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Essay text:
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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