The total assets have increased by 19% (non-current assets 14% and current assets 27%) over the two year period between 2010 and 2012. Both airlines have perfected this strategy by introducing new price reduction measures, such as paperless booking. All these along with various functional problems presented immense challenge to the performance level of EasyJet. Registration number: 7252303643 Secondly, trade unions are creating problems all over Europe with their increasing demands. easyJet Comparative analysis based on PESTEL Ryanair and EasyJet both being the top European low fare airlines face some common advantages and disadvantages. By accurately assessing these forces a firm can equip itself with strategies to defend it against the forces or use the forces to its own advantage. Here too it is noteworthy that the base i. e. the total revenue of Ryanair has also grown by 21% during 2011 and by 47% during 2012 over 2010 base year. I.INTRODUCTIONThis report outlines the analysis of two low-cost airlines performance in Europe, namely easyJet PLC and Ryanair Hldgs during their financial year between 2006 and 2008. Jet2, Ryanair, and Easyjet are other dominant airline companies in this category. However, this scenario has changed in recent times because of availability of price comparison websites like Orbitz, Travelocity, MrJet or Priceline which allow customers to compare air fares and customer services of different airlines (Sorenson, 2005, p. 65). Which European low-cost carrier is best for you: Ryanair, Moreover, governments are also planning to restrict expansion of aviation industry in order to protect the environment. Contact us: [emailprotected]. Irish ultra low-cost carrier founded in 1984. Ryanair also severely lacks in customer service since one cannot contact the airline through phone or e-mail except for booking purposes. Easyjet and Ryanair have similar strategies to the extent that they both share the low-cost business model. Gearing ratio assesses the companys financial position in the long run. In the last three financial years both these airlines Ryanair and EasyJet have shown good performances financially and otherwise. We use cookies to give you the best experience possible. Ryanair and Easyjet understand these limitations and adopted elaborate strategies to navigate the economic challenges of operating in the low-cost airline sector (Mayer 2008). PESTEL Analysis of Ryanair Ltd. EasyJet is in a better financial position than Ryanair. https://www.easyjet.com. 1 millions allowed the company to make an unprecedented profit on regular functions. 46%, 13. Ryanair enjoys a dominant market share in the European low-cost airline market because it was among the first companies to adopt this strategy in the region (Malighetti et al. Ryanair in particular has had a major role in the development of secondary and regional airports in continental Europe. It created a huge demand for the airlines services because it attracted price-conscious customers who would have chosen alternative modes of travel, or failed to travel at all, because of the high costs of air tickets. Bargaining power of suppliers EasyJet being a low fare airline may have disadvantages regarding the availability of the best air routes which will be taken by larger airlines. The trend remains same in the given years for both the airlines in the Net Income ratio. Thus, it is apparent EasyJet generates more value for the shareholders. It also flies to more than 180 destinations in Europe (Mayer 2008). 59% of the total revenues as operating profits for the same three years. The overall management of both these airlines has been good and so much so that these have emerged to be the two top low fare airlines in the European market in spite of all competitions, adverse economic conditions and environmental adversities. WebDiscover how Lions Financial provides expert analysis and risk management for Ryanair investments. easyJet, along with Ryanair, is concerned about the impact of the French air traffic strike but has reason to believe in a high-demand future. Stringent laws regarding safety and air traffic rights put financial pressure on low-fare airlines like EasyJet. WebRyanair in comparison to Easyjet has increased its turnover to 2,171 million (2008) for only $11.00 $9.35/page. Complementing its direct sales strategy is the paperless booking model. It operates almost 1,000 short-to-medium-haul routes in and around the continent.

Gojet Airlines Flight Attendant Requirements, Is Wearing A Bolo Tie Cultural Appropriation, Dimitri Snowden First Wife Claudette, Articles E