Ryanair seeks increased profits via Easyjet's business model
Business

Ryanair seeks increased profits via Easyjet's business model

RYANAIR has paid tribute to arch rival EasyJet in a bid to see an upturn in profit prospects.

The airline has this week announced full-year profits of £426million.

This is down from £465million a year earlier – something it has blamed on intense competition and falling fares.

But the airline says it still expects to see a boost in revenue from the summer market and has also taken several measures to remedy the loss.

Deputy chief executive Howard Millar has revealed that the company examined EasyJet’s business model, taking into account its operating strategies as well as its less aggressive image.

While O’Leary admitted: “To be fair, some of the things EasyJet has done, like allocated seating, have been very effective. We can certainly learn from the competition and we will.”

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The Ryanair strategy has been tailored accordingly, with several new measures being introduced to make the airline more customer-friendly.

These include simplifying the website and not trying to sell passengers unwanted add-ons.

In the past, Ryanair’s CEO Michael O’Leary has cited his inspiration for his no-frills airline as the US budget carrier Southwest Airlines. From them, Ryanair adopted many cost-cutting features and business practices.

O’Leary has also given credit in the past to the Diaspora. When once asked to what he attributed the success of Ryanair he replied: “The Irish funeral.”

The ethos of the airline was originally based on the principle that on board every flight there were about 10 people paying for everybody else – the ones who had to book late.