Easyjet- Principles of Operations Management

Topics: Airline, Low-cost carrier, Southwest Airlines Pages: 5 (1616 words) Published: January 4, 2011
The essay will firstly introduce the organisation easyJet. Secondly the essay will explain about how easyJet uses its operation strategies and its competitive priorities. Finally the essay will discuss the most important operation decision and explain it further in detail. easyJet is a well known low-cost airline which operates in several European countries and has been founded by serial entrepreneur Sir Stelios Haji-Ioannou in 1995. easyJet undertook intensive research of a United States owned low-cost airline ‘Southwest Airline’. Most of the concepts for easyJet were adopted from Southwest airline; however easyJet added its own touch which reduced operating costs even further. EasyJet was strategically located at London's Luton airport. Its location enabled it to take advantage of the low labour costs, close proximity to London and also low charges on airport fees. EasyJet is a low budget airline which has been operating since November 1995, where it made its first flight which departed from Luton heading towards Glasgow. It then achieved its first online order in April 1998. The organisation is an informal culture with a very flat structure which eliminates unnecessary and wasteful layers of management.

Operation Model

The airline's operational model focuses on moving people from point A to point B in the best and cheapest possible way, eliminating all unnecessary costs. An example for easyJet’s operation model could be their online booking process. This process eliminates fees and cuts costs. Their input process would be customers booking a flight online and then it would go through a process which will notify the consumer the destination, the time, date and give a final confirmation of the flights available. Finally the output would be the customer booking their tickets and flying to their selected destination.

EasyJet’s competitive priority is to keep costs low by eliminating the unnecessary costs, which characterise traditional airlines. It currently has operating base throughout the UK and main land Europe. EasyJet is focused on European operation, and was one of the few airlines to take advantage of the single European market. Comparing to small airlines companies which usually operates mixed fleets of old aircrafts at the end of their lives, easyJet operate on marginal routes that large airlines are not interested in. easyJet has a completely different model. It operates modern aircraft intensively on busy routes. It operates by expanding at a profit; they do this by buying new fleets of the brand new aircrafts that will drastically increase its route structure and intensity of its operation. The organisation will try to make more capital by reducing its overheads and focusing on all aspects of its operations. EasyJet has a cost per seat model that allows it to compare with its competitors in order to offer low cost seats at the lowest possible price. Furthermore easyJet is keeping up to date with the competition with their online booking services which has attracted many customers and still is attracting new potential customers that will find it more accessible. This model is carried forward in all its operation. EasyJet is not satisfied to only operate its aircraft to the currently accepted safety standards, but is always improving wherever the opportunity exists. Example: taking advantage of new navigation, surveillance and communication technology to provide higher safety measures for its customers. The airline industry is a very economical industry where the management of operation makes or breaks a business, especially easyJet being a low cost organisation. EasyJet operation strategy supports the above priorities in many ways. EasyJet’s mission is to be the top low cost airline in Europe along with providing outstanding value to its passengers. This is a tough mission but the organisation uses a variety of operation strategy to achieve its mission. These strategies are analysed by the company to...

References: • Galloway L. (2000) Operations Management in Context: Galloway Rowbotham Azhashemi
• EasyJet – Sir Stelios Haji-Ioannou; (2008) The first "sweating the assets", that is making sure the planes were as full as possible and flying as much as possible:
http://www.icmrindia.org/casestudies/catalogue/Business20Strategy1/Business20Strategy20EasyJet20The20Easy20Way20to20Succeed.htm [Accessed: 25th November, 2009].
• easyJet Operating Philosophy - For example, its online booking services are way ahead of its competitors and have firmly established it as a favourite with its customers.
http://www.aatl.net/publications/easyJet-HUGS.htm [Accessed: 30th November, 2009].
• EasyJets competitive operation strategy - http://www .oppapers.com/subjects/operations-management-easyjet-page1.html [Accessed: 01st December, 2009].
• Forecasting Methods: Literate review and current practices http://www.bookpump.com/dps/pdf-b/1121415b.pdf
[Accessed: 12th December, 2009].
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