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Peripheral market entry, product differentiation, supplier rents and sustainability in the deregulated European aviation market – a case study

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  • Barrett, Sean D.

Abstract

Ryanair, in its net margin and passenger numbers compared with its national airline, is the most successful new airline in Europe. The history of the airline is examined briefly and the Ryanair product is analysed. The airline has developed a very low fare product with high staff productivity. It has also tackled costs to airlines of services such as airports, handling, reservations and ticket retailing. Ireland’s island location was an attractive base for a low cost airline and rapid traffic growth has resulted from Ryanair’s entry to the market. The paper examines the sustainability of the low fare Ryanair product in respect of passenger preference, labour markets, and external costs such as airports and reservations. The optimum regulatory environment for the successful operation of low cost airlines is examined in the light of the Ryanair experience.

Suggested Citation

  • Barrett, Sean D., 1999. "Peripheral market entry, product differentiation, supplier rents and sustainability in the deregulated European aviation market – a case study," Journal of Air Transport Management, Elsevier, vol. 5(1), pages 21-30.
    • Handle: RePEc:eee:jaitra:v:5:y:1999:i:1:p:21-30
    DOI: 10.1016/S0969-6997(98)00033-7
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    Cited by:

    1. Barrett, Sean D, 2001. "Market entry to the full-service airline market — a case study from the deregulated European aviation sector," Journal of Air Transport Management, Elsevier, vol. 7(3), pages 189-193.
    2. Barrett, Sean D., 2006. "Commercialising a national airline—the Aer Lingus case study," Journal of Air Transport Management, Elsevier, vol. 12(4), pages 159-167.
    3. Kim, Myeonghyeon & Bae, Jiheon, 2021. "Modeling the flight departure delay using survival analysis in South Korea," Journal of Air Transport Management, Elsevier, vol. 91(C).
    4. Barrett, Sean D, 2000. "Airport competition in the deregulated European aviation market," Journal of Air Transport Management, Elsevier, vol. 6(1), pages 13-27.
    5. O’Connell, John F. & Williams, George, 2005. "Passengers’ perceptions of low cost airlines and full service carriers: A case study involving Ryanair, Aer Lingus, Air Asia and Malaysia Airlines," Journal of Air Transport Management, Elsevier, vol. 11(4), pages 259-272.

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