This Case Study details the rapid growth of easyJet which started operations in November 1995 from London's . Starting from this awareness easyjet become one of Europes first low cost airlines by adopting : 1. [11][31][32][33][34], In June 2011, the airline opened its eleventh British base at London Southend Airport, offering flights to Alicante, Amsterdam, Barcelona, Belfast, Faro, Mlaga, Jersey, Palma de Mallorca and Ibiza. We have taken ideas from Boeing, Airbus and the engine manufacturers and put them together." Previously EasyJet had only operated from Berlin-Schnefeld Airport and Berlin-Tegel Airport, where EasyJet had taken over some of Air Berlin's old services. May / 15 2013. THREATS Stelios and his family members are the highest stakeholders in EasyJet and own about 34% of shares, which are calculated worth 6.8bn as of 2015 . Also the product that airlines serve is a somewhat typical service. Generally Accepted Accounting Principles. Air France EasyJets Business Model Analysis Political factors reflect the political stability of the region where Easyjet is operating. Competition This cookie is set by GDPR Cookie Consent plugin. [43], On 30 September 2021, Stelios Haji-Ioannou and his family lost control of the company, after failing to take up the rights issue and being diluted: their stake was just 15.27% as of 30 September 2021. Airline, Stakeholders Southwest Airlines. These cookies ensure basic functionalities and security features of the website, anonymously. [41], On 19 May 2020, the company revealed that it had been the subject of a cyber-attack resulting in the release of the personal information of 9 million customers. Good Essays. With Nike being a huge, Premium Strategic management, Stakeholders of marks and spencer and their influence. Business Model Analysis Low-cost carrier Table of Contents 3.5 Process 9 Government grants permission to purchase new Aircrafts. It is very difficult to classify easyJet's social responsibility activities. Airlines which fail to comply with strict, Premium They also offer other advantages to business passengers as for example: boarding the plane among the first, going through fast-track . Premium [99] The then-CEO of EasyJet, Carolyn McCall, stated of the change: "bigger planes would help EasyJet increase capacity in slot-constrained airports at peak times, such as Geneva, Amsterdam and London Gatwick". Internal stakeholders are those from within the, Premium Easyjet Case Study. Management Airline Necessary cookies are absolutely essential for the website to function properly. Butterworths Company Law Handbook K. Walmsley. In addition there are different levels of stakeholders: primary and secondary. EasyJet was reported to have secured a significant reduction on the list price of the aircraft as part of their original 2013 deal with Airbus. 3.5.3 Customer support service 10 A stakeholder can be a wide variety of people impacted or invested in the project. In other words, your project's stakeholders are the . [82] In July 2017, EasyJet announced that it has applied for, and was subsequently granted by the Ministry of Transport, an Austrian Air Operator Certificate (AOC) and operating permit, thereby establishing EasyJet Europe. Start a PESTEL analysis for the general business environment of EasyJet. Table of Contents. The first aircraft, an Airbus A320, was re-registered as OE-IVA. Haji-Ioannou's reply was: "The Internet is for nerds, it will never make money for my business!" 5. The first strategy is believed to enable EasyJet to attain the student segment of the market and the second one should help to boost brand awareness (Bader 2015). As of December2022[update], the group operates the following aircraft:[96][97][98], In common with other low-cost carriers, EasyJet has a strategy of operating just one aircraft type. Based on the performance indicators outlined in Easy Jet's yearly report, the Kaplan and Norton method is chosen to classify airline's strategies. This problem has been solved! [105], On 20 July 2022, during the Farnborough International Airshow, EasyJet confirmed the placing of an order for 56 A320neo, including an upsizing of 18 A320neo from their original order to the longer A321neo model. Ryanair Low-cost carrier In spite of the threats and risks associated with airline travel, this company should strive to accomplish its set objectives which will ensure that it thrives even amidst hostile environments (Ballesteros 2007). Stakeholder Main Interests, Premium Modern aircraft fleet with unparalleled network. Low-cost carrier 1.4 Research objectives. In addition, Marketing Analysis of easyJet Telephone EasyJet Marketing and Management in the Airline Industry Case Study Analysis discusses that This is a competitive world, mainly, for business as it has to face competition from its rival in its market industry while giving stiff competition to others. Table of Content It was estimated the airline could save 12% annually, equating to a 14 million reductions in fuel costs. The figures used were not based on emissions produced by an EasyJet aircraft or emissions produced by the airline overall as the advertisement implied, and ASA declared that the airline had broken advertising rules. All in all marketing is one of the most elements, Premium Although the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. The aim of this business is to provide and develop products for athletes of every ability and to make sure their products help athletes reach their potential. Income statement [18] Despite commercial pressure from the emergent no-frills sector, traditional airlines have been unable to directly adopt similar practices to EasyJet due to vigorous protection of existing employee privileges by unions. 2.6.2.1 Employee protection laws (discrimination and health and safety) Easyjet Plc. As of March 2011, EasyJet Holidays has provided holidays and city breaks to all of the airline's routes. Introduction There is two different types of stake holders these are internal and external. Mainstream airports (mostly): One of the main complaints I have about budget airlines in Europe is often they fly out of the most random little airports that are actually miles and miles away from the actual city they claim to be in (e.g. London Gatwick Airport ( Sull Kuemmerle and Cabral199920-38) In the year 2000 easyJet succeeded, Premium Stakeholders are individuals who hold a particular interest in a business, they are affected by the activity of the business. What we do. But stakeholders can also be employees, bondholders, customers, suppliers and vendors. Low-cost carrier, WHO ARE YOUR STAKEHOLDERS? Each of the types of stakeholders in a business are categorized in 3 ways: Internal or external. access_time21 junio, 2022. person. A Market Leader As Europes fourth largest airline car- rying more than 68 million passengers annually, easyJet has been highly suc- cessful in an increasingly competitive European travel market. Political Factors EasyJet operates 580 routes around all of Europe and 104 between Europe and airports in northern Africa. BMAN72801 Since 2012, all passengers are allocated numbered seats before boarding commences, as it was found that this does not slow down boarding times and could earn more revenue than Speedy Boarding. The facility, located in Essex, around 50km east of the UK capital, announced a pre-tax loss of 21.5m for the year ending February 28, 2022. Pricing.In competing against legacy carriers, easyJet's main advantage is its price structure, which sees its average fares somewhere around 50% lower than those of the major carriers on short haul routes and 20% to 40% below those of most other lower cost competitors. McDonalds PLC is one of the largest fast food chains in the world with 32000 outlets in 117 countries. Management It is more suitable for students and ordinary income people. EasyJet Interpersonal relationship, EasyJet has a unique geographical location because it was born in England. [122][123], On 28 June 2007, the airline expanded its relationship with Hotelopia by launching EasyJetHolidays, which offers Travel Trust Association protected package holidays made up of EasyJet flights and Hotelopia accommodation products. Passengers occasionally had to wait longer for reimbursement of their expenses. Lets take a closer look at, Premium With number 1 and 2 market share positions in key airports across Europe this year EasyJet have been voted one, Premium Low-cost carrier, As mentioned before Europe has around three thousand short-haul airlines meaning that the competition of easyJet can be very wide. [52] In November 2020, EasyJet announced that, due to the pandemic and the lockdowns in many countries, it would scale back its reduced flying schedule to no more than 20 percent of capacity. The Company operates through two segments: Airline business and Holidays business. TABLE OF CONTENTS A press release issued by KCC, and copied to the Ghana News Agency, in Accra, said the . It may have little or nothing to do with the products market price and depends on the products availability to satisfy his or her needs or requirements1 Easyjet is really focusing on this aspect because they are expanding and they are already flying to 129 destinations, Premium It was a shaky start but one that would grow into a stable foundation. Analytical cookies are used to understand how visitors interact with the website. Airline, INTRODUCTIONS As such any organization must strive to identify its stakeholders and their specific needs, Premium Designing the workspace to have a nice environment for the employees to work well in this will increase the efficiency of the company. A typical Airbus A319 carries 150 or 156 passengers depending on layout in a single-class configuration, but as the airline does not serve meals on its shorter flights, it opted for smaller galleys and had a lavatory installed in unused space at the rear of the aircraft. This cookie is set by GDPR Cookie Consent plugin. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. We also use third-party cookies that help us analyze and understand how you use this website. Management Easyjet also managed to lower its underlying pre-tax loss increasing its cash-flow by million to million Start a SWOT and Porter's 5 Forces Analysis for the company; Make a list of the issues/problems you face. She added that the A321neos would help to cut costs by 9 per cent. EasyJet focus its value proposition to business travelers around time savings. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Flexi Fare[119] is a type of ticket that is usually more expensive than the regular fare and comparable to a business ticket with other airlines. 3.7.2 Managing, Premium History of the Internet, look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline along with the marketing strategy and brand strategy used and implemented by the low-budget airline. Table of Contents [35], In July 2017, EasyJet announced it would open a new European headquarters in Austria to enable it to operate after Brexit. This company bases its competitive strategy in cost leadership approach (supply same service at lower cost) and is double the size of easyJet in terms of profit. An aerial view of SEN. Geneva was EasyJet's first new base outside the United Kingdom. [20] Within its first year, easyJet reportedly carried approximately 40,000 passengers. Pressure groups and government. [60][61] Speaking at the time, EasyJet chief executive Andy Harrison commented that: "We have not developed a new concept. 10. About easyJet. Which stakeholders are critical to the business? Stakeholder WJEC Level 3 Applied Certificate and Diploma Criminology C.A. EasyJet derives the most from the perceived quality. Shareholders They want an affordable price for the flight and in-flight products, as well as a safe, smooth journey. Easyjet is one of the FTSE250 companies and 3rd largest airlines ranked among 10 IATA listed airlines in terms of passengers carried [Ref.11, 12, FTSE, IATA (2010)]. Strong operational efficiency leading to a low-cost model. The owner of the business can be role models for the employees. Here, key stakeholders from across the industry share their thoughts on the impact of COVID-19 and the recovery actions needed. [81], Following the UK's referendum vote to leave the European Union, EasyJet announced a plan to establish an Air Operator Certificate (AOC) in another EU member state. These aircraft have subsequently been transferred to Berlin-Brandenburg Airport. [40], In April 2020, EasyJet became involved in a dispute with its owner and largest shareholder, Stelios Haji-Ioannou. EasyJet the company is a low cost airline looking to undercut traditional carriers that were already known and established in the industry. Airline The company's sustainable business model aims to make travel easy and affordable, while driving growth and . Figure 1: EasyJet stakeholder map. Marketing Table of Contents It urged travellers to cut out the travel agent. Airline, Haji-loannou has founded the EasyJet Airline Company Limited in 1995. Its theory might affect the perception of air travel with the vision of building a customer focused brand. [118], Three distinct loyalty products are offered, tailored towards business and frequent flyers. gold coast shark attack video; giant schnauzer service dog for sale EasyJet has announced plans to cut up to 30% of its workforce, or 4,500 employees, as it prepares for lower customer demand . (Jones 2007) In 1996 they replaced the leased aircraft by purchasing four second-hand aircraft. Upon launch, it employed just 70 people; the company is based at London Luton Airport, which was traditionally used only by charter flights. BMAN72801 1.1 Introduction. [26] By 2015, the company was flying routes to more than 130 destinations in 31 countries, operated 26 bases centred around Europe, and had a total of 10,000 employees. for only $11.00 $9.35/page. Global Politics A. Heywood. Debt 3.1 Price 4 3.2 Product and services 6 ", "EasyJet paint job makes fuel bills less of a drag", "EasyJet looks to AI to cut delays and deliver its bacon butties", "easyjet will launch first electric plane in 2019", "EasyJet makes progress with electric aircraft plan", "EasyJet to offset carbon emissions from all its flights", "Sustainable flights, easyJet and Airbus work on zero-emission aircraft | SmartGreen Post | news from the environment", "EasyJet urges new tax to replace air passenger duty as part of green push", "EasyJet ads criticised over green claims", "EasyJet discriminatory wheelchair policy", "EasyJet accused of discriminating against disabled passengers", "EasyJet loses disability discrimination case in France", "French court fines easyJet over refusal to let disabled passenger board", "EasyJet threatens not to let passenger board after he criticises airline on Twitter", "Passenger sues easyJet after crew told her to move seats to satisfy ultra-Orthodox Jews", "EasyJet Europe nimmt Betrieb mit sterreichischem AOC und Betreiberbewilligung auf", "EasyJet confirmed as UK airline, despite EU ownership", "Transaero Airlines and EasyJet Sign Commercial Agreement Press Statement", "Transaero to Cease Operations October 26", "EasyJet to Halt Moscow Flights on Slumping Demand", "easyJet (Group) Fleet Details and History", "Pictures: EasyJet's first A321neo makes Farnborough debut", "Snub for Boeing as Airbus lands EasyJet deal", "EasyJet's losses widen on sterling weakness", "easyJet takes delivery of first A321neo", "EasyJet orders 12 more Airbus A320neo aircraft", "easyJet confirms order for a further 56 A320neo Family aircraft | Airbus", "easyJet Firms Order For 56 Airbus A320neo And Upsizes 18 To A321neo", "Q&A with easyGroup's Stelios Haji-Iaonnou", "EasyJet wins reservation system copyright case", "EasyJet Boosts Order For Airbus A319s By 52 Aircraft", "EasyJet launches EasyJetHotels with Hotelopia as its new exclusive accommodation partner", "The death of traditional, inflexible package holidays EasyJetHolidays gives total flexibility of hotel and low-cost flight combinations", "Financial Protection for package holidays booked with EasyJet", "EasyJet relaunches package holiday business", https://en.wikipedia.org/w/index.php?title=EasyJet&oldid=1141591126, Older aircraft are to be retired and replaced by A320neos, In the Airbus Cabin Flex (ACF) configuration, Both aircraft (G-BECG/G-BECH) were transferred to, This page was last edited on 25 February 2023, at 20:51. Its pilot training scheme was the subject of another ITV television series, easyJet: Inside the Cockpit, which premiered in August 2017. Brief Changes in the macro-environment factors can have a direct impact on not only the Easyjet Plc but . The Airline markets success or future lies through marketing because this sector is in competition with other modes of transportation such as bus high-speed train. 4 How does easyJet affect the environment? Describe the product; you need to cover all the elements (core benefit actual product and augmented product) ( Sull Kuemmerle and Cabral199920-38) In the year 2000 easyJet succeeded, Premium The airline operates on a low cost budget, flying more than 15 million people a year and offers services for leisure and business passengers and it flies to 100 top European routes . Southwest has an average fleet age of 11.9 years[49] whereas Ryanair's and EasyJet's average fleet ages are just a little over six years each. They also want to create business opportunities that set them apart from competition and also to provide value for their stakeholders. Business Model Analysis Provide an explanation for each stakeholder position and identify the potential strategic implications. EasyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. easyJet shareholders voted to approve the purchase of 56 Airbus jets at an extraordinary general meeting on Wednesday. Our strategy has three pillars: tackling our carbon emissions; stimulating carbon innovation; and going beyond carbon. A business is found to be polluting a local river. British Airways The Airline business segment operates its route network. The company has clearly identiable operational and marketing, Premium The two organisations I will be looking at are Tesco and Macmillan. This stability is a significant advantage for the growth of Easyjet 3.6 Physical evidence 11 Originally the company ran its operations absolutely on direct phone sales. This principle became a cornerstone of EasyJet's operations. In two years it was widely regarded as the model low-cost European airline and a strong competitor to ag carriers. Local community and pressure groups. Maintaining high customer satisfaction ( low prices and high quality can be pursued together) easyJet According to the Project Management Institute, project stakeholders are defined as: "Individuals and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion.". [37], On 30 March 2020, EasyJet suspended all flights, grounded its entire fleet, and furloughed its crews due to travel restrictions imposed. The Holidays business segment sells holiday packages. By introducing the no-nonsense theory to the European market after its deregulation in 1992 easyJet did prove power by increasing the size of the low-cost market and winning passengers from prominent traditional airlines, Premium Avianca, the characteristics of this category of product. A shareholder, though, is someone who has invested in a corporation. Low-cost carrier, EasyJet is originally discovered by a Greek named Sir Stelios - Loannou in 1995. It does not store any personal data. external stakeholders are from outside of the company but, Free The Airlines industry is quite highly sensitive to the environmental factors and is profoundly affected by the changes in the political social or the economic environment. References 16 [54], EasyJet's head office is Hangar 89 (H89), a building located on the grounds of London Luton Airport in Luton, Bedfordshire; the hangar is located 150 metres (490ft) from EasyLand, the previous headquarters of the airline. Over 8000 employees are working for the company which contain 2000 pilots and 4500 cabin crew. Airline Low-cost carrier The development prospects of low-cost airline like easyjet are promising the company is exploring in the dark becoming a good business success stories, Premium This has also led to a class-action lawsuit against the company which 10,000 of its customers have apparently joined. Background 3 [62] However, there has been few announcements on the project since then. [23] Over the course of 2005, FL increased its share in the company periodically to 16.9%,[23] fuelling speculation that it would mount a takeover bid for the UK carrier. This will secure the flying rights of the 30% of EasyJet's network that remains wholly within and between EU states, excluding the UK. [9] It employs circa 13,000 people, based throughout Europe but mainly in the UK. Its people management strategy has contributed to customer loyalty which is another great strength of easyJet (easyJet, 2022). The airline's loyalty programme is called Flight Club. Based on this evaluation, EasyJet exchanged 25 A319 orders for A320s in July 2008 and later removed the A321 aircraft from the fleet. EasyJets Business Model Analysis Secondly we will do the SWOT analysis and find out the reasons for EasyJets success by making marketing mix. easyJet is one of the world's most successful low-cost airlines. II/ Comparison, Premium The primary driver of the cost is the re-registering of aircraft in an EU AOC jurisdiction. 2. easyJet Airlines: Small Lean and with Prices that Increase over Time (Oded Koenigsberg It has reinforced its position in short-haul travel aviation increasing its market share from 6.5% to 7.6%. Pricing [22], EasyJet's aircraft cabins are configured in a single class, high density layout. Picture 1. At the time, EasyJet stated that it intended to introduce electric aircraft into revenue service within 10 years. Airline Both airlines have adapted this model for the European market through further cost-cutting measures, such as not selling connecting flights or providing complimentary snacks on board. "The board has concluded that it is in the best interests of all stakeholders to secure the long-term . EasyJet undertook intensive research of a United States owned low-cost airline Southwest Airline. I have found this less to be the case with easyJet, and most of the . EasyJet has a unique geographical location because it was born in England. A general meeting was held on 22 May, where shareholders ultimately voted over 99% in favour of the EasyJet board and retaining the Airbus contract. Easyjet was able to offset half the impact of higher fuel cost and deliver pre-tax profits of 123m. Stakeholder analysis, Stakeholder Relationships Popular books for Law and Public Services . The cookies is used to store the user consent for the cookies in the category "Necessary". Explore the key stakeholders of EasyJet and map in terms of their power and interest. EasyJet endeavours to respect the principles of the ILO . [21], Until October 1997, all of EasyJet's aircraft were operated by GB Airways, and subsequently by Monarch Airlines and Air Foyle, as EasyJet had not yet received its Air Operator's Certificate. EasyJet was founded by Haji-Loannou in 1994. Germany Stakeholder To effect and to offer a consistent and reliable product and fares appealing to lesuire and business markets on a range of European routes. Good Essays. Weaknesses. In the early 2000s McDonalds saw for the first, Premium EasyJet Best Essays. [102] The company took delivery of the first A321neo on 18 July 2018 at the Farnborough International Airshow. In 2017, EasyJet Plc flew 80.2 million passengers on flights that carried 86.7 million seats. Low-cost carrier, Pestle analysis of Easyjet easyJet. [72][73], EasyJet has campaigned for the UK to replace air passenger duty (APD) with a new tax that would vary depending on distance travelled and aircraft type. [121], On 14 December 2004, EasyJet and Hotelopia, a subsidiary of First Choice Holidays, launched the co-branded EasyJetHotels accommodation booking service. Aviation is a strategically important sector making a vital contribution to Europe's overall economy and employment. Brand management, Despite an increase in operating costs in 2010 Easyjet has achieved a remarkable performance compare to 2009. [18][19], In 1995, EasyJet was established by Stelios, being the first company in what would later become the easyGroup conglomerate. 1.1 History. 3.7 People 11 Lorem ipsum dolor sit amet, consectetur. They can consist of e-tickets, online booking and travel services.

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