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South West and Ryanair

Essay by   •  March 13, 2016  •  Research Paper  •  330 Words (2 Pages)  •  748 Views

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COMPARISION

Considering another airline industry knows as Ryanair airlines functioning in Europe, is another example of a firm which uses cost as a competitive advantage. Ryanair’s production of capacity and cost of traffic is less than that of any other competitors. If the costs are low, eventually it leads to low fares on a profitable basis. To make the journey more comfortable and delightful, Ryanair added few extra services and Ancillaries for satisfaction of customers. These facilities led to increase in revenue by reducing the operational cost. It is the largest short-haul network for carrying the passengers or goods from one place to another in Europe. Ryanair competes mainly on price strategy that plays a vital role in the airline industry.

Maintenance cost:

Both South West airlines and Ryanair manufacture a similar kind of flights. Manufacturing same flight reduces maintenance cost as making of the new flight is given to the same company due to which they get huge amounts of discounts.

Labor and Training cost

Manufacturing of similar flights reduces the training cost as same servicing is required for all the flights. This reduces the spending as have to train their employees on how to operate one particular type flight. 

Cost focus

The main priority of both the airlines is to reduce the cost by not hampering customer satisfaction.  An Increase in the cost of any operational strategies does not influence the cost of ticket fares of both the airlines.

Secondary airports

Reduction in service time also leads to reduction in cost. Therefore functioning in secondary airports leads to saving time and reaching the destination as early as possible due to less traffic.

Meals on flight

In southwest airlines meals are not served on flights whereas on Ryanair airlines meals are served on flights if we pay for it. Buying meals on flight is not a compulsion for people travelling on Ryanair airlines.

Most of the operational policies made by southwest airlines have been implemented by Ryanair airline, which proved to be successful for both the airline industry.

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