Case Study of Easyjet

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EasyJet is Europe's leading low-cost, no frills airline. When it was created eight years ago, easyJet was a bold new venture aiming to change the rules of its market. Since its first flight in November 1995, the airline has grown from a Luton base offering two routes from Luton to Glasgow and Edinburgh, served by two Boeing 737 aircraft, to one that offers 125 routes from 39 European airports, operating 72 aircraft (November 2003). The phenomenal growth of easyJet was boosted by its merger with Go-fly in August 2002, making the combined company Europe's Number one low cost airline. In October 2002, the airline signed a deal to purchase 120 Airbus which will facilitate the airline's ongoing growth strategy. During the financial year to 30 September 2003, the company reported pre-tax profits of £52.0 million on a turnover of £932 million and carried 20.3 million passengers. The airline's shares were formally admitted to the London Stock Exchange on 22 November 2000 at a price of 310 pence per ordinary share. ( This report will begin with a general industry analysis. And then it will concentrate on both external and internal environment facing easyJet. At the end, it will discuss the key strategic issues facing the company.

As it is a group work, both two members spent much time to collect data and materials from Internet and library. We discussed theories and models illustrated in the report and each of us wrote two parts individually and finished first part and last part together. So we expect to acquire the same proportion of the final score.

Part II analysis of the low cost airline industry

Since the unprecedented, tragic events, of September 11th some of its profound consequences are coming to light. As events have unfolded it has been thought inevitable that the airline industry would suffer heavily, stocks have been devalued and ticket prices are at all time lows. News headlines such as...
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