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Low Cost or Luxury – Can the low cost short haul airline model be transferred to long haul operations with specific reference to the case of Ryanair?

McCarthy, Catherine (2015) Low Cost or Luxury – Can the low cost short haul airline model be transferred to long haul operations with specific reference to the case of Ryanair? Masters thesis, Dublin, National College of Ireland.

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Abstract

The emergence and subsequent dominance of the low cost carrier has revolutionised the airline industry. However, for the most part low cost carriers have only operated on short haul routes. This paper carries out a qualitative assessment on the low cost short haul business model and a quantitative analysis on whether or not it can be successfully transferred to the long haul market. Taking Ryanair as an example of a very successful low cost short haul carrier, this dissertation develops a feasibility study, including a profitability analysis, on the applicability of Ryanair’s low cost short haul model to a long haul route. The results of this research show that some but not all of the main elements of the low cost carrier model can be successfully transferred to long haul airline operations. The results highlight that the move for a low cost carrier, in this instance Ryanair, to long haul operations appears to require substantial cost reduction, a large injection of capital and considerable cultural change. Another important finding of the study is that if Ryanair were to move to long haul operations it would no longer be able to adhere as rigidly to the low cost carrier model. Instead the evidence suggests that it would probably be transformed into a type of hybrid model between a full service and low cost carrier, such as a network specialist, product specialist or pricing specialist. This paper expands on previous studies by attempting to answer the question of the financial viability of a transfer of the low cost carrier model to long haul operations. Because this dissertation uses industry averages and published data, further research with access to unpublished airline costs and revenues is needed.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HD Industries. Land use. Labor > Specific Industries > Aviation Industry
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management > Strategic Management
Divisions: School of Business > Masters of Science in Management
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 10 Oct 2015 11:47
Last Modified: 10 Oct 2015 11:47
URI: http://trap.ncirl.ie/id/eprint/2026

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