Easyjet was founded in 1995 by Sir Stelious Haji-Ioannou, it's a private limited company owned by Easy Group and it's also listed on the London Stock Exchange. With the acquisition of GB Airways in 2007, easyJet inherited nine Airbus A320 and six Airbus A321 aircraft. Q1: How do easyJets marketing objectives and marketing mix strategy affect its pricing decision? Strong operational efficiency leading to a low-cost model. Sociocultural impacts 7 Interpersonal relationship, EasyJet has a unique geographical location because it was born in England. By introducing the no-nonsense theory to the European market after its deregulation in 1992 easyJet did prove power by increasing the size of the low-cost market and winning passengers from prominent traditional airlines, Premium EasyJet the company is a low cost airline looking to undercut traditional carriers that were already known and established in the industry. This is particularly shared among young travellers and several business travellers. European Countries Collaboration and good relationship making EU politically stable. What experience do you need to become a teacher? 2.6.2.1 Employee protection laws (discrimination and health and safety) Easyjet Plc. "Stakeholders of easyjet" Essays and Research Papers. 1 Brief history of Easyjet 3 EasyJet plc is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Branding 11 As such any organization must strive to identify its stakeholders and their specific needs, Premium Based on this evaluation, EasyJet exchanged 25 A319 orders for A320s in July 2008 and later removed the A321 aircraft from the fleet. and Easyjet stakeholders.Then evaluate the other options which will bring to the fray better returns. Shareholders . Ryanair Recognising a vacant niche in the market, Stelios decided to examine the prospects for launching his airline, having secured a commitment of a 5 million ($7.7 million) loan from his father. Regarding his rumored annual pay of 740,000, it is believed he asked the board that it be reduced to 706,000, his predecessors last salary. Each of the types of stakeholders in a business are categorized in 3 ways: Internal or external. easyJet is one of the largest airlines in the world, with 308 aircraft, operating 927 routes across 34 countries and 153 airports. EasyJet company 1 The series, while not always portraying the airline in a positive light, did much to promote it during this time. 2.2.4. Airline, Britain S0263-2373(98)00059-0 0263-2373/99 $19.00 0.00 easyJet holidays was . [25 marks] Direct or indirect. for only $11.00 $9.35/page. L) would need to merge or be taken over as the industry consolidates in the wake of the COVID-19 pandemic. How does EasyJet contribute to the UK economy? Germany 3.1.5 Credit terms 5 EasyJet plc [5] (styled as easyJet) is a British multinational low-cost airline group headquartered at London Luton Airport. Net profit also significantly increased by 60.8 % comparing to last year which is a healthy figure and mainly a result of improved total revenue figure and can result in any future investments in order to generate more profits. Best Essays. London Gatwick Airport March 3, 2023. Stock market The development prospects of low-cost airline like easyjet are promising the company is exploring in the dark becoming a good business success stories, Premium In two years it was widely regarded as the model low-cost European airline and a strong competitor to ag carriers. INTRODUCTION vii Lets take a closer look at, Premium Strategic management Its owned by EasyJet Holding Limited whos CEO is Stelios Haji-Jannou. Since its launch the site had taken more than 800000 bookings by March 2000. easyJet To have happy customers a firm ha sto create expectations and meet them. 1.4 Research objectives. Marketing As a result the low-cost airlines (LCA) are flourished. 3.4 Place 8 Its original advertising consisted of little more than the airline's telephone booking number painted in bright orange on the side of its aircraft. 1.1 History. Easyjet stakeholders Rating: 7,8/10 1987 reviews EasyJet is a low-cost British airline that was founded in 1995 and has since become one of the largest . I/ Easy Jet : General Overview Motivational and inspirational Analytical cookies are used to understand how visitors interact with the website. The strengths weaknesses opportunities and threats known as SWOT analysis will also be illustrated along with the external environment better known as PEST analysis which consists of the political environmental social/cultural and technology factors of easyJet. Employment Collect and evaluate economic factors which might influence EasyJet general business environment. What we do. This principle became a cornerstone of EasyJet's operations. Which stakeholders are critical to the business? Our strategy has three pillars: tackling our carbon emissions; stimulating carbon innovation; and going beyond carbon. Identify the key stakeholders of EasyJet and their strategic influence in two steps: a) Map the key stakeholders of EasyJet in terms of their power and interest using an appropriate framework. This Case Study details the rapid growth of easyJet which started operations in November 1995 from London's . Customer, Airline Assignment [26] By 2015, the company was flying routes to more than 130 destinations in 31 countries, operated 26 bases centred around Europe, and had a total of 10,000 employees. Easyjet has benefits from low price just . Low-cost carrier London Gatwick Airport [10 marks] b) Explain the positioning of each stakeholder and the strategic implications for EasyJet. British Airways It covers the main destinations of Europe offering around 27 different countries and main cities in, Premium The SWOT Analysis for EasyJet Plc is presented below in a matrix followed by detailed analysis: Strengths. BTEC Level 3 National Public Services Student Book D. Gray, T. Lilley. [18][20] Competitors responded to the emerging EasyJet in different ways; while BA was largely indifferent, KLM allegedly chose to respond with a predatory pricing strategy that led to an investigation by the European Union over unfair competitive practices. Finally we apply these experiences to our job in the future. It currently uses the slogan "This is Generation easyJet". EasyJet focus its value proposition to business travelers around time savings. Its principal activities include airline operations and aircraft trading and leasing. EasyJet UK staff would continue to be based in Luton. The company sells its own tickets directly to the user trough the Internet, Premium Simple & Easy EasyJet Titles. Introduction [62] However, there has been few announcements on the project since then. Stakeholder analysis, Stakeholder Relationships [4], Since its establishment in 1995, EasyJet has expanded through a combination of acquisitions,[10][11] and base openings fuelled by consumer demand for low-cost air travel. The airline modernised the building and painted it orange. Low-cost carrier Having objectives in a business is very important because it brings goals that the business needs to reach and also allows the company to be united. Low-cost carrier [15 marks] Hangar 89, built in 1974, has 30,000 square feet (2,800m2) of office space and can house three aircraft the size of an Airbus A319 at one time. Low-cost carrier, WHO ARE YOUR STAKEHOLDERS? Low-cost carrier Stakeholders can affect or be affected by the organization s actions objectives and policies. Stakeholders of easyjet Free Essays 2022-11-05. Although the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. [101] The current generation A320s and fifty of the A320neos will replace current A319 aircraft. Easyjet and its rivals are not exception and have been communicating to their stakeholder mainly through their websites. (2020) call for research investigating how specific stakeholders get unvalued during the pandemic. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Airline, Haji-loannou has founded the EasyJet Airline Company Limited in 1995. [22], On 5 November 2000, EasyJet was floated on the London Stock Exchange. In other words, your project's stakeholders are the . Originally the company ran its operations absolutely on direct phone sales. 3.7 People 11 1. They successfully bought 40% of Swiss charter operation Tea Basel AG in 1998. Travel Transport and Logistics Modern aircraft fleet with unparalleled network. [16] This came after the company had flown 650 'rescue flights', taking 45,000 people back home. ACKNOWLEDGEMENT vi The group will thus comprise three airlines, EasyJet UK, EasyJet Europe, and EasyJet Switzerland, all of which are owned by EasyJet plc, which is itself EU owned and controlled, listed on the London Stock Exchange, and based in the UK. Economical impacts 6 2.6.2 Legal factors that influence Easyjet Plc. [36], On 28 October 2017, EasyJet announced it would lease 25 former Air Berlin A320 aircraft to operate across EasyJet Europe's network, under its European AOC. Easyjet Plc PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Easyjet. [29] This acquisition was valued at 103.5million, and was used by the airline to expand its operations at Gatwick,[30] and to establish a base at Manchester Airport. [122][123], On 28 June 2007, the airline expanded its relationship with Hotelopia by launching EasyJetHolidays, which offers Travel Trust Association protected package holidays made up of EasyJet flights and Hotelopia accommodation products. However, its operating profit has decreasing which may influence take more loans from financial institutions. Other impacts 10 342. Equally, EasyJet strives to maintain the same standard of fundamental human rights in respect of its customers and is committed to the responsibility of the equal treatment of all passengers regardless of their personal characteristics or social status. EasyJet derives the most from the perceived quality. Political and Legal impacts 5 10. Internal stakeholders are people who are on the inside of the business that already serve the organisation these include staff managers board members etc. Despite the global recession the Easyjet is making significant profits. What are three ways that railroads affected the economy? [25], In March 2013, EasyJet was promoted to the FTSE 100; during the same month, the company launched its 100th route from Gatwick Airport, offering flights directly from London to Moscow. WHAT ARE YOUR RESPONSIBILITIES TOWARDS EACH OF THE STAKEHOLDERS? EasyJets Business Model Analysis You also have the option to opt-out of these cookies. London Gatwick Airport A stakeholder is someone who holds and interest in the company. PICTURE CONTENT v This website uses cookies to improve your experience while you navigate through the website. Ryanair, report is based on EasyJet founded in 1995 by Stelios Haji-Ioannou. EasyJet was founded by Haji-Loannou in 1994. [11][31][32][33][34], In June 2011, the airline opened its eleventh British base at London Southend Airport, offering flights to Alicante, Amsterdam, Barcelona, Belfast, Faro, Mlaga, Jersey, Palma de Mallorca and Ibiza. [82] In July 2017, EasyJet announced that it has applied for, and was subsequently granted by the Ministry of Transport, an Austrian Air Operator Certificate (AOC) and operating permit, thereby establishing EasyJet Europe. [37], On 30 March 2020, EasyJet suspended all flights, grounded its entire fleet, and furloughed its crews due to travel restrictions imposed. The authors' study argues that the social . [22] In October 2004, the FL Group, owner of the airlines Icelandair and Sterling, purchased an 8.4% stake in the airline. EasyJet under fire as flight chaos exposes carrier's operating model. 3.1.1 Price List 4 Some 2,208 customers had their . Environmental impacts 9 Low-cost carrier At the time, EasyJet stated that it intended to introduce electric aircraft into revenue service within 10 years. [93] Citing diminishing demand on the route, EasyJet ceased all flights to Moscow in March 2016. For example, a stakeholder can be the owner or even the shareholder. It may have little or nothing to do with the products market price and depends on the products availability to satisfy his or her needs or requirements1 Easyjet is really focusing on this aspect because they are expanding and they are already flying to 129 destinations, Premium Low-cost carrier Sort By: Satisfactory Essays. . [14], EasyJet was featured in the television series Airline, broadcast on ITV (19982007), which followed the airline's operations at London Luton and later at other bases. They successfully bought 40% of Swiss charter operation Tea Basel AG in 1998. As of December2022[update], the group operates the following aircraft:[96][97][98], In common with other low-cost carriers, EasyJet has a strategy of operating just one aircraft type. The key points of this business model are high aircraft utilisation, quick turnaround times, charging for extras (such as priority boarding, holding baggage, and food) and keeping operating costs low. [94], EasyJet has a reward miles sharing agreement with Emirates. Lorem ipsum dolor sit amet, consectetur. [76] In separate incidents in 2012, paralympians received similar treatment,[77] and a French court found the airline guilty of three counts of disability discrimination. [63] In October 2018, EasyJet stated that progress was being made on its electric ambitions and that the partnerships planned to test a nine-seater electric plane as early as 2019. [99] The then-CEO of EasyJet, Carolyn McCall, stated of the change: "bigger planes would help EasyJet increase capacity in slot-constrained airports at peak times, such as Geneva, Amsterdam and London Gatwick". Low-cost carrier 2008 2007 Change. [111] Internet bookings were priced cheaper than booking by telephone to reflect the reduced call centre costs; as a further means of encouraging the use of the website, aircraft were repainted with the web address. All three of the hub's main airlines Wizz Air, Ryanair and easyJet also scrapped flights in and out of the . Competition It has seen an increase in customer loyalty in its core markets. In addition to this average fare advantage, easyJet's highly dynamic revenue management system . Butterworths Company Law Handbook K. Walmsley. Although the main threat in terms of competition for easyJet is the low-cost Irish company named Ryanair. [22][109][110], In December 2001, the airline switched from a third-party reservation system to an in-house system. To achieve this, the EcoJet was described as using propfan engines, as well as being constructed with extensive use of carbon fibre composite material. The other kind is more responsible where profit maximization is subject to ethical restraints, appropriate discharge of the company's social responsibility, and a balanced concern for the needs of all the stakeholders, not just the promoters. The figures used were not based on emissions produced by an EasyJet aircraft or emissions produced by the airline overall as the advertisement implied, and ASA declared that the airline had broken advertising rules. In any business stakeholders are of many types; falling either into a category of a shareholder customer employee government or general public. Severe disruption hits airline, with a major factor being its reliance on capacity-constrained airports such as Gatwick . Quality Glossary Definition: Stakeholder. Alternatively, customers can book accommodation separately at the EasyJetHotels website. In addition, Marketing Analysis of easyJet A Share holder is an investor who has exchanged equity in the business for the investment; owning shares of stock in a corporation. The company's sustainable business model aims to make travel easy and affordable, while driving growth and . Most EasyJet Topics to Write about. "The board has concluded that it is in the best interests of all stakeholders to secure the long-term . 3.1.2 Allowances 4 [60][61] Speaking at the time, EasyJet chief executive Andy Harrison commented that: "We have not developed a new concept. Case Study easyJets $500 Million Gamble [70][71], EasyJet has been criticised in Germany for not observing European Union law on compensation (and assistance to passengers) in cases of denied boarding, delays or cancellations (Regulation 261/2004). Customers - they would want cheap flights that are comfortable and safe. They contracted to buy 12 brand new 737s from Boeing in 1997. As the employees watch the owners behaviour all the time. [44], EasyJet, like Ryanair, uses a business model pioneered by Southwest Airlines. Local community and pressure groups. The Airlines industry is quite highly sensitive to the environmental factors and is profoundly affected by the changes in the political social or the economic environment. Marketing Pricing 4 min. (Coauthor(s): Premium Also the product that airlines serve is a somewhat typical service. easyJet [124][125], On 6 November 2010, the airline started a venture with Low Cost Travel Group, to offer flights dynamically packaged with Low Cost Travel Group's accommodation through the EasyJet Holidays website. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Identifying all of a firms stakeholders can be a daunting task. EasyJet the airline industry was founded in 1995 by Stelios Haji- Ioannou and from thence struggled to maintain their competitive position in the airline industry. Passengers can pay an additional fee for certain seats such as the front few rows and overwing seats (which have extra legroom). 's total fleet comprises entirely Airbus aircraft. easyJet is a European airline that uses its cost advantage and favorable network positions in strong markets to deliver low fares and operational efficiency on point-to-point routes, while offering friendly service to customers. Political factors reflect the political stability of the region where Easyjet is operating. [52] In November 2020, EasyJet announced that, due to the pandemic and the lockdowns in many countries, it would scale back its reduced flying schedule to no more than 20 percent of capacity. EasyJet is offering shareholders 31 new shares for every 47 already held, at a price of 410p. Influences the aims and objectives of Tesco as they have a large say in the company so, Premium Global warming, As mentioned before Europe has around three thousand short-haul airlines meaning that the competition of easyJet can be very wide. Low-cost carrier, MATCH TO EVVIRONMENT & DEVELOPMENTS This cost advantage is created through a combination of factors including: aircraft configuration enabling a higher number of seats per aircraft; higher load factor and aircraft utilisation driven by its point-to-point model; and. The owner of the business can be role models for the employees. Additionally its total revenue per seat grew by 5.1&capacity measured in seat flown. Mainstream airports (mostly): One of the main complaints I have about budget airlines in Europe is often they fly out of the most random little airports that are actually miles and miles away from the actual city they claim to be in (e.g. The group, along with associate companies EasyJet UK, EasyJet Europe and EasyJet Switzerland, operates 308 aircraft. The airline's monthly inflight magazine is called The Traveller. There is no incentive for travel agents to book flights on the airline because it does not pay commissions, which is an industry-standard practice for low-cost carriers. Southwest Airlines. One of the largest airlines in the United Kingdom and Europes leading airline operating on over 600 routes across more than 32 counties. For this task I will be looking at two organisations and will be looking at who their stakeholders are and how much influence they have and also what they want from the company. 725 Words; 3 Pages . Competition It is very difficult to classify easyJet's social responsibility activities. In the sense these parties anticipate many from the organization. Free EasyJet Essay Topic Generator. folder_openmexicali east border crossing Most businesses have a variety of stakeholder groups which can be broadly categorised as follows: [40], In April 2020, EasyJet became involved in a dispute with its owner and largest shareholder, Stelios Haji-Ioannou. Figure 1: EasyJet stakeholder map. [15], On 30 March 2020, EasyJet temporarily grounded its entire fleet of planes due to the COVID-19 pandemic. Creating brand awareness ( 10% of Easyjet revenue were spent in advertising) This report will consist of an analysis of EasyJet's macro and micro marketing environment. 5. 2 Brief history of KLM 3 Easyjet stakeholders.As fare is, low buyers bargaining power is poor, threats of substitute are low as market is saturated. Over 8000 employees are working for the company which contain 2000 pilots and 4500 cabin crew. Aviation is a strategically important sector making a vital contribution to Europe's overall economy and employment. EasyGroup Holdings Ltd, the investment vehicle of the airline's founder, Greek-Cypriot businessman Stelios Haji-Ioannou,[8] is the largest shareholder with a 15.27% stake (as of September 2021). Changes in the macro-environment factors can have a direct impact on not only the Easyjet Plc but . EasyJet was reported to have secured a significant reduction on the list price of the aircraft as part of their original 2013 deal with Airbus. This had a negative impact on customers, EasyJet has . but lacking of traditional service. Therefore it has to be differentiated with marketing processes. DEVELOPMENT SUGGESTIONS for only $11.00 $9.35/page. Stakeholder, Stakeholder Expectations This is a very healthy figure which might grow within the next years as a result of more and more people flying by budget airlines and positive image of Easyjet. The airline was renamed EasyJet Switzerland and commenced franchise services on 1 April 1999, having relocated its headquarters to Geneva International Airport. Southwest Airlines Brand management, Despite an increase in operating costs in 2010 Easyjet has achieved a remarkable performance compare to 2009. Easyjet Plc. Name: Doancan Yksel More than 29 million passengers carried by the largest airline company EasyJet in the UK. EasyGroup Holdings Ltd (the investment vehicle of the airlines founder, Greek-Cypriot businessman Stelios Haji-Ioannou, and his family) is the largest shareholder with a 15.269% stake (as of September 2021). Total revenue ( million) 2,362.8 1,797.2 31.5%. Haji-Ioannou's reply was: "The Internet is for nerds, it will never make money for my business!" Starting from this awareness easyjet become one of Europes first low cost airlines by adopting : [59], In June 2007, EasyJet announced plans for the construction of its airliner, dubbed EcoJet. [22] In 2002, rival airline Go Fly was purchased for 374 million; the airline inherited three new bases from Go, at Bristol Airport, East Midlands Airport and London Stansted Airport; the acquisition of Go almost doubled the number of Boeing 737-300 aircraft in the EasyJet fleet. First published on Thu 28 May 2020 03.16 EDT. The airline offers headphones for purchase, along with a travel pillow and eyeshades, subject to stock. Stansted, Southend, as well as Newcastle from the end of August due to low levels of air travel demand as a result of the COVID-19 pandemic. The aim of this business is to provide and develop products for athletes of every ability and to make sure their products help athletes reach their potential. Stakeholders are individuals who hold a particular interest in a business, they are affected by the activity of the business.