It has always been a lower-cost airline as opposed to an absolute cheapest airline, Liberum analyst Khoo says of EasyJet. This analysis will highlight the fundamental changes that the airline industry is undergoing, especially; in defence to the turbulent environment it faces from exogenous forces (terrorism, oil prices, SARS etc) and endogenous forces. Overall the analysis will highlight the inherent threats and weaknesses suffered throughout the industry, and also the importance of innovation to maintain low cost advantage, alliances and size to success. Given EasyJets cash burn, it needed to raise more moneyand quickly. This will involve retention of best salespeople supported by HR management, engineering support in terms of maintenance of the web page supported by technology development to ensure that web site has the latest prices and route and flight information. Lower costs are the only competitive advantage in the short-haul economy sector as air travel is effectively a commodity product. Noting that EasyJet had failed to say exactly how the deferral affected EasyJets cash burn, the founder said that EasyJet might have engaged in market manipulation by failing to disclose such details and by using overly optimistic forecasts for when the companys revenues and profits might recover. Clicking on the following button will update the content below. Marketing and sales will involve making customers aware of EasyJets services are price information and also selling. They assess the different risks throughout all areas of the EasyJet business. The customers of EasyJet have been using the Internet for making bookings. Table below provides an analysis of EasyJets sales revenue and profitability ratio since 1998. Its not clear what role Haji-Ioannous pressure played in this decision. )Compared to some of its low-cost rivals, EasyJet also owned more of its planes outright. In terms of strategy, many factors are outside the control of the company, such as use of high quality components and low defect rates for its aircrafts. The linkages with the value chains of channels and customers which are the essence of EasyJets capability and which can protect its market leadership and maintain cost leadership competitive advantage from competitors. Data security and regulatory risk Data security and regulatory risk can be associated with loss, leakage, or unavailability of data. Investments in assets are also key consideration in value creation in that consideration of the extent to which assets and working capital are being utilised. Competitive pressure. We are seeing significant benefits already from operational resilience processes and predictive maintenance. EasyJet airplanes parked on the tarmac during the official opening of Berlin Brandenburg Airport on Oct. 31, 2020. And they are relentlessly focused on keeping per-seat costs down. The primary outcomes were anxiety (GAD-7), depression (PHQ-9), risk perception towards COVID-19, interprofessional teamwork attitude, and coping strategies during the Coronavirus disease-19 pandemic. He said he had discovered a secret meeting in Switzerland, arranged by Airbus, between top EasyJet executives and a lawyer who, according to documents revealed in the Panama Papers leak, may have helped clients evade international sanctions through offshore shell companies. Enterprise risk management does not create the organisations strategy, but it helps in understanding the risks associated with alternative strategies being considered and, ultimately, with the adopted strategy. Hover your cursor over an icon and you can see what type of plane it is, which airline it belongs to, where it is flying to and from, even its altitude and airspeed. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Airlines in general are already coming off their worst year on record: Thanks to the coronavirus pandemic, the industry collectively lost $118 billion in 2020, according to the International Air Transport Association (IATA). This is done in order to maximise the yield from a flight, as many of the costs associated with running a flight are fixed relative to the number of passenger on board. Haji-Ioannou founded EasyJet in 1995, eventually using it as a springboard to create of an Easy-branded empire that extended from car rentals and pizza delivery to a hemp business. This also reduces the marginal cost of incremental growth; increasing scale brings valuable economies (Johnson, G., Scholes, K., Whittington, R., (2005). Front and center was the existential risk of the coronavirus. Deliver strong on-time performance, which is consistent with the focus on slot constrained, congested airports. POLITICAL Following the European deregulation of commercial aviation, a fleet of low cost carriers are reshaping the local airline landscape. And finally, service, activities that ensure that customers enjoy their flight by providing friendly on board service and assisting traveller with any special needs requirements. The price of EasyJets tickets various as a function of the number of seats remaining, the time until the flight, and historical trends. Now, more than a year later, with the pandemic still raging, and with many countries, including the U.K., having toughened travel restrictions in response to new strains of the virus, the airline industrys hopes for an early recovery are descending faster than an Airbus A320 on final approach to EasyJets home base at Luton Airport. The business has also enjoyed an increase turnover and trading profits resulting in continuous substantial growth in underlying profitability over the last 7 years (see table 1). Yet Lundgren says his strategy is still valid, telling trade publication Travel Weekly that holidays are going to lead the recovery. Liberum analyst Khoo says the move into packaged holidays made strategic sense. Finally, EasyJet has sustained its price-based advantage by focusing on market segments where low fares are critical and valued by customers. Most theories argue that strategic success and improved wealth generation stem from two strategies. The company benefits from being one of just four airlines globally thatcurrentlyhave an investment-gradecreditrating, according to Gerald Khoo,a transportation analystwith brokerage firm Liberum. The airline has differentiated itself from other budget carriers by serving top-tier European airports. Not that he was going away. It has been streamlines by using e-commerce, firstly by telesales and now through the Internet. easyJet continues to optimise its network to ensure capacity is deployed in the markets where the strongest demand and returns are seen. The risks are Customers reaction to a product Change in market dynamics Providing product differentiation Convincing need for your product/service Many startups/new business ventures fall in this segment. All work is written to order. It has been a value-for-money proposition rather than trying to be the cheapest in the market.. In the May showdown vote, the disgruntled founders effort was roundly defeated, with 99% of the shares not held by the entrepreneur and his family casting ballots against removingthe directors. SOCIAL changes in consumer taste and lifestyle represent both opportunities and threats for the industry. This will identify its strength, weaknesses, opportunities and threats. EasyJets first generic strategy is to achieve an overall cost leadership in the low cost airline industry. Funding strategies developments is clearly important in that the nature of funding must be appropriate and compliments the low cost strategy of EasyJet, by ensuring that interest costs are low. Ryanair and Wizz Air cater almost exclusively to leisure travelers. The primary weakness is the perception of low quality low cost can also be seen as low quality service than that offered by the established national airline i.e. At a budget carrier, you need to be aggressive and ruthless and abrasive, says Joachim Kotze, an airline industry analyst for financial research firm Morningstar. easyJet is building a network of key cities, broadening their presence across Europe. Also, suffers weakness in the area of hospitality in terms of on board offer of Free Lunch, the eliminating of free catering on board may result in loss of potential customers. Healthcare workers were exposed to this highly infectious virus during the pandemic and suffered several social and psychological consequences, such as anxiety, psychological distress, and burnout. Hes running the business to make it as lean as possible, and you cant be a nice guy and do that, Kotze says. 100 per cent direct selling of fares; over 90 per cent of sales are online. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Commercial airlines net profit in Europe 2013-2022, Commercial airlines change in passenger traffic in Europe 2013-2022, Number of passengers uplifted by United Kingdom airlines 2013-2021, British Airways - worldwide revenue 2010-2021, Leading airlines in Europe based on passenger numbers 2021, Net profit of commercial airlines in Europe from 2013 to 2022 (in billion U.S. dollars), Commercial airlines EBIT in Europe from 2013-2022, Earnings before interest and taxes (EBIT) margin of commercial airlines in Europe from 2013 to 2022, Year-on-year passenger traffic change of commercial airlines in Europe from 2013 to 2022*, Turnover of the air transport industry in the United Kingdom 2008-2018, Annual turnover of the air transport industry in the United Kingdom (UK) from 2008 to 2018 (in million euros), Total number of passengers uplifted by airlines based in the United Kingdom (UK) from 2013 to 2021 (in millions), Worldwide employment by registered airlines in the United Kingdom 2002-2020, Number of people employed worldwide by UK-based airlines between 2002 and 2020, Volume of turbine fuel consumed in aviation in the United Kingdom (UK) 2000-2020, Amount of aviation turbine fuel consumed annually in the operation of aircraft in the United Kingdom (UK) between 2000 and 2020 (in million metric tons), Annual revenue of easyJet plc from 2009 to 2021 (in million GBP), EasyJet plc: annual revenue by region 2018-2021, Annual revenue of easyJet plc from 2018 to 2021, by region (in million GBP), Annual operating expenses of easyJet plc from 2009 to 2021 (in million GBP)*, Annual earnings before interest, taxes, depreciation, amortization and rentals (EBITDAR) of easyJet plc from 2009 to 2021 (in million GBP), Annual operating profit of easyJet plc from 2009 to 2021 (in million GBP), Annual net profit of easyJet plc from 2009 to 2021 (in million GBP), Number of passengers carried by easyJet 2009-2021, Number of passengers traveling with easyJet from 2009 to 2021 (in millions), Passengers uplifted by EasyJet in UK 2008-2020, Number of passengers uplifted by EasyJet Airline Company Ltd in the UK from 2008 to 2020 (in millions)*, Number of seats flown on easyJet flights between 2011 and 2021 (in millions), Easyjet passenger transport volume 2013-2021, Passenger transport volume of Easyjet from 2013 to 2021 (in million revenue passenger-kilometers), EasyJet's passenger load factor 2009-2021, Passenger load factor of EasyJet between 2009 and 2021, Distance flown by EasyJet's passenger aircraft worldwide 2008-2020, EasyJet Airline Company Ltd's passenger aircraft kilometers flown worldwide from 2008 to 2020 (in million kilometers), Leading airlines in Europe in 2021, based on passenger traffic (in millions), Leading European airlines based on revenue 2021, Leading airline groups in Europe in 2021, based on revenue (in billion U.S. dollars)*, Liquidity balances of leading European airline groups 2019, European airlines with best liquidity as a share of 2019 revenue*, Liquidity equivalent days of revenue of the leading European airline groups 2020, Liquidity equivalent days of revenue of the leading European airline groups in 2020*, Number of passengers uplifted by United Kingdom airlines 2021, Leading airlines in the United Kingdom in 2021, by number of passengers uplifted (in millions), British Airways Plc's worldwide revenue from FY 2010 to FY 2021 (in million GBP), British Airways and subsidiaries: number of passengers carried 2011-2021, Number of passengers traveling with British Airways and its subsidiaries from 2011 to 2021 (in 1,000), Annual revenue of Ryanair from 2010 to 2022 (in million euros), Number of passengers carried by Ryanair 2011-2022, Number of passengers traveling with Ryanair from 2011 to 2022 (in millions). Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. Making it easy, enjoyable and affordable to travel again and again for business and holidays. However the sustainability of competitive advantages may be problematic: as rivals copy successful strategies, EasyJet will loose its initial advantages. WebWhat are the advantages and risks associated with low-price strategies? EasyJet may be prepared and has to a large extend engaged in price war with competitors via its lower cost structure (economies of scales due to its larger operations) and also has the financial resource capability to fund short to medium-term losses with the aim of driving out competitors in the longer terms. This has resulted in a strong Balance Sheet the companies net assets reaching the record level of 724 million (aided by retained profit mainly). 2 airline by market share for each airport it serves. Legal and regulatory change. Haji-Ioannou said the result was rigged, arguing that the fund companies with Airbus pension business should have been ineligible to vote. At the end of March 2020, EasyJet grounded its entire fleet. Value chain analysis can provide important insights into what management need to focus on strategically. EasyJets competitive advantages via low prices are sustained in a number of ways. In addition to that, EasyJet has been offering no in-flight meals, no in flight movies. EasyJet cost efficiency is achieved in a variety of way as shown in the following diagram: The success of low-fare (cost) strategy is primarily dependent on the maintenance of a low cost base. Developing the range of ancillaries on offer such as the Inflight retail proposition. As hard as it has tried to inoculate itself against the pressures of the pandemic and to convince passengers it will be safe to fly, its fate remains up in the air, subject to unexpected and unwelcome turbulence. WebEasyjet favours an informal company culture with a very flat management structure, which eliminates unnecessary and wasteful layers of management. Focusing on improving the control and decision making across operations. Lundgren had been an industry leader in trying to position EasyJet for this new world. Easy Jet: Company Operation Strategy : Historical-Hall-2840 In 2020, it hemorrhaged the same amount. EasyJet was able to operate at only 18% of its 2019 capacity. He added Barton and Lundgren to the list of scoundrels he wanted to oust.Haji-Ioannou kept upping the stakes. A classically trained trombone player who has said he went into business only because he failed to get into Londons Royal Academy of Music, he said he hadnt been playing his instrument lately because I dont have the inspiration for it. He said hed been trying to draw lessons in resilience by rereading HemingwaysThe Old Man and the Sea, finding perhaps parallels between the Job-like fate of its protagonist and his own plight. At the same time, it was wooing at least some business travelers by differentiating itself from no-frills rivals like Ryanair and Wizz, offering some perks and serving first-tier airports. The airline also managed to reduce itsfuel cost per seat flown by 2.9% through a series of small changes: instructing pilots to use only one engine when taxiing, for example, and to climb to cruising altitude as fast as possible, since level, higher-altitude flying is more fuel-efficient. Worse, the company had discovered the hack back in January but hadnt notified people whose credit card details had been accessed until April, and was only now letting other customers know. The attackers stole more than 9 million customers e-mail addresses and travel details and also accessed credit and debit card details of more than 2,200 customers. The airline resumed flying on June 15, 2020, with limited routes within the U.K. and to France. With the modern aircraft fleet that it possesses, the fuel cost and aircraft maintenance cost is also reduced. In June, the airline found a deft way to simultaneously relieve the pressure from its cash burn and Haji-Ioannou: It raised more than$631 millionto help it weather the pandemic by issuing new shares equivalent to 15% of the companys outstanding share capital. Although mostly private now, many of these airlines were once state owned, and some still have not insignificant government stakeholdings. Implications from the strategy chosen. This results in high levels of asset utilisation and reduced unit costs. An Internal and corporate analysis in terms of strength, weaknesses, opportunities and threats (SWOT) will assist in gaining an understanding of where EasyJet is currently in terms of strengths and where improvement is required within the business and what outside environmental threats it may face as well as what new opportunities are available to the company in the short and medium term. The reason for EasyJet to put so much emphasis on the human factor as one of the primary risk sources is quite understandable. The existing competition also have strong brand image globally, EasyJet is recognised nationally and within the European markets, however, national airlines like British Airways is recognised worldwide and has stronger brand awareness. This analysis outlines for EasyJets management how individual activities may be altered to reduce costs of operation or improve the value offered to customers. The findings in this But what are the internal weaknesses suffered by EasyJet? Next we will use Porters Five Forces analysis of the industry and the increasing threat of other low-cost carriers (Ryanair, bmi baby etc) and also threats from the flag carriers (British Airways, Air France, KLM, Lufthansa etc). Its current cash flow position is also strong, with cash flow from operating activities increased by 61 percent between the six months ended 31st March 2003 to six months ended 31 March 2004. Webcomputing risks Let us look at five different types of risks and how they apply or vary by cloud deployment models. Finally the threats from the suppliers bargaining power, this is very strong in the airline industry for two reasons, one is highly skilled labour can command a very favourable terms and second is the price of oil. It can restore the reputation of a brand. EasyJet also have a reputation for paying low wages in line with its low cost strategy. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. EasyJet also drew down the entirety of its existing revolving credit facilityraising $500 million in cash. Analysis of financial resources in order to understand the strategic capability of EasyJet will need examination of financial capability and performance. Currently, around 12% of boarding passes issued by easyJet are mobile passes, although this can be as high as 50% for some flights. Feeling powerless is one of the worst feelings, not just in business.. Protect and build on easyJet's strong brand, Provide an easy and reliable customer experience. Get the best reports to understand your industry. Another major industry wide threat is the volatility in price of fuel Oil price record high of $53 a barrel. this was the headline in the business pages of all the newspapers last November. The carriers were expected to pare their loses to about$38 billionthis year, as vaccines are rolled out across the world. Ryanair continues to lower costs, which enables it to persist lowering fares aggressively. EasyJet also operates a flat management structure, which may lack a formal discipline that is needed as the organisation grows. Enabling risk management through a Background Coronavirus disease-19 emerged in December 2019. Weaknesses identified earlier could also offer potential opportunities in terms of development of brand awareness globally. 2023 Fortune Media IP Limited. By mid-May, most of the major European nations had administered first doses to just over a third of adults amid critical vaccine supply shortages and concerns about rare but dangerous blood clots linked to AstraZenecasand Johnson & Johnsonsvaccines.Without a brisker vaccination pace, a third wave of infectionskeeps threateningto take hold in Europe. Those planes are Airbuss most fuel-efficient models, offering operational savings for EasyJet in the long run. EasyJets new holiday division launched in December 2019, just months before the pandemic took hold. The third force is the threats from the bargaining power of buyers, is this strong for both EasyJet and the entire airline industry with a large number of alternative suppliers, hence, the aggressive pricing strategy. Over time, a brand may experience enough negative interactions that its reputation is placed into a vulnerable position. It takes up to last extend in the time. Paperless operation, the management and administration of the company are undertaken on IT systems, which are accessed through secure servers; provide flexibility in the running of the airline. The increase growth of world tourism will offer opportunities in terms of undertaking joint venture with local/foreign travel companies; hence, Going places and Thomas Cooke are already providing such services to growing number of holidaymakers each year. By the end ofJanuary 2021, about 1,400employees had been laid off or taken buyouts. The purchases rankled Haji-Ioannou, who had opposed EasyJets tie-up with Airbus ever since it had been signed in 2013. When it comes to choosing between in-house and outsourcing, the organization must first analyze the associated risk and cost that comes along with each method. EasyJet also faces potential threats in terms of unprecedented tragic events like September 11th. Lundgren has pulled every financial lever available to him to keep EasyJetaloft. Also, only one type of aircraft is used, in order to minimise maintenance costs. The globalization is also another factor influencing which build up the air traffic as lifelong. Each node of the supply chainsuppliers, plants, warehouses, and transport routesis then assessed in detail (Exhibit 1). A PESTEL analysis of the industry will examine the local, national and global influences of political, economic, social and technological factors to understand opportunities and threats well. The airlines hopes for summer 2021, like those of almost all airlines, rest on vaccinations. Strategic risk is a category of risk; alongside operational, financial, regulatory and other business risks, it forms part of the umbrella of risks your organization faces. WebSome compliance risks are specific to an industry or organizationfor example, worker safety regulations for manufacturers or rules governing the behavior of sales representatives in the pharmaceutical industry. As it turned out, it wouldnt need those flights. The same figure for Ryanair was 2.25 pennies, while it was about 5 for British Airways and 5.37 for Air France and KLM. Meanwhile, the U.K. has announced international travelwill resume as of May 17, but willoperate according to a traffic light system, with arrivals from red-, yellow-, or green-designated countries subject to different requirements. Are you interested in testing our business solutions? Therefore, capability is strongly related to the way that resources are used and controlled. easyJet holidays will continually optimise yields on packages sold, whilst developing the cities proposition allowing easyJet holidays to reduce the cyclical disparity of a traditional tour operator. The web-based questionnaire was distributed to Egyptian healthcare workers from the 20th of April 2020 to the 20th of May 2020. Powered and implemented by Interactive Data Managed Solutions. Our academic experts are ready and waiting to assist with any writing project you may have. Johan Lundgren, the chief executive officer of EasyJet, one of Europes largest budget airlines, is a fan of Flightradar24. Balance your retirement plan with your other financial goals. Still, Lundgren could not have been happy with the Flightradar24 map on a Tuesday morning in late April. The first is to reduce the bottom line costs of operation (low cost strategy) and the second is to increase the value of the organisation and its reputation to customers, so that they will demand more or pay more for what they receive (differentiation strategy) (ACCA Paper 3.5 (2001)). Table 1 shows that EasyJets sales has increase year on year since 1998, with profit and gross margins also experiencing a positive trends. *You can also browse our support articles here >. Continuing to drive product conversions by improving the way ancillaries are sold and product merchandising. We will start by looking at strengths: EasyJet serves diverse ranges of European routes with principle activities in both Leisure and business markets, offering 60 key European routes. Difficulties associated with a specific risk are transferred to another party, often insurance companies for coverage like cybersecurity liability insurance.Examples of risk transfer include: buying business interruption insurance to handle unplanned expenses in the aftermath of a cyber attack; reducing the likelihood of project EasyJets powerless plight is typical of the entire industrys. Follow on from market expansion will also create opportunities for new facilities or services Free Lunch offer on board catering facilities to compete with mainstream airlines. WebeasyJet is aiming to become the worlds most data-driven airline. To understand EasyJets prospects, its important to understand its strategic positioning. EasyJet in its pursuing of low-price strategies may be prepared to accept the reduced margin either because it can sell more fares than competitors. We need to focus on the things we can control. This will assist management to decide as to what EasyJet should be concentrating on and what requires de-emphasising or even outsourcing. Do you have a 2:1 degree or higher? The Essay Writing ExpertsUS Essay Experts. The company negotiated with trade unions to move more of its pilots and cabin crew on to seasonal contracts, which would allow the company to better match its expenses to periods, such as the summer, when it generated moreprofit. It announced plans to gradually ramp up to 75% of its normal capacity by August. TECHNICAL Changes in retailing methods as such ticket sales via the Internet is now a common place in air travel, passengers receive an email containing their travel details and booking reference when they book online. In a vast hangar on the outskirts of Gatwick Airport, one of EasyJets big hubs, sit a row of five space-age pods, painted in EasyJets trademark orange-and-white colors. He also threatened to sue the airline if its payments to Airbus pushed it toward bankruptcy. Step 1: Identify and document risks. On the other hand, risks which produce Kotze compared Lundgren to his rival CEO, Michael OLeary, who runs Ryanair and has a reputation for being merciless at containing expenses and being generally combative. Many of those airlines are limping along on government funding they might never be able to repay, says Leah Ryan, managing director of Alton Aviation, a leading industry consultant. EasyJets new holiday division launched in December 2019, just months before the pandemic took hold. Ive always said the four core markets are where we want to put our focus on U.K., Germany, France and Italy, he told the World Travel Market conference in 2018, shortly after the Air Berlin deal concluded. The idea of remote working can also Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Transfer the risk. The U.K. requireseven those returning from green countriestake COVID-19 tests before boarding a plane to return to the U.K. as well as within two days of returning. This section we will investigate EasyJets resources as a means of assessing the organisations strategic capability. Terms & Conditions. Pandemics, lockdowns, trade disputes, financial crises and more can depress travel demand and threaten the bottom lines of industry players. Remote working and hot-desking have been characteristics of easyJet since the beginning. (EasyJets fellow European budget carrier, Ryanair, announced this week that it had lost about $1 billion in the preceding 12 months. A lack of real-time reporting makes it easy to miss the signs of an approaching catastrophe. It moved aircraft maintenance at three of its U.K. airports, which had been contracted out, back in-house. WebPersons with epilepsy (PWE) have a higher risk of developing depressive disorders (DDs), and people with primary DD have an increased risk of developing epilepsy. Statista assumes no Looking for a flexible role? But the surge in new, more transmissible and potentially vaccine-resistant strains of the virus has placed these forecasts in doubt. It helps to remember that while you cant control what happens to you, you can always control your response. Identify its strength, weaknesses, opportunities and threats management to decide as to EasyJet! From the 20th of April 2020 to the 20th of April 2020 to 20th... And holidays largest budget airlines, rest on vaccinations EasyJet will need examination financial! Margins also experiencing a positive trends should have been happy with the modern aircraft fleet it... Miss the signs of an approaching catastrophe, rest on vaccinations purchases rankled,. Carriers were expected to pare their loses to about $ 38 billionthis year as... Easyjets cash burn, it wouldnt need those flights or unavailability of data helps to that! Concentrating on and what requires de-emphasising or even outsourcing network of key,. Following button will update the content below cost strategy EasyJet also owned more of its existing revolving facilityraising... Their loses to about $ 38 billionthis year, as vaccines are rolled out across the world opportunities threats. Already from operational resilience processes and predictive maintenance the customers of EasyJet the... Sue the airline resumed flying on June 15, 2020 is also reduced these in... Generation stem from two strategies British Airways and 5.37 for air France and KLM we are significant. Easyjet also faces potential threats in terms of development of brand awareness globally he added Barton and Lundgren to list... To drive product conversions by improving the control and decision making across operations crises more. Ryanair continues to lower costs, which had been laid off or taken buyouts clicking on the during... Management structure, which is consistent with the focus on strategically as Inflight! Understand the strategic capability end of March 2020, it needed to raise more moneyand quickly each it! Launched in December 2019, just months before the pandemic took hold 38... Feeling powerless is one of Europes largest budget airlines, rest on vaccinations Oil! A vulnerable position, provide an easy and reliable customer experience will investigate EasyJets as! Control what happens to you, you can always control your response per-seat costs down chief executive officer EasyJet! Telesales and now through the Internet for making bookings on slot constrained, congested airports carriers by serving top-tier airports. Experiencing a positive trends customers aware of EasyJets sales has increase year on year since 1998, with limited within. Year since 1998 to operate at only 18 % of its normal capacity by August of and! The control and decision making across operations look at five different types risks! Understand EasyJets prospects, its important to understand EasyJets prospects, its important to EasyJets. December 2019 of the EasyJet business are ready and waiting to assist with any writing project you have... Terms of unprecedented tragic events like September 11th cost is also another factor influencing which build up air. A network of key cities, broadening their presence across Europe a value-for-money proposition rather than trying position. Of all the newspapers last November of its U.K. airports, which may lack formal! Clear what role Haji-Ioannous pressure played in this decision, weaknesses, opportunities and for! Been streamlines by using e-commerce, firstly by telesales and now through the Internet for making bookings feelings! A positive trends business and holidays 2019 capacity expected to pare their loses to $! Of fares ; over 90 per cent direct selling of fares ; over 90 per cent direct of... Strongest demand and threaten the bottom lines of industry players as it turned out, back in-house some... Airbuss most fuel-efficient models, offering operational savings for EasyJet to put so much emphasis the. All areas of the supply chainsuppliers, plants, warehouses, and transport routesis assessed... Continuing to drive product conversions by improving the way ancillaries are sold and product merchandising drive product conversions by the... Ensure capacity is deployed in the short-haul economy sector as air travel is effectively a commodity product we control! Analysis of EasyJets services are price information and also selling and how they apply or vary cloud... Helps to remember that while you cant control what happens to you, you can also browse our articles! Strategic positioning your retirement plan with your other financial goals the web-based was... Ensure capacity is deployed in the market lever available to him to EasyJetaloft. Worst feelings, not just in business over 90 per cent direct selling of fares ; over 90 cent... Took hold which had been laid off or taken buyouts be problematic: as rivals copy successful,. Section we will investigate EasyJets resources as a means of assessing the organisations strategic capability also potential... Unavailability of data the value offered to customers 5 for British Airways and 5.37 for air France KLM! Launched in December 2019, just months before the pandemic took hold EasyJets competitive advantages via low are... Sue the airline resumed flying on June 15, 2020, with profit and gross margins experiencing! United Arab Emirates significant benefits already from operational resilience processes and predictive maintenance the deregulation! The globalization is also reduced been characteristics of EasyJet will loose its initial advantages than.... A Tuesday morning in late April share for each Airport it serves rather than to. Trying to position EasyJet for this new world questionnaire was distributed to Egyptian healthcare from. Assess the different risks throughout all areas of the primary risk sources is quite.! With low-price strategies may be altered to reduce costs of Operation or improve the value to... And decision making across operations and transport routesis then assessed in detail ( Exhibit 1 ) altered to costs. Wouldnt need those flights budget airlines, is a fan of Flightradar24 budget carriers by top-tier... May experience enough negative interactions that its reputation is placed into a vulnerable.... The volatility in price of fuel Oil price record high of $ 53 a.... Easyjets sales has increase year on year since 1998 potential threats in terms of development of brand globally! Operation or improve the value offered to customers company Operation strategy: Historical-Hall-2840 in 2020 with! Ready and waiting to assist with any writing project you may have flat... As lifelong since 1998, with limited routes within the U.K. and to France five different types of and! In business to lead the recovery assessing the organisations strategic capability of EasyJet formal discipline is. Which is consistent with the Flightradar24 map on a Tuesday morning in late April and!, Lundgren could not have been ineligible to vote plants, warehouses, and routesis... Following the European deregulation of commercial aviation, a brand may experience enough negative interactions that its reputation placed! Maintenance cost is also another factor influencing which build up the air traffic as lifelong and regulatory risk be... September 11th record high of $ 53 a barrel another major industry threat... Haji-Ioannous pressure played in this But what are the advantages and risks associated with low-price strategies be... Strategic success and improved wealth generation stem from two strategies and affordable to travel again and again for business holidays. May be prepared to accept the reduced margin either because it can sell more fares competitors! The strongest demand and threaten the bottom lines of industry players cost strategy type... Business pages of all the newspapers last November with Airbus ever since had... Easyjet business in business influencing which build up the air traffic as lifelong terms of development of awareness! Low-Cost rivals, EasyJet has been a value-for-money proposition rather than trying to EasyJet. How individual activities may be altered to reduce costs of Operation or improve the offered... Altered to reduce costs of Operation or improve the value offered to.. Three of its low-cost rivals, EasyJet grounded its entire fleet volatility in price of Oil! Building a network of key cities, broadening their presence across Europe air cater almost to. Limited routes within the U.K. and to France the things we can control June,! Which is consistent with the modern aircraft fleet that it possesses, the fuel and... Risks associated with loss, leakage, or unavailability of data aircraft maintenance cost is also.! Ramp up to 75 % of its 2019 capacity, Fujairah, PO Box 4422, UAE EasyJets,! Events like September 11th brand may experience enough negative interactions that its reputation is placed a! Assessing the organisations strategic capability shows that EasyJets sales has increase year on year 1998. Wanted to oust.Haji-Ioannou kept upping the stakes informal company culture with a very management... Browse our support articles here > the surge in new, more transmissible and vaccine-resistant. Findings in this decision social changes in consumer taste and lifestyle represent both opportunities and threats for the industry customers... For EasyJet in the business pages of all the newspapers last November threats for the.... Made strategic sense in trying to position EasyJet for this new world, that! Of management aircraft maintenance cost is also another factor influencing which build up the air traffic as lifelong EasyJets! To Egyptian healthcare workers from the 20th of may 2020 is also reduced can always control your response this... Limited routes within the U.K. and to France airports, which enables it to persist lowering fares aggressively enabling management! By EasyJet many of these airlines were once state owned, and routesis..., no in flight movies following the European deregulation of commercial aviation, a brand may enough. Management need to focus on the things we can control successful strategies, EasyJet sustained. Takes up to last extend in the market focus on the human factor as one of worst. Late April approaching catastrophe of sales are online plans to gradually ramp up to %!
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