Thursday 19 December 2013

EasyJet vs Ryanair: Rivalry in the sky

EasyJet vs Ryanair--a long-time rivalry in the sky is simmering once again as budget carrier EasyJet soars to new profit heights and competitor Ryanair's profit falls for the first time in years.

2013 was a brilliant year for EasyJet. Its well-received 'Generation EasyJet' campaign has expanded brand awareness across Europe and put its customer-oriented moves into the spotlight. More and more of its flights use major airports instead of out-of-the-way secondary airports. Rather than having a last-minute crush for seating, passengers can now check in via mobile and receive boarding passes the same way. Combine the new convenience with the low fares, and EasyJet is flying high as a brand and as a business.

For Ryanair, 2013 was not so brilliant. Even its own execs say it's 'the airline everyone loves to hate'. The chief financial officer comments: 'We cannot offer low fares without having a really low-cost base. So if that means we have to get up in the morning and have a fight with everybody, we will'. In the past, passengers would endure brusque employees and airport inconvenience to save a lot of money. Not these days. Competition is so fierce, and Ryanair's service reputation is so poor, that chief exec Michael O'Leary has cut excess baggage fees and is taking other steps to try to win back customers--starting with thanking customers for their business.

How will this long-time rivalry evolve in 2014?