...study: EasyJet: The Web’s favorite airline Introduction In modern world, easyJet is becoming one of leading airline companies in Europe. When people want to buy cheapest airline tickets, they always consider easyJet. This essay will have three sections. Firstly, analyze the structure of the industry in which easyJet competes. Secondly, talk about the industry attractive after later 1990s. Lastly, some evidence will be provided to suggest that easyJet has competitive advantage. Structure of the industry analysis - five forces model The business structure was influenced by industry competition; the industry competition depends on five basic competitive forces which were threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or service and rivalry among existing firms (porter, 1980). Threat of new entrant: EasyJet airline belongs to airline industry, new entrants want to go into this industry need enough capital and the equipments in this industry were all expense. In order to build up an airline company, the founder needs to have enough money to buy or lease some planes. So the new entrants have a high cost of entry. In addition, the new potential entrants also need some extra capital to pay for the losses due to less of experience. Low-cost tickets in EasyJet were the significant competitive advantage. The new entrants were hard to exceed EasyJet. So the threat of new entrant has low competitive to EasyJet. However...
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...About easy jet is a British airline carrier based at London Luton Airport.[2] It is the largest airline of the United Kingdom, measured by number of passengers carried, operating domestic and international scheduled services on over 600 routes in 32 countries.[3][4] easyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.[5] As of 7 March 2013, it employs "over 8,000 people", based throughout Europe but mainly in the UK.[6] easyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of acquisitions[7][8] and base openings fuelled by consumer demand for low-cost air travel. The airline, along with subsidiary airline easyJet Switzerland, now operates over 200 aircraft,[9] mostly Airbus A319.[9] It has 23 bases across Europe, the largest being Gatwick.[10] In 2012, easyJet carried over 50 million passengers[11] and is the second-largest low-cost carrier in Europe, behind Ryanair.[12] easyJet was featured in the television series Airline broadcast on ITV which followed the airline's operations at London Luton and later at other bases. Product – Easy Jet is a flight booking company located at London. The benefits of Easy Jet being online and on teletext means that they are providing better margins; this is where they are dedicated to customers digitally. Place – Not solely online but majority of sales are online so Easy Jet will concentrate on this target market. Today, technology allows us to sell...
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... 5.2 Your benefits 7 5.3 Straff travel 7 Conclusion 8 Reference 9 1.Introduction In recent years, the development of the aviation industry increase rapidly. Most of people choose the aircraft as travel transport, the annual number of passenger had a dramatic rise around the world,which had became a common situation. Easyjet Airline Company Limited (Styled as easyjet) is the largest airline of the United kingdom, whereas it is the second largest low-cost airline in Europe. The airline was established at 1995, and it headquarters at London Luton Airport. As a low-cost airline, Easyjet has own successful way. The intention of the study is to create a profile of the Easyjet and find out the reason about why Easyjet can become a successful firm. In the next section ,this report will explore 4 aspects of the problem: Firstly, exploring Stelios Haji-ioannou has which entrepreneurial skills can led to his success.Then,discussing what...
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...EasyJet Airline Company Limited: Strengths: * EasyJet is a leading provider of low budget, no frills air travel servicing many of the leading city destinations in the UK and across Europe, including Berlin, Amsterdam, Barcelona, and Prague. * They offer a high quality service at competitive prices and offer a number of features including ticketless travel, internet booking and assisted travel services. * They have a highly distinctive livery on their fleet of aircraft making them easily recognisable and distinguishing them from their competitors. * They have a user friendly website which fully discloses the price breakdown of the passengers planned travel. Offering a full breakdown of the price plan prevents any hidden charges when the customer confirms there booking. * EasyJet offers an online promotion alert which is e-mailed to existing customers and contact on the company’s database. * Recognised as a leading brand name in the UK travel industry. * As a market leader in an industry widely seen as a leading contributor to the green house effect and global warming, EasyJet actively embrace there environmental responsibilities and continue to keep these factors as a keep priority when developing their future strategies. * EasyJet operate a fast and efficient service with an average turnaround time of 30 minutes or below. This enables them to maintain a reliable and hassle free service to their passengers. Weaknesses: * Domestic air travel...
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...Contents 1 about easyJet 2 easyJet company background and history 4 the easyJet fleet of aircraft 5 the easyJet route network 6 easyJet plc – financial performance 7 flying with easyJet 9 easyJet Holidays 10 easyJet Innovation 12 AVOID ash detection project 13 severi satellite and inversion modelling 14 electric green taxiing system (EGTS) project 15 easyJet’s Board & management team 2 About easyJet headline facts > over 55m passengers each year across its network easyJet was founded in 1995 by Sir Stelios Haji-Ioannou with the vision of creating a customer focused brand that would revolutionise the concept of air travel. More than fifteen years on, easyJet is Europe’s leading airline, and the UK’s largest, carrying over 55m passengers a year. > UK’s largest airline carrying more than 29m passengers > leading presence on Europe’s top 100 routes (EZY 49; BA/ Iberia 43; LH-Swiss 41; RYA 32; AF/KLM 22) > operates on over 600 routes across over 30 countries > holds a strong position in key markets: No. 1 in Gatwick, Milan and Geneva > operates a fleet of over 200 aircraft with an average fleet age of around 4 years > employs over 8,000 people including 2,000 pilots and 4,500 cabin crew > flies to 44 out of Europe’s 50 largest airports > 300 million people live within a one hour drive of an easyJet carrier Making travel easy and affordable easyJet offers fantastic value:...
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...of easyJet easyJet is Europe’s leading low fares airline. Formed in 1995 by Sir Stelios Haji-Ioannou, it has grown rapidly to become Europe’s fourth largest airline by passengers carried. Sir Stelios has credited easyJet’s success to two strategic imperatives. The first was “sweating the assets”, that is making sure that the planes were as full as possible and flying as much as possible. The second was a sophisticated yield management system which would set an infinite number of fares for a given flight, based on the demand and supply position for that flight. The prices for the seats fluctuated depending on the demand for them at a particular time. easyJet was the first LCC to start the sale of its airline tickets online. In 1999, Stelios was voted London Entrepreneur of the Year at the London Electricity Londoner of the Year Awards. In the same year, easyJet was voted «Best Low Cost Airline» by readers of Business Traveler magazine for the first time. easyJet was selected as a Business Superbrand by the Superbrand Council which recognizes companies with an outstanding brand name in November 1999. Other Superbrand companies include such globally-recognized names as Virgin, Coca-Cola and Manchester United. In December 1999, ‘Marketing’ magazine described the launch of easyJet as «one of the 100 great marketing moments of the 20th century». Stelios entered the Guinness Book of Records for being the world’s youngest international scheduled airline chairman when he launched easyJet in 1995...
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...Information Systems Analysis: British Airways vs. EasyJet Name Institution Table of Contents Introduction 3 Main Body 4 Section 1: Information Requirements 5 Section 2: IT based Information Systems 8 Section 3: The Internet-based Information Systems 9 Conclusions 12 References 13 Introduction Information systems are particularly important for business establishments (Stair & Reynolds 2011). It is especially true for airline companies such British Airways (BA) and EasyJet. The nature and size of the two carriers operations ensure that they face particular challenges in communicating with all their stakeholders that include the shareholders, personnel, customers and suppliers. In fact, the need for the right information is made acute when it becomes apparent that the information is necessary to ensure control, coordination and decision-making support for the airline company. In response to that challenge, both BA and EasyJet have applied an extensive information management system that employs the most efficient and effective communication tools and strategies to transmit pertinent information (Google, 2013). For this reason, both BA and EasyJet have implemented an information system that uses the most efficient and effective communication tool – the Internet – to enable them transmit the right information to all their stakeholders. An information system refers to the data management approaches that a business entity applies. In the present time when...
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...strategies (debt vs. equity) will impact the value and the image of the firm, this is a topic of concern to the decision makers. • Both Finance and Strategy are concerned with value creation for their stakeholders whether it is the shareholders, the employees, the management etc. Strategy from a qualitative point-of-view (for instance by finding the drivers of competitive advantage for the stockholders and devising means to exert some pressure on those drivers in order to create value). While Finance is quantitative, meaning that it is a measure of the created value resulting from the strategy. This is more about determining the exact bottom line. • In a nutshell, if Strategy is about the vision that plans to create the most value, Finance is about the actions (expenditures and profits making) to realize such vision. Choice of company: EasyJet plc. Background EasyJet is a low-cost British airline company which serves on 500 routes between 118 European, North African, and West Asian airports. Established in 1995...
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...operations strategies of Ryanair and a full-service airline such as British Airways or KLM. 2. Low-cost airlines like Ryanair and EasyJet differ from classier bigger companies like the British Airways. There are reasons, why Ryanair is much cheaper than the British Airways. Main difference is the service itself. British Airways offers everything with a wider variety, and everything a little better. The seats are bigger, with more legroom, there is a wide menu available including special orders considering kosher, vegetarian, or any kind of allergies. You get better baggage limitations, are allowed to take wider variety of special equipment with you (some need to be declared). The baggage care is also better, low cost companies frequently mess with you luggage throwing the bags around far from a neat manner. The destinations and flight schedules are also much less and less flexible in low-costs. But there is a difference like these for a reason. The low costs like Ryanair have their segment – people who don’t really care that much about the service and the flight meal. Such people just want to reach the destination and are not willing to pay twice as much for a classier service. Both types of companies reach their segments. Ferrari vs Renault Clio 3. The main thing is they both meet up the expectations. A Ferrari is a car which you dream about. Every little teenage boy would look at the poster of a Ferrari and says, when I grow up, I’ll buy one for myself. No one would ever...
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...cities) * Expensive manpower (high salaries) * Poor working conditions * Legal trouble | OPPORTUNITIESEnvironmental : newer aircrafts that produce 50 per cent less emission, 45 per cent less fuel burn and 45 per cent lower noise emissions per seat. * The company is expecting a reduction in fares in order to beat its competitors who will be unable to follow Ryanair in this “bloodbath” * An increase in market share thanks to the demise of several carriers * The European market (the EU enlargement) * Launch of new routes : the company planned to open 146 new routes in 2010 * Ancillary services which can generate money | THREATS * The industry is not in very good shape (global economic recession, oil prices) * Competition (EasyJet) * European laws * Airbus doesn’t want to deal with Ryanair * Airport charges and government taxes * Passenger compensation (delays, cancel flights) | SO : Overcome the image...
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...Chapter 1: Introduction Ryanair brings the lowest fare of air travel in Europe. According to them, they keep their cost low so that customers will also keep their cost low and also that they are committed on having an on-time flights among the competitors. Even having the lowest fare of air travel, they said that they do not compromise passenger’s safety, the “near-perfect” baggage handling and their efficiency in ‘green’ policy. Mission-Vision Statement The company does not have a clear Mission and Vision Statement but they answered the question: What is our business? It is, “to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continuous improvements and expanded offerings of its low-fares service. Ryanair aims to offer low-fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies.” And what do we want to become? It is “To become Europe’s most profitable airline by rolling out proven low- fare, no frills service in all markets in which we operate to the benefit of passengers, people and stakeholders.” History of the Company Year Passengers Event 1985 5,000 Ryanair is set up by the Ryan family with a share capital of just £1, and a staff of 25. 1986 82,000 They obtains permission from the regulatory authorities to challenge the British Airways and Aer Lingus' high fare duopoly on the Dublin-London route. 1987 322,000 They acquire its first jet aircraft...
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...Marketing Research Survey – By Milton Redmond Teacher: Deirdre Murphy Module Code – 5N1400 Table of Contents: Introduction: 3 History: 4 Primary Source - Questionnaire: 5 Quantitative: 7 Qualitative: 9 Secondary Data: 10 Partners in focus 10 Strategy: 12 Routes Operated by Aer Lingus: 14 SWOT Analysis: 23 Conclusions & Recommendations: 25 Bibliography: 26 Introduction: The aims and objectives of this marketing research investigation are to analyse how the airline is currently competing in this business area. There are a number of factors in which we can examine to determine this: 1. Find the main source market profiles? * To get this result I will be using Primary Source information by sending a questionnaire. 2. How is the company continually expanding? * Quantitative paragraph researches how Aer Lingus has progressed over the last 10 years and how the new focus today is for an ever expansion of its long haul flights. 3. What differs Aer Lingus to other airlines? * Qualitative we have a look at the service levels that make this airline unique. * Secondary Data shows who Aer Lingus is partnered with to connect Ireland with the rest of the world. * Strategy specifies why Aer Lingus cannot be a Ryanair. * Routes Operated by Aer Lingus is more central to the peripheral airports offered by Ryanair. * SWOT analysis goes into further detail on how this airline is distinctive...
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...STRATEGY Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair’s strategy are: Low Fares. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight, with higher fares charged on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s Dublin to London (Stansted) route is its largest route in terms of passenger volume, with fares ranging from 0.99 to 199.99 (excluding government taxes and passenger service charges). Ryanair’s competitors generally do not operate a one-way pricing policy, so direct comparison is not possible, but current round-trip fares on Aer Lingus, Ryanair’s largest competitor on the LondonDublin route, for travel in September 2004 were 82.27 for economy...
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...Easyjet is Europe’s leading airline. A budget airline formed in 1995, it has grown rapidly to become for the fourth largest carrier in Europe, serving over 75 destinations in Europe. Sales turnover was 1,488.0 million (1996) and sales growth of 17.9%. Easyjet currently employs over 4,500 employees. Some of the key reasons for its success include: Easyjet was particularly successful because it identified a niche in the market for low price short haul flights that would suit leisure and business customers. It was based on the premise that airline flights were price elastic, if you reduce the price, more people would fly. This was certainly the case for the airline. Easyjet made the choice in pursing a differentiation strategy. While, British Airways differentiated upwards during 1990’s - offering premium services (including lounges, best customer service, in-flight meals) which commanded premium prices. Easyjet differentiated downwards - taking out unnecessary services, just providing a basic A to B airline service with a smile, and thus offered flights at lower prices. Customers valued the lower prices, and the airline market expanded in the quantity of passengers as a result of this new product offering. Easyjet was particularly successful because it had tight reign on costs and overheads. It could make savings where other airlines could not. For example: i) Easyjet maximised the utilization of assets - with faster turnaround on flights ii) it only flew its aircraft point...
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...Case Study – Dogfight over Europe: Ryanair Business Landscape Item | Description | Impact | Government Intervention | Market Deregulation: * Free to set fares * European airlines to fly any route between EU countries * Any intra-country route between two European cities | Open for new competition | | European Union eliminated duty free sales on intra-EU flights | Has to pay duties | Ryanair Challenges & Strategy Description | Cashflow problem, Funded by Ryan Family | Strategy | Low cost carriersCost side: * Cut loss-making routes * Eliminate in-flight amenities (such as: free coffee and snacks) * Renegotiate labor contract (e.g: flight attendants pay is a function of duty-free sales and the number of flights they flew, “Luv” – pay based on productivity) * Stop distribution of meal vouchers to travelers whose flights delayed by bad weather * Stop using “air bridges” that linked parked planes to airport terminals * Reduce travel agents commission from 9% to 7.5% * Serve at secondary airports * Use other parties to handle ground operations * Not allow check baggage throughRevenue side: * Ticket, in-flight sales, car rentals, charter sales * In-flight duty-free sales, beverage, and snacks * Lease space behind seat-back trays and headrest to advertisers, exterior of plane with a corporate logi, in-flight magazine published with full advertisement | Routes | * 150 flights per day, 13 locations in UK, 4 locations in Ireland, 16...
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