Difference between revisions of "M5-Strategy-S1 - Summary EasyJet Case"
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Latest revision as of 19:59, 27 August 2020
Full article:
Founder: Stelios Haji-Ioannou Founded in 1995 with family money Start capital: 5 Mln Pound First flight: 29 Pound, slogan "Fly to Scotland for the price of a pair of jeans" Modelled after South-West Airlines:
- One type of aircraft
- No in flight meals
- Rapid turnaround time
- High Air craft Utilsation
But added new concepts:
- Avoided travel agents
- No tickets
- Flew a brand new Boeing maximizing seat capacity
- No free drinks of peanuts: everything for sale
- One free item: in-flight magazine 'easyRider'
Everything was low costs:
- No secretary
- Paperless office
Savings:
- 14 pound per passenger for a meal
- 10 pounds for using Luton in stead of Gatwick airport
- No business class allowing for more seats
- Internet sales (60% of revenue)
- Discount for internet bookings
- No computer reservation systems
- Increasing flight time from average 6 to 11.5 hours per day (needed 2 in stead of 3 airplanes)
- No imbursements for missed flights (only 4% of customers failed to show up for their flight)
Earnings:
- Profitable in 1999, though small. 1.5 pound per passenger
Stelios never compromised safety. Personel:
- Reservation agents were paid on commission bases (per seat sold)
Marketing:
- No market research: made sure he got direct customer feedback himself.
- Any opportunity to get in the news was taken
