...EasyJet: the web's favorite airline The case pertains to the growth and sustenance of EasyJet airlines, a low-cost carrier operating in the European skies. EasyJet’s concentration has so far been on low-cost airline services to the masses, and although it faces competition from other low-cost carriers as well as major carriers, it has been able to successfully sustain its business and turn around an initial loss into profits of £2,318,938 [exhibit 2]. EasyJet’s value proposition has been to offer a cheap, punctual, safe, no-frills method of travel to people who generally paid out of their own pockets. This has been possible thanks to an efficiency-driven operational model, high brand awareness and a sustained focus on satisfaction of customer expectations, often exceeding them. The emphasis has been on “value for money” and affordable quality travel with an added emphasis on customer satisfaction. Being a low-cost carrier, customer expectation were minimal and thus brand new planes with the best of pilots and punctual flights was clearly successful in delighting the customer, as evidenced by the high number of repeat fliers. A lot of emphasis was given to customer satisfaction offering better customer flexibility and punctuality. EasyJet’s competitive advantage has been derived from a policy to cut down on costs and hence frills in every aspect of short distance travel. EasyJet has been modelled after a very successful South-West airlines and it also managed to enjoy first-mover...
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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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...Case Study: easyJet and Ryanair Flying High with Low Prices Toifl Edith, Maike Klement Hamiyet Karaman, Tsolmonzul Erevgiylkham FK ABWL Marketing 040177/1 WS 06/07 Story - easyJet Founded in March 1995 by Stelios HajiIoannou - the family remains the major shareholder The airline is based at easyLand, at Luton airport 2 Concept - easyJet Reduction of costs through: - reduction of distribution costs No free lunch Efficient use of airports (fast turnaround terms - 30 min)) - Operations out of secondary airports main target group: business travelers 3 Story - Ryanair 1985 founded by the Ryan Family (with a share capital of only £ 1 Million) First route from Waterford in Ireland to London Gatwick 4 Concept - Ryanair Cheap point-to-point flights from secondary airport Single aircraft policy Fast turnarounds Main target group: leisure customers 5 1. How do easyJet and Ryanair achieve success using low-price strategies? 1. How do easyJet and Ryanair achieve success using low-price strategies? A new system allows airline seats to be priced according to supply and demand and achieve high occupancy. - how does it work? They start with low ticket prices, and raise it according to demand. Stelios from easyJet calls this system „yield management“ 7 1. How do easyJet and Ryanair achieve success using low-price strategies? Examples: Ryanair: Linz Stansted flight: 08.12.06 € 59.99 flight: 08.04.07 € 39.99 easyJet: Munich Stansted...
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...ambitious and firm. * “most profitable airline in the world” * Reduction of fuel consumption * Leader of opinion : permanent innovation copied by other low cost companies * High productivity of the staff * Emphasizes on Internet use | WEAKNESSES * The company is ready to sacrifice it all for growth. Indeed, Ryanair has a specific strategy that consists in transferring the costs to the passengers (the company has always tried to find ways of charging passengers for services once considered intrinsic to an airline ticket). * Ancillary services can annoy passengers * Bad reputation (misleading publicity, fat tax, toilet costs…) * Secondary airports which are sometimes far from 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...
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...Easy Jet’s customer satisfaction According to easyjet.com2016, Easy Jet is Europe's leading airline, operating on over 600 routes in more than 30 countries. In 2015 Easy Jet flew over 60 million passengers. The main airports in Europe are London Luton, Gatwick, Naples, Venice, Basel and Geneva, followed by Stansted ( London), Charles De Gaulle (Paris), Lyon, Lisbon and Rome Fiumicino. Since its establishment in 1995, EasyJet was launched by Greek Cypriot businessman Sir Stelios Haji-Ioannou. Until October 1997, EasyJet were operated by GB. Airways and on 5th of November 2000EasyJet was floated on the London Stock Exchange. Corporate.easyjet.com2016 says that on 25th of October 2007 EasyJet purchased the entire share capital of GB Airways from the Bland Group with £ 103.5 million worth deal. The degree of satisfaction is provided by the goods or services of a company (Easy Jet) and is measured by the number of repeat customers.(businessdictionary.com2016) Customer satisfaction is important not just for a company like EasyJet, but for all the worldwide companies who want to expand and being a brand in any kind of business, either is a tourism business, IT business, etc. Clientheartbeat.com2016 gives six reasons why customer satisfaction is so important: It is a point of differentiation; It reduces customer churn; It increases customer lifetime value; It reduces negative word of mouth; It is cheaper to retain customers than acquire new ones; It is a leading indicator...
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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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...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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...Compare the 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...
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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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...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 from others. History: Aer Lingus was founded by the Irish Government in 1936 to provide air services between Ireland and the UK. Its name is derived from the Irish 'long' meaning 'ship' and is therefore translated as 'Air Fleet.' On 27 May 1936...
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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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...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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...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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...Additional Question 11 answer Go to the database and find the data for both British Airways plc and easyJet plc that will allow you to calculate and comment on the following ratios: British Airways easyJet 31 March 02 31 March 01 30-Sep-01 30-Sep-00 Return on Capital Employed -7.04% 3.16% 11.98% 33.63% Return on Total Assets 0.57% 2.74% 7.50% 11.01% easyJet's rates of return are far superior to those of British Airways (BA), the old, long established traditional airline. There are many reasons why easyJet should out perform BA, such as the fact that easyJet is a new, very dynamic company that is not facing stiff competition on cross-Atlantic routes. easyJet is a much smaller operation than BA with a fleet of aircraft that is only a fraction of the size of BA's. Hence easyJet's fixed costs ought to be far less than BA's and so on. On the other hand, shouldn't we expect BA to enjoy economies of scale and managerial efficiencies that should help it to perform better than easyJet? A key factor in BA's results is the consequence of the bombing of the World Trade Centre in September 2001 and the effect that had on world airline travel. At the time of writing, BA has just announced that this tragedy has only just begun to wear off. easyJet did not suffer the same problems as BA following the bombing, as it is an entirely Europe-centred airline. Finally, we can see that easyJet's ratios have fallen in value from 2000 to 2001. 2002's results will be interesting from...
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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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