Reply To: BA T5 First lounge…disaster.Back to Forum
If satisfaction does not drive retention, then what does? I think you picked the wrong measure, per Martyn Sinclair’s comment at 29/05/2013 19:41 GMT
Your post is an interesting line to take, but let’s consider the facts.
British Airways is only about 11 years older than Ryanair and the latter has a larger fleet size, by about 50 aircraft.
I would challenge you to justify how Ryanair, with a track record of neary 30 years and which carries more passengers than British Airways and has a much larger fleet, is a ‘Challenger.’ A more reasonable assertion is that it is an innovator who left British Airways in its wake some time ago..
The facts show that Ryanair is a very successful and established airline, over a sustained period of time, adjusting its operation from an under performing ‘me too’ scheduled airline with business class and economy model to a no frills operation.
This decision took vision and courage by the board and underpins the most consistently profitable airline in Europe today; the legacy carriers could have made similar choices, but did not, so faint heart never wins fair lady. If Ryanair had not makde the switch, it is likely the company would not have survived Gulf War 1 (yes, it had been in operation for 5 years by then,)
“And BA is focussed on higher margin, low volume premium customers, which makes even its more modest increase more relevant. Ryanair, like most LCCs chases the high volume, low margin market.”
This comment shows a lack of appreciation of Ryanair’s strategy, it is a company that focused on its cost base, but one should not assume that this always means low margin business, the company has the ability to use the cost base to price according to its strategy for a particular market, as well as making tactical decisions. The airline’s very high contribution from non-flying activities is also a significant part of the profitability, highly innovative.