Limits to growth

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I see that icon of ‘not even the sky is the limit’, Ryanair, is finding gravity still exists. In a curious ‘threat’ to curtail growth, lively CEO O’Leary says it’s not as easy to pick up dirt-cheap aircraft as he did in 2002. He’s not quite so open about the company’s experience of opening hundreds of routes between city-pairs. I’ve tried reconciling their statements of routes opened, operated and closed, and it’s not easy – lots of hype about huge numbers of new routes being started, but curious shyness about how many close. 

It rather looks like the love-affair with flying everywhere for nothing – no matter the inconveniece involved – is fading, so both routes and service frequency might have to fall. The parallel with Starbucks over-expansion of stores is uncanny.

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Comments

  1. Conal  December 3, 2009

    Interesting article about e-business models covering customer churn and the importance of getting them to stick:
    http://www.bbc.co.uk/blogs/technology/2009/12/freemium_can_spotify_learn_fro.html

    reply
  2. Kim Warren  December 4, 2009

    Thanks for this – great example.

    reply

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