The boss of Ryanair has forecast increased profits for his budget airline this year, because the recession is forcing consumers to demand better value for money.
Etyres echoes his confidence in a boom for low cost businesses after its tyres sales have soared to almost 40% year on year as vehicle owners look online for cheaper tyres.
Michael O’Leary, Ryanair Chief Executive, said yesterday: ‘The longer and deeper this recession, the better it will be for the lowest cost producers in every sector.
‘Like Lidl, Aldi, Ikea and McDonalds, Ryanair is the lowest-cost provider – by a distance – in the European airline industry and we are poised for substantial traffic and profit growth in the coming year as the recession forces millions of passengers to focus on price.’
Low cost tyres firms, just like airlines and supermarkets, can widen the gap between competitors by operating low cost business models, offering cheaper prices without compromising on service or quality.
Etyres offers a mobile fitting service, therefore because it does not have expensive depots to run, it has the ability to recycle cost savings into lower prices for consumers, with tyres up to 40% cheaper than at leading fast-fit depots.