Ryanair
• Operated 14-seat turboprop between Waterford (southeast of Ireland) and Gatwick (ourskirt of London)
• April 1986- announced it would soon start service between Dublin & London→ challenge
British Airways
• 1979- high cost structure since WWII- find a job for every demobalized member of royal air force
• 1977- Delta 30.7mill passengers with 21k employees VS. BA’s 14.5mill passengers with 54.3 employees
• 1981- loss of 102MM on rev of 1760MM
• John King, new chairman
o 1985- reduced staff to 38K
o Loss making routes surrended to competitors
o Maintenance stations & training colleges shuttered
• Colin Marshall
o Improved customer service- paid attention to satisfying fullf-fare business customers
• 1984- eared record profits (Exhibit 3)
• 1987- planned privatization
• 1986- operated one of world’s extensive airline route networks
o 145 destinations in 68 countries
o 2/3 seats- int’l journeys- 9/10 revenue
o 80% passed through London—Heathrow
o 163 aircrafts, 44 seat turboprops to boeing 747s )400)
• 1980- invsted 700 MM lbs to buy 55 new aircrafts (mostly for service within Europe)→ beginning to upgrade intercontinental flight
o In UK & NY- passenger and ground services (passenger check-in, baggage handling, aircraft cleaning)
o Elsewhere, hired contractors to perform services
o Catered own flights from Heathrow, contracted all other catering
o Performed most of maintenance from base at Heathrow
• Engineering capabilities at ¾ of airports served
o Sold tickets over phone, 171 retail shops worldwide (agents- vacation packages),
o 49000 independent travel agents using computerized reservation systems (BA also had its own system)→ accountsd for 83% of company’s scheduled passenger revenue
o Varity of ticket prices with different restrictions and classes of service (first, economy)
o Especially known for ameneties for business travelers
Irish Aviation and Aer Lingus
• Disadvantages:
o Small population
o Limited land mass...