Date of IPO 2000 1997
Passenger Numbers 20.3m 15.7m
Number of Staff 3,453 1,897
Aircraft 73 67
Routes served 109 133
Source: http://www.easyJet.com, http://www.Ryanair.com
Comparative Key Financial Data
EasyJet (£) Ryanair (€)
Share Capital 758,461,000 563,732,000
Earnings per share 8.24pence 31.71cents
Operating revenue 931.8m 842.5m
Retained profit 32. 4m 239.3m
Source: Company Accounts 2004
Both airlines have adopted similar business models and strategies. Key common features of the business model of both companies are:
Point to point services
Strong visible brands and market awareness
Minimum service
Dynamic fare structure (early booking = cheaper fares)
Direct (low) distribution costs (over 91% of EasyJet’s tickets are purchased over the Internet)
A highly utilised aircraft fleet
However, some differences between the two do exist. For example, Ryanair achieves significant cost savings by utilising landing slots at less attractive secondary airports. On many routes, this strategy avoids direct competition with the traditional carriers, as the target traffic is different. Easyjet has another business model. While generating a similar traffic stimulation effect as Ryanair, the carrier appears more focused on existing O&D markets and business traffic. Flying out of mainline airports means a higher cost base, but also better yields compared with Ryanair.
There are however a number of other players in this market which although seem to hold lesser market share are piggybacking on the success of the likes of Easyjet and Ryanair. These include the following airline companies:-
Source:
With the burst of internet related flight bookings and travel purchases the industry has really taken technological change.
The above ten airlines are in-fact the selected few that operate in this vast European market of internet booking travel. Such companies as Germanwings, HLX, AirBerlin, etc are operate now in Europe under this no frills scheme all competing for the same thing but in different geographic sectors.
The travel industry has evolved in such a way, where for the better part the Travel Agent is being rendered obsolete. Due to lower overheads and commitments such as shops, and fully manned call centres this has allowed the price of air travel and package holydays to become more palatable and affordable to the consumer.
As the internet was adopted on a larger and larger scale, people started to become accustomed to ordering, booking and paying for goods and services online. This has ultimately led to a consumer power which has resulted in a radical change in the travel industry starting from the consumer and ending up all the way to the provider.
I believe this has and can only be in the future healthy for competition and beneficial for the consumer.
