EasyJet:
Stelios idea and his implementation of easyJet is of having a customer-oriented highly-advertised low-cost airline. The key ideas that really worked for easyJet in there as follows:
Business Model:
1. The ideology is to have the airline stay in the air most of the time. EasyJet keeps their airplanes in air almost two times more than the industry average. Their 2 planes are doing the job of 3 planes of other carriers. As a result they reduced some of their fixed and overhead costs.
2. The purpose of the airline was to transit customers from one place to the other without wasting money on customer frills. This saves the airline €14 per passenger.
3. The airline targeted only non-corporate customers who paid themselves for their trip. They removed the business class seats from their airlines and they marketed their airline accordingly with taglines like “Fly to Scotland for the price of a pair of jeans”.
4. They performed yield management to fill as many seats as possible at a demand varied price. The price was also varied upon the timing of the booking of the ticket, the earlier you book a ticket the better deal you get. They also levied heavy penalties to customers for change of plans at the last moment of their journey.
5. The airline encouraged Internet Sales and avoided travel agents and computer reservation system to reduce the operating and overhead costs of the airlines. About 60% of their sales came from internet Sales in October 1999.
6. Stelios left no stone unturned while promoting his airline spending 10% of their revenues on advertising. He also every once in a while used to take a dig at his competitors to undermine their airline services and promote easyJet.
7. Stelios also has set-up a very informal corporate culture in their company and values employee satisfaction really highly.
Services:
Even though easyJet tried to make a