RyanAir (311-020-1) and Air Asia (9B08M054 2008)

1. Ryan Air
1. Founded in 1985, alternative to Air Lingus, rough start, now owns 30% of Air Lingus
2. CEO Michael O'Leary since 1991, Branson-esque stunts (including tank driving!!)
3. 1990's turbulence clarified current business model based on SouthWest
4. 1997: Dublin Stock Exchange IPO, traded Dublin, London NASDAQ
5. 44 bases, >1200 routes in 27 countries, 160 destinations (2010)
6. Competitor and family controlled EasyJet (p16) serves 27 countries, largest budget airline
7. Point to Point routes only, allowed it to avoid main airports
8. Dublin and Stansted are busiest bases
9. 8th Largest Airline in the world (2010)
10. Operates one type of Airplane: 256 Boeing 737 
11. 261,000 passengers carried per plane!!
12. 9500 passengers per employee
13. 25 min. turnaround time at the gate (page 4)
14. 7000 Employees (2010)
15. 2007: Attempts to purchase Air Lingus
16. 2009: BAA ordered to sell off operations in anti-monopoly judgement.
17. 35% of air travel goes to budget carriers like Ryan Air
18. 2010: suspended no-dividend policy with one time pay out of 0.5B Euros. Again in 2013
19. 
    
2. Differentiation
1. Marketing
1. Free Publicity
1. International Awards/Recognition
1. Best Managed Airline
2. Drivers of Change
3. Most Profitable (Air Transport Magazine)
4. Largest Passenger Count (IATA)
2. Controversial and topical advertising, press conferences and publicity stunts
2. Web advertising
1. internet bookings (99%, Page 7 bottom)
2. 
   
2. Strategy
1. First Mover Budget Airline in European Market
3. Risks
1. Fuel Prices, hedging risk (page 3 bottom)
2. Government imposed taxation (page 7 center) CO2 regulation (page 12 bottom)
1. BAA
2. Dublin
3. National Favouritism (Air France, p13)
3. passenger compensation (eg. for missed flights)
4. passenger perception
5. employee compensation
6. state of the economy
1. $2.5B 2010 industry profit
2. French based staff (page 13 top)
3. non-union
4. Air Asia
1. 79 Airbus aircraft, 11.8 million passengers, hub in Kuala Lumpur (KL)
2. serving a market of 500M, "Now Everyone can Fly!"
1. comparitively large marketing expenditure (TV, print, internet)
2. Football and F1 sponsorship
3. 2004 KA->Phuket
4. 2007 Asia-X begins long haul routes (Branson backed)
5. 2008 ROA of 4% (despite financial crisis)
6. 25 min turnaround time, point to point service
7. Tony Fernandes, Conor McCarthy (Of Ryan Air)
8. Strategy: hybrid model combining cost performance of Ryan air with SW's customer focus and EJ's branding strategy
9. Outsourced non-core activities.