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Easyjet

Decent Essays

The Web 's Favorite Airline

1. COMPANY OVERVIEW

EasyJet was lunched in November 1995 with a fleet of two Boeing 737-300 aircraft flying from London to Glasgow and Scotland. Its mission was to offer low-cost airline service to the masses. This was successfully achieved by offering customers low fares with its no frill flights and adopting an efficiency-driven operational model; high brand awareness, maintaining a high level of customer satisfaction making it one of the leading low-cost airlines in Europe.
Extensive public relations and advertising campaign slogans by easyJet resulted in increasing demand for more flights resulting in the creation of new routes. The concept adopted by easyJet was the use of one type of aircraft …show more content…

Countries protected their National carriers by refusing other airlines landing slots in their countries. However, even with this deregulation in 1992, only 3-5% of passengers in Europe flew on low cost carriers, compared to 24% in the US. This was believed to be due to the direct competition with high speed rail services on some European routes.

Economical
Even with high entry costs, many new airlines came into the market. Though the cost of running an Airline in Europe was 40% higher than in the US, and as a result few low-cost carriers were as successful as easyJet. Even with such barriers to entry, it was predicted by analysts that the European low-cost market could grow by as much as 300% by 2004.
The value of the UK pound also made more viable to run operations from the UK. Avoid third person in order to get low price (price sensitive) – Don 't understand this, and I can 't find it anywhere in the case….Please explain. Anything else that can be added here?

Social
Due to the British and Germans being the most frequent travellers, most airlines set up their base in the United Kingdom. They also have more purchasing power because of the strength of their currency. – I 'm confused about this currency stuff, as I don 't find it mentioned in the case study… Please explain. Anything else to add here?

Technology
Direct sales of flights were done over the internet.

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