A Competitive Analysis of Ryanair in the Long-Haul Airline Industry

Abstract

The increase in the route intensity causes a limit in growth for low-cost airlines in the EU short-haul market. In the recent years, low-cost airlines increased their route distance and several of them started to look at the long-haul market. However, the long-haul market is filled with full-service carriers and it is unknown whether a low-cost airline would be competitive enough to succeed in this market. This dissertation researched the differences between the low-cost carrier and full-service carrier, the differences in their own respective markets, the short- and the long-haul, followed by a thorough analysis on who is in the long-haul and case studies on previous long-haul low-cost carriers. After an overview on Ryanair, Michael Porters Generics Strategies was used to establish a clear view on the strategies of the competitors and their respective strengths in the long-haul. The ABCD model of Moon Hwy-Chang gave insight on the competitiveness of Ryanair. If Ryanair can sell tickets for a substantial lower price, Ryanair can achieve a competitive position in the long-haul. But to be truly successful Ryanair will need to work on its social relationships, and its ability to respond to market changes.