By Group No.

EasyJet
Founded in 1995 by Stelios(5 million Pounds) Started with a fleet of 2 aircrafts and 2 reservation agents,

grew to 18 Boeings by 1999 Operating from Luton London

Lower labor cost
Low airport charges

Mission: To offer low-cost airline service to the masses Operating Principles: Efficient operation Brand awareness creation High level of customer satisfaction

European Airline Industry

Was tightly regulated to protect national carriers
Deregulated in the 90s 80 new entrants in 1992, 60 went bankrupt by 1996

By 1999, 3-5% of European passengers travelled by low-

cost airlines (Vs 24% in USA) Analysts prediction: Market growth of 300% by 2004

No frills travel
POLICIES ADOPTED FROM SOUTH WEST AIRLINES One type of aircraft Point to point short-haul travel No in-flight meals Rapid turnaround time Very high aircraft utilization

NEW POLICIES USED Avoided travel agents Issued no tickets Direct sales over the internet Flew brand new Boeing 737s at maximum capacity of 149 No food or beverages on board Paperless offices

Benchmarking & cost cutting

Safety never compromised, brand new Boeings
Hired experienced pilots Cost cutting 14 Pounds per passenger: No on-board meals 10 Pounds per passenger: Using Luton Airport 25% of operating costs: Encouraging internet sales (Obviating reservation agents) Increased airplane air time (11.5 hours a day vs. industry average of 6 hours)

Service
Stelios himself took feedback from the customers.
Effectiveness of media due to 100% direct-sell Easy online/phone ticket booking system Reference number based boarding process No pre-assigned seating Letter of apology in case of delays more than 4 hours Load based price determination

Target customer People who pay for travel from their own pockets Leisure travelers, entrepreneurs and managers of small firms

Creating Brand Awareness

10% of total revenue spent on publicizing
Differentiate itself from competitors Achieved recognition rate of 88% in London Achieved recognition rate of 82% in Geneva Full scale attack on competitors

Competitors(Industry focused)
Ryanair 20 Boeings, 26 destinations, 100 flights per day Global distribution, travel agents for ticket booking Good on-time performance(63%) Low cost, high revenue, high profit margin Go Financed by BA(25million Pound) Average, below average on-time performance 13 Boeings, medium revenue, huge loss
Continued

Competitors continued
Virgin Express Low cost, short to medium haul service from Brussels. Collaboration with Belgium Sabena for connecting flights. 20 Boeings, High revenue, low profit. Good on-time performance. Buzz KLMs low cost carrier. High speed rails for some European

destinations(Substitute)

Challenges
Whether to take the company public or not?
Outsourced operational activities Managing easyJet as it transitioned from a Startup to a

thriving company Inexperience and relative youth of employees Consolidation in the Countries where easyJet already operated

easyEverything
EasyEverything caf-to be the cheapest way to access the

web Economies of scale: 400 terminals in the first easyEverything caf Good infrastructure, tutor service, snacks Plan to apply the same model to other businesses too

Thank You!