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Thursday, April 20, 2006

Turning an airline into a communications network

Ryanair CEO says someday all his passengers will fly for free, that's no money folks. It's not so far fetched as this CNN Money story points out. Right now about 25% of their passengers already fly for free. His secret is a ruthless pursual of cost cutting, charging customers for everything including drinks, checking bags, etc, selling ad space anywhere and everywhere, and functioning as a portal to drive traffic to other related services like car rentals and hotels.

It's genius and it works, they have a lower average fare than Southwest ($53) and a higher profit margin.


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interesting I think it would be a good idea! I am totally sure about it, specially if we're talking about that kind of issues.

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It is an amazing idea to charge them for everything else instead of flying. Passenger thinks that it is cheaper because they aren't paying for the plane ticket.

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