Easy Jet: The World's Favorite Airline

This report exit analyze easyJet?s business get in this highly rivalrous aviation industry. easyJet is a low-cost, no-frills(prenominal) air duct founded by Stelios Haji-Ioannou in 1995. Stelios? commissioning in excogitation this family is to ? disco biscuit low-cost airline service to the masses.? The concept of reckon airline is derived from the idea that demands for short-haul air transport is determine elastic. That means, if prices for flights are being reduced, the consumers? demand will increase significantly. The mission affirmation 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 unoccupied and business markets on a range of European routes. To chance upon this we will develop our people and establish long-lasting relationships with our suppliers.? (easyJet)REVENUE SOURCES ANALYSISgross Streams1.easyJet employs multi ple-stream measure model. The primary source of tax is in the exchange of air-tickets. Besides, it launched easyKiosk which sells food, souvenirs or even cosmetics to substantially reduce operating cost spell generating substantial ancillary revenues. The revenue for 1997 is £ 46 millions, increase 67% to £ 77 millions in 1998. Appendix A shows the revenue map 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 trade strategy aimed to stimulate consumers? purchases. As the operatin g cost for distributively flight are mostly! fixed regardless of sum 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 lot sold) increases. 2.easyJet relies on two manner of tickets reservation, internet and reservation agents. The high... If you gather in to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper