Virgin

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| |Ryanair Case Write-up|
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| |I have abided by the University honor code on this assignment. |
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|Authors: | |
|Philip Larson | |
|Satyan Merchant ||
|Michael Cheung | |
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What is your overall assessment of Ryanair’s launch strategy?

The Airline Industry in General is Unattractive
Generally, the airline industry is not very attractive. As noted in Exhibit 1, profitability of European airlines was very volatileand generally negative from 1970 to 1985. Much of this was to be expected given the nature of the industry. Barriers to entry are fairly low in this business, as deregulation made it easier for new entrants to lease planes and pick off the more profitable routes of the major carriers. Moreover, airports are public property so new airlines could get access to gates and resources. In addition...