's largest aerospace company, says the its aircraft contributes more than 90 per cent of the combined fleets of the low-fare carriers around the world. By purchasing a large number of aircraft from the same company, the low-cost airlines company can negotiate the price from the aircraft supplier therefore reduce the cost. Ryanair emphasis on ancillary revenues to make up the cost lost through lower ticket prices by charging fees for just about anything. For example, there are fees for priority boarding, reserved seats for airport boarding card reissue and many others. This shows that they are always find a way to other low-cost airlines company such as Spring Airlines, based in Shanghai, is applying for government approval for standing-only seats, which could be sold for as little as £1.50 each way. Meanwhile, GoAir in India has announced it will only employ slim female flight attendants to cut down on the weight carried by each plane, and to save fuel. Since there are various ways to impose charges to customers for low cost airline around the world makes it …show more content…
For example, EasyJet Air Berlin and Germanwings British Airways, Luthfhansa, Air France, Monarch Airlines and Titans Airways. Low-cost carriers had force the big airlines to figure out a way to draw the most price-sensitive fliers in any given market those who hunt for the cheapest tickets possible. Those customers make up a significant portion of travellers, meaning the major air carrier company cannot just ignore them. The airlines will compete with each other in terms of fares, time and the frequency of the services, service quality such as number of on-time departures and arrivals, frequency of lost baggage and frequency of involuntary denied boarding amenities such as frequent flyer programs and reputation. In addition to that, the EUR-US Open Skies Agreement that took place in 2008 increase the competition drastically due to US carriers offers their services in the intra-EU market. Although Ryanair is known to be a low-cost carrier, the cost of the ticket will increase once all the fees are added and make other traditional carrier like British Airway become more competitive. This intense competition between the airlines company will gives effect to low switching cost because the customer has been various options
Ryanair, an Ireland airlines company capturing the hearts of its customer by offering lower fares to those targets fare conscious leisure and business travelers who might be otherwise use a substitute form of transportations. The increase cost of lifestyles nowadays will make the customer to prefer the low-cost options as much as possible. Even though the company is known to be one of the low-cost airline company in Europe, the company also focus on a better customer service such as emphasis on better punctuality, fewer lost bags, and fewer lost bags, and fewer cancellations. The company is unique in in terms of providing “Child Free” flights to customer in response to customer demand and willingness to pay for high …show more content…
This can be proved by the company such as Boeing, the world's largest aerospace company, says the its aircraft contributes more than 90 per cent of the combined fleets of the low-fare carriers around the world. By purchasing a large number of aircraft from the same company, the low-cost airlines company can negotiate the price from the aircraft supplier therefore reduce the cost. Ryanair emphasis on ancillary revenues to make up the cost lost through lower ticket prices by charging fees for just about anything. For example, there are fees for priority boarding, reserved seats for airport boarding card reissue and many others. This shows that they are always find a way to other low-cost airlines company such as Spring Airlines, based in Shanghai, is applying for government approval for standing-only seats, which could be sold for as little as £1.50 each way. Meanwhile, GoAir in India has announced it will only employ slim female flight attendants to cut down on the weight carried by each plane, and to save fuel. Since there are various ways to impose charges to customers for low cost airline around the world makes it …show more content…
For example, EasyJet Air Berlin and Germanwings British Airways, Luthfhansa, Air France, Monarch Airlines and Titans Airways. Low-cost carriers had force the big airlines to figure out a way to draw the most price-sensitive fliers in any given market those who hunt for the cheapest tickets possible. Those customers make up a significant portion of travellers, meaning the major air carrier company cannot just ignore them. The airlines will compete with each other in terms of fares, time and the frequency of the services, service quality such as number of on-time departures and arrivals, frequency of lost baggage and frequency of involuntary denied boarding amenities such as frequent flyer programs and reputation. In addition to that, the EUR-US Open Skies Agreement that took place in 2008 increase the competition drastically due to US carriers offers their services in the intra-EU market. Although Ryanair is known to be a low-cost carrier, the cost of the ticket will increase once all the fees are added and make other traditional carrier like British Airway become more competitive. This intense competition between the airlines company will gives effect to low switching cost because the customer has been various options