... 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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...About EasyJet A successful example of a European no frills airline is easyJet. Stelios Haji-Ioannou (Greek) founded the company in 1995. It is based on the low-cost, no-frills model of the US carrier Southwest. The concept of easyJet is based on the belief that demands for short-haul air transport is price elastic. That means, if prices for flights are being reduced, more people will fly. Traditionally airline concepts are based on the assumption that airline traffic grows in line with the economy and that cutting prices will only lead to a decrease in revenues. With the introduction of the ‘no-nonsense’ concept to the European market, after its deregulation in 1992, easyJet has proven this theory wrong and goes from strength to strength by actually increasing the size of the market and more recently by taking away passengers from the majors (see www.easyjet.com for passenger figures, financial data and employee statistics). Today, it offers 125 routes from 39 European Airports (see www.easyjet.com for route launch dates), with Luton, Liverpool, Geneva, Amsterdam as base airports and is operating 72 aircrafts (November 2003). November 1995: easyJet starts flights from Luton to Glasgow and Edinburgh with to leased Boeing 737-300 with a capacity of 148 seats at a price of £29 one way. Seats are being sold over telephone reservation system only. In 1996 easyJet takes delivery of its first wholly owned aircraft and goes international with first services to Amsterdam from Luton...
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...destination Arrive at destination Purchase Food on plane Purchase Food on plane Proceed to Gate Proceed to Gate Proceed to Gate Proceed to Gate Receive Boarding Pass Receive Boarding Pass Check in and drop off luggage Check in and drop off luggage Arrive at selected airport Arrive at selected airport Receive email Receive email Customers look up booking information online Customers look up booking information online Consumer makes payment Consumer makes payment 2. The Service Package is defined as a bundle of goods and services with information that is provided in some environment. The bundle consists of 5 main areas which I am going to relate to Easyjet: Supporting Facility – The supporting Facility is the physical resource that has to be put in place before the customer can use the service. Easyjet has to ensure that they have an air plane and an airport to depart/land from in order to carry out their service. Another resource that would have to be in place would be the IT system in order for customers purchase their ticket. Customers can evaluate the IT system by going on the internet when booking their flights and decide whether or not it’s a fast easy reliable system. Facilitating goods – The Facilitating goods are the items consumed or purchased by the customer. Obviously for easy jet it would be the airplane journey, but also the food that can be purchased on the place is another facilitating good. Two ways the customer could evaluate the facilitating...
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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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...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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...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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...REPORT ABOUT EASYJET Seite 1/53 REPORT ABOUT EASYJET Analyses about Industry, Market, Competition and chosen strategy Reinhard Fellner Wien, am 09.06.2002 C:\Users\rf\Documents\A R C H I V 311013\F 160108\B820_Strategy\TMA\TMA01\TMA01_B820rf.doc I R M E N R E I N H A R D 301109\MBA FILES Druck: 20.11.13, 22:42 REPORT ABOUT EASYJET Seite 2/53 Executive Summary Deregulation has seriously changed the environment and structure of airline industry. Out of STEP analysis I have identified the following ain issues: Deregulation will stimulate competition, but also market growth Lower prices will cause focus on costs Focus on security measures will increase costs There is no need for added values in connection with prestige Analysing the airline industry by Porter’s “Five Forces” I have stated: Big Player and/or Alliances fight a price war, often using a second brand (Buzz, etc.) Big Players have not identified and reacted on the change in environment Few structural changes to support the need of cost effectiveness und to bring them in line with new customer requirements Because of the very static picture I have supported that analysis by BCG strategic model: BCG's Strategic Enviroments Matrix Many Source of Advantage FRAGMENTED Airline Industry SPECIALIZATION 2nd brand for Budget Segment STALEMATE Budget Airlines VOLUME Few Small Size of Advantage Big Global airlines which come from the „Fragmented...
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...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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...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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...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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...860983816 Case study 1-EasyJet EasyJet, one of Europe’s leading low-cost airlines, has competitive advantages because it adopts an efficiency-driven operational model, creating brand awareness, and maintaining high levels of customer satisfaction. Also, it is important that easyJet was the first mover. Now easyJet is one of the leading low-cost airlines in Europe. All of the competitive advantages are sustainable. As its mission statement writes, “To provide our customer with safe, low-cost, good value, point-to-point air services. To offer a consistent and reliable product at fares appealing to leisure and business markets from our bases to a range of domestic and European destinations. To achieve this we will develop our people and establish lasting partnerships with our suppliers,†easyJet is doing the best it can to satisfy its customers. Stelios Haji-Ioannou founded EasyJet in 1995. He was inspired by American low-cost carrier Southwest Airline and he modeled after Southwest Airlines but also added his own twists: avoid using agents and tickets, provide no-frilled travel and use brand new Boeing 737s. Stelios started with £5 millions that he received from his father. He operated two leased airplanes and one staff and chose Luton airport that was cheaper but still close to London downtown. The first easyJet flight was very successful because of its low price of £29 and extensive public relations and advertising. During 1995 to 1999, easyJet was expanding quickly...
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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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...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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