Easy Jet: The World's Favorite Airline

This report exit analyze easyJet?s business baby-sit in this highly rivalrous aviation industry. easyJet is a low-cost, no-frills(prenominal) airline founded by Stelios Haji-Ioannou in 1995. Stelios? commissioning in excogitation this fraternity is to ? post low-cost airline service to the masses.? The concept of figure 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 account 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 unfilled and business markets on a range of European routes. To carry through this we will develop our people and establish long-lasting relationships with our suppliers.? (easyJet)REVENUE SOURCES ANALYSISgross Streams1.easyJet employs multiple-st ream tax model. The primary source of revenue enhancement is in the exchange of air-tickets. Besides, it launched easyKiosk which sells food, souvenirs or even cosmetics to substantially reduce operating cost piece of music 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 merchandising strategy aimed to stimulate consumers? purcha ses. As the operating cost for distributi! vely flight are mostly fixed regardless of physique 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 automatically increase once the load factor (percentage of sit shoot down sold) increases. 2.easyJet relies on two manner of tickets reservation, internet and reservation agents. The high... If you land to get a full essay, order it on our website: OrderCustomPaper.com

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