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Ryanair and EasyJet
Ryanair founded in 1985 by the Ryan family, was original low fares airline with a share capital of £1, a staff of 25 and carried 5000 passengers, are based on Ireland now according to www.ryanair.com. By today Ryanair is one of the Europe’s biggest low cost air companies and in the current year Ryanair will carry 50m passengers on 563 low fare routes across 26 European countries. Ryanair have 23 European bases and by the end of in March 2008 Ryanair will operate a fleet of 163 new Boeing 737-800 aircraft. Ryanair currently employs 4,800 people, comprising over 25 different nationalities(www.ryanair.com). Company operates by low cost/price strategy in high level and in May 2007 was the first air company in history giving away 1 million tickets for free. The company reduces its cost and increases its incomes in all the possible ways – starting by no frills policy and finishing by large offer in extra services (e.g. starting by mobile services and ending by transport and hotel services.)(Ryanair 2006; EBSCO, Euromonitor 2007)
EasyJet (founded by Sir Stelios Haji-Ioannou in 1995)(www.easyjet.com) based on London Luton airport, have been following Ryanair low-cost strategy model and succeeded in Europe becoming a biggest competitor of Ryanair (Siobhán 2005). However EasyJet holds 37.01% market shares, where Ryanair is keeping close by 28, 70% in the low-cost airline industry in Europe (Venerdì 2005). EasyJet are operating domestic and international scheduled services on 307 routes between 80 key European cities (Flight International 2007),…
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