Star alliance

1. EasyJet is a low cost aiplane company which wasn't that famous a couple of years ago but
today, EasyJet counts 130 airport in 30 countries all around the word, with 700 connections
between airports.!
Territory(
It's five largest basis are in Europe and mainly in Great Britain with the airports of London-
Gatwick (the largest), Milan-Malpensa, London-Luton, Bristol and London-Stansted (the
smallest).
In the other hand, Toulouse's airport is currently the smallest base with only two EasyJet
aircraft.
In total, EasyJet has 19 European bases. However, We noticed that the expanding of
EasyJet stops in Middle East with, as destination area served, Cyprus, Israel and Turkey, but
does not go further in Asia.
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2. Strategy((vision(and(mission)(
EasyJet was founded in 1995 by Sir Stelios Haji-Ioannou with the vision of creating a
customer focused brand that would revolutionise the concept of air travel. More than fifteen
years on, EasyJet is Europe’s leading airline, and the UK’s largest, carrying over 55m
passengers a year.
Throughout the organisation – from the
boardroom to our crew, engineering and
ground staff – the first priority for all of our
people is the pursuit of safety in all they do,
for the benefit of customers, colleagues
and shareholders.
We aim to fly the right routes at the right
times to meet the demands of our broad
customer base. Last year we flew 45.2
million customers on over 400 routes
linking 114 airports, giving us a 6.5% share
of the European market.
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3. EasyJet’s network, great schedule and
industry-leading distribution via easyJet.com
appeal to a broad base of both business and
leisure customers. The EasyJet brand has
pan-European reach and appeal throughout
27 countries. New initiatives are continuing
to strengthen our position as both a leading
airline and an innovative e-commerce
business.
EasyJet’s strategy is growth with margin
improvement and therefore the management
team continually focuses its efforts on all
three drivers of margin: yield, ancillaries and
cost, with the aim of achieving a 15% return
on equity in the medium-term.
(
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4. Operating5level(activities(
Easy Jet divides their operation strategy into five different areas, flight operations, ground
operations, operation control centre, operations development and cabin service. Below we
will have further look into the topics and some more facts according to the operations.
Basic(operational(facts(
• Fleet: 166 A319s and 35 A320s
• Average use of aircrafts: 4 years
• Deliberately simple airport infrastructures
Costs(
• Average cost 45-50€ per 1100 km – claims to be cheaper than any other airline operating
to centrally located airports (both to the convenience of customers)
• Booking process eliminates fees and cuts costs
• High aircraft utilisation, quick turnaround times, charging for extras (such as priority
boarding, hold baggage and food, extra luggage) and keeping operating costs low
• Smaller galleys/kitchens in aircraft to save space for seats
Technology(
• Investment of £7 billion in latest technology – claims therefore to operate one of the
cleanest, youngest and most fuel efficient fleets in the industry
• Usage of nanotechnology coating on aircrafts to reduce fuel consumption by 1-2%
• New technologies use for taxiing (bringing aircraft to parking/starting position) that does
not require us of aircrafts engines
• One of the first low cost airlines to make its inventory available to business travel bookers
through GDS supplier Amadeus, a leading travel technology partner and transaction
processor for the global travel and tourism industry
Sustainability(
• 2007: proposal for an “ecojet“ (next generation aircraft), 50% more environmentally
efficient than today’s aircraft
• Investments in environmental sufficiency (see average aircraft age)
• Nearly paperless office operations (no tickets/travel documents printed, recycling of
paper and office material used)
• No free food on aircrafts – unnecessary waste minimized on flights
• Dicing with non hazardous and bio degradable products
What(does(EasyJet(offer?(
• One class of service
• Online check in
• Service upgrades available besides basic service (speedy boarding, speedy boarding
plus)
• Free seating services for families
What(does(EasyJet(not(offer?(
• No cargo offering
• No transfer facilities
• No selling of connecting flights
• No complimentary snacks on board
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5. Tactical(Activities(Easyjet(
EasyJet´s strategy is clearly transferred to its tactical activities. The airline´s focus on safety
is observed in its strict tactical risk management (hazard analysis, control points). Further
strategic aspirations such as strong networks, revenue and leisure customers as well as cost
and high margins can be seen in EasyJet´s tactical activities:
Building(strong(number(1(and(number(2(networks(
• Reduction in growth to minimise margin erosion (sale and return of expensive aircraft e.g.
A321 sale, accelerated return of B737-700) --> 7-8% cost per seat savings between
current A319 and A320, 4-5% cost per seat savings between A320 and future A320neo
aircraft --> more efficient use of fuel
• Continue to invest in key markets e.g. Geneva (40% of market share in airport in 2013),
Milan (39% of market share), Gatwick, Paris + domestic flight routes in France, Berlin
• Address areas of underperformance (closing Dortmund)
• Flexible fleet plan and financial strength (Airbus granted another acquirement of another
100 A320 neo aircrafts additionally to the already ordered aircraft family of 100 planes,
delivered between 2017 to 2022)
Drive(demand,(conversion(and(yields(across(Europe:(
• Continue to drive ancillary revenues
• Target superior yield management versus peer group (Capitalise on supply side
changes, Flexibility to react to changing demand patterns)
• Allocated seating across the entire network and punctuality for greater customer
satisfaction
Maintain(cost(per(seat(advantage(
• Cost per seat ex. fuel down 13% over last 3 years (due to reductions in ownership,
maintenance, overheads)
• Inflationary pressures primarily from airports and regulators (cost increases due to
airports e.g. Gatwick, Stansted, Amsterdam, navigation, crew)
• Further improvements possible, clear targets established
Disciplined(use(of(capital(
• Strong balance sheet to respond to significant fuel price increases, extended closure of
airspace and further drive growth and returns for shareholders
• 33,5 pence per share proposed ordinary dividend (133 mio. pounds in 2013)
• 44,1 pence per share proposed special dividend (175 mio. pounds in 2013)
Sources
http://corporate.easyJet.com/~/media/Files/E/EasyJet-Plc-V2/pdf/content/press-info-kit.pdf
http://www.easyjet.com/common/img/analyst_and_investor_day_2008.pdf
http://cws.cengage.co.uk/barnes/students/sample_ch/ch2.pdf
https://www.faa.gov/about/office_org/headquarters_offices/avs/offices/afs/afs200/media/aviat
ion_fatigue_symposium/StewartComplete.pdf
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