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Air Arann Case - Peter McNamara UCD, Dublin

Essay specific features

 

Issue:

Business

 

Written by:

Charles S

 

Date added:

September 20, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 894

 

Was viewed:

4731 times

 

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Essay content:

Hence, as long as Air Arann and Ryanair are competing in the same market, the scale benefit will be on Ryanair’s side. Also, Ryanair is not depending on the inter-Ireland market and thus can follow an aggressive price strategy even with negative profit for some time in order to eliminate Air Arann...
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An increase in market share for Air Arann due to lower costs seems thus unrealistic. Benefitwise, due to a higher service level, AirArann has a competitive advantage but the question is whether customers are willing to pay higher prices for that. Given the fact, that inter-Ireland flights are very short, it might be the case that customer do not value additional services, as the flight will only take 20-40 minutes...
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