COMPANY PROFILE
easyJet plc
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PUBLICATION DATE: 12 Sep 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.
easyJet plc
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
SWOT Analysis.....................................................................................................4
easyJet plc
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easyJet plc
Company Overview
COMPANY OVERVIEW easyJet plc (easyJet or the
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easyJet is the third largest carrier in Portugal with a market share of around 13% and is also the second carrier in Lisbon Portela airport. easyJet's strong position in the key aviation markets of Europe supports the company in delivering sustainable operational and financial performance.
Robust capital structure and liquidity
Over the years, easyJet has consistently delivered strong financial performance and has one of the strongest and liquid balance sheets in the European aviation market. More importantly, the robustness of its balance sheet has helped the company in comfortably sailing through the current global macroeconomic fluctuations.
The company's FY2013 revenue grew by 10.5% over FY2012. Likewise, it's operating profit registered growth of 50.2% and the net profit of 56.1% over the same period. The company also enjoys strong financial position. In FY2013, the company reported non-current borrowings of £592 million ($924.4 million) which translates to a strong debt to equity ratio of 0.71. easyJet also holds significant cash and liquid funds to mitigate the impact of potential business disruption events with board approved policy stating a target level of liquidity of £4 million ($6.24 million) per aircraft in the fleet. The total cash (excluding restricted cash) and money market deposits at FY2013 were £1,237 million ($1,931.6 million). Also, the company has
John Mackey, founder of Whole Foods once said "Business social responsibility should not be coerced; it is a voluntary decision that the entrepreneurial leadership of every company must make on its own." (Mackey, 2005) In today’s society it is increasingly common for businesses to actively identify and become directly involved in the country and the global social issues and needs. It is now common
Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by its
2. Natives worked on the plantations. Slaves from Africa were brought over to Brazil when the native workers died. Eighty-two percent of the population in Brazil trace their ancestry back to the days of slavery.
Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by
Excellent equity position: $820 Million cash on books so they are well positioned for growth.
For many European individuals, the Southern colonies offered economic opportunity and prosperous living. However, as awareness of harsh living conditions increased and events such as the London Fire of 1666 created rebuilding jobs in Europe, the number of potential colonial indentured servants heavily declined. This shortage prompted African slave labor to be preferred economically by landowners as slaves were a guaranteed workforce, politically as laws offering total ownership made slaves more desirable, and socially as many influential landowners considered the African race subservient.
This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths, weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet will be shown, which includes an overview of easyJet’s main competitors and the nature of business in which they operate
With the BCG Matric analysis, we can argue that Easy Jet enjoys a viable competitive position because of its actual market growth. However, its prices have been compared with those of rival firms. This has clarified that Easy Jet emphasizes on being a low-cost carrier with no surplus in-flight services. Writers such as Quelch & Deshpande (2004, p. 71) argue that the Boston Consulting Group growth/share matrix has offered an opportunity to establish the market share of Easy Jet and the company's growth rate. In the context of the company's low cost market, it is clear that the market is still are still increasing. In addition, with the current fleet volume of 80 aircrafts, Easy Jet can serve 160 routes across Europe. Industry experts have associated such massive penetration with the rise in numbers of passengers and a relative rise in market share. Consequently, it is clear that the company has become a star. Nevertheless, Easy Jet must expand its market share for it to transform into a source of income after the decline of the market's growth rate. With respect to the company's Boston Consulting Group growth/share matrix analysis, we can claim that the cash flow of Easy Jet from operating activities have declined as well as the annual finances. Nevertheless, the acquiring firm's cash flow statement is the main area of focus (Butler &
The airline business is an industry that is competitive and unique, focussing on consumer choice and the responsiveness of airlines to changes in the external business environment. For any airline, this environment can be very complex as it is ‘hard for them to fully understand and impossible for them to fully control’ (The Times, n.d. p1). Virgin Atlantic is an international airline that is based in the UK. It was started by the entrepreneur Richard Branson in 1982 and now flies to 30 destinations around the world (Virgin Atlantic Airways Ltd, 2011). By looking at
The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by
FlyLikeUs is a new entrant airline financed by a team of businessmen from the UK and Finland. Its headquarters and main facilities are in Helsinki. London City Airport -where business travel is highly common but the demand for leisure travel continuously increases- is considered as our future hub as soon as required maintenance facilities are employed at the airport. FlyLikeUs wants to bring an innovative approach to regional market in Europe by operating a fleet of brand new high-tech Embraer E-Jets.
Almost three decades ago, in July 1985, three brothers, Catlan, Declan, and Shane Ryan founded Ryanair airlines in the southeast of Ireland. Little did they know, it would become one of the most successful low- cost airlines in the whole industry. It started with just one leased fifteen seater plane that flew from Ireland to London’s Gatwick airport of which their father, Tony Ryan was the chairman. After the government deregulated air traffic to England, Ryanair got the license to operate from Dublin to London. At the end of that year, the airline had flown 5,000 passengers already. By the following year, it quickly started expanding with the purchase of two bigger but older planes. Since the very beginning the company maintained a low-cost strategy. They managed to provide fares that were 20% lower than what its main competitors were offering.
Low-cost carriers mainly operate high-volume passenger traffic on short-distance routes, use second-level airports, and offer no extra services. Given
Destinations Countries/Territories Daily departures Passengers (000) Fleet RPKs (000,000) Operating revenue (000) Operating profit (000) Net profit (000) Frequent flyer programme Airport lounges Major hub airports Year of formation Ownership 571 135 8.511 238 2.023 ----Yes Yes -1999 -729 44 124 26 10.728 151 292 11,864 2.058 72 -47,153 -4,426,194 -678,103 -641,691 Yes Asia Miles Yes First&Business Hong Kong 1997 1946 PLC PLC 93 73 352 35 1,700 244 41,300 18,038 243 81 88,606 42,395 13,356,240 2,869,686 914,727 358,368 605,424 113,656 Miles and More Royal Orchid Plus First&Business First&Business Frankfurt,
They are one of the main contending and competitive agencies inside the market, and are to be considered the most profitable. This report attempts point by point by the analysing the investigation of Ryanair. It takes a gander at Ryanair's current system and the administration of that procedure. It recognises how the business ‘operations and capacities impacts on the transporter's client relations and leaderships with respect to their general strategy. It likewise gives a brief assessment of Ryanair's monetary structure and also an environmental investigation of the European aircraft industry and how this influences Ryanair. The report is chiefly a contextual investigation examination in view of Müller (2011, p.89), review of Ryanair directed in 2004. In any case, other auxiliary research has been analysed and used to bolster the contentions set forward in this archive which includes a combination of description and