5. Between 2000 and 2009, airlines lost $49.1 billion, which is an average of $5.0 billion per year.Sheshi, Jolic, Iruretagoiena
6. 2.1. Porter’s 5 Forces: Theory Level of Threat in an Industry Five Forces Model of Environmental Threats: Adapted from Strategic Management and Competitive Advantage: Jay B.Barney, William S.Hesterly Sheshi, Jolic, Iruretagoiena
10. Europe’s largest low fair airline. Headquartered in Dublin, Ireland and employs over 6,600 people. Some of its major competitors include, Aer Lingus, Air France, British Airways, easyJet, Lufthansa, and Alitalia. Adapted from: Datamonitor Company Profiles Sheshi, Jolic, Iruretagoiena
11. 1. Threat of Entry High capital investment Restricted slot availability makes it more difficult to find suitable airports Compete on limited routes Capital Intensive Sheshi, Jolic, Iruretagoiena
12. 2. Threat of Rivalry The market of low-fare airlines is highly competitive Rivals: Aer Lingus, Easy Jet, Air Berlin, German Wings, Virgin Express, Air France, Lufthansa Policy of bundling low frills and low prices together as an advantage Low levels of existing rivalry for Ryanair Sheshi, Jolic, Iruretagoiena
13. 3. Threat of Substitutes Substitute products or services are determined by different factors such as current trends, brand loyalty or change in technologies Alternative products with lower prices and better performance Substitutes: trains, ferries, buses, cars and other low fair airlines Global environmental awareness, economic downturn Sheshi, Jolic, Iruretagoiena
14.
15. 5. Threat of Suppliers Different suppliers historically: Embraer EMB 110 Bandeirante, Hawker Siddeley HS 748, BAC One-Eleven, ATR 42, Boeing 737-200, Boeing 737-800 Ryanair, a valuable customer for Boeing (2009) Negotiations with the suppliers when talking about innovation in designs (“stools with seatbelts”) Sheshi, Jolic, Iruretagoiena
16. Opportunities and Threats Opportunities: Economic downturn Growing demand for low cost airlines Increase the frequency of existing routes Expand in the EU zone Threats: Increase in low fare competition Fluctuating oil prices Threats to security Global environment awareness, involvement of airlines in EU emission trading system Sheshi, Jolic, Iruretagoiena
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