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

Sean D. Barrett

Journal of Air Transport Management, 1999, vol. 5, issue 1, 21-30

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.

Keywords: Deregulation; Productivity; No frills; Island location; Secondary airports; Sustainable contestability (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:5:y:1999:i:1:p:21-30

DOI: 10.1016/S0969-6997(98)00033-7

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