Easy Jet: The World's Favorite Airline

This report exit analyze easyJet?s business role model in this highly rivalrous aviation industry. easyJet is a low-cost, no-frills(prenominal) air hose founded by Stelios Haji-Ioannou in 1995. Stelios? commissioning in excogitation this troupe is to ? expand low-cost airline service to the masses.? The concept of cipher 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 untenanted and business markets on a range of European routes. To reach this we will develop our people and establish long-lasting relationships with our suppliers.? (easyJet)REVENUE SOURCES ANALYSISgross Streams1.easyJet employs multiple-stream v aluate model. The primary source of revenue is in the exchange of air-tickets. Besides, it launched easyKiosk which sells food, souvenirs or even cosmetics to substantially reduce operating cost period generating substantial ancillary revenues. The revenue for 1997 is £ 46 millions, increase 67% to £ 77 millions in 1998. Appendix A shows the revenue chart 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 merchandising strategy aimed to stimulate consumers? purchases. As the operatin g cost for each flight are mostly fixed reg! ardless of build 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 dump sold) increases. 2.easyJet relies on two manner of tickets reservation, internet and reservation agents. The high... If you realise 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