EasyJet EasyJet has become the European leader in a no frills frenzy for low cost, cheap air travel. This market however has since the mid nineties gone from strength to strength and we have witnessed the arrival of a number of low cost airline companies which cater for the no frills approach. In Europe the top two competitors in this market are EasyJet and Ryan Air which serve their customers from London Luton and Dublin respectively. They offer a differentiated product compared with
Both, Ryanair and EasyJet, operate within the airline industry which is highly regulated and characterised by intrinsically high exogenous barriers of entry such as cost of technology and access to congested airports. Furthermore, the industry is prone to high costs due to external factors such as weather and safety provisions. Ryanair and EasyJet are both low cost carriers (LCC). Although the airline industry as a whole is predominantly stagnant with a relatively low growth rate, the opportunities
EasyJet is Europe's leading low-cost airline. The airline was founded by Stelios Haji-Ioannou, and the family remains the major shareholder. He controls other separate EasyGroup companies such as EasyInternetCafe, easyCar.com, EasyMoney, and EasyValue.There are no "cross-shareholdings" between EasyJet and these other EasyGroup companies. EasyJet operates independently from the other companies, although some "cross-marketing" agreements do exist. EasyJet is a low cost airline officially known as
on the same level of the buying chain. The advantage of horizontal integration is that it can increase the company’s market share. Another good example of this type of integration is when EasyJet purchased the airline Go from British Airways. Now EasyJet and Go both operate under the company name of EasyJet. Vertical integration is when an organisation own companies on two or more levels of the buying chain. Examples of this can be found within “The Big 4,” all of them own an airline, travel
However, this does not mean it should be the cheapest one. It is Explain how the products of EasyJet are developed to sustain competitive advantage. According to Porter (2004), there are two type of competitive advantages which are cost advantage and differentiation advantage. He stated that a company gains cost advantage when it provides the same products or services as its competitors with a lower cost. EasyJet has gained this advantage as it offers flights to similar destinations when compared with
airline industry the service provided has been almost commoditized and the companies are trying very hard to be profitable while being competitive, in order to please their stakeholders like investors and customers. A well known low-cost airline is Easyjet which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. Easyjet's goal is to be the leading low-cost airline in Europe while providing exceptional value to its passengers. This is
or caused a lot of pollution • Governments – their concerns are taxation, VAT and legalities What the stakeholders want from EasyJet: • Customers – they would want cheap flights that are comfortable and safe. They want an affordable price for the flight and in-flight products, as well as a safe, smooth journey. • Employees – they want to be paid the correct wage from EasyJet for what they do and the hours they work. They would also want the company to do well profitably as this could mean that they
Easyjet and Ryanair flying high on the Southwest model Charting the ups and downs of low-cost carriers Abstract Purpose – Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – There was a time when the notion of commuting daily between Rome
Introduction The purpose of this essay is to analysis the easyJet plc about the company’s operation performance, financial status and the ability to control different risks. To achieve the aim, the investigation of the essay will include the following parts: the introduction of the company, the financial trends during the last 5 years, the method about how does the company do their globalization, and how does the company manage the risks that along with the globalization. Finally, the recommendation
discussing their limitations. I have discussed yield management with regards the low cost airline Easyjet. Their unique yield management system means that they are able to get the most cost out of every flight because they have segmented their customers into two distinct groups: Business and leisure. I have also discussed the theory and components of Yield Management and have tried to tie it in with Easyjet. Inventory Management: The topic which I will be discussing in this section is inventory
especially due to the cost of fuel and technology needed to operate the airplane. With EasyJet internationalizing into Africa, it had the notion of facing new competitors, however, with the finances (see appendix) it possesses and the famous identity of its brand, made the threat of being a new entry within the Nigerian market low. However, a big threat would be if local Nigerian airlines were to reduce its prices then EasyJet might be at risk because the local airlines have the necessary equipment and knowledge
saturation of the Europe market and its strong competition. The statistics show that people travelling by air has increased tremendously over a year (Holloway, 2000). Asia and North African appears to be attractive new markets for EasyJet to expand and exert its influence. EasyJet entered the European airline industry despite the stiff competition. The competitive factors and attractiveness of the European market can be examined further by use of Yip’s driver of internationalization. YIP’s framework suggests
rental and travel insure which cover any damages or passenger injuries. Giving these services on-line makes Ryanair maximise sales, while minimising unit’s costs. In 2010 Ryanair was number 12 when looking at the most visited websites in the UK, and EasyJet (their competitor) was number 10. Additional services considered about 22 percent of total operating incomes, compared to 20.3 percent in 2009. It dropped from 10.20 Euros in 2009 to 9.98 Euros per passenger in 2010. Ryanair was voted of having the
existing debts. Therefore, using debt does appear to be an attractive source of finance. This is because Barra Airways existing interest burden is low, meaning that to increase it would have a reduced effect on the company’s net profit. However, EasyJet has an ICR of 30.88, considerably larger than that of Barra Airways [5]. Lenders may look at this data and conclude that Barra Airways is a riskier company to lend too than others in the same industry; this will result in a higher interest rate on
when and they want it. Essentially the self determination of the founder of easyjet through his transformational leadership has enabled the realisation of the company. Genevieve S et al (2012) highlight that self-determination theory is a motivational mechanism that drive individuals to perceive themselves as displaying transformational leadership behaviour. Evidence suggest that the investment of the founder of easyjet in shipping business failed due to disaster having invested 30 million pounds
Southwest Airlines : Introduction :- The airline was founded in (1967) by Herb Kelleher and currently own near a (696) aircraft, principally Boeing. The headquartered in Dallas, Southwest Airlines currently reach around (100) destinations in the United States with a staff of approximately (55,000) . It is the largest domestic airline in the U.S with more than (4000) flights taking place per day during peak times. From its first flights on June 18, 1971, Southwest Airlines began an era of unprecedented
namely Shuttle by United, Continental Lite, Delta Express, Germanwings and so on. But what is it that makes low cost carriers such unbeaten? In this essay I would like to demonstrate some of the key success factors that have made carriers like easyJet, Ryan Air and Southwest so successful. First it has to be mentioned that no unique low cost strategy exists, it is more that every airline has its own concept, so that the service offered varies between No Frills-Airlines and “quality airlines
Jet2 is a mainly internet-based airline company which flies from six UK based airports to over 30 various locations around Europe. Jet2 places its emphasis on low costs, safety and reliability to ensure a satisfied customer base and therefore with the aim of increasing its potential revenue. The company, Jet2, have many strengths to its name. One such asset is, as mentioned above, the six UK based airports from which it flies from. These six locations, Belfast International, Newcastle, Leeds/Bradford
duopoly held by British Airways and Aer Lingus at the time (Ryanair, 2013). There isn’t a doubt that the goal was accomplished and continues to evolve. However, a new competitor has entered the market and threatens their “lowest fare anywhere” motto. EasyJet, founded in 1995 (Spotlight falls on, 2013) has emerged as another low cost carrier (Wensveen, 2011) and is keeping competition fierce as they try to exceed Ryanair customer service by providing “speedy boarding”, more flexible fares, guaranteed seats
bu... ... middle of paper ... ...an airport can be considered as an enormous step forward when it comes to moving passengers quickly through ground installations, both before and after flying. Works Cited Company Watch. (March 17, 2008). Easyjet. Retrieved January 22, 2011 from http://www.lexisnexis.com.ezproxy2.apus.edu/hottopics/lnacademic/?verb=sr&csi=8406&sr=lni%284S4K-9M40-TX0F-61J6%29. IATA awards Abu Dhabi international airport for fast travel. (December 26, 2011). Arabia 2000 [serial