Easy Jet Swot Analysis Essay Example
Easy Jet Swot Analysis Essay Example

Easy Jet Swot Analysis Essay Example

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  • Pages: 3 (712 words)
  • Published: December 13, 2017
  • Type: Analysis
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Jet is Europe’s leading low fares airline. Formed in 1995 by Sir Stelios Haji-Ioannou, it has grown rapidly to become Europe’s fourth largest airline by passengers carried.

Sir Stelios has credited easyJet’s success to two strategic imperatives. The first was “sweating the assets”, that is making sure that the planes were as full as possible and flying as much as possible. The second was a sophisticated yield management system which would set an infinite number of fares for a given flight, based on the demand and supply position for that flight. The prices for the seats fluctuated depending on the demand for them at a particular time. easyJet was the first LCC to start the sale of its airline tickets online. In 1999, Stelios was voted London Entrepreneur of the Year at the London Electricity Londoner of the Year Awards.

In the same year, easyJet was voted «Best

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Low Cost Airline» by readers of Business Traveler magazine for the first time. easyJet was selected as a Business Superbrand by the Superbrand Council which recognizes companies with an outstanding brand name in November 1999. Other Superbrand companies include such globally-recognized names as Virgin, Coca-Cola and Manchester United. In December 1999, ‘Marketing’ magazine described the launch of easyJet as «one of the 100 great marketing moments of the 20th century». Stelios entered the Guinness Book of Records for being the world’s youngest international scheduled airline chairman when he launched easyJet in 1995 at 28 years of age. Sir Stelios was knighted by the Queen in June 2006, for services to entrepreneurship.

The combination of favorable market conditions, robust operating principles and world-class marketing, underpinned by the entrepreneurial vision of th

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man now known to the public simply as Stelios, brought success and fame to easyJet. History The easyJet airline was founded in 1995 by Stelios Haji-Ioannou, with 5million family loan and 20 staff members, based on the Southwest Airlines model. The first bookings were made on the easyJet telephone reservation centre opened at easyLand, the home of easyJet at London Luton Airport. Its first passengers flew from London Luton to Glasgow and Edinburgh for the ludicrously low price of 9 one way on November 10th, 1995. In April 1996, easyJet took delivery of its first wholly-owned aircraft (started operations with two leased Boeing 737-200) and went international with first services to Amsterdam from London Luton.

easyJet launched its website, easyJet. com which provided information about the airline. In September 1997, easyJet placed an order for 12 brand new Boeing 737-300s for delivery by 2000. In October, easyJet also launched its second UK base at Liverpool Airport.

easyJet bought 40% of a Swiss charter operation, TEA Basel AG, based in Basle for a consideration of three million Swiss francs in March 1998. This airline was later renamed ‘easyJet Switzerland’ and moved to Geneva where the first European base was opened. In April, 1998, the airline sold its first seat online at easyJet. com while telephone sales continued. easyJet ordered 15 brand-new Boeing Next Generation 737-700 aircraft in July 1998, with a list price in excess of $500 million.

In June 1999, easyJet increased stake in easyJet, Switzerland to 49% and acquired an option over the remaining 51%. In July 1999, easyJet Switzerland inaugurates services from Geneva to Nice, Amsterdam and Barcelona (the first easyJet services wholly outside the UK).

asyJet seat sales over the Internet passed the one million mark in October 1999. easyJet became the first low-cost airline to launch a flight arrivals information service on its web site in April 2000. Internet sales reached 85% of total sales in September. easyJet entered the London Stock Exchange Listings in November 2000 at an offer price of 310p and sold 25% of the stock to public.

The IPO earnings went mainly towards financing the purchase of the new Boeing 737-700 order placed in March 2000 taking fleet size up to 44 aircraft by 2004.It established London Gatwick as its fifth base in December 2001, and becomes the second largest scheduled airline at the airport. In August 2002, easyJet and Go combined to become Europe’s largest low-cost airline and two months later, in October, they ordered Airbus A319 aircraft. Since then, the Airbus A319, together with Boeing 737-700s, are interchangeable on all easyJet routes, so maintaining the “any aircraft, any route” aspect of the easyJet business model. In November 2002, Stelios stood down as Chairman of easyJet and Sir Colin Chandler took over the position.

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