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Old 4th Mar 2005, 09:48
  #7 (permalink)  
Final 3 Greens
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eal401

There are different grades of quality, e.g. a cheap car versus an expensive car, however both meet the required quality criteria for the product, but are very different in observable features. The quality criteria are ultimately set by the customers and their purchasing patterns.

In the airline world this applies too, e.g. Ryanair versus BA Club.

The issue with the short haul market is that few people are willing to pay for premium grade quality and the airlines are being responsive to market forces in reorienting their businesses for this brave new world.

Look at the Ryanair and easyJet financials for the past few years and compare those to the legacy carriers, then ask yourself what you would srtategy you would implement if you were the CEO of one of the latter.

In the past year or two, the legacy carriers have started to realise that they can operate as low cost carriers too, e.g. Aer Lingus, Swiss & Iberia (no free food or drink in economy.)

However, the major overhead for most legacy carriers is the cost per passenger kilometre of employing people.

Therefore, they scale back the work force, including ground staff and the grade of the quality of the product alters. This is fine for those buying on price and who are robust enough to look after themselves, who. However, it impacts on the vulnerable.

But ultimately who is reponsible for the situation?

It is those people who have made Ryanair and easyJet successful and that is the passengers.

The bottom line is that providing differentiation via enhanced grades of quality is a very expensive proposition and not compatible with adopting a low cost strategy, such as Ryanair adopts and which is driving the market response.

As a management consultant, I am a little surprised that you have not made this link.

BTW, I do not believe that there is any excuse for the situation that Manintheback encountered and he acted as a total gentleman in trying to assist. That situation was not about general levels of customer service, but rather supporting a vulnerable member of society.