Indian institute of management Dogfight Over Europe: Ryanair (A) | Case Analysis

Overview Cathal Ryan and Declan Ryan have started Ryanair since 1985. For nearly a year, Ryanair had operated a 14-seat turboprop between Waterford and Gatwick Airport on the outskirts of London. The airline targeted low-fare segment market. It initiated service from London’s secondary airports. In terms of competition, Waterford and Gatwick didn’t pose any challenges. In 1986, Ryanair gained a license to operate between Dublin and Luton, another secondary airport of London. In that year, they announced the commencement of service from Dublin and London. On this route, British airways (BA) and Aer Lingus were already operating. This route is …show more content…
2. Position itself as a luxury business carrier BA can effectively position itself as a luxury business carrier with improved customer services to attract a limited number of customers who give better profits. 3. Contraction defence From the above analysis, it can be inferred that BA only marginally loses by giving up a small amount of it’s market share to Ryanair. Therefore, a contraction defense strategy might be a better bet for British Airways. This however, does leave the market open for the new entrant Ryanair and leaves potential chances for