EasyJet was founded in 1995 and has since grown to become one of Europe's leading airlines. It operates over 400 routes between 103 airports in 26 countries using a fleet of around 170 aircraft. EasyJet pioneered the low-cost, no-frills carrier model in Europe, modeled after Southwest Airlines. Key aspects of its strategy include direct sales over the internet, using a single aircraft type to reduce costs, and focusing on secondary airports to keep fares low. The airline is known for its bright orange livery and energetic marketing campaigns. It now carries approximately 45 million passengers per year.

1. EASYJET
Come on, lets fly!!

3. 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

4.  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

5.  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.

6. 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.

7. EASYGROUP
 easyJet  easy4men (male
 easyInternetcafe toiletries)
 easyValue  easyPizza
 easyCar  easyMusic
 easyMoney  easyCruise
 easyCinema  easyMobile
 easyBus  easyWatch
 easyHotel  easyVan
 easyJobs  easyOffice

8. 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

9.  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

10. 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.

11.  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

12. 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.

13. TARGET SEGMENT
 Young people
 Leisure Travellers
 Business clients able to plan in advance.

14. KEY MARKETS
 UK
 Germany
 Switzerland
 Italy
 France
 Spain

15. 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)

16. 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.

17. 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.

18. 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.

19. CREATING BRAND AWARENESS
 Run into well publicized, frequent trouble
with the Advertising Standards Authority.
 Low fares needn't 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’

26. 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.

27. 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.