‘’Please fasten your seatbelts, we are about to take off!

”
easyJet CASE STUDY
■ Section E
Group 4 Section E

Group 4
easyJet

Started- May, 1995

Founder & CEO- Stelios Haji- Ioannou

Modelled after- Southwest Airlines

Headquarters- easyLand in Luton, London

Operating region- Europe

Product/Service- Low-cost Airlines

Competing on Cost

No travel
Using
agents and Flight time per
Internet sales- London’s
Computer No free meals- day- 11.5 hours Overall
60% of Luton airport
reservation saved £ 14/ (Industry margins- £ 1.5/
revenue in instead of
system- saved passenger average: 6 passenger
1999 Gatwick- saved
25% on hours)
£ 10/ passenger
operating costs
Competing on Service
Stelios: Ignored group:

• Flew 4 flights per week

• Involved in ticket sales Business travelers (50% of
• Replied to mails total passengers)

Operations:
Target Group:
• • 100% direct-sell
Travelers visiting
• Pay by credit card
relatives
• • Seating based on check-in
Leisure travelers making
brief trips time
• • Less additional payment
Small time
Entrepreneurs and for flight changes
• Yield management
managers
• Outsourcing of operations
 Outsourcing
Check-in

On-site
Workshops
Aircrafts and
Customer
Information
Simulations
Desk

Subcontractors
Pilots and Cabin Crew
Ticketless
Safety
Operations
Marketing and Sales
personnel 20 min Gate
Turnaround

These are the only things provided by the company

Brand Awareness

Approximately 10% of revenue spent on High recognition rate of 88% in London

newspaper, magazine and radio and 82% in Geneva from a 1998 industry
advertising poll

Incident with Swissair Wrapped the plane

Publicity through full-scale attacks on with the words – “Say no to Swissair
competitors monopoly” in orange. Refunded passengers.
Built brand loyalty.
Corporate Culture
easyJet • Company policies
• Communication between management and
Culture staff
Committee • Social events

• All business related documents available on

Transparency the computer system
• Payroll data is the only exception

• Team motivation
Underdogs • Increased morale
SWOT Analysis
Strengths Weaknesses
• Connectivity to major airports • No refunds
• Affordable pricing • Limited presence
• Reverse pricing system • Lack of senior
• Safety- experienced pilots
managers
•
and new Boeing planes
Ease of booking flights SWO • Issues with
subcontractors
• Creative marketing strategies
T
Threats
Opportunities
• Competitors
• Business class • Alternative modes of
• Allocated seating transport
• Market growth • Political hurdles
 Competitors
Ryanair
• Established in 1985
• No frills carrier
• Used travel agents
GO
• Established in 1998
• Financed by British B D
airways
• Headquarters-
Stansted airport in
London
Virgin
• Established in 1996
A C • Headquartered in
Belgium
• Alliance with
Sabena airlines
Buzz
• Established in 1999
• Founded by KLM
• Targeted new
destinations
PoP and PoD

Points of Parity Points of Differentiation

• No frill experience
• Low pricing • No pre assigned seating
• Point to point network • Internet oriented model
• Aggressive marketing
• No business class seat
• Dynamic pricing
• ‘Easyland’
• ‘reference number’
Expansion to other businesses
To offer
internet to the
masses

Increased
number of
Cheapest way
terminals, flat
to access the
screens, and
web
fiber optic
lines

easyEverything
café

Expanded to 4
£1 per hour of
more location
web access
in London

First such café

opened in
London in
June 21, 1999,
was open 24/7
Will the same principles work for
easyEverything café?
■ They are not compromising on the quality and safety of their services
■ Customer service will be high and they will be served on time
■ Refund options – in case of any order delay or quality issues
■ Yield management – book early and get discounts for browsing charges
■ They will use only experienced professionals to help the customers
■ High brand recognition
■ easyEcosystem can be built
■ Stelios- Man of the common people

Principles which might not work

■ They were transparent in their work culture at easyJet. This cannot be fully implemented in the online
world where data privacy is a concern
Final Verdict

RECOMMENDED
Thank you for the flight!
How was your experience?

Bharath Kumar R 210103045 Upasana 210103200

Yash Choudhary 210101150 Sai Ganesh K 210103135

Madhur Bharadwaj 210101137 Faisal Khan 210103209

Akshat Meratia 210103013