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EasyJet

Case Analysis

EasyJet Airline Company Limited is a British airline headquartered at London Luton Airport. It is the largest airline of the United Kingdom, measured by number of passengers carried, operating domestic and international scheduled services on over 500 routes between 118 European, North African, and West Asian airports. Its founder and CEO Stelios Haji-Ioannou is known for innovative ideas and pioneer in the advertising/publicity in the airline industry.

Business Strategy
EasyJet borrows its business model from United States carrier Southwest Airlines. EasyJet has adapted their model for the European market through further cost-cutting measures such as not selling connecting flights or providing complimentary snacks on board. The key points of this business model are high aircraft utilization, quick turnaround times, charging for extras (such as priority boarding, hold baggage and food) and keeping operating costs low. One main difference EasyJet has from Southwest is they fly a young fleet of aircraft. Southwest have a fleet age of 14.1 years whereas EasyJet's fleet age is just 3.6 years. The other important difference is that EasyJet only sells through telephone reservations or online, avoiding travel agent fees and ticketing costs.

Figure [ 1 ] - Issue Tree
Figure [ 1 ] - Issue Tree
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Future Direction
Strengths
EasyJet is a leading provider of low budget, no frills air travel servicing many of the leading city destinations in the UK and across Europe, including Berlin, Amsterdam, Barcelona, and Prague. They fly to many cities but as a strategy not necessarily to the primary airport in those cities to reduce costs but still manage to be convenient for their customers. They offer a high quality service at competitive prices and offer a number of features including ticketless travel, internet booking and assisted travel services. They have a highly distinctive painting on their...
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