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Founded in 1995, EasyJet is a low-cost European airline with fares designed

to make air travel affordable for even the most budget-conscious consumers.

The company currently employs 6,200 workers scattered through 18 bases

and serves 120 destinations with a fleet of 140 aircraft. In fiscal 2007, the airline

averaged 1,000 flights daily, and served 37 million passengers, with revenue

of almost 1.8 billion English pounds, or about $3.6 billion – an increase of 11

percent over 2006 that represented a 48 percent jump in profitability.

IS THE BUDGET AIRLINE SEGMENT AN EASY SPACE TO COMPETE ?

• DEREGULATION OF EURPOEAN AIRLINE INDISTRY PROMPTED MANY NEW ENTRANTS

• LOT OF GROWING COMPETITION AMONG SMALL LOW COST CARRIERS

• THREAT FROM EUROPE’S MAJOR CARRIERS

• 3% TO 5% OF PASSENGERS IN EUROPE FLEW ON LOW COST CARRIERS COMPARED TO 24% IN US

• HIGH SPEED RAIL SERVICE COMPETED DIRECTLY WITH AIRLINES ON SOME ROUTES IN EUROPE

• COST OF RUNNING AN AIRLINE IN EUROPE WAS 40% HIGHER THAN US

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HOW CAN EASY JET DELIVER SUCH LOW PRICES ?

• EASY JET STARTED WITH TWO LEASED AIRCRAFTS

• STARTED THE FLIGHTS BETWEEN TWO INTERNATIONAL AIRPORTS HAVING MAXIMUM PASSENGER TRAFFIC

• ONE TYPE OF AIRCRAFT

• POINT TO POINT SHORT-HAUL TRAVEL

• NO IN FLIGHT MEALS

• RAPID TURN AROUND TIME, I.E FLYING PLANES 11.5 HRS INSTEAD OF 6 HRS

• VERY HIGH AIRCRAFT UTILISATION

• COMPLETELY AVOIDED TRAVEL AGENTS AND USE OF INTERNET FOR TICKET SALE

• NO FRILLS TRAVEL

• MAINTAINED A PAPERLESS OFFICE

• PREDICTION BY ANALYTS THAT EUROPEAN LOW COST MARKET COULD GROW BY 300%

• SAVINGS BY USING LONDON’S LUTON AIRPORT INSTEAD OF GATWICK

• INCRASED THE CAPACITY BY NOT OFFERING BUSINESS CLASS

• NO REIMBURSEMENT FOR MISSED FLIGHTS

• FILLING AS MANY SEATS AS POSSIBLE BY USING YIELD MANAGEMENT

• INCREASED FLIGHT FARE WHEN THE LOAD...