Refer to “Dogfight over Europe – Ryan Airlines” case study to answer below question. Kindly provide excel/solution file computed for below question. No answer without computation will be accepted.
Refer to “Dogfight over Europe – Ryan Airlines” case study to answer below question. Kindly provide excel/solution file computed for below question. No answer without computation will be accepted.
Estimate Ryanair’s profit on the Dublin-London route if they enter with the proposed I£98 price and no incumbents react — i.e., they keep price and service levels constant.
How much would Ryanair’s entry cost British Airways and Aer Lingus if they do not react? How much would it cost them to match Ryanair’s fares?
Taking into account these answers and any other relevant factors, how do you expect British Airways and Aer Lingus to react?
What is your overall assessment of Ryanair’s launch strategy?
Exhibit 2 Staff Productivity of U.S. and European Airlines, 1978