Introduction: The given case study esssays how the Easyjet airways revolutionized the European airline industry from the initial undertook and next ten years through their different innovative decisions, one major among them is thir Low fares. In their initial undertook in 1995 it has operated only two routes which they have extended to 212 routes to 64 european routes in a span of ten years and increased their passengers base. Easyjet mainly concentrated on short-haul operators and have takenover all traditional airlines and became largest in short-haul operations. They even purchased 20 airbuses to operate their ever increasing routes. In the year 2005 from 2004 the airlines have raised their business and passengers by 10% and 21% with a load factor of 85.2%. As these Airlines are operating through lowfares they have created cost-concious passengers, as it is convenient for a common middleclass passengers too, this way they have become most successful and have taken a market share from brand named british Airways and are now top in European Airway industry. They even balance profit well between low fares and low cost operations Through their different operstionsl decisions.
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QUESTION AND ANSWERS: 1. List all the decisions by which Easyjet achieves low cost operations. * One of the most innovative decision is that Easyjet sells their tickets over internet. A maximum of 95% tickets will be sold through online only. So it is easy for the passengers to book a ticket from home rather going outside to their office. Easyjet uses variable pricing system which means the price of a ticket well before seats filled will be very low, even sometimes free and price rises as the seats are filling up, this has attracted passengers more and lead to maximize load factor. As the Aircraft is full unit cost of travel will be lowered. * Easyjet achieved low cost operations by taking decision of ticketless travelling, Passenger can travel without a ticket as the travel information will be E-mailed, this reduced issuing cost, processing on board cost and accommodating millions of ticket each year. Easyjet They do not assign seat numbers, so the passengers can sit where they like and are satisfied with it. * Easyjet achieved low cost operations by taking decision of no free on-board catering which will reduce the operation cost per each trip. * Easyjet achieved low cost operations by taking decision of efficient use of airports, by landing on airports which are less crowded in small cities and secondary airports in major cities. As the airports are less crowded easyjet gets extra rotations and can carry more passengers in short span of next trip, so more trips more passengers and more profits. * Easyjet achieved low cost operations by taking decision of paperless operations, by operating through the main head office through the IT system from where it has an access all over the world for its files, management and administration which cuts paper costs and machine costs. 2. Evaluate EasyJet’s operations strategic decisions against Hayes et al.’s criteria of consistency and contribution to competitive advantage.
Easyjet’s operations strategic decisions were a competitive advantage. As Easyjet is operating its ticket sale through internet it’s a competitive idea for other airlines too to follow because Easyjet is benifiting with online idea. The main motto of Easyjet airways is to attract the passengers with their consistent low fares and passenger satisfaction and convenience through ticketless travel, onboard catering which will be a competitive advantage to other airlines. Their