EasyJet

Headquarter: London in Luton airport

“A Bright orange building adjacent to the main taxiway at luton airport”

The company is founded by Stelios Haji-Ioannou, the son of a Greek shipping tycoon (business man) who was against the use of the Internet.

It is the embodiment of low cost airline companies; it operates modern aircrafts in competitive routes, more than 200 routes between more than 65 European airports, the company holds a British civil aviation authority Type A operating license permitting to carry passengers cargo and mail on aircraft with 20 or more seats. EasyJet flys mainly to leading airport, all it cabins are single-class. The strategy of this company consists on attracting business travelers as well as leisure travelers.

Business Model

The concept of EasyJet is mainly cutting unnecessary costs:

*exploiting internet >>> to economise distributions costs

(95% of the total seats are sold by internet = EasyJet is considered one of the biggest Internet retailers en Europe)

*Maximise the utilisation of the substantial assets maximising utilisation of each aircraft significantly reduces the unit cost

*all passenger receive an email confirming their booking and travel details instead of tickets>>> to reduce considerably the cost of issuing, distributing, processing and reconciling millions of tickets each year

*eliminating free catering during flights >>> to reduce costs and unnecessary bureaucracy and management

*eliminating pre-assigned seats

*easyjet flights to main airport throughout Europe, it gains efficiencies through rapid turnaround times and progressive landing charges agreement with the airport>>>by reducing turnaround by 30min and below, easyJet can achieve extra rotations on the high-frequency routes, thereby maximising utilisation rates of its aircraft

*using the concept of Paperless, all management and administration work is undertaken entirely on IT systems which can be accessed through secure servers from anywhere in the world enabling huge flexibility in the running of the airline

Revenue streams

Mostly commissions via partners

*Car rental

*hotels

*insurance

*bus transfer

*airport parking

*food on-board

*advertising

*lounges

*credit cards

*Mobil operation

Marketing strategy

EasyJet has used the “Easy” prefix to offer to the customer additional services such as:

*Easy rentacar, a low cost business too, is only through internet (£9/day)

*EasyEverything (EasyMoney, EasyCinema, EasyMusic, EasyCruise, easyMobile, EasyBus, EasyPizza….)