EasyJet and Ryanair Financial Analysis | SpeedyPaper.com The company chose this strategy because it did not believe that these services contributed to customer satisfaction (Kew & Stredwick 2005). PESTEL analysis, Porters 5 forces, a summary strength and weakness analysis, various key financial ratios for comparison and eventually conclude by giving a general recommendation of findings. Legal In the EU, due to deregulation policy, there are less restrictions regarding entry of new airline ventures which means governments strict control over airlines have been modified to provide new opportunities for new airlines leading to free competition. The total revenue for Ryanair has grown by 21% and 47% over 2010 levels for years 2011 and 2012, while for EasyJet the total revenues have grown by 16% and 30% over 2010 for years 2011 and 2012. However, this scenario has changed in recent times because of availability of price comparison websites like Orbitz, Travelocity, MrJet or Priceline which allow customers to compare air fares and customer services of different airlines (Sorenson, 2005, p. 65). easyJet PLC has a consensus rating of Hold with an average target price of 12.42. The growing rate of employment can have both positive and adverse effects on EasyJet and Ryanair. There are other infrequent environmental issues like volcanic eruptions from which ash can emit and disrupt airspace in Europe as witnessed recently with Eyjafjalla volcano. Threat of substitutes This force is not much applicable to aviation industry especially if the airline is a low fare one like EasyJet. Figure 38 days sales uncollected development an - Course Hero Compared to other leading airlines in the short-haul market segment, the two airlines are among the top ten aviation companies with the highest passenger numbers in Europe. Dobruszkes, F. 2006, An analysis of European low-cost airlines and their networks, Journal of Transport Geography, vol. Your privacy is extremely important to us. Jet2, Ryanair, and Easyjet are other dominant airline companies in this category. In line with this low-cost strategy is a simplified pricing structure. WebAn Analysis and Assessment of easyJets Strategy and Options 60 despite of its efficient operations rather low EBIT and EBITDA margins, returns on equity and on invested capital as compared to its peers. EASYJET In this regard, it strives to offer convenience to its customers by operating in major airports around Europe. Ryanair, EasyJet Make Progress on Pandemic Recovery Expansion Comparatively, Ryanair commands 40% of the market (Air France 2011). 24 from 2010 to 2012. Regular review is done by management to monitor demand of flights (Ryanair: Annual reports and financial statements 2010, pp. This is the biggest market share in the European low-cost airline sector. 11 in 2010 to 0. The target price is lowered from GBX 370 to GBX 350. Evidence of this fact emerges in Paris as a common destination for both airlines. Ryanairs net income after tax has been growing at a healthy rate and is almost twice the yearly percentage growth of EasyJet. More recently, Ryanair has reduced the number of flights that travel over German routes because of the new eco tax imposed by government which can drastically reduce the level of profit. These strategic factors made the airline more profitable than other flag carriers did.
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