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Easyjet Web's Favourite Airline
Easyjet Web's Favourite Airline
Easyjet Web's Favourite Airline
EasyJet
Founded in 1995 by Stelios(5 million Pounds) Started with a fleet of 2 aircrafts and 2 reservation agents,
Mission: To offer low-cost airline service to the masses Operating Principles: Efficient operation Brand awareness creation High level of customer satisfaction
cost airlines (Vs 24% in USA) Analysts prediction: Market growth of 300% by 2004
No frills travel
POLICIES ADOPTED FROM SOUTH WEST AIRLINES One type of aircraft Point to point short-haul travel No in-flight meals Rapid turnaround time Very high aircraft utilization
NEW POLICIES USED Avoided travel agents Issued no tickets Direct sales over the internet Flew brand new Boeing 737s at maximum capacity of 149 No food or beverages on board Paperless offices
Service
Stelios himself took feedback from the customers.
Effectiveness of media due to 100% direct-sell Easy online/phone ticket booking system Reference number based boarding process No pre-assigned seating Letter of apology in case of delays more than 4 hours Load based price determination
Target customer People who pay for travel from their own pockets Leisure travelers, entrepreneurs and managers of small firms
Competitors(Industry focused)
Ryanair 20 Boeings, 26 destinations, 100 flights per day Global distribution, travel agents for ticket booking Good on-time performance(63%) Low cost, high revenue, high profit margin Go Financed by BA(25million Pound) Average, below average on-time performance 13 Boeings, medium revenue, huge loss
Continued
Competitors continued
Virgin Express Low cost, short to medium haul service from Brussels. Collaboration with Belgium Sabena for connecting flights. 20 Boeings, High revenue, low profit. Good on-time performance. Buzz KLMs low cost carrier. High speed rails for some European
destinations(Substitute)
Challenges
Whether to take the company public or not?
Outsourced operational activities Managing easyJet as it transitioned from a Startup to a
thriving company Inexperience and relative youth of employees Consolidation in the Countries where easyJet already operated
easyEverything
EasyEverything caf-to be the cheapest way to access the
web Economies of scale: 400 terminals in the first easyEverything caf Good infrastructure, tutor service, snacks Plan to apply the same model to other businesses too
Thank You!