Flying high: EasyJet's strategy for success Going head to head with legacy airlines

 Published On: Apr, 2014 |    No of Pages: 22 |  Published By: MarketLine | Format: PDF
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Introduction

Low cost airline carriers are often considered as group, competing solely on price with established flag-carrier airlines. Yet the two largest European low cost carriers, EasyJet PLC and Ryanair Holdings PLC, have followed distinctly different routes to success. This case study will examine the evolution of the strategy pursued EasyJet and how the business is positioned for the future.

Features and benefits

* An in-depth assessment of the business strategy of EasyJet.
* An analysis of the financial performance of EasyJet.

Highlights

Continual innovation is a hallmark of low cost carriers and particularly of EasyJet. Improvements often have multiple benefits reducing operational costs while improving the passenger experience, such as mobile boarding cards.
As the travel industry changes and consumers move away from relying on travel agents, the company has taken the opportunity to offer additional products and services.

Your key questions answered

* How has EasyJet become a leading European airline?
* How does EasyJet differ from competitors such as Ryanair?
* In which areas does EasyJet have a competitive advantage against legacy airlines?

OVERVIEW
Catalyst
Summary
EVALUATING A SUCCESSFUL STRATEGY
EasyJet typifies the success of low cost carriers
External and internal pressures have impacted upon the business
Financial performance has improved significantly despite such issues
A distinctive strategy has prepared the business for sustained growth
The business strategies of low cost carriers are not identical
EasyJet's route network is concentrated on Western Europe
EasyJet has strong capacity share at its top 20 airports
EasyJet and Ryanair are rarely direct rivals
Improving load factors indicate strong capacity management
Cost control has been the foundation to success
Fuel hedging has moderated the risk presented by volatile fuel markets
INNOVATION KEY TO COMPETITIVE ADVANTAGE
Mobile boarding passes have significant potential
Ancillary revenues are not restricted to traditional on-board sales
The business is uniquely placed to offer specialized insurance products
EASYJET HAS TARGETED BUSINESS TRAVELERS
The introduction of flexible fares has improved the product proposition for business passengers
Service improvements are not necessarily expensive to implement
Marketing campaigns have specifically targeted the business community
EasyJet has embraced corporate travel agencies
Demonstrable progress is evident
INVESTMENT IN THE AIRCRAFT FLEET IS CRUCIAL
New planes can reduce costs and improve competitiveness
New aircraft delivery strategy offers flexibility to meet demand
Fuel efficiency is vital
Reducing weight lessens the fuel bill
Modern efficient aircraft allow the business to position itself as a green airline
CONCLUSIONS
EasyJet is well placed for sustainable future growth
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