Product details

Until 1988, the business of Aer Rianta, the semi-state company which manages Ireland''s airports, was largely domestic. Completion of the EC internal market involved abolishing duty free sales, which were about 40% of company profits. New sources of revenue were needed for the 90s In 1988, Aer Rianta and Aeroflot set up Aerofirst as a joint venture to run duty free shops in Moscow Airport. Derek Keogh, Chief Executive, created Air Rianta International to manage activities in the Soviet Union and provide consultancy services to airports overseas. In 1990, the company has restructured and the Senior Management Team has changed. In 1991, turnover and profit has doubled. Despite changes, duty free sales remain the biggest source of revenue and the company is dependent on two airlines, Aer Lingus and Aeroflot, for 50% of its aeronautical revenues. The teaching objective is to demonstrate that the Warwick framework can be used to gain insight into the strategy process in Aer Rianta.