This presentation is about how a low cost carrier achieved faster success with various strategies optimizing the cost and competing with bigger players in the market

1. Easy Jet
THE WEB’S FAVOURITE AIRLINE

2. Easy Jet: Profile
• Founder : Stelios Haji-Ioannou
• CEO: Carolyn McCall
• Started operations in Novemeber 1995, with a capital of
£50 million.
• Headquarters: Luton, Bedfordshire, United Kingdom.
• Started with 2 leased aircrafts and now has 217
aircrafts(A319 and A320) as of September 2013.

5. European Market
• Deregulation in 1992, more new airlines were created.
• 1999, only 3% - 5% flew on low-cost carrier in Europe
whereas it was 24% in U.S.
• Competition from High speed rail service
• Cost of running an airline was 40% higher than in U.S.
• 60 out of 80 had gone bankruptcy by 1996.

6. • One type of aircraft
• Point-to-point short
haul travel
• No in-flight meals
• Rapid turn around
time
• Very high aircraft
utilization
South west
airlines
• Avoided travel agents
• No tickets
• Direct sales over
internet
• New Boeing 737s with
max seat capacity 149
• No frills
• Paperless office
Easy Jet

7. Emphasized on
• Safety
• New Boeing 737s
• Experienced pilots
“ If you create right expectations and you meet
or exceed those expectations, then you will have
happy customers”

8. Competing on cost
• £14 per passenger by not offering meals
• £10 per passenger by flying into London’s Luton
Airport instead of Gatwick.
• No business class- more overall seating capacity
• Internet sales
• Avoided computer reservation systems and travel
agents (added 25% of total operating costs)
• Increased the flying hours from 6 hours per day to
11.5 hours.

10. SERVICE COMPETENCIES
• Approach to customer satisfaction
• Internet and on telephone sales and no reimbursement for
missed flights.
• Credit card payments and acknowledgement through six
character booking reference number.
• No pre-assigned seating, first come first serve basis.
• Target group: travelers, entrepreneurs and managers of
small firms.
• Ignored business travelers on some routes who accounted
for 50% of passengers.

11. • Yield management – fill as many seats as possible
• Lottery system
% of seats sold   Price of the seat 
• Drew potential customers who were in search of
cheap fares.
• Punctuality

12. Outsourcing
• Lowered costs and increased efficiency
• Airline provided only Planes, Pilots, Cabin crew, marketing
and sales people.
• All other responsibilities from check-in to the on-site
customer information desk were handled by
Subcontractors.
• Early 1998, owned operating certificate.
• Workshops, role-reversal exercises and simulations
• Not only quantitative criteria(on-time flights) but also
qualitative criteria (understanding of easy-jet concept).

13. Brand Awareness
• 10% of revenue were spent on newspaper, magazine and
radio advertising.
• By 1998, recognition rate was 88% in London and 82% in
Geneva.
• “Say no to Swissair monopoly”

14. Corporate Culture
• Strong, inclusive employee-culture – EasyJet Culture
Committee
• Company-sponsored barbecue
• Complete transparency in the data (excluding payroll
information)
• “The fight with Go”
• Acquiring ofTEA, a Swiss charter airline.

15. Competition
RYANAIR GO VIRGIN
EXPRESS
BUZZ
Established 1985 1998 1996 1999
Headquarters Ireland London’s
Stansted
Airport
Belgium London’s
Stansted
Airport

16. Challenges
• Privately held company to public
• Subcontractors- outsourcing of vital functions
• Becoming more corporate
• Relative youth and inexperience of employees
• Stabilizing internally

17. Other ventures
• Creation of a cyber café business called easyEverything
Café in 1999.
“ to offer the Internet to the masses” and
“to be the cheapest way to access web”
• First debuted in London on June 21, 1999 nearVictoria
station.
• First café – 400 terminals and fibre optic communication
lines that offered faster connections.
• Rental car business and Internet based bank.

18. THANK YOU