EasyJet- The ‘Easy’ Ways to Succeed
Question No.1:
With the acquisition of Go. Easyjet become the biggest low cost airline in Europe. What is the mission of Easyjet? Analyze the growth of Eastjet as a successful low-cost airline and its business model. Also discuss the nature of the competition faced by Easyjet and the competitive advantages of the airline over rivals?
Answer:
The misson of Easyjet is “ safe , good value, point to point air services”. It targeting the leisure and business markets on a range o European routes. Easyjet growth in passenger number increased immensely from the year 1995 to 2002. In the year the annual total passenger were 30000 where in 2002 the total passenger were 11400000. So it clearly depicts the growth of Easyjet as a low-cost airline in terms of passenger. We also see that the revenue amount in 2002 was 861.50 million where in 2001 it was 525.70 million and in 2000 it showed 385.8 million dollars. Easyjet’s net income was 76.5 million in the year 2002 where in the year 2001 and 2000 the net income were 56.20 and 41.9 million respectively. So from the above analysis we can clearly observe that the growth of EasyJet in the low-cost airline industry in Europe.
EasyJet borrowed its business model from United States carrier Southwest Airlines. EasyJet has adapted this model for the European market through further cost-cutting measures such as not selling connecting flights or providing complimentary snacks on board. The key points of this business model are * high aircraft utilisation, * quick turnaround times, * charging for extras (such as priority boarding, hold baggage and food) and * keeping operating costs low. EasyJet flys a young fleet of aircraft. EasyJet's fleet age is just 3.6 years.
As standard services provided by all the airlines and the competition within the market are same, in 1990’s we saw