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case study ( subject accounting theory)
Finance & Accounting
Pages 7 (1757 words)
Ryanair customers service problems in 2013. Introduction Ryanair is one of Europe’s leading low cost airlines that have established a strong foothold in the scheduled passenger airline segment in Europe over the years. It has been consistently offering low fares that have contributed towards an increased passenger interchange while keeping a maintained stronghold on operating efficiency and cost control.
The company shareholders had been complaining of airline’s image and share prices have faced a slowdown. The profits also have declined and for the second consecutive time. Problem 1: Hidden fees Ryanair required its passengers to check in online for boarding and arrive at the airport with the boarding pass. If the passenger failed to do so, he or she would have had to pay a fine of €70. A reissue of boarding pass invites a charge of €70 (Pope, “Is this the advent of a new caring, sharing Ryanair?”). Another issue with hidden fees is with the baggage standard norms and charges associated with it. Ryanair has been famous for having one of the strictest baggage allowances in Europe. The airline allows a baggage size of 55cm x 40cm x 20cm which is even smaller that what IATA standardizes as baggage allowance. Also, the airline charged a pretty high sum of €60 at the bag drop counters and boarding gate. Measures taken The charge for not checking in online remains unchanged. The argument put forward by Ryanair is that if a passenger can come forth with his passport, he can check in online as well. This is one criticism that the company refuses to accept. They deny that the hidden charges are hampering company’s brand image and need to be tackled. ...
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