Easyjet 's Business Model Aims

997 Words4 Pages
EasyJet’s business model aims at using their cost advantage and leading network positions in strong markets to convey point to point cheap fares and operational efficiency. It provides friendly services to customers and delivers market leading returns to shareholders, by sustaining a dominant European network at primary airports, with the main objective of making travel easy and affordable for customers. Despite the fact that, low priced airline model has been really favoured in recent years, there are still key issues identified with EasyJet’s business model which are; it’s cost base, limitation of airports and oil prices. Firstly, it’s cost base. The low priced industry is highly competitive with various brands contending for the same customer base, which has led to price battles and other actions that makes it challenging for EasyJet to keep up due to concern over cost involved in trying to cut fares further or offering any luxury. Secondly, Easy jet stays away from big airports like London Heathrow airport to cut down cost of landing. However, this makes customers who live nearby the airports uncomfortable, since time and money are wasted to travel to easy jet landing airports. Lastly, due to fluctuations in the Middle East, impact of increased oil prices, cost of production is increased and this eliminates profit margin therefore customers have to pay more.
Companies identified as comparator companies to easy jet include; Ryanair, British airways and Flybe. Ryanair is
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