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By Group No.

9

grew to 18 Boeings by 1999  Operating from Luton London  Lower labor cost  Low airport charges  Mission: “To offer low-cost airline service to the masses”  Operating Principles:  Efficient operation  Brand awareness creation  High level of customer satisfaction .EasyJet  Founded in 1995 by Stelios(5 million Pounds)  Started with a fleet of 2 aircrafts and 2 reservation agents.

European Airline Industry  Was tightly regulated to protect national carriers  Deregulated in the 90s  80 new entrants in 1992. 60 went bankrupt by 1996  By 1999. 3-5% of European passengers travelled by low- 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 .

brand new Boeings  Hired experienced pilots  Cost cutting  14 Pounds per passenger: No on-board meals  10 Pounds per passenger: Using Luton Airport  25% of operating costs: Encouraging internet sales (Obviating reservation agents)  Increased airplane air time (11.Benchmarking & cost cutting  Safety never compromised. industry average of 6 hours) .5 hours a day vs.

Service  Stelios himself took feedback from the customers. entrepreneurs and managers of small firms .  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.

Creating Brand Awareness  10% of total revenue spent on publicizing  Differentiate itself from competitors  Achieved recognition rate of 88% in London  Achieved recognition rate of 82% in Geneva  Full scale attack on competitors .

26 destinations.Competitors(Industry focused)  Ryanair  20 Boeings. high profit margin  Go  Financed by BA(25million Pound)  Average. high revenue. 100 flights per day  Global distribution. below average on-time performance  13 Boeings. travel agents for ticket booking  Good on-time performance(63%)  Low cost. medium revenue. huge loss …Continued .

 Good on-time performance. short to medium –haul service from Brussels. low profit.  Collaboration with Belgium Sabena for connecting flights.…Competitors continued  Virgin Express  Low cost.  High speed rails for some European destinations(Substitute) .  20 Boeings.  Buzz  KLM’s low cost carrier. High revenue.

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 café-to be the cheapest way to access the web  Economies of scale: 400 terminals in the first easyEverything café  Good infrastructure. tutor service. snacks  Plan to apply the same model to other businesses too .

Thank You! .