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 to point, with no connecting flights - thus it did not incur the costly ticketing procedures associated with flight connections iii) it had no ticketing (paperless office) - customers used e-mail reference numbers to board flights. All these aspects helped to keep its costs to the minimum.
Easyjet had effective branding. The brand was developed quickly and it soon obtained recognition for