TRANSFERRING RISKS INTO SUCCESS : AN EASY JET CASE STUDY COMPARISON TO PAKISTAN AVIATION( AIRBLUE ). Mohammad Haider Haroon 1384306 Shehzad Balti 1395125 Samir Mirza 1384300 Muhammad Waqas 1384337
TRANSFERRING RISKS INTO SUCCESS :
AN EASY JET CASE STUDY COMPARISON
TO PAKISTAN AVIATION( AIRBLUE).
Mohammad Haider Haroon 1384306
Shehzad Balti 1395125
Samir Mirza 1384300
Muhammad Waqas 1384337
CONTENT
Introduction
Facts & Figures
SWOT Analysis
Success Story
Transferring Risks Into Success.
Pakistan comparison
Conclusion
INTRODUCTION
EasyJet is UK based Low Cost Carrier
Founded in 1995
Owner by Greek Entreprenuer :Sir Stelios
Haji-Ioannou
FACTS & FIGURES
Initially started with 2 Wet lease planes.
Grown massively in almost 2 decades.
Now 203 Planes in Fleet.
187 Brand New planes on Order.
600 + Routes in 30+ Countries ( Mostly Europe ).
134 Destinations
UK’s Largest and Europe’s 2nd Largest of Low Cost Carrier.
8500 + Employees.
Based In London Luton Airport UK.
No “Frills”
No free meals and
beverages onboard, no
frequent fliers program etc
More seats are available in
one flight to maximize profits
Low Cost Carrier
Reverse Price System
The further the date of
departure, the cheaper the
ticket
Encourages customers to
book early
Able to gauge demand for
every flight
LOW COST CARRIERS
SWOT Analysis
Strengths
Weakness
Opportunity
Threats
STRENGHTS
STRENGTHS
• Connects to all the major
destinations.
• A convenient airliner for the
low
budget traveler.
• Attractive pricing.
• Airport network & market
share.
• Reserve pricing strategy.
• Encouraging internet
reservations.
• Quick turn around flights.
STRENGHTS
• Highly distinctive branding.
• Feature on television airline
series.
•Website painted on the aircraft.
•Bright orange color.
• Catchy slogan:
“Come on, lets fly!”
WEAKNESSES
WEAKNESSES
• Cost base not as low as Ryanair.
• Brand Vs. Legacy carriers.
• Seasonality of earnings.
OPPORTUNITIES
OPPORTUNITIES
• Market growth.
• Further cost cutting.
• Fleet.
• Business passengers.
• Allocated seating.
THREATS
• Airport price increases.
• Labor unrest.
• Increasing complexity.
• Return of competitor capacity
growth.
• Stagnant economies.
• Fuel price & currency
movements.
• Air travel taxes.
• Accidents & failures.
SUCCESS STORY
SUCCESS STORY
Revenue £4,258 million (2013)
Operating income £478 million (2013)
Net income £398 million (2013)
Total assets £4,412 million (2013)
Remember: Just Started with not even
owned planes and see now.
SUCCESS STORY
Easyjet filled the gap by giving tickets at very
low price compared to main airlines in UK
Enabling the common man to think of flying
aswell.
As low as Pound 15 to 25 , enables people to
fly more.
Such a success that it has become Europe’s
2nd best LCC .
ROUTE MAP
COMPARISON WITH PAKISTAN
Pakistan has 4 Airlines Currently .
2 of them fall in the category of LCC .
AIRBLUE
AIR INDUS
Bhoja Air ( Defunct )
AIRBLUE
At first AirBlue was full Legacy Airline
How ever due to an Air crash in 2010 at
Margalla Hills , the model of Airlines was
swapped to type of LCC Variant from a full
legacy Airline.
All Economy class was introduced.
Meals converted to snacks on Domestic
Routes
RISK FACTOR
After 2010 tragedy , Airblue customers
reduced drastically.
Airblue came up with EasyJET type of model
to stand in tough time.
They leased Planes.
Internet marketing ( Early Bird Discounts)
Salaries Reduction
AIRBLUE WEBSITE
RISK TRANFER TO SUCCESS
On verge of Bankruptcy, Airblue with strong contingency measures enabled it self out of trouble
Earning profits now.
Introduction of Saudi Route have been Very profit scoring generating good revenue.
Leasing more planes
20-25% of Domestic market share now in Pakistan.
CONCLUSION
Risk can be transferred into success
Takes time.
Opportunities if availed on right time can lead
to a great success
Never give up ! Risk Taking leads towards
success.
“PLEASE FASTEN YOUR SEATBELTS, WE ARE ABOUT TO
TAKE OFF!”
- THANK YOU -
“Please fasten your seatbelts, we are about to take off!”
- Thank you -