Risks of Easyjet Plc Categorised.

2290 WordsMar 26, 201110 Pages
Executive Summary. The following report will aim to identify and categorise risks to easyJet as a company. By identifying risks to the company we are able to see what risks the company have and potentially how to avoid or deal with them. Then by classifying them in groups it may be possible to tackle a few risks with one solution. After listing the risks and putting them in a risk matrix, the report will then aim to explain how the risk will affect easyJet and justify the position of it in the risk map. The way the report has classified the risk is whether the risk is a generic risk that will affect the whole industry of whether the risk is specific to the company. There will then be a conclusion to summarise the risks and the…show more content…
In 2010 easyJet was affected by strikes in Spain, having to delay or cancel ‘dozens of flights.’ (Hazel Baker. 2010). This would affect easyJet further because it would mean easyJet lose a lot of sales from flights for that day, and could even end up out of pocket because many people could have asked for compensation. Natural disasters are also events that are out of easyJets control. The volcanic eruption that occurred in April of 2010 affected nearly the whole of Europe in terms of aviation and flying. In particular it affected easyJet in unprecedented ways, it had to ground/delay flights over a period of about 2 weeks. This left many tourists stuck abroad with no way back to the UK. It is reported that the ash cloud cost easyJet around £65 million in compensation and loss of sales. This type of disaster is very rare and is unlikely to happen again. Should it re-occur though easyJet have developed a new system that could bypass such an ash cloud (Katherine Griffiths. 2010.) Another generic risk that would affect easyJet aswell as other aviation companies would be advances in technology. This could mean new aircraft being built or introduced. easyJet would have to invest in new aircraft if technology in their current fleet becomes obsolete, such as a more efficient engine or an aircraft with bigger capacity and cheaper to run. Another example of this is the new system that easyJet themselves developed to help detect if

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