Year Europian Aviation British Aer Lingus Ryanair

Airways
1930-WW1 Shaped by Europe's national Annual
governments losses 20%
and 100%
EU flag carriers
Predecessors of BA owned and
subsidized by national goverments
Route structures developed to serve
colonial aims
Service focussed on international
routes to colonies, areas of national
influence and other EU capitals
Intra-country service was sparse
High domestic routes fares to
subsidize international service

Year Europian Aviation British Aer Lingus Ryanair

Airways
1945-WW2 Air travel widely Annual loses 20% and
economical 100%
American dominance threat Agreement between
Irish and British
government
IATA emerged to set
international fares strict
regulation
Collapse of EU empires-
advents of economical jets
over the Atlantic
1950s Heavy growing demand for Profit but for a short
transportation to and from period
North America, resctricted
discounted fares by IATA
1960s Heavilyregulated,fragment
ed airline industry.
-Growth of leisure travel
and charter airlines
- funds by shipping
companies,inclusive tours
-cheap fares for holiday
makers
Year European Aviation British Airways Aer Lingus Ryanair
1970s Financial straits Establishment of Hit hard by
Bcal to compete and problem on
liberalize N.Atlantic
corridor
Wide bodied aircraft Loss of
customers due to
recession
High jet ful price led to objectives
recession in travel demand
EU flag carriers hit heavy New sources of
by recession revenue and
profit
1978-1979 Deregulation of domestic Prime minister
US airline by congress Magret Thatcher bill
to give consumers
interests weight
equal to operators
interests
22 new, low cost carriers BA precluded a rapid
privatization
Consolidation by key
players- low and unstable
profits
1980s Call for EU degerulation Loss of 102 million Least expensive Run four
pounds ticket was 208 round trips per
Invested UK 700 Irish pounds. day,
million pounds for -Offered first
55 new aircraft rate customer
service
-Simple single
fare for a
ticket- 98 Irish
pounds
1984-1985 Memorandum by EU John King to revive Operating profits Initiated
commision. Trade union BA for privatization. of 0.5 million service
and flag carriers allied to -Reduction of staff pounds,
defeat the proposal -Surrender of loss 12.7million
making routes pounds and 17.1
Close down of m irish pounds
training colleges
1986 Single European act – Served 145 Objectives to Licence to
creation of unified EU destinations in 68 provide operate
market by the end of 1992 countries. safe,efficient,reli Dublin- Luton
80% passed through able transport.
Heathrow. Ancilliary
-Worked on contract businesses
basis for some
services.
-171 retail shops
worlwide.
-49000 independent
travel agents
accounted to 83% on
scheduled revenue.