Founded by Stelios Haji-Ionnou.

Began its operations in November 1995 with two leased Boeing 737s Intention to make airline flights as cheap as a pair of jeans and to cut out the middleman and deal directly with potential passengers

Competing on cost Competing on service Creating on brand awareness Corporate culture

Offered low fares No in flight meals Flew into Londons Luton Airport instead of Gatwick (low labour costs) Did not offer business class seating, increasing overall seating capacity Encouraged Internet sales; avoided travel agents

Prioritized customer satisfaction Stelios flew on at least four flights per week himself for gaining insights No reimbursement for missed flights Did not offer pre-assigned seating; utilized priority boarding procedure

Yield Management: try to fill as many seats as possible The more people demanded a particular flight, the higher the fare Customers in search of cheap fares Once they found there were no more cheap seats they bought a ticket anyway since the next highest fare was still cheaper than easyJets competitors

Punctuality: Flight more than four hours late offered full refund to customers and a letter of apology by the staff Outsourcing: airlines operations to subcontractors for efficiency and lower costs

10% of revenue spent on marketing Advertising through newspaper, magazine and radio Highly publicized Full scale attacks on his competitors

Strong, inclusive employee culture Separate easyJet cultural committee Complete transparency Paperless office Employees sat in the same open plan office

Fences
Built to prevent passengers from substituting higher fares for discounted tickets- Check-in times, penalties for changing date and/or route

Different Classes of Services

Economy, Plus, Business and First Class Some may cost anywhere from 3-10 times more expensive than lower class tickets.

Price Discrimination
Based on fare classes Charge each customer as much as they are willing to pay

Value-Added Pricing
Offers passengers a superior range of ground and onboard services In return, demands a much higher fare

Reverse Price System

The further the date of departure, the cheaper the ticket Encourages customers to book early Able to satisfy demand for every flight

No Frills (No Extras)

No free meals/beverages onboard or frequent flyers/loyalty programmes Squeezing more seats into one flight to maximize profits

Travellers who pay for travel from their own pockets Entrepreneurs and managers working for small firms

Flies to all the primary airports in Europe Commitment to excellent Customer Service Price is the crucial positioning factor
easyJet positions itself to its consumer base as the best form of budget travel in Europe by providing efficient, low-cost flights and at the same time maintaining a high quality of service.

Should easyJet go public? Outsourcing of vital functions posed certain problems More corporate processes; requirement of skilled employees Relative and inexperience of some employees Internal stability

Brand Name Low cost Company Slogans You can now fly from one end of Europe to the other for the cost of two hardback books. Reliability Punctual Safety (fleets are modern)

Competitive advantage Flies to main airports within Europe Quality Customer Service. Price Low Online Booking No Frills Rapid turnaround times Low cost of overheads

Under-utilisation of resources Highly sensitive to additional charges Temporary advantage in e-tailing Dependence on two models of aircraft Lack of strategies

Predicted Growth Expansion of the EU Immigration Mature Airline Market

Increase in environmental taxes Currency fluctuations Competition from other airlines Dependence on third-party aircraft providers

Offered low fares No in flight meals Flew into Londons Luton Airport instead of Gatwick (low labour costs) Did not offer business class seating, increasing overall seating capacity Encouraged Internet sales; avoided travel agents

Low cost Prioritized customer satisfaction Stelios flew on at least four flights per week himself for gaining insights Punctuality: Flight more than four hours late offered full refund to customers and a letter of apology by the staff No compromise on safety No intermediaries for purchasing tickets

No Internal stabilization of easyJet is required Outsourcing of vital functions posed certain problems More corporate processes; requirement of skilled employees Relative and inexperience of some employees Need to consolidate and do more in the countries where they had already set up operations