In 2017 Ryanair experienced increased competition from other low-cost airlines such as Norwegian Airlines - Leaving Cert Economics - Question c - 2018
Question c
In 2017 Ryanair experienced increased competition from other low-cost airlines such as Norwegian Airlines. Increased competition is generally considered good for con... show full transcript
Worked Solution & Example Answer:In 2017 Ryanair experienced increased competition from other low-cost airlines such as Norwegian Airlines - Leaving Cert Economics - Question c - 2018
Step 1
Possible Advantage 1: More Competitive Prices
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Answer
With the entry of more low-cost airlines like Norwegian Airlines, Ryanair may lower its ticket prices to remain competitive. This price reduction benefits consumers, making air travel more affordable.
Step 2
Possible Advantage 2: Greater Choice of Routes
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Answer
The increased competition may result in a wider variety of routes available to consumers as airlines vie for customers. This offers consumers more options regarding travel destinations and can lead to greater convenience.
Step 3
Possible Challenge for Producers: Need to be More Cost Efficient
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Answer
Producers, such as Ryanair, must adapt to increased competition by improving operational efficiency. This might involve reducing costs without compromising service quality to retain market share and offer competitive pricing.
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