fThe Low-cost Orange Flying Machine: The Case of easyJet Introduction The colour orange is increasingly becoming synonymous with the firm easyJet as it has become one of the world’s most profitable low-cost airlines (Alamdari and Fagan, 2005). This paper examines the basis of their success and argues firstly, that easyJet from its inception essentially adopted and stayed with the original low-cost model that was pioneered by Southwest airlines in the USA. Moreover, this is a model that has
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The most important accounting statements not just for Ryanair and EasyJet but for all companies are profit and loss statements. Those statements are showing to the companies how many sales they have generated over a period of time and what expenses they have incurred. That’s why they need to know what are their direct and indirect costs and also fixed and variable cost and also what they mean and I will be talking about those in my essay. The direct and indirect cost are important as the companies
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obligations. Community development, welfare, human rights and ethical conduct are key factors which come under the CSR umbrella’ (Laurie J. Mullins). I would like to discuss the CSR issues in Aviation Industry that’s why I have chosen Air France-KLM and Ryanair. 1.2 Air France-KLM Overview: Air France and KLM merged together in 2004 to form Air France-KLM Group while both airlines operate individually to retain their brands and identity (Air France-KLM CSR Report 2010). Air France was elected best airline
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EasyJet, Vueling and RyanAir Lease Strategies Classifying leases as operational or financial is a key accounting issue in the airline industry because of the high value of the leased assets. When classifying leases the IFRS principle “substance over form” should be the prime criteria to identify the type of lease. In 2012 EasyJet operated 214 aircrafts. 148 of them were owned, 55 were acquired under operating leases contracts and 11 under a finance leases. In its annual
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off and how it has evolved over time to accommodate the changing market trends. Various case studies will be looked upon related to different low cost airlines which have survived – such as South-West in USA (Morrell, 2005) and RyanAir in the UK to understand the strategies adopted by them to engage their customers and maintain their profitability in the process (Franke, 2006). According to Airline Leader statistics, the competition between low cost carriers in European countries is fiercely increasing
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• Be competent in discussing the major concepts underpinning business level strategy and applying these in business case settings. • Be capable of applying a series of fundamental business strategy tools (including industry analysis, competitive strategy and resource and capability tools) and techniques to the formulation and analysis of value creation and capture at a strategic level. Porter 5 Force analysis Porter framework assumes: 1. industry structure drives
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9-106-003 REV: MAY 15, 2006 MARK T. BRADSHAW Ryanair Holdings plc Ryanair is a low-cost, low-fare airline headquartered in Dublin, Ireland, operating over 200 routes in 20 countries. The company has directly challenged the largest airlines in Europe and has built a 20-year-plus track record of incredibly strong passenger growth while progressively reducing fares. It is not unusual for one-way tickets (exclusive of taxes) to sell on Ryanair’s Web site for less than €1.00. See Exhibit 1 for
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Air Transport Logistics [pic] Introduction History of low cost airlines The low-cost concept became a moneymaker in the United States, where it was pioneered in the 1970s by Southwest Airlines, the model for budget carriers elsewhere like Ryanair and easyJet in Europe. Definition of low cost airlines A low cost airline generally has many features that differentiate it from the traditional carriers. These features include ticketless travel, online ticket sales, no international offices
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Explanation of the various elements of the marketing process Need help? ☎ 0115 966 7955 T he elements of the marketing process are ref erred to as "a set of controllable tools that the f irm blends to produce the response it wants in the target market, so it consists of everything the f irm can do to inf luence the demand f or its product”( Kotler and Armstrong, Principles of Marketing 2004, Tenth Edition, New Jersey Pearson Education Inc.). T he Elements of Marketing or Marketing mix which is f
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Airline Cost Performance IATA ECONOMICS BRIEFING No 5 An analysis of the cost base of leading network airlines versus no-frills, low-cost airlines (LCCs) IATA Economics Briefing No 5: AIRLINE COST PERFORMANCE Mark Smyth Brian Pearce IATA, July 2006 Contents 00 Executive Summary 01 Introduction 02 The Low-Cost Challenge 03 Airline Cost Performance for US Airlines 04 Airline Cost Performance for European Airlines 05 Airline Cost Performance in Asia and South America
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