The Transatlantic Airline Market Between The United States...

Market Description: The transatlantic airline market between the United States and Europe is the single largest intercontinental market in the world, with rigorous competition between dozens of airlines. The transatlantic market consists of passengers, both seeking business and pleasure needs. Within the first year of offering transatlantic flights, higher income professionals travelling for business purposes will be targeted, along with families and students travelling on a J-1 visa. As the market is heavily competitive, targeted segments such as families and students will be relatively elastic to a change in price, with hope of finding the best deal. If Ryanair can replicate its hugely successful model, offering savings on landing fee†¦show more content†¦Dublin is a powerful connecting hub for transatlantic routes; Aer Lingus has now turned its focus on long haul growth, resuming flights to Los Angeles, and a host of other destinations. Strengths, weaknesses, opportunities and threat analysis: Strengths: Ryanair have a number of strengths on which to build on: 1. Low costs- Ryanair has the lowest unit costs in Europe and one of the lowest when compared to international airliners. Lower costs can be passed onto customers in the form of cheaper prices, which Ryanair will need to offer in order to compete. Research from the Centre for Aviation showed that whether it was cost per seat or cost per passenger, Ryanair costs were less that of their competitors. (Source: CAPA- Centre for Aviation- Unit cost analysis of Emirates, IAG Virgin; about learning from a new model, not unpicking it) 2. Low fares- This is a result of lower costs, enabling Ryanair to offer lower costs than their competitors. If Ryanair can replicate their current cost model which has proved so successful in the European market and transfer it into transatlantic routes, they could offer flights at a significant amount less than Delta and BA. 3. Size- Currently, Ryanair is larger in transporting passengers than Aer Lingus and British Airways. Due to its enormous size, it has given Ryanair significant negotiating power over Boeing, and has undoubtedly provided Ryanair with discounts and led to Ryanair’sShow MoreRelatedThe Business Model Conceived By Ceo Michael O Leary3225 Words   |  13 Pagesbusiness model conceived by CEO Michael O’Leary affords the company much in the ways of agility and long-term adaptability. With the economic recovery of the European Union, new threats arise to challenge Ryanair such as an emerging budget air carrier market, fluctuating fuel prices, and controversial customer relations. Examined in this paper will be the internal cost accounting factors that affect the firm as well as an analysis of Ryanair’s Strengths, Weaknesses, Opportunities, and Environmental ThreatsRead MoreOperation and Strategy management for Ryanair2421 Words   |  10 PagesRyanair in the airlin e industry. 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