Transcript
EASYJET Come on, lets fly!!
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.
EASYGROUP
easyJet
easyInternetcafe
easyValue
easyCar
easyMoney
easyCinema
easyBus
easyHotel
easyJobs
easy4men (male
toiletries)
easyPizza
easyMusic
easyCruise
easyMobile
easyWatch
easyVan
easyOffice
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.
KEY MARKETS
UK
Germany
Switzerland
Italy
France
Spain
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 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’
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.
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