Easy Jet: The World's Favorite Airline

This report exit analyze easyJet?s business instance in this highly rivalrous aviation industry. easyJet is a low-cost, no-frills(prenominal) airline business founded by Stelios Haji-Ioannou in 1995. Stelios? commissioning in excogitation this conjunction is to ? run low-cost airline service to the masses.? The concept of calculate airline is derived from the idea that demands for short-haul air transport is determine elastic. That means, if prices for flights argon being reduced, the consumers? demand will increase significantly. The mission tilt of easyJet?s founder, Stelios is ?To provide our customers with safe, good value, point-to-point air services. To payoff and to offer a consistent and reliable product and fares appealing to vacant and business markets on a range of European routes. To attain this we will develop our people and establish long-lasting relationships with our suppliers.? (easyJet)REVENUE SOURCES ANALYSISgross Streams1.easyJet employs multiple- stream evaluate model. The primary source of gross is in the exchange of air-tickets. Besides, it launched easyKiosk which sells food, souvenirs or even cosmetics to substantially reduce operating cost duration generating substantial ancillary revenues. The revenue for 1997 is £ 46 millions, increase 67% to £ 77 millions in 1998. Appendix A shows the revenue graph for easyJet from 1997 ? 2007. 2.In addition, easyJet utilizes ?loss-leader? model, which gives away free flight-tickets for promotional purposes. This is an effective competitive merchandise strategy aimed to stimulate consumers? purchases. As the operating cost for from each one flight are mostly fixed regardless of shape of passengers, this marketing strategy will maximize aircraft utilization. Revenue Model1.easyJet utilizes volume-based revenue model where customers pay a price and suck a product (air service) in exchange. However, easyJet uses ?Yield Management? whereby prices will mechanically increase once the load factor (percentage of sit ra! ze sold) increases. 2.easyJet relies on two manner of tickets reservation, internet and reservation agents. The high... If you pull in to get a full essay, order it on our website: OrderCustomPaper.com

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