Easy Jet was founded in March 1995 by Sir Stelios Haji-Ioannou, in an effort to offer low fare flights in Europe (easyJet plc, n.d.). With flights from London to Glasgow and Scotland, the flights were full, and the demand for low-cost flights grew rapidly all through the whole country. Since then, EasyJet has successfully gone from strength to strength, until they are now the largest airline in the United Kingdom, and Europe’s leading airline, with 600 routes in over 30 countries (easyJet plc, n.d.). This is proven by their financial figures, with a total profit before tax of £478 million and total revenue of £4,258 million in 2013 (easyJet plc, 2013). This was successfully achieved by offering their customers low fares on no-frills flights, including no in-flight meals and baggage constraints, and creating an efficiency-driven operational model including forming a high brand awareness and maintaining customer satisfaction. This model included creating ticketless travel, selling tickets on the internet to reduce distribution costs and ensuring a speedy turnaround on flights. The substitutes for air travel are boat, road or rail and so in terms of long flights there is often no practical substitute. The low cost airlines have made it cheap enough for flying to be a financially viable alternative to travelling by road or rail on short distance, often-same country flights. EasyJet flies between more primary airports across Europe than any other airline, in order to ensure passengers receive greater connectivity across Europe (easyJet plc, n.d.). This ensures passengers ability enjoy a cheap holiday across the border, experience other European cultures, and business men and women can more economically connect with other companie... ... middle of paper ... ...ental concerns efficiently. However, policy frame work set by governments must also support increased environmental efficiency in aviation in order to achieve further emission reductions. EasyJet would like to see ETS taxes support environmental objectives. Taxes on planes rather than passengers and other similar aviation specific taxes would most likely support this and provide incentives for more environmentally efficient flying. EasyJet was one of the first supporters for aviation’s entry into the European Union’s Emission Trading System (ETS). This was an important step to ensuring that aviation will join the fight to tackle climate change. As a result, easyJet was frustrated with the European Union’s decision to exclude long-haul flights from the EU ETS in 2013 and believe that the scheme should include as many flights as possible (easyJet plc, 2013).
The following value chain, which focuses on Spirit Airlines, is representative of most of the firms in the Ultra Low-Cost Airline industry. Spirit is the industry leader in many areas such as operational efficiencies/cost structure, aircraft fleet management, brand/network and growth. The firm, however, trails industry foes in areas such as customer service and operational reliability and recoverability. While most in this segment pursue the cost-leader competitive strategy, Spirit has demonstrated the most effective model to date – whether the model is the most sustainable remains to be seen.
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
[11]Reviewing Existing And Proposed Emissions Trading Systems. (2010, Nov). Retrieved May 18, 2014, from International Energy Agency: http://www.iea.org/publications/freepublications/publication/ets_paper2010.pdf
EasyJet’s provision of low cost flights and it basis of “the earlier you book the ticket, the less you pay“ gives it opportunity to target its customers. EasyJet also provides a number of aircrafts in various airports thus easily accessibility of their services; this acts as it drivers in the market control and competitive advantage. It also has the advantage of providing other services such as car hiring, internet services and restaurants (Saleem, 2010). The ‘Europe by easy jet’ established a resounding brand positioning that is effective across all the main markets and enhanced visits to easyJet.com. EasyJet targets the consumers through various channels that help them to reduce marketing cost per sales. In 2001, EasyJet launched ‘easy Jet mobile app” which was downloaded by over six million people which accounted for 5% of overall sales. Mobile boarding cards are available through the app and make it easy for cust...
United Airlines aircraft have soared through the skies for more than 70 years. Initially used to transport U.S. mail, the planes soon took on a few adventurous passengers. In a matter of years, air travel was embraced by the general public, creating a demand for larger, faster, more luxurious aircraft.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
Airport – With the major airports in the European countries being too expensive for EasyJet to fly into, EasyJet will not face such problems in Nigeria due to currency exchange; it would be cheaper for EasyJet to fly into major airports in Nigeria. However, it is left to the airport to decide on whether it wants EasyJet to operate on...
...its competitors. -Hubbing: With hubbing, flights from various origins on spokes of the network are channelled through an intermediate location, where they change planes and are re-routed to their final destination. This way the airline can serve more locations with fewer planes. -Frequent Flyer programmes: These programmes provide discounts or bonuses to frequent travellers. The value of the bonuses increase as the mileage flown increase, the bonuses can take various forms such as, fare reductions, upgrades to better classes or even free tickets.
Jet airways India’s second major airline in terms of market shares after Indigo airlines based at Mumbai known as India’s economic capital in addition to being its India’s widest network with 3000 flights a day with 76 destinations worldwide, main operations are handle from Mumbai but secondary hubs are Delhi (Nation Capital of India) Kolkata and Bangalore, It has an international hub at Brussels Airport, Belgium.
In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
British Airways has focused its mission and objectives towards satisfying its key stakeholders that include employees, customers, Government and the British public. The company has been successful in dealing with cultural differences that arise between the UK and foreign countries, adopting a geocentric approach to hiring workers. The airline has also created a flexible organisation that responds quickly to the changing needs of its consumers.
Within the airline industry currently the airlines can be divided into low cost airlines and full service airlines. The low cost airlines targets customers that are seeking no frills connectivity between cities at low ticket prices. The full service airlines provide several add-ons like free meals, on plane entertainment, and communication facilities. The target market for full service airlines are customers who are willing to spend extra for the services that the airlines provides.
Ryanair is Europe’s largest low-fares, no-frills short-haul carrier. The organisation was founded in 1985 as a conventional airline but re-launched itself in 1990/1991 as a low-cost carrier, replicating American Southwest Airlines’ business model. Since then Ryanair has grown substantially and successfully. The company currently has 146 routes to 84 destinations in 16 countries, and carries more than 15 million customers annually. Ryanair aims to be Europe’s largest airline in 8 years (www.ryanair.com).
The fact that British Airways uses their resources such as the internet (through cookies, and customers filling in forms) suggests the large amount of data available to them. This data includes a large amount of information about many individuals and could hold a huge competitive advantage over other airline companies as they can refine their service offering for each individual’s preferences. The customer enters in personal information and it is at the disposal of British Airways to gain insight into the customers’ preferences.
An alternate strategy for JetBlue to return to profitability is to expand the market it services. A large part of JetBlue’s business is transporting cust...