easyJet

easyJet was founded in 1995 by Sir Stelios Haji-Loannou. Stelios and his family remain major shareholders in easyJet PLC.

easyJet is a low-cost airlines which rely on a simple business design: one kind of aircraft, one class of passenger, and more seats crammed into the airplane—as well as no airport lounges, no choice of seats, no newspapers, no food, no frequent-flyer programs, no connecting flights, no refunds, and no possibility of rebooking to other airlines. Also, there are no travel agents and expensive computer reservation systems.

easyJet maximise the utilisation of each aircraft in order to reduce the unit cost. The company issue no tickets for the passengers and therefore succeeded to reduce significantly the cost of issuing, distributing, processing and reconciling million of tickets each year.

The company simplified its working practices by embracing the concept of the paperless office. The employees can access the company’s IT system through secure servers from anywhere in the world enabling great flexibility in running the airline company.

easyJet flies to main destination airports throughout Europe but gain efficiencies through rapid turnarounds timing. By doing so, easyJet can achieve extra rotations on the high frequency route, thereby maximising utilisation rates of its aircrafts.

EasyJet is stimulating and exploiting pent-up demand for cheap travel. They are attracting those travellers who would otherwise travel by train or car.

The company is targeting the following groups:
• Business people
• VFR (visit friends and relatives) and commuters
• Short breakers
• Long Breakers
In order to attract these groups, the company has provided the following advantages:
• Low fairs
• Convenient airports
• Right times of day
• Range of destinations

easyJet highly relies on yield management to maximise its profit. Customers who do their booking in advance are guaranteed to have a lower air tickets fairs. Those who come in late, unfortunately, end up with higher fairs.

Stelios believes that as demand goes up, so should prices.