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Dogfight Over Europe : Ryanair
Ryanair's strategy is mainly focused on low costs and increase in market demand The current market is a stabilized market, with a duopoly amongst the two strong players: British Airways and Aer Lingus. Both airlines established routes in the lucrative Dublin - London markets and tap on profits from this route to finance their other less profitable operations. The demand for air travel between the Dublin and London has probably stabilized over the 10 years from
to London sector to sustain its other less profitable operations. There would probably be a subsequent increase in the demand for air travel from the pool of customers that used to travel by ground transportation due to the attractive fares and services offered by the airlines. The real challenge for Ryanair would probably come in the long run when the air carrier, and possibly the ground operators will start to make losses from the price-war.
