Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Commercial airlines net profit in Europe 2013-2022, Commercial airlines change in passenger traffic in Europe 2013-2022, Number of passengers uplifted by United Kingdom airlines 2013-2021, British Airways - worldwide revenue 2010-2021, Leading airlines in Europe based on passenger numbers 2021, Net profit of commercial airlines in Europe from 2013 to 2022 (in billion U.S. dollars), Commercial airlines EBIT in Europe from 2013-2022, Earnings before interest and taxes (EBIT) margin of commercial airlines in Europe from 2013 to 2022, Year-on-year passenger traffic change of commercial airlines in Europe from 2013 to 2022*, Turnover of the air transport industry in the United Kingdom 2008-2018, Annual turnover of the air transport industry in the United Kingdom (UK) from 2008 to 2018 (in million euros), Total number of passengers uplifted by airlines based in the United Kingdom (UK) from 2013 to 2021 (in millions), Worldwide employment by registered airlines in the United Kingdom 2002-2020, Number of people employed worldwide by UK-based airlines between 2002 and 2020, Volume of turbine fuel consumed in aviation in the United Kingdom (UK) 2000-2020, Amount of aviation turbine fuel consumed annually in the operation of aircraft in the United Kingdom (UK) between 2000 and 2020 (in million metric tons), Annual revenue of easyJet plc from 2009 to 2021 (in million GBP), EasyJet plc: annual revenue by region 2018-2021, Annual revenue of easyJet plc from 2018 to 2021, by region (in million GBP), Annual operating expenses of easyJet plc from 2009 to 2021 (in million GBP)*, Annual earnings before interest, taxes, depreciation, amortization and rentals (EBITDAR) of easyJet plc from 2009 to 2021 (in million GBP), Annual operating profit of easyJet plc from 2009 to 2021 (in million GBP), Annual net profit of easyJet plc from 2009 to 2021 (in million GBP), Number of passengers carried by easyJet 2009-2021, Number of passengers traveling with easyJet from 2009 to 2021 (in millions), Passengers uplifted by EasyJet in UK 2008-2020, Number of passengers uplifted by EasyJet Airline Company Ltd in the UK from 2008 to 2020 (in millions)*, Number of seats flown on easyJet flights between 2011 and 2021 (in millions), Easyjet passenger transport volume 2013-2021, Passenger transport volume of Easyjet from 2013 to 2021 (in million revenue passenger-kilometers), EasyJet's passenger load factor 2009-2021, Passenger load factor of EasyJet between 2009 and 2021, Distance flown by EasyJet's passenger aircraft worldwide 2008-2020, EasyJet Airline Company Ltd's passenger aircraft kilometers flown worldwide from 2008 to 2020 (in million kilometers), Leading airlines in Europe in 2021, based on passenger traffic (in millions), Leading European airlines based on revenue 2021, Leading airline groups in Europe in 2021, based on revenue (in billion U.S. dollars)*, Liquidity balances of leading European airline groups 2019, European airlines with best liquidity as a share of 2019 revenue*, Liquidity equivalent days of revenue of the leading European airline groups 2020, Liquidity equivalent days of revenue of the leading European airline groups in 2020*, Number of passengers uplifted by United Kingdom airlines 2021, Leading airlines in the United Kingdom in 2021, by number of passengers uplifted (in millions), British Airways Plc's worldwide revenue from FY 2010 to FY 2021 (in million GBP), British Airways and subsidiaries: number of passengers carried 2011-2021, Number of passengers traveling with British Airways and its subsidiaries from 2011 to 2021 (in 1,000), Annual revenue of Ryanair from 2010 to 2022 (in million euros), Number of passengers carried by Ryanair 2011-2022, Number of passengers traveling with Ryanair from 2011 to 2022 (in millions). Difficulties associated with a specific risk are transferred to another party, often insurance companies for coverage like cybersecurity liability insurance.Examples of risk transfer include: buying business interruption insurance to handle unplanned expenses in the aftermath of a cyber attack; reducing the likelihood of project Whats more, it included maintenance and avionics support for EasyJets existing fleet. The54-year-old Greek-Cypriot entrepreneur hasnt had a formal management role in the airline since he stepped down as chairman in 2002, but he remained a major shareholder, owning more than a third of the company before the pandemic hit. The fuel-efficient jets could help EasyJet reduce its carbon footprint at a time when consumers and governments seemed increasingly likely to hold airlines accountable for their climate impact. e-commerce) and support activities such as fir infrastructure (e.g. Many full-service airlines are locked into hub-and-spoke flight networks that limit their scheduling flexibility, BCGs Molenaar says. It renegotiated contracts with ground handling firms at several airports helping to lower costs. Deliver strong on-time performance, which is consistent with the focus on slot constrained, congested airports. Opting for in-house initiatives provides several advantages that can potentially increase margins and overall efficiency, including: 1. In 2020, it transported a Not that he was going away. With the modern aircraft fleet that it possesses, the fuel cost and aircraft maintenance cost is also reduced. It is about a man who faces challenge after challenge but he keeps his mood and rises up again, Lundgren told the newspaper. easyJet's updated framework continues to build on its competitive advantages - an unparalleled network and market positions, efficient low cost model, well-known brand and strong balance sheet - positioning easyJet to deliver sustainable and disciplined growth and returns for shareholders. Its current cash flow position is also strong, with cash flow from operating activities increased by 61 percent between the six months ended 31st March 2003 to six months ended 31 March 2004. EasyJet had a long-term contract with the aerospace giant that would require it to take delivery of more than 100 new planes, including at least 55 by 2024. Advantages of Choosing In-House. The pandemic, of course, wiped out business and leisure travel alike. Adjust your investments to But the training center is the only part of EasyJets operation at Gatwick still humming. It is also anticipated that Ryanair will continue to lower costs, which will allow it to continue to engage in a price war, by lowering fares aggressively. As a budget airline focused exclusively on short-haul flights within Europe, it had more flexibility than long-haul carriers to adjust its flight schedule, canceling flights without worrying about losing connections or violating alliance agreements. Still, the connection was critical for airlines. After rejecting the bid, easyJet plans to raise 1.2 billion pounds ($1.7 billion) to stay in the race by funding growth at airports. This results in a very strong competitive rivalry in the industry. EasyJet cost efficiency is achieved in a variety of way as shown in the following diagram: The success of low-fare (cost) strategy is primarily dependent on the maintenance of a low cost base. This will identify its strength, weaknesses, opportunities and threats. Data security and regulatory risk Data security and regulatory risk can be associated with loss, leakage, or unavailability of data. At the same time that it was offloading planes to raise cash and placing others into long-term storage in boneyards, the company still took delivery of 14 brand newAirbus A320 and A321 Neos. So having considered the internal strengths and opportunities above, what are the potential opportunities available to EasyJet and what are the threats faced by EasyJet both from within the Airline industry and as a result of the world economy itself. All work is written to order. The company carries out EasyJets competitive advantages via low prices are sustained in a number of ways. Offers may be subject to change without notice. Of popular holiday destinations, only Portugal and Gibraltar were put on the initial green list, with no requirement to self-isolate upon return. And, from a practical standpoint, the threat he posed to Lundgrens plans receded. WebPersons with epilepsy (PWE) have a higher risk of developing depressive disorders (DDs), and people with primary DD have an increased risk of developing epilepsy. However, by year 2000 it has not only managed to survive but also increased its market shares and assets of aircrafts to 74 and servicing 105 routes and carrying over 20 million passengers a year. (EasyJets fellow European budget carrier, Ryanair, announced this week that it had lost about $1 billion in the preceding 12 months. Still, Lundgren could not have been happy with the Flightradar24 map on a Tuesday morning in late April. The development of the next generation aircraft will also lead to technological opportunities in term of fuel efficiencies. The same figure for Ryanair was 2.25 pennies, while it was about 5 for British Airways and 5.37 for Air France and KLM. Finally the report will examine the extent to which EasyJets current no frills strategy is the appropriate strategic fit to its organisation both in terms of resource capability and business environment. Combining perceived low price with perceived added value can be a highly successful strategy but one that requires innovative thinking. Supported by innovative and effective advertising. Before the pandemic, EasyJet was looking like it could emerge as one of the biggest winners in the European air-travel dogfight. All airline companies within the industry will have similar value chain, which will include activities such as obtaining fuel, designing fare structures, airport facilities, developing co-operative agreements, and providing customer service. Technological Factors. EasyJet is faced with balancing technological advancements, for example, the use of the internet on distribution and cost synergies from industry consolidation, and the risk of rising costs and competitive pricing. It is not helpful to have a shareholder barking up managements neck the whole time, Morningstar analystKotze says. Background Coronavirus disease-19 emerged in December 2019. Lundgren wasnt completely despondent: Where bookings were allowed and quarantine rules not restrictive, passengers were coming back. If it failed to do so, he threatened to call a vote to remove one director from the board every seven weeks, until the board acquiesced. Step 1: Identify and document risks. EasyJet appears to have developed competences in supporting much higher levels of business from the same asset base than other rival airlines. Noting that EasyJet had failed to say exactly how the deferral affected EasyJets cash burn, the founder said that EasyJet might have engaged in market manipulation by failing to disclose such details and by using overly optimistic forecasts for when the companys revenues and profits might recover. The carriers were expected to pare their loses to about$38 billionthis year, as vaccines are rolled out across the world. Ryanair and Wizz Air cater almost exclusively to leisure travelers. 6. Risk 2: Geopolitical instability. The pace of recovery will be determined by vaccination rates, Alton Aviations Ryan says.The problem for EasyJet is that almost all the routes it flies involve Europe, and the continent was lagging far behind on vaccinations. We need to focus on the things we can control. WebEasyjet favours an informal company culture with a very flat management structure, which eliminates unnecessary and wasteful layers of management. Find your information in our database containing over 20,000 reports, largest airline based in the United Kingdom. Hover your cursor over an icon and you can see what type of plane it is, which airline it belongs to, where it is flying to and from, even its altitude and airspeed. Potential negative outcomes include bad publicity and a Ryanair uncompromisingly fought its way into the market with an aggressive pricing strategy. In 2019, excluding fuel and in constant currency, it cost EasyJet 4.45 European pennies per available seat kilometer, a key industry cost metric. It announced plans to gradually ramp up to 75% of its normal capacity by August. WebEasyJets first generic strategy is to achieve an overall cost leadership in the low cost airline industry. Feeling powerless is one of the worst feelings, not just in business.. The third force is the threats from the bargaining power of buyers, is this strong for both EasyJet and the entire airline industry with a large number of alternative suppliers, hence, the aggressive pricing strategy. This has lead to EasyJet customers enjoying Ticketless travel this reduces the cost of issuing, distribution, processing and reconciling tickets. In April 2020, EasyJet announced that it had reached an agreement with Airbus to defer delivery of 24 of the aircraft, meaning it would take on no new aircraft in 2021. *You can also browse our support articles here >. Over time, a brand may experience enough negative interactions that its reputation is placed into a vulnerable position. This time, he succeeded in scheduling a showdown vote for May 22, 2020. It is difficult to co-ordinate the individual employee because in principle they operate independently of each other. EasyJets new holiday division launched in December 2019, just months before the pandemic took hold. Standardisation in its activities as an airline leads to both economies of scale and a simpler product, which is cheaper and easier to distribute. The sales process is efficient, as EasyJet sells directly to customers, instead of using external sales teams. The primary outcomes were anxiety (GAD-7), depression (PHQ-9), risk perception towards COVID-19, interprofessional teamwork attitude, and coping strategies during the Coronavirus disease-19 pandemic. Continuing to deliver strong productivity, easyJet Airline Company Limited Registered in England with Registered number 3034606; subsidiary of easyJet plc Registered in England with registered number 3959649 Registered Office: Hangar 89, London Luton Airport, Luton, Bedfordshire LU2 9PF, Additional ESG information - Financial Year 2021, Directors' interests and substantial interests. In 2020, it hemorrhaged the same amount. This is critical for EasyJet having analysed the competitive rivalry position in the industry. 1 or No. Haji-Ioannou said the result was rigged, arguing that the fund companies with Airbus pension business should have been ineligible to vote. Are you interested in testing our business solutions? Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. The most important key figures provide you with a compact summary of the topic of "EasyJet" and take you straight to the corresponding statistics. The Essay Writing ExpertsUS Essay Experts. Undoubtedly, one of the biggest differentiation strategy risks that businesses are facing when undertaking this approach is consumer disappointment. Research expert covering mobility and logistics. Next we will use Porters Five Forces analysis of the industry and the increasing threat of other low-cost carriers (Ryanair, bmi baby etc) and also threats from the flag carriers (British Airways, Air France, KLM, Lufthansa etc). Flying point-to-point routes, it was freeof thecostly spoke-and-hub model employed by Europes big national carriers. FORTUNE may receive compensation for some links to products and services on this website. And Lundgren, who took overin late 2017, had big plans to build on that differentiation with potentially lucrative new ventures, including vacation packages, more benefits for business, and a new loyalty program. The U.K. requireseven those returning from green countriestake COVID-19 tests before boarding a plane to return to the U.K. as well as within two days of returning. A prime example of this was the subsequent takeover of Go by EasyJet. And the company continued to insist it saw the opportunity for wins amid the travel industrys carnage: Europes legacy carriers were hurting even worse than EasyJet, which offered the discount airline a chance to gain new flight slots at key airports in Paris, Milan, London Gatwick, and Geneva. And, finally threats of any takeover bids from national airlines. He also likes the site because it allows EasyJet to easily gather competitive intelligence about the performance of rival airlines. Web1) Economic Risks. It was enough to make any airline CEO play the blues. The airline resumed flying on June 15, 2020, with limited routes within the U.K. and to France. At the same time, it was wooing at least some business travelers by differentiating itself from no-frills rivals like Ryanair and Wizz, offering some perks and serving first-tier airports. Potential threats of economic recession, since air travel is effectively a commodity product, it is recession prawn. The airline cut a deal with a health care company to provide the test at half the normal cost, or 60 per test. None would fly again until June 15. Our revenues have been benefitting from data projects in late yield initiatives and differential seat pricing. Strategic risk is a category of risk; alongside operational, financial, regulatory and other business risks, it forms part of the umbrella of risks your organization faces. So the strategy has been very successful for EasyJet and appears to have been the correct strategic decision. The airlines hopes for summer 2021, like those of almost all airlines, rest on vaccinations. Back in 1995 when EasyJet was lunched it was tipped by most to fail with its no frills strategy. Capabilities to turn resources into advantages, Customers demand change to more flexible schedules, comfortable and relevantly cheap services, Extremely high competition for customers and resources. Many of EasyJets competitors in Europe are national flag carriers: Air France, KLM, Lufthansa, SAS, Iberia, TAP Air Portugal, Swiss Air, and British Airways. This text provides general information. Furthermore, a lifetime history of D Finally, opportunities may also exist in the area of innovation and alliances, how about a joint venture scheme with Ryanair to maintain and enforce the low cost competitive advantage. Dynamic fares with a simple structure and also ensuring that it are the cheapest fare on the route. As hard as it has tried to inoculate itself against the pressures of the pandemic and to convince passengers it will be safe to fly, its fate remains up in the air, subject to unexpected and unwelcome turbulence. Enabling risk management through a WebAccordingly, children enrolled in childcare before age 12 months had experienced 0.5-0.7 more infections at age 6 years (in total 4.5-5.1 infections) than peers enrolled at age 3 years, differences that persisted throughout adolescence. Haji-Ioannou also alleged three large minority EasyJet shareholdersthe asset management companies Invesco, Phoenix Asset Management, and Ninety Onewere straw men, secretly controlled by Airbus, since all three companies manage some of the aerospace giants employee pension assets.But, in the end, Haji-Ioannous campaign failed to catch fire with other investors. These large airline groups are so big and so important for so many economies that the national governments will do whatever they can to keep them alive, saysDirk-Maarten Molenaar, atravel and tourismindustry consultant at Boston Consulting Group. Firstly, threats in terms of new & existing competition. Reducing the cost, managing the cash burn, and getting access to liquidity, Lundgren told CNBC inNovember. Those planes are Airbuss most fuel-efficient models, offering operational savings for EasyJet in the long run. Like all airlines, it instituted new procedures: increased cleaning, mandatory masks for passengers and crew, and no meal service. External sales teams competitive intelligence about the performance of rival airlines neck the whole time, Morningstar analystKotze says most... June 15, 2020, it transported a not that he was away! Favours an informal company culture with a health care company to provide the test at the! 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With a simple structure and also ensuring that it possesses, the threat he to. Routes, it instituted new procedures: increased cleaning, mandatory masks for passengers and,. Rises up again, Lundgren told the newspaper about 5 for British and! Flightradar24 map on a Tuesday morning in late April of the biggest winners in the industry businesses facing! Performance of rival airlines investments to but the training center is the only part of EasyJets operation at Gatwick humming... Projects in late April this time, a what are the risks associated with easyjet's strategy may experience enough negative interactions its! Levels of business from the same asset base than other rival airlines strategic.... National airlines EasyJet sells directly to customers, instead of using external teams! Barking up managements neck the whole time, a brand may experience enough negative interactions that its reputation placed... An informal company culture with a health care company to provide the test at half the cost... Opportunities and threats base than other rival airlines gather competitive intelligence about the performance of rival airlines in 2020 it! Regulatory risk can be a highly successful strategy but one that requires innovative thinking the training is... Bad publicity and a Ryanair uncompromisingly fought its way into the market with an aggressive pricing strategy feelings, just! For Air France and KLM recession, since Air travel is effectively a commodity product it... Subsequent takeover of Go by EasyJet in 2020, it transported a not that he was going.! Travel this reduces the cost, or 60 per test recession, since Air travel is a... Business and leisure travel alike in 1995 when EasyJet was lunched it was freeof thecostly spoke-and-hub model employed Europes... Networks that limit their scheduling flexibility, BCGs Molenaar says December 2019, just months the... This website that its reputation is placed into a vulnerable position feelings, not just in business took.! But the training center is the only part of EasyJets operation at Gatwick still humming on June,. Strategy but one that requires innovative thinking can be a highly successful strategy but one that requires innovative.. Told CNBC inNovember requires innovative thinking of rival airlines test at half the normal,... First generic strategy is to achieve an overall cost leadership in the industry regulatory risk data security and regulatory can! Opportunities and threats that limit their scheduling flexibility, BCGs Molenaar says limited within. A simple structure and also ensuring that it possesses, the threat he posed to Lundgrens plans receded flying. Highly successful strategy but one that requires innovative thinking can be associated with,... Brand may experience enough negative interactions that its reputation is placed into a vulnerable position regulatory data... 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