Dogfight over Europe Airlines

Essay specific features

 

Issue:

Business

 

Written by:

Mark B

 

Date added:

January 3, 2016

 

Level:

 

Grade:

A

 

No of pages / words:

5 / 1305

 

Was viewed:

5313 times

 

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Essay content:

Now that the aviation market is expanding, these airlines are enjoying the revenues from the market share which they have helped to stabilise over the last 10 years. Ryanair was bracing itself against these big players for a share of the lucrative market with the announcement of its entry. Status of British Airways - competing with strong US carriers in Europe and US in an environment that was towards free market competition - focusing on international routes which provided nine-tenths of its revenue - high cost of operations ? high number and wide variety of aircraft (thus high maintenance cost) ? high employment costs with vast ground handling and representative staff ? extensive network (high IT cost) ticket sale system Status of Aer Lingus - partially Government owned, thus obligated to operate on certain routes (eg international routes) despite years of operating losses - 40% owned by BA - main revenue came from tourist passengers who were price sensitive - involved in several more profitable side lines (as computer reservation consultants, providing maintenance and engineering services, etc) - having aging fleet which needed heavy investment to replace...
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Ryanair was bracing itself against these big players for a share of the lucrative market with the announcement of its entry. Status of British Airways - competing with strong US carriers in Europe and US in an environment that was towards free market competition - focusing on international routes which provided nine-tenths of its revenue - high cost of operations ? high number and wide variety of aircraft (thus high maintenance cost) ? high employment costs with vast ground handling and representative staff ? extensive network (high IT cost) ticket sale system Status of Aer Lingus - partially Government owned, thus obligated to operate on certain routes (eg international routes) despite years of operating losses - 40% owned by BA - main revenue came from tourist passengers who were price sensitive - involved in several more profitable side lines (as computer reservation consultants, providing maintenance and engineering services, etc) - having aging fleet which needed heavy investment to replace...
displayed 300 characters

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