Scientific Research Institute of

Behavioral Psychology (SRIBP)

CAN LOW COST AIRLINES BOOM IN
THE AVIATION INDUSTRY TO REACH
LONG HAUL DESTINATIONS
(The Case study of Ryanair)
RESEARCHERS: RIFFAT FAIZAN, HARRITH VIJAY,
& ADNAN UL HAQUE
August 2014
Word count: 7,001

Abstract
This research project is carried out to investigate the possibility and expansion chances
for the low cost airlines in the long haul destinations, under the case study of RYANAIR.
The researcher has used hypothetico-inductive-deductive model in order to explore the
growth and opportunities for the selected company by circulating survey questionnaire
and interviews with the staff and management.
The results showed that there are certain barriers for the low cost airlines to enter in
long hauls. Despite these barriers, there are chances of making high profit. The
perception of people is that low cost airlines are value for money with moderate quality.
However, low cost airlines are not considered as excellent one because it is usually the
preference for people who wants to travel for less price and quick trips.
Present study has certain limitations such as time constraint and small sample size
therefore the results cannot be generalized to all low cost airlines, apart from the
selected case study.



Sr. Table of Content Page No.
Abstract 2
1 Chapter 1 : Introduction
1.1 Background and Context
1.2 Overview of Company
1.3 Aim
1.4 Objectives
1.5 Research questions
1.6 Significance
1.7 Review of chapters
5
2 Chapter 2: Literature Review
2.0 Introduction
2.1 Theories
2.2 LCC network routing system
2.3 LCC strategies, variables and operation
model characteristics
2.4 LCC model in long-haul airline operations
2.5 Summary
9
3 Chapter 3: Research Methodology
3.0 Introduction
3.1 Research Design
3.2 Research Philosophy & Approach
3.3 Sampling Technique
3.4 Population and Sample Set
3.5 Research Instrument
3.6 Data Collection Process
3.7 Primary Data
17
3.8 Secondary Data
3.9 Data Analysis
3.10 Validity
3.11 Ethics
4 Chapter 4: Finding Analysis
4.1 Introduction
4.2 Survey Questionnaire
4.3 Summary of Interviews
22
5 Chapter 5: Results and Discussions
5.1 Introduction
5.2 Discussing present findings with previous
researches
31
6 Chapter 6: Conclusion
6.1 Introduction:
6.2 Conclusion
6.3 Research Limitations
6.4 Future Implications

33
Bibliography 35
Appendix 1 (Interview Sample)
Appendix 2 (Survey Questionnaire Sample)
Appendix 3 (Company Credentials)



CHAPTER ONE: INTRODUCTION
1.1 Background and Context:
The study conducted by Button (2012) revealed that there are certain reasons behind
the failure of the short haul low cost airlines reluctance while entering into long haul
routes. In the recent times, Europe has suffered from major decline in its economy due
to recession in 2008 but tourism industry is one significant contributor to the GDP of
different countries in Europe. In times of crises, tourism sector has given significant
support to the economy; this is where aviation industry is linked as a subject of interest.
From the European Aviation Authorities (EAA) report was issued that confirms strong
revenue growth by airlines towards GDP (BBC, 2011). Based on the fact, it is significant
to find about the good performing airlines' future in the long haul that whether they can
boost and prosper in the long haul as it has done in short haul.
1.2 Company Overview:
As per official site of Ryanair (2012), it is Irish airline established in 1985 with a strong
low cost airline image. Within 12 years of its operations, it has expanded its operations
into other European countries with short haul. Today, it is regarded as leaders in the
lost cost airline, as in 2009 it was carrying more than 66 million passengers in entire
Europe (Ryanair, 2010). As per Button (2012) there is no doubt that company's
strategies and policies are effective and efficient in successful transformation of ongoing
operations. Despite being a leader in low cost airlines, it is not willing to experiment with
long haul on regular basis in other far continents.
Ryar Airlines is one of the pioneers of original low-cost operating model and were the
first to effectively implement the model as well. The low-cost model is distinguished their
selves through product specification and operating features. The product features
consisted of: (a) low, straightforward, and unobstructed fares; (b) high frequencies; (c)
flights operating on point-to-point factor; (d) no interlining; (e) effective use of travel
agents and call centers to encourage ticketless travel; (f) single-class, high seating
compactness ; (g) no seat assignments; and (h) lack of meals or free alcoholic drinks.
Some of the operating features consist of: (a) solitary aircraft style with greater
utilization, (b) secondary or uncongested airports provided with short aircraft turns, (c)
short sector length, and (d) competitive salary with the concept of profit sharing and
high productivity (Alamdari & Fagan, 2005). On the other hand, the Southwests
business strategy has develop over the past 40 years, indicating that the low-cost model
has proven to be effectively utilized by various airlines worldwide.
1.3 Aim:
The aim of present study is to investigate "can low cost airline boom into aviation
industry to reach long distance destinations".
1.4 Objectives:
The objectives of the present study are as following:
To critically investigate the models and theories related to low cost airlines in the
expansion of Ryanair's approach for advancing into long haul routes.
To carry out a survey in order to investigate the perceptions and expectation of
the passengers regarding Ryanair's opportunity for long haul routes.
To investigate the factors that causes a blockage in the transformation of short
haul routes into long haul routes.
To recommend operational and marketing strategies to Ryanair for further
improve on its present working efficiencies.
1.5 Research Questions:
Question 1: "What is the possibility of successful transformation from short haul to long
haul for Ryanair"?
Question 2: "What are the main obstacles that hinder Ryanair from stepping into long
route destinations"?


1.6 Significance of research:
Since recession the approaches and strategies of the aviation business has changed to
large extent, therefore it is essential to carry out a research to gain the insight about
research problem in aviation industry in the constantly changing environment.
Furthermore, there is limited literature on this topic which increase the significance of
the research project as it will serve a strong foundation in shape of managerial
literature. In addition to that, all previous studies related to 'low cost airlines' are uni-
dimensional in nature. The entire previous studies related to low-cost business model
included only consumer's perspective whereas present study include a very significant
factor of interviewing with the management of the selected case study to explore their
perspective and approach in relation to research questions.
1.7 Overview of the dissertation:
This part of the dissertation explains the structure of the dissertation by giving idea to
the reader about upcoming next chapters. The structure of the present research project
is as following:
1.7.1 Literature Review: This chapter contains the models and theories related to low
cost business models. The work of previous studies is critically examined to reflect the
research variables of present study in their work. It serves as an important foundation to
generate data for the present study.
17.2 Research Methodology: This is third chapter of research project that justifies
researcher's approach in the present study to carry out investigation. This chapter
mainly discusses the research process, design, sampling size, research instrument,
research ethics, and limitations.
1.7.3 Data Findings: This chapter reflects the findings of the present study generated
from the primary sources by using research instrument. The results of survey
questionnaire and summary of interviews with the management are included in this
chapter.
1.7.4 Analysis and Discussions: The part of research project compare the present
findings with the available literature. The analysis and discussion is made to ensure that
whether the findings are consistent or differs with previous findings.
1.7.5 Conclusion: This is final chapter of research project that concludes the research
work. In this chapter, researcher summarizes the findings to ensure that all research
objectives are accomplished. Furthermore, this chapter also contains research
limitations, followed by future implications and consideration.













CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction:
This part of the dissertation contain theories and models related to research problem
and evaluate the previous findings. Literature reviewing is in actual an activity that
begins before actual research and continues until research aim has been attained
(Sekaran, 2010). Therefore, it is vital to review the work of the other researchers in
order to generate the data for present investigation.
2.1Theories:
The past research, Alamdari and Fagan (2005) suggested that over the period of time
industry has experienced disappearance of Southwests original model in search of
attaining a competitive advantage, However, the more an LCC stays connected with the
original model, the elevated operating margin can be accomplished. Francis,
Humphreys, Ison, and Aickien (2006) support the findings further.
The businesses that have attained few low cost characteristics of the Southwest model
tends to have higher tendency to fail. The authors do predict an ongoing success of the
low cost concept of Southwest model however the airline industrys turbulence is
complicated that often restricts the effective forecasting for individual low cost airlines.
(p. 93)
The original low-cost model pursues a cost leadership strategy where an airline is set to
establish low cost operating producer in the industry through the sell of standard no-frills
product. The great emphasis by such companies is on the reaping scale or advantage
of absolute cost from various and all sources (Alamdari & Fagan, 2005). Majority of the
LCCs at present has focused on using a differentiation strategy through which an airline
ensures to accomplish a unique standard and sustain diverse range of dimension that is
perceived valuable by buyers in broader prospect. The in exchange of the uniqueness
the premium price is attained as a reward.
Regardless of the deviating from the original model, LCCs have yet not accomplished
a price premium as a reward for extra service offerings they provided (Alamdari &
Fagan, 2005, p. Of 380).Worldwide LCCs, Europes Ryanair operating system includes
majority of the operating and product features that are similar to the original model
along with the greater operating margin (Alamdari & Fagan, 2005).
An comprehensive understanding of Ryanairs operating and products characteristics
assist to demonstrate how adherence to the low cost model is a significant facto.
Ryanair in fact is an authentic low cost and no frill LCC, with a firmly operating on
point-to-point system, overall economic configuration with no seat portion at check-in,
with no selected cargo facility, no in-flight frills and certainly no frequent flyer program
(Alamdari & Fagan, 2005, p. 383). Furthermore, Ryanair provides internet and call
center ticket sales, eliminating the need travel agent distribution mode.
Additionally, Ryanair pursues the original model in its all entirety which is relevant to the
operational features. Fleet unity provides airline with greater flexibility for effective
deployment of crews, normalizing the ground equipment requirement, leads to minimal
maintenance costs, and minimizing the training requirements and costs (Alamdari &
Fagan, 2005, p. 383). Extensive utilization of aircraft with 25 minute average turns with
diminutive stage lengths, as well as servicing uncongested secondary airports, all
assist to enhance the Ryanairs productivity (Alamdari & Fagan, 2005).
Research performed by OConnell and Williams (2005) measure the passengers
selection criteria between the full service airline and low cost carriers. On average, the
fares of LCCs were 40 to 60% inferior to full service providing competitors. Ryanairs
fares were extensively low stimulating the markets, which is often unthinkable for the
other carriers. As per OConnell and Williamss findings, The presented evidence affirms
that basic differences in passengers perceptions towards incumbent and low cost
airlines is that they often select low cost carriers chiefly because of the lower fares they
offer, whereas passenger selects full service airlines due to the additional services
provided (2005, p. 271) Their study further confirmed that the brand reputation has been
established by the low fare airlines where 65% of passengers do not consider alternate
carrier when booking travel (OConnell & Williams, 2005).
Particularly, In exchange for higher fares travelers are often willing to connect through
secondary airports and consider no frills. The counteractive strategy for retaining
customers is offering a wide and complex range of airline products. OConnell &
Williams, 2005, p. 271)
Ancillary revenue, In present years, ancillary revenues has been playing a fundamental
role in the airlines profit. As per Amadeus Review of Ancillary Revenue Results, airlines
generated $22.6 billion alone in year 2011 which has been a increase of a 66%
increase from 2009 (Lovitt, n.d.).
Budget and Low-cost carriers were acknowledged as ancillary revenue champs using
ancillary fees to generate 20% of revenues (Fallert, 2012). Ancillary revenues are
produced through unbundling pricing and establishing three types of fees: (a) a la carte
items, (b) through partnership providing commission-based items (c) frequent travel
programs (Fallert, 2012). As per Fallert (2012), There are various reasons an airline
considers unbundled pricing: (a) internet and fare search engines significantly enhances
the pricing transparency and the tickets face value has become the driving factors
towards customer purchasing behavior, (b) The oil and jet fuel prices stays elevated
impacting the airline profitability, (c) airlines endorse the concept of that unbundling
demonstrates the advantage for the client as they are only charges for the services
they choose, and (d) ancillary fees symbolize a greater revenue potential with
unexpected margins.
In the recent years, there has been an increase in LCC concept has been supported by
the high stress within the aviation industry and airlines market produced due to the
sudden fluctuations of economic conditions (Aldamari and Fagan, 2005). The LCC
model makes reference to the low-cost scheduling airlines or no frill sector. The main
customer criteria of LCC is its leisure and business passengers (Williams, 2002).The
liberalization and deregulation has significantly assisted LCCs to attain market share
and generate profit. Customers of LCCs are given greater accessibility to travel with
the low price offering (Gillen and Ashish, 2004). During the past years, LCCs has
expanded approximately at 25% per annum with the region of EU. In addition the
carrying nearly10% of short-haul EU flights, which is the fundamental part of their main
business. By 2010 LCCs were expected to increase and carry over 33% short-haul
flights in the market, what demonstrated a significant opportunity for airports to enhance
their revenues by providing service to LCCs (Graham, et al 2003). Figures 1 and 2
illustrate how effective and successful low-cost model have been in the short-haul
airline industry. At present, some LCCs are operating in long-haul markets, such as
Austraila JetStar servicing Far East. As per Forsyth (2007) it is possible to LCCs
probably will appear in the long-haul market in future.
2.2 LCC network routing system:
The fundamental strategic approach is to provide short-haul point-to-point services
(Gillen and Ashish, 2004). LCCs has place focus on their traffic flows approximating a
careful number of major nodes (Reynolds-Feighan, 2001). These nodes establish the
LCCs point-to-point routing network system.
The most of LCCs palce focus on point-to-point flights however some LCCs such as
AirBerlin utilize HS network system. Usually LCCs does not place emphasis on traffic
connection, even though they exist in it, but passenger must accomplish it by
themselves (Gillen and Ashish, 2004). As growth enhances, few LCCs network
consisting of point-to-point comes under quasi hub-and-spoke system, with one way
fare only (Aldamari and Fagan, 2005). This contributes to expand LCCs networks
expansion and augment their destination number through making independent flights
(point-to-point) to a hub (Aldamari and Fagan, 2005). Several LCCs can provide
connections in combination with the original one-way fare in order to be effective in
serving various origin/destination points that is not connectable through point-to-point
system.
2.3 LCC strategies, variables and operation model characteristics:
The main attribute of LCC business model is its cost reduction costs and fares largely
(Hunter, 2006). The main operation strategies of aircraft in order to be low-cost carrier
are: reduce turnaround times, augmented flying hours, effective exploitation of aircraft
utilization and increasing the number of aircraft seats to maximum availability.
Ryanair is one of the highly profitable LCC carriers in EU region and it is the bordering
model to the innovative Southwest model: there is no evident provider of services in
terms of food, jet ways, refunds, frequent flyer programs, print tickets, travel agents and
connections. Duty free and food items are sold on board (however EasyJet does not sell
any duty free items on baord). The tickets are sold in direct manner through internet or
call centers. Some the adapted strategists of LCC to enhance their revenues are:
utilization of the seatback trays for advertisement, aircraft exterior and head rests.
There is also an offering of travel insurance, travel reservation and car rentals.
The application of operation strategy apply by few airlines such as Raynair and
EasyJet is outsourcing everything excluding their airline pilots, cabin crew, head office
function staff, reservation agents, and in some instances the maintenance staff. The
strategy enables airlines to expand aggressively while sustaining advantage in
negotiation with airports and documenting long term contracts. Whereas, other LCCs,
such as Southwest, do not outsource their operation and look for common labour
awareness, loyalty and excellence in quality service (Gillen and Ashish, 2004).
Low-cost airlines utilize general aircraft type for their flight operations such as a unified
fleet B737. At the present, several airlines have shifted their operation strategy , for
instance, EasyJet operates a second fleet A319s instead of B737 due to the attractive
price and enhance the operation costs.

LCC Characteristics: LCC Model Strategies
General strategy Size Operation costs reduction and cost
leadership
Operational mode:

Southwest, EasyJet and Ryanair are some
of the big airline but generally LCC airlines
are smaller than FSC airlines, offering
Point to point, no connection, short-haul
(400 to 600 nautical miles). Consistent
aircraft type (Boeing 737) greater seat
compactness and high capability
utilization with short turnaround time
Market:

Contemptible air travelers market sector,
choice of flight with greater booking time.
Minimum flight change flexibility to change
flights, No food and drinks during flights,
usually use secondary airports, Several
carrier outsource ground service
Inventory Management: E-Ticket or ticketless travel, elimination of
agency. Using internet booking or direct
Table 1: LCC Characteristics and Model Strategies
Usually, LCC flies from secondary/regional airport to another secondary/regional
airports, however in the present day few LCCs serve main airports (hubs) for instance,
Amsterdam Schiphol to service their business passenger (Gillen and Ashish, 2004). To
establish and distinguish theirselves various LCCs such as WestJet has added light
snacks, a small assortment of beverage and seat selection at check-in. Whereas
Ryanair sells in-flight services for additional cost (Guillen and Morrison, 2003). In fact
each and every LCC has established their individual cost leadership, differentiation and
focus strategies to draw more passengers and enhance their growth.
There are various variables that impact the LCC model such as number of flights,
various destinations connections, frequency and greater number of routes based if they
are not big enough they may not be able to have augmented network to compete with
its other market LCCs or FSCs competitors (Dobruszkes, 2006).
2.4 LCC model in long-haul airline operations:
The Association of European Airlines (AEA) has established a long-haul flight that
operates more than 6 hours or more, in contrast its medium-haul (Graham, et al 2007).
It has been established that LCC model is less attuned with long-haul flights. Shorter
routes offer significant opportunities to accomplish and become cost advantage. In a
long duration or long haul operation , the flight and passengers requirement of
minimum quality in service provide can diminish the possibilities to minimize operation
costs for long-haul carriers utilizing LCC strategies. Moreover, in various short-haul
strategies, for instance, seat pitch size present challenge in effective application in a
long-haul operation. FSCs tend to have minimum seat mile costs in long-haul
operations comparing to LCCs in a short-haul operation. Therefore they are effective in
offering competitive long-haul fares. During the eight hours flights catering service is
required, in-flight entertainment becomes important, the number of toilets has to be sign
cant to accommodate passengers along with the greater number of baggage to be
Lastly, hubs are fundamental for long-haul flights (Humphreys et al, 2007). Whereas
FSC already are implementing and utilizing the e-ticketing and e-marketing.
LCCs avoid to carry cargo however they diminish the waiting times i.e. turn around,
Whereas FSC carry large cargo in their long-haul flights to enhance the revenues. LCC
models operate with secondary airports, whereas long-haul flights find secondary
airports challenging in terms of operations due to the lack of capacity to effectively
provide runaway and terminal service for large aircraft, Therefore the need for investing
in new infrastructure would arise costing in hiring extra crew.
Low-cost long-haul business often take place in highly leisure markets due to the
minimal demand for high frequency. Also, with the impenetrable point-to-point markets
in terms of modest market share to function one flight per day (Humphreys et al, 2007).
New airlines are implementing new and fresh low-cost long-haul strategies such as
Mytravel (extra payment for for food and entertainment), Wardair (high-quality but high
density seats), Britannia (29in seat pitch) and Emirates (full service at low fare)
(Graham et al, 2007).
The main concerns for a long-haul low-cost model is the increase in distance which
increases its operating cost while decreasing the unit costs. This is an aspect that
manipulate the cost such as : fuel burn, maintenance cost, passenger services cost,
crew cost, over-flight, security necessities, airport amenities and turn-around times,
route compactness and distribution disputes. In order to emerge successfully the long-
haul and low-cost airline must ensure its discover the advantages in these stated factors
and explore markets where lower fares can be lucrative. Some effectual characteristics
of these models are: well-built local catchment areas, prosperous leisure and VIP traffic,
recurring and economic balance, availability of peak-time slots and seven to twelve hour
length (Wensveen, 2007).
Opportunities may emerge and can be established for long-haul in combination with
solid short haul network (Hind, 2007). Long-haul low-cost carriers must emphasis on the
establishing niche markets with the likelihood of connecting with other markets
(Wenseveen, 2007).
New and advance aircraft technology such as A380 and B747-800 can significantly
diminish the unit costs undercutting the cost of seat mile. Small aircraft with high-
density outline and long-haul point-to-point operation capability such as B787 and A350
could be utilized to as a unified fleet.
2.5 Summary:
From the above literature, we have developed the concepts related to LCC strategies
and business models. By now, we understand that what are the important elements and
factors that are hindering the low cost airlines to expand in long distance destinations.








CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction:
The present chapter explores and evaluates various important aspects of the present
research and discovers the on hand analysis. The chapter initiate with the design
elaboration pursued with the philosophical aspect and approach originated to conduct
the present research. Furthermore, the research method, research style, tools and
sample size, research reliability and validity as well as pilot study is elaborated in a
comprehensive manner and thus the explanation is concluded with the ethical
consideration in the ending session.
3.1 Research Design:
The cross sectional design has been selected for the detailed exploration of the
research problems on hand. The selection of the cross sectional study is primary due to
the time subject. The research time being a extensive constrain, thus the longitudinal
research was not considered furthermore the approach would have required extensive
time. As per Saunders et al, (2009) research onion assist researchers to decide on the
suitable research method founded on the research philosophy. The research onion
structure is utilized in the present research to give details on the research philosophy
and ensure the selected method that is productive.
3.2 Research Philosophy & Approach:
The study analysis subjective nature along with the in-depth research trend
demonstrates the philosophy as positive. The philosophy assist the researcher to
establish a correlation between the on hand variables in comprehensive and detailed
manner with the in depth analysis on a present researchs subjective nature. The
approach comprises of both, qualitative and quantitative method; this method enables
the coherent incline of the research understanding of diverse range factors that exist
within the aviation industry. Thus, hypothetic-Inductive-deductive model is utilized to
ensure the attained data information from diverse range of sources are all collaborating
with the specific notion.
Qualitative approach mechanism works with detailed interviews, enabling to use
minimum time to collect the information through detail analysis, the effective technique
is fundamental for such determination (Sekaran, 2002). The qualitative research method
utilizes various tools such as well-structured questionnaire comprising of close-ended
questions. A step make certain that applied tools are implemented in an adequate
applied in an suitable manner with customized and appropriate mix that meets the
present research requirements.
3.3 Sampling Technique:
The present research sampling technique is fundamental as it allows the researcher to
consider between the two most essential sampling types, (a) probability and (b) non
probability sampling. Through vigilant analysis, the present research has selected non-
probability sampling method for its capability to be performed in a minimal time. In
addition, the researcher has utilized "Convenience based sampling" technique in the
present research. The elevated advantage is the generalization factor of the technique
that provides greater convenience for the research process to be initiated within the
outsized socio economic environment which relates with the generalized outcome.
Though, the stratified sampling technique" use would have provided sufficient results
for instance , in British Airways case due to its wider range of workforce working it
worldwide the chances of outcome generalization would have been significantly
reduced. Thus, the extensive and higher demand of the generalization requirement led
to the use of convenience sampling in the present research.
One of the research instrument used was the interviews with the management. The
technique demonstrated to be beneficial in intricate on the management prospective
and ongoing operational activities. The present research has used Value survey model"
research questionnaire. The research instrument, questionnaire was distributed by the
researcher personally among research participants to eliminate the risk of respondent
manipulation and inaccurate results.
3.4 Population and sample set:
At the research commencement, 220 respondents were considered by the research due
to the optimal population size however, 120 participants were selected for sampling
size. This was due to the difference in timeframe and huge distance leading to the
further reduction of sampling size to 100. Hence, out of 120, 100 respondents were
considered as sample set. The selected sample set was than further segmented in
three parts; Main Head quarter, St. James's-Piccadilly and Heathrow International-
London correspondingly.
3.5 Research Instrument:
The personally designed "survey questionnaire" is one of the most essential research
tool. The survey questionnaire is segmented into two parts correspondingly that is, A
and B. The initial part, part A, comprises of the demographic portrayal relevant to the
respondents background information. The segment includes five questions however the
second part , part B has fifteen questions stated on it that assist research to affirm the
association that takes place between the activities of operational management activities
and five indicators of performance and their effectiveness in accomplishing competitive
edge in the marketplace.
Furthermore, the close ended questions are kept a part of the questionnaire to keep the
research respondents connected with the topic and eliminate chances of deviating from
the sole of the present subject. Another important and fundamental significant reason
for utilizing the close-ended questionnaire is to explore the relationship between the
variables of the present research. The derived results are ranked through the matrix
degree base questionnaire, where preliminary starts options to choose from. The
present researcher applies the same rules as the research conducted by Christie, Won,
Stoeberl & Baumhart, (2003) used. This is all prepared to make certain the relationship
between independent variable and their impact on the dependent variable is considered
within the present environment this further assist to properly evaluate the moderate
variable
3.6 Data Collection Process:
The researcher of the present research gets involves personally in attainment of data to
ensure that the entire process is conducted without overlooking important aspects. The
present research age bracket was 18-55, as majority of the travelers are among the
same age group. Once the target audience was decided for the present research
analysis the attainment of the data from primary and secondary sources became
following important step in the process.
3.7 Primary Data:
The two fundamental procedures for data collection are the secondary and primary
research methods. The primary sources are the first hand data source that is reached
by the researcher to attain data information. The data from primary source is considered
more valuable as it comes directly from the contact and as less chances of
manipulation. Furthermore, the research confidence level stay elevated due to the
authenticity of the research. According to Kumar (2009) observation, survey
questionnaire, and direct interviews are some of the primary methods of collecting data
that is significantly reliable due the researchers direct contact with the research
respondents however the cost of such method is extensive. The present research
analysis consists of technique such as face to face in depth interviews and telephonic
interviews with the selected respondents to attain information in a direct manner. In
addition, another source for primary data collection is survey questionnaire, which is
utilized in the present research.
3.8 Secondary Data:
Secondary data is termed as second hand data where there is no directly involvement
of the researcher and the information is attained through information that in available
from before such as books, newspapers, journals, articles, etc. However this method is
least expensive the accuracy cannot be affirmed. The researcher has utilized both
primary as well as secondary data source to gather relevant information and data and
have adequate material to answer the research question.
The researcher uses the secondary sources to collect the information whereas the
primary source is used to reach the conclusion in the presence of essential information.
Thus, both sources, primary and secondary are utilized in present research.
3.9 Data Analysis:
Since, the present research is a mixed research, it use a combination of both primary
and secondary data sources to develop a qualitative-quantitative research approach.
Interviews gives the research a qualitative aspect whereas results attained from
questionnaire expressed numerically provides quantitative details. According to
Saliowsky (2005), in order to establish a relationship between both dependent and
independent variables, thus frequency method is considered an important tool. This
helps to explain the research purpose in detailed.
3.10 Validity:
To arrive at an authentic conclusion validly is considered a vital factor. The check is
initiated at every stage of the research to ensure results are accomplished successfully.
The researcher remains present during the distribution of the questionnaire with proper
application of the statistical tools to gather, analyse and prepare the outcome.
3.11 Ethics:
One of the most crucial aspects of any research is ethics, which cannot be
compromised. Throughout the process notion has been applied by the research. In
addition the respondents are informed in an appropriately manner on the research
process with the assurance that the attained responses will be confidential and only for
the research purpose. Moreover, the participants' names are also kept confidential to
have their privacy. The information in the appendix is only for the record keeping In
addition, the views and opinions of the participants related to their jobs are would not
be exploited.


CHAPTER FOUR: DATA FINDINGS AND ANALYSIS:

4.1 Introduction:
This chapter contains the findings generated from the survey questionnaire and
interviews with the management, crewmembers, and travel agents related to research
investigation. The findings of the survey is presented through tables and pictorial charts
in order to explain it in more transparent manner. Researcher has used simple
percentage calculation as statistical technique to have high generalizability.

4.2 Survey Questionnaire:

Q 4.2.1 Do you think Ryanair is low cost airlines?




In response to first question of survey, majority of the respondents agreed that Ryanair
is a low cost airline (95%). Results showed that 3% were not sure whereas 2% feel that
it is not a low cost airline.


95%
2%
3%
Ryanair is low cost airline
Yes
Not Sure
No
Q 4.2.2 Do you think Ryanair is suitable for only business travel and short hauls?



The findings of the present survey questionnaire revealed that 80% participants
consider Ryanair is more suitable for short hauls and business travel whereas 10%
remained unsure while 10% replied in negative.

Q 4.2.3 In which class do travelers usually sit on long-haul routes?


80%
10%
10%
Ryanair is only suitable for business travel and
short hauls
Yes
Not Sure
No
10%
15%
75%
Preference of class to travel in long haul
First Class
Business Class
Economy Class
The survey disclosed that for long route majority of respondents prefer economy class.
As evident from the findings, 75% have chosen economy class, 15% opted for business
class whereas 10% elected first class as their preference for long-haul routes.

Q 4.2.4 Are you a long-haul typical traveler?



The survey revealed that the ratio is 40-60. Findings showed that there are 40% long-
haul travelers and 60% short-haul travelers.

Q 4.2.5 How many long-haul trips per year being a typical traveler you make?

40%
60%
I belong to traveling haul
Long haul
Short haul
4%
52%
32%
12%
Travel during a year
Not sure
1-3 times
4-6 times
> 6
Large number of respondents said that they travel 1-3 times a year, which is 52% of the
sample size. From sample size, 32% remained unsure as they feel that it depends on
their business activities. Furthermore, 12% stated that 4-6 times they make whereas
only 4% make more than six trips per year.


Q 4.2.6 Do you think that Ryanair has a bright future prospect in long-haul?



From the responses, researcher has gathered from the respondents, it is clear that
majority of the sample size (65%) view that in long haul flights Ryanair, has bright
future. They can prosper in the business. Interesting 25% were not sure about this
aspect whereas 10% responded in negative.






25%
65%
10%
Ryanair bright future prospect in long haul
Not sure
Yes
No
Q 4.2.7 Rate following as your travel value?


The above table summarizes the responses received from the sample size to rate the
following options as per their travel value and interestingly, the highest number of
respondents (95%) opted for safety and reliability. Second thing that participants take in
consideration is ticket price as 84% rate it as very important. Seat comfort is third in the
category with 47%, followed by direct route (42%). In the 'not important' criterion,
Business class availability tops the table with 42%, followed by frequent flyer
programme. Furthermore, any respondent does not consider aircraft type as very
important criterion and access to lounge is not very important factor that is considered
by people in travel value.




Q 4.2.8 Rate the factors that you take in account when you are buying an airline
ticket.

Reliability and Safety is the biggest factor that majority of respondents take in account
when they opt to buy tickets (55%). It is also evident that time schedule and price of the
ticket 15% each. Moreover, 8% opted for airport location, 6% selected quality and
services whereas only 1% considered the option of traveling with national flag airline.

Q 4.2.9 What is your overall perception of low cost airlines?

60%
25%
10%
0%
5%
Overall perception regarding low cost airlines
Good value for money
An average airline
Poor Airline
Excellent Services
Not Sure
55%
15%
15%
8%
6%
1%
Considerating factor while buying tickets
Reliability and Safety
Time Schedule
Price
Airport Location
Quality of Services
National Flag Airline
The results showed that 60% of the sample perceived low cost airlines as 'good value
for money', 25% considers it as an average airline whereas 10% view it as poor airlines.
We noticed that 5% were not sure while not a single respondent perceive low cost
airline as an excellent airlines.

Q 4.2.10 Would you consider traveling with low cost airline (Ryanair) on long-haul
routes?



This question was asked in order to explore the taste, likeness and preference of
travelers for Ryanair in long-haul routes. Interestingly, results revealed that 38% opted
for 'likely' option, which means that they would like to try it. Moreover, results showed
that 30% of respondents opted for 'unlikely', which reflects that there are high chances
that people would not like to experiment traveling with Ryanair (low cost) airline on long
routes. We also noticed that 30% respondents were unsure about traveling with
Ryanair. This also indicates that there are likely chances that people would not travel
with Ryanair until it changes its total image and pattern. Only 2% decided to not answer
it.

38%
30%
30%
2%
If Ryanair started long haul services I would
travel with them
Likely
Not sure
Unlikely
No comments
Q 4.2.11 If traveling by Ryanair on long haul routes, which class would you prefer
in future.



It is evident that 76% of respondents prefer to travel by economy class in long-haul
routes by Ryaniair. Moreover, 19% stated that they would prefer business class
whereas only 5% opted for first class. This indicates that for long-haul flights, Ryanair
has a scope as they offer economy class traveling.

4.3 Summary of Interviews:
From the interviews with the management, it is learnt that the company has a strong
presence in the European market for short haul. Interestingly it is evident from
interviews and the fact that though it is low cost airline but it has never been involved in
any crashes. The company maintains a strong reputation for providing cost-effective
services by not only ensuring that the prices are low but also flies passenger to their
destination in quicker and timely manner. The time taken by BA for same route is 1 hour
whereas it takes only 30 minutes for Ryanair to reach same destination. This reflects
5%
19%
76%
If Ryanair starts long haul flights I would prefer
First Class
Business Class
Economy Class
the ability of the airline to provide timely services. Furthermore, management indicated
that it is focusing on its operations at present and may expand its operations to long
haul but currently there are no such intentions.
The travel agents said that they feel Ryanair has opportunity and they should expand
their business by investing in high jets and long-haul routes. However, crew member
said that it will increase the cost for the company as they would have to spend more in
maintenance and crew also which is very unlikely for time being. When it was said to
the management and others that present study survey reveals that 76% people would
love to travel with Ryanair in the economy class, the response was from management
that it is nice but corporate decisions are made on the environmental analysis. It was
evident that even if there is bring opportunity but at present this airline is not willing to
think on investing in the long haul routes.



















CHAPTER FIVE: ANALYSIS AND DISCUSSIONS
5.1 Introduction:
This chapter analyzes and discusses the finding of the present investigation in the light
of available literature. The findings are compared with the previous empirical researches
in order to gain the insight of research variables.

5.2 Discussing present findings with previous researches:

From the findings, it is evident that though on the basis of competitive advantage low
cost airlines have performed exceptionally well in the short haul but all those attributes
cannot be transferred to long-haul operations. Some of the attributes are discussed
here:
Low cost airlines do have the potential to perform well in long haul but it is very unlikely
that they can achieve some competitiveness in long haul because in short run there are
limited seat, no need for food by passengers, and number of toilets are limited but in
long haul these all are basic need. The idea to attain competitiveness and upper edge in
the aviation market for low cost airlines is only possible in the short routes. The present
findings are consistent with the findings of Alamdari and Fagan (2005) in this regard.
The reason Ryaniair is not willing to expand in the long haul is that operating margin will
be elevated. This too is similar to the past research of Alamdari and Fagan (2005).

Our findings showed that people prefer flights based on price and fare that is similar to
the work of O' Connell and William (2005). In this study, economy class is preference for
majority of respondents and past researches indicated that consumer prefers to travel
with economy class. Furthermore, the reason of Ryanair's high profit is due to its low
cost models. The findings in this regard are consistent with the study of Fallet (2012).
However, in present study we found that passenger consider their safety and reliability
as an important factor to travel with airline. The findings are unlike the work of Gillen
and Ashish (2004) that discard safety as passenger's prime preference. The focus of
their study mainly remained on looks and excellence in quality whereas in present study
it is not the case because safety and reliability is prime importance for the customers.
After safety, comes price and fares, as people in shorter haul do not look out for quality
features.

Interestingly we found that with low cost airlines, people perceived the airline with value
for money and thus they opt for that specific airline. In the literature, we found that
Guillen and Morison (2003) argued that Ryanair is a low cost airline that does offer
additional services on extra charge basis. People who are interested in additional
services opt for it whereas as those who does not require let it go. Similar results are
found by this investigation.





















CHAPTER SIX: CONCLUSION
6.1 Introduction:
This chapter concludes the findings of the present study to ensure that research
objectives are accomplished. Conclusion is followed by limitations of present study and
future recommendations.

6.2 Conclusion:
Through primary investigation, we have accomplished our research objectives. The
prime objective of this study was to critically investigate models and theories of the low
cost airlines in relation to the case study when shorter haul airline wants to expand into
long haul flights. Through survey, we found that though there is a potential to expand
but it is very unlikely that low cost airline consider the option as there is a major chance
of losing competitiveness factor in longer hauls. The main reason that people prefer to
travel with low cost airline is that it is cost effective to them but if low cost airline invest
into long haul flights, it has to increase its expenditures. Furthermore, there is a likely
possibility that it will lose its core competencies such as 'competitiveness, low price, etc
if it goes for long haul operations.

Moreover, our objective to investigate the perception and expectation of the passenger,
we learnt that respondents feel that Ryanair can expand but they would ideally only
travel if economy classes are available. Furthermore, there is perception about Ryanair
but in long haul, still there is not high majority that feel Ryanair can succeed. In addition
to that, we found that people have a perception that low cost airlines are good value for
money but they do not consider low cost airline as an excellent deal flights. Thus, there
is very slight possibility that if low cost airline even enter into long haul, it will not be able
to compete with existing long-haul giants.

We also recommend that Ryanair should work on its existing marketing and operations
strategies in order to maintain its strong presence in the aviation industry. Most of its
ticketing is online which makes it easily accessible to internet world but those who are
lacking this facility are not attracted. Thus, it needs to ensure that small stalls should be
available in central areas. Furthermore, there should be a package offers to attract
tourist on holidays. Ryanair should install 4 pistons engine which will make its flights
consume less fuel and the operations will become more effective and efficient.

6.3 Research Limitations:
This research has certain limitations therefore the findings are only limited to the
present case study. Researcher had limited time to commence research therefore this
investigation could not be carried out on broader platform. Apart from time constrain,
there is sampling technique that is 'convenience sampling'. Researcher opted for this
technique so that there is more generalizability but stratified sampling would have been
more accurate to investigate it. Researcher could have used longitudinal research
design based on the observation but there was limited time, which made researcher to
opt for cross-sectional study. Furthermore, in-depth interviews with the expert would
have brought high accuracy to findings as cross-examining would have been done but
shortage of time restricted for only interviews with management.

6.4 Future implications:
The future researcher should consider comparative study by including two low cost case
studies and compare it with long-haul giants in macro domain. This will give in-depth
analysis. Furthermore, future researchers should consider observation technique to
explore the research variables. In addition to that, sampling size should be expanded
and probability-sampling technique should be used. Interviews with the experts should
be included in the future investigations. Moreover, future researchers should also
include longitudinal research design so that there is concrete analysis in different
timeframe.





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APPENDIX
INTERVIEW QUESTIONS:
Q1: How long have you been associated with Ryanair?
Q2: What are core competencies of Ryanair?
Q3: How do you see Ryanair's presence in the EU market, considering it as low cost
airline?
Q4: What is the image of Ryanair in the eyes of consumers?
Q5: Give any example of its effective operations management?
Q6: If you think there is chance for growth, what would you suggest for Ryanair?
Q7: If in one word you have to define "Ryanair's operations, what it would be?
Q8: Do you think Ryanair has the potential to invest in long-haul destinations?
Q9: What makes Ryanair 'order qualifier' and 'order winner'?
Q10: How to see Ryanair's performance in next 5 years.
Q11: Why Ryanair is not investing in long-haul, despite good performance?
Q12: In future can we expect any such step for long-haul expansion?




APPENDIX
SURVEY QUESTIONNAIRE

PART A: DEMOGRAPHIC DESCRIPTION:
Gender
Male
Female

Age:
18-24
25-31
32-38
39-45
46 or above

Income
Below 10,000 per
year

10,001-15,000
15,001-20,000
20,001-25,000
Above 25,000

PART B:
Question 1: Do you think Ryanair is low cost airlines?
Yes
Not Sure

No


Question 2: Do you think Ryanair is suitable for only business travel and short hauls?
Yes

Not Sure

No

Question 3: In which class do travelers usually sit on long-haul routes?
First Class
Business Class

Economy Class

Question 4: Are you a long-haul typical traveler?
Long haul

Short haul

Question 5: How many long-haul trips per year being a typical traveler you make?
Not sure
1-3 times
4-6 times
> 6

Question 6: Do you think that Ryanair has a bright future prospect in long-haul?
Not sure
Yes
No


Question 7: Rate following as your travel value?
Factors

Scale of Importance

Not important

Neutral Important

Very important

I dont know

Ticket price

Direct route

Timetable

Airport

Access to lounges

Aircraft type

Efficiency and ease of flight
boarding

Business class availability

Seat reservation option

Seat comfort

onboard aircraft

Meals and beverages served
onboard

In-flight entertainment

Selection of newspapers and
magazines

Safety and reliability

Frequent flyer programme

Past experience with airline

Proximity to business activity


Question 8: Rate the factors that you take in account when you are buying an airline
ticket.
Reliability and
Safety

Time Schedule

Price

Airport Location

Quality of Services
National Flag
Airline

Question 9: What is your overall perception of low cost airlines?
Good value for
money

An average airline

Poor Airline

Excellent Services

Not Sure

Question 10: Would you consider traveling with low cost airline (Ryanair) on long-haul
routes?
Likely

Not sure

Unlikely

No comments


Question 11: If traveling by Ryanair on long haul routes, which class would you prefer in
future.
First Class

Business Class

Economy Class