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EASYJET : THE WEBS FAVORITE AIRLINE

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About easyJet
Europes leading low cost airline

Launched Nov. 1995 by Stelios Haji-Ioannou

Revolutionised how people travel in Europe Pioneered the use of the internet for travel

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Initial Strategy
Previous exp Stelmer-specialised tanker

company Modeled after Southwest airlines One type aircraft Stelios own twist Point to point short haul Noin flightagents No travel meals London Luton airport -> Choiceissued(registration no.) No tickets of time Rapid turnaround Encouragedutilization low labor cost High aircraft direct internet sales Extensive PR andcapacity Brand new boeing 737s-149 ad campaign Proximity to london
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SLOGAN-FLY TO Lower airport fees SCOTLAND FOR PRICE OF A PAIR OF JEANS

Identify Customers
People who pay for travel from their pockets like travelers

visiting relative, leisure travel making brief trips, entrepreneur managers working for small firms Those travelers who did not want to stay over on Saturday night Those who wanted flexible travelling plans since cost of changing the travel plan was 10 plus the difference in fare

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Strengths of Easy Jet

Low Cost strategies Direct sales via internet, telephone etc

Use of internet reduces distribution costs No agents No computer reservation system

No free Lunch
Efficient use of airports Maximum utilization of resources

Frequency 11.5hrs/day instead of 6hrs/day Yield management to use maximum capacity of aircraft Lowered cost and increased efficiency due to outsourcing Attacking and aggressive ad campaigns
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Outsourcing 1998 , brand recognition of 88%.

Weakness of Easy Jet

Alternate means of transport in form of rail transport in Europe Low profit margin @ 1.5 per passenger Unsatisfactory performance of sub-contractors and ground handling units

could put consumer satisfaction and safety at risk.

Stelios was a high risk taking
1998 6 Boeing to 18 Boeing

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MAJOR COMPETITORS

RYANAIR

Full service tradition 2 class seated Used travel agents and global distribution system 20 Boeing 737s, 26 destination , more than 100 scheduled flights with plans of further expansion Sales of IR 66.2m with 28% profit margin

Go

Financed with 25m from British Airways Suffered financial losses but was expected to achieve profitability by 2001 Loss of31.6m with losses of 22m

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MAJOR COMPETITORS

Virgin Express

Headquartered in Belgium Provided short to medium haul service principally within continental Europe Sales of BEF 10.5 billion Tie up with Sabena airways, Sabena brought seats in virgin in order to offer better connections to

Buzz

Low cost segment of KLM Has already one brand in place at London Stansted, KLM UK

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CHALLENGES
Decision regarding weather to take the privates company public since

the management style of the company was entrepreneurial

Problems with the sub-contractors Need for becoming more corporate in the process Youth and inexperience in the company High rate of absenteeism

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OTHER VENTURES OF easy

Creation of cybercaf business called easyEverything Main idea behind its inception was to offer internet to the masses Customers could purchase coffee and snacks or rent services of a tutor Caf contained over 400 terminals State of the art hardware like flat screen and fiber-optics communication lines Considered entering rental car business and internet based banks

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