I enjoyed reading this one on Ryanair, the zero-frills European budget airline.
Money quotes:
The Scotsman, quoting Ryanair’s own figures, writes that the carrier handles 10,000 passengers per employee, compared to no-frills rivals EasyJet’s 6,300 and British Airways’ 760.
Note to sell-side telecom analysts: don’t forget to ask your telco friends how they plan to slash 90% of their labour costs. You mean, they haven’t told you already?
… On Lufthansa, [Ryanair CEO Mike O’Leary] has this to say about chief executive Jurgen Weber: “Weber says Germans don’t like low fares. How does he know? He’s never offered them any. The Germans will crawl bollock-naked over broken glass to get them.”
Note to buy-side telecom analysts: spotted anyone offering low, low prices recently? If they’ve also slashed 90% of their labour costs, they’re a buy.
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I recently had a discussion in which I pointed out exactly what you are saying.
They were talking about the big Telcos in a few years devoring Skype or similar services.
The big Telcos haven't understood yet that the time of the dinosaurus has finished since long.
Since somebody invented the thing that goes under the name of "computer".
That makes everything cheaper including services and infrastructures.
Big corporations need too much food to work, while small companies need just a computer and few devices around and if the brain that is behind the computer is good enough they can function much better than a million employees company.
They can object you need investments to commercialize your service.
But another thing came out in help of the computer: Internet.
There is nothing cheaper and more effective than a good campaign on the Internet.
And this is the second stroke.
The Internet revolution began long ago, but it is not finished, it's just "warming up"...
Patrizia
http://woip.blogspot.com
Posted by: at June 4, 2005 08:30 AMThat is why Lufthansa partners with Vodafone: Germans don't like low fares/prices.
Germany's first no frills mobile phone operator started last week: http://www.simyo.de
Posted by: at June 5, 2005 12:15 PM