Easy JetTHE WEB’S FAVOURITE AIRLINE

Easy Jet: Profile

• Founder : Stelios Haji-Ioannou

• CEO: Carolyn McCall

• Started operations in Novemeber 1995, with a capital of £50 million.

• Headquarters: Luton, Bedfordshire, United Kingdom.

• Started with 2 leased aircrafts and now has 217 aircrafts(A319 and A320) as of September 2013.

European Market

• Deregulation in 1992, more new airlines were created.

• 1999, only 3% - 5% flew on low-cost carrier in Europe whereas it was 24% in U.S.

• Competition from High speed rail service

• Cost of running an airline was 40% higher than in U.S.

• 60 out of 80 had gone bankruptcy by 1996.

• One type of aircraft

• Point-to-point short haul travel

• No in-flight meals• Rapid turn around

time• Very high aircraft

utilization

South west airlines

• Avoided travel agents

• No tickets• Direct sales over

internet• New Boeing 737s

with max seat capacity 149

• No frills• Paperless office

Easy Jet

Emphasized on

• Safety

• New Boeing 737s

• Experienced pilots

“ If you create right expectations and you meet or exceed those expectations, then you

will have happy customers”

Competing on cost

• £14 per passenger by not offering meals

• £10 per passenger by flying into London’s Luton Airport instead of Gatwick.

•No business class- more overall seating capacity

• Internet sales

•Avoided computer reservation systems and travel agents (added 25% of total operating costs)

• Increased the flying hours from 6 hours per day to 11.5 hours.

SERVICE COMPETENCIES

• Approach to customer satisfaction

• Internet and on telephone sales and no reimbursement for missed flights.

• Credit card payments and acknowledgement through six character booking reference number.

• No pre-assigned seating, first come first serve basis.

• Target group: travelers, entrepreneurs and managers of small firms.

• Ignored business travelers on some routes who accounted for 50% of passengers.

• Yield management – fill as many seats as possible

• Lottery system

% of seats sold Price of the seat

•Drew potential customers who were in search of cheap fares.

• Punctuality

Outsourcing• Lowered costs and increased efficiency

• Airline provided only Planes, Pilots, Cabin crew, marketing and sales people.

• All other responsibilities from check-in to the on-site customer information desk were handled by Subcontractors.

• Early 1998, owned operating certificate.

• Workshops, role-reversal exercises and simulations

• Not only quantitative criteria(on-time flights) but also qualitative criteria (understanding of easy-jet concept).

Brand Awareness

• 10% of revenue were spent on newspaper, magazine and radio advertising.

• By 1998, recognition rate was 88% in London and 82% in Geneva.

• “Say no to Swissair monopoly”

Corporate Culture• Strong, inclusive employee-culture – EasyJet Culture Committee

• Company-sponsored barbecue

• Complete transparency in the data (excluding payroll information)

• “The fight with Go”

• Acquiring of TEA, a Swiss charter airline.

Competition

RYANAIR GO VIRGIN EXPRESS

BUZZ

Established 1985 1998 1996 1999

Headquarters

Ireland London’s Stansted Airport

Belgium London’s Stansted Airport

Challenges• Privately held company to public

• Subcontractors- outsourcing of vital functions

•Becoming more corporate

•Relative youth and inexperience of employees

• Stabilizing internally

Other ventures• Creation of a cyber café business called easyEverything Café in 1999.

“ to offer the Internet to the masses” and

“to be the cheapest way to access web”

• First debuted in London on June 21, 1999 near Victoria station.

• First café – 400 terminals and fibre optic communication lines that offered faster connections.

• Rental car business and Internet based bank.

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