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On the other hand, Aer Lingus, an Irish government property who was enjoying the support of the government and who had recently renew their fleet and added new sources of revenues which were supporting the cost structure of the company.
The losses incurred by Ryanair could be explained by their strategic position in a complex environment and their strategy which was to offer the lowest fare to their customers and concentrated on offering the highest customer service. In addition, Ryanair started with very small capacity jets which meant that they could not service more passengers. Ryanair was not able to sustain the major fixed costs related to the airline industry in general and Ryanair’s higher customer service costs in particular...
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