HISTORY 1995: Stelios creates easyJet and starts flights between Luton and Scotland 1996: easyJet opens international routes to Amsterdam, Nice and Barcelona 1997: the website easyJet.com goes live 1998: easyJet acquires a Swiss airline and becomes Geneva’s defacto home carrier
1998: BA launches GO airlines in response to easyJet – Stelios is on their first flight 1998: easyJet is elevated by the media as the arch rival of BA and credited with sparking a price war 1998: as the airline becomes a “brand” Stelios starts to work on brand extension and founds the easyGroup
1999: the TV docusoap on easyJet is first broadcast on Britain’s ITV to an audience of 9m viewers 2000: easyJet PLC is partially floated on the London Stock Exchange 2001: easyJet PLC acquires go airlines nearly doubling in size 2005: easyJet reaches 100 aircraft in the fleet.
AND NOW, IT IS One of Europe’s leading airlines with some 170 aircraft flying over 400 routes between 103 airports in 26 countries. Approximately 45 million people a year fly with easyJet enjoying more value for less! The airline is based at EasyLand, at Luton Airport.
BRAND VALUES great value taking on the big boys for the many not the few relentless innovation keep it simple entrepreneurial making a difference in people’s lives honest, open, caring and fun SHOW VIDEO: Stelios with Riz Khan.flv
Modeled after Southwest Airlines of the US. Stelios borrowed these features from SW airlines: One type of aircraft Point to point short haul travel No in-flight meals Rapid turnaround time High aircraft utilisation
AND THEN,STELIOS ADDED HIS OWN TWIST: • No travel agents • No tickets; A six character booking reference number is issued. • Encouraged direct sales over the internet • Flew brand new Boeing 737’s • Used maximum seat capacity of 149 seats • No free drinks or peanuts.
Stelios championed the idea of no frills travel. The only free item on board an easyJet flight is an easyRider, the airlines in- flight magazine. Stelios remains the biggest single shareholder of easyJet PLC and a non- executive director
MISSION STATEMENT To provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.
TARGET SEGMENT Young people Leisure Travellers Business clients able to plan in advance.
COMPETING ON COST Up to 50% lower costs compared to traditional carriers. Higher plane productivity. Secondary and regional airports. (Luton) One type aircraft fleet.(Brand new Boeing 737’s) Focus on direct sales(90% on internet)
COMPETING ON SERVICE No pre-assigned or business class seating. First come first serve basis. Yield management: ‘more the demand, more the fare.’ No meals. Outsource everything except planes, pilots, cabin crew, marketing and sales people.
ORANGE Extensive use of the color orange. The crew wore orange clothes, the planes and the office building were painted orange, and even the trash bags were orange. The neon orange represents value for money. creates a theme park kind of atmosphere.
CREATING BRAND AWARENESS Does not use television advertising much. Relies heavily on press, outdoor and radio advertising , mobile display unit (buses) and PR. EasyJet also uses its own aircraft as airborne billboards. All EasyJet sales promotions are exclusive to the internet. Awareness of EasyJet has also been raised by Airline the ITV docu-soap.
CREATING BRAND AWARENESS Run into well publicized, frequent trouble with the Advertising Standards Authority. Low fares neednt B A con -2003 The airline once painted the Loch Ness monster on the side of its aircraft to announce the launch of its services from Luton to Inverness. Web’s favourite airline’ as against BA’s; ‘World’s favourite airline’
COMPETITION AND CONSOLIDATIONS Ryanair: took over BUZZ: KLM’s low cost airline, in 2003. British Airways’ low cost carrier, ‘Go Fly’ was acquired by easyJet in 2002.
CHALLENGES High overcapacity Race of traditional airlines to catch up Airline offerings are becoming homogeneous. Lowcost carriers, charters, and scheduled airlines are battling for many of the same price-sensitive customer groups. Lowcost carriers need to pursue three strategies: cost leadership, differentiation, and diversification.