The brand name easyJet is very easy to remember and hence brand recall is higher 2. It flies to main destinations throughout Europe making it a very attractive choice for flying 3. Single model of aircraft reducing training, maintenance and supervisory costs 4.
So is Stelios right to focus on the weaknesses and threats - or is he the biggest of them? The only way to sustain a price advantage is to have a sustainable unit cost advantage. This unit cost advantage stems from a number of factors, including high seat density as noted abovehigh load factors Airport network and market share.
Crucially, 46 of these involve primary airports, versus 24 primaries for Ryanair and 34 for IAG. Not only does this raise its visibility locally, but it also enables a genuine network of routes between its destinations, rather than the more limited radial routes from one or two major hubs typically operated by legacy carriers.
At Sep, it had Airbus As, with single class seats a more standard two class configuration has and 54 As, with seats versus more commonly. It already enjoyed good brand awareness, particularly in the UKbut this has now spread to other countries and has been supplemented by improved customer satisfaction in itself due in no small measure to improved on-time performance.
Although it is early days, easyJet is showing increasing willingness to hybridise to enhance the brand, both through introducing the opportunity for a form of brand loyalty - but without the costs of a formal FFP - through its deal with UK loyalty card programme, Nectar, and for example in its linking with Emirates and its FFP, Skywards.
Its strong balance sheet and cash generation and returns that exceed the cost of capital make it all too rare in the airline industry globally.
Although the two only compete head to head rarely, this competition could increase in the long term as each exhausts growth from its existing network and as the opportunities to add new airports become less frequent. Brand vs legacy carriers. Disputes in recent years between Stelios and management have generated adverse publicity and arguably damaged the brand, particularly where they drew attention to factors such as poor on-time performance.
Although notoriously cyclical and currently going through a sluggish phase, the aviation sector remains a growth industry in the medium to long term, by common consensus.
Moreover, given its cost and price advantages and current capacity cuts from most of its legacy carrier competitors, it looks set to enjoy market share gains too.
As the carrier takes cautious steps into connecting with other airlines, the opportunities that come with partnerships will also open new doors. GBPm to the end of September Management is currently assessing its options for a major new order to drive fleet growth from and considering its interim fleet plans for Based on scheduled deliveries and options under its existing Airbus contract, it has significant fleet growth flexibility to It will also hope that its size and purchasing power can secure a price advantage for these aircraft, although it seems unlikely that it will match the massive discounts secured from Airbus ingiven the much bigger order backlog currently enjoyed by both Airbus and Boeing.
Success in this initiative should be beneficial for yields, given that business travellers book later and pay a premium as a result. Indeed, CEO Carolyn McCall stressed on the Q1 analyst conference call that yield benefit and not market share is the goal for its business passenger initiatives.
Attractions for business travellers include its primary airports, a relative focus on higher frequencies compared with other LCCs and its flexible fares product, which allows a passenger free date changes. Allocated seating should also help to attract business travellers.
|writing | PESTLE and SWOT analysis of EasyJet||The president Stelios Haji-loannou Greek founded the company this twelvemonth.|
|1 SWOT analysis||EasyJet Airline Company Limited: EasyJet is a leading provider of low budget, no frills air travel servicing many of the leading city destinations in the UK and across Europe, including Berlin, Amsterdam, Barcelona, and Prague.|
|Not what you're looking for?||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. Sir Stelios was knighted by the Queen in Junefor services to entrepreneurship.|
This should enhance yields and does not so far appear significantly to have added to complexity or adversely affected turnaround times. As noted above, comments by Stelios have sometimes had a negative impact on the brand and share price.
As with any labour-intensive service industry, airlines are vulnerable to labour unrest, not only among their own staff, but also among key airport-based suppliers such as ATC, ground-handling, security and ground transport.
This increasing complexity could be a threat if management were to lose its focus. Return of competitor capacity growth.SWOT analysis is a strategic marketing tool that helps to determine the internal strengths, weakness and external opportunities, threats of an organization.
Alpen Bank is a potential Romania banking organization that is popular for excellent client service. Figure 1 Milestone of EasyJet. Chapter 3 Situation Analysis. In this chapter, I will present position and analysis the current position using both of used SWOT and PEST model.
EasyJet seems like very good situation and more expertise will predict have great opportunities for the low cost strategy. SWOT analysis of RyanairStrengthsRyanair was the first one among the Low Cost Carrier s. The Irish company was established in In an aggressive and innovative leadership (Michael O'Leary) took the management of the venture/5(3).
A SWOT analysis is a situation analysis or tool used to identify the strengths, weaknesses, opportunities and threats of an organization (SWOT Analysis Definition | Investopedia, ). Thus, it is a basic straightforward model that determines what an organization, like OnStar, can and cannot do, as well as determines its opportunities.
easyJet SWOT analysis - Is Sir Stelios strength, weakness, opportunity and threat all in one? Last month’s quarterly trading update reported an 8% increase in unit revenues for the Oct-Dec quarter and forecast a significant narrowing of first half pre-tax losses from GBPm to between GBP50m and GBP75m.
3 days ago · EasyJet SWOT: from green to amber for Europe's orange airline EasyJet gained a new CEO, Johan Lundgren, on 1-Dec His arrival coincided with a green light for profit recovery: FY results (year to Sep) reversed the slide in underlying margins and return on capital that had overshadowed the previous two years.