Introduction Easy jet strategy and vocabulary Easy jet is a low cost, efficient, and flexible airline that is been driven by scale and cost advantage, high assets utilization, and efficient capital structure. ‘Sir Stelios Hahi-Loannou founded it in 1995’ (Easy jet corporate media file, p.3) and had its first flight from London Luton to Edinburgh and Glasgow. It has headquartered at London Luton airport with about ‘8446’ employee through UK and Europe. They have 3000 short-haul aircraft in operation in Europe, which were centre on ‘pan European primary airports’ that delivers friendly services, efficient and at low cost (p.6) to their customers. Easy jet is the largest air line in terms of passengers volume – ‘59 million’ (Easy Jet corporate media file, p.3) in UK and internationally across 30 countries with flight scheduled services of ‘600 routes’ as well as the fourth largest short-haul carrier in Europe with a market share of ‘8%’ (Easy jet annual report, 2012, p.12).
In 1972, British government established the airway to manage the two nationalized airway organization. They are British European and the British Overseas Airways. British airline is also a participant member of One-world airline organization. It is now one of the most popular airlines in UK. In 2008, the airline carried 34.6 million passengers.
Emissions from these aircraft are 30 per cent lower on a per person basis than the fleet of 200-series aircraft WestJet replaced. WestJet currently has one of the youngest and most fuel-efficient fleets in North America with most aircraft equipped with blended winglets, which significantly reduce fuel burn and emissions. WestJet is the world-wide leader and the first carrier in Canada to adopt Required Navigation Performance (RNP) approach technology to land aircraft. RNP utilizes Global Positioning System satellites to allow aircraft to fly direct and precise approaches to airports. This shortens flight time and miles flown, also reducing fuel burn and emissions.
Southwest Airlines is only one of its kinda unique enterprise. It is the fifth largest passenger airline in the United States, currently operating 520 Boeing 737s throughout the United States. The company essentially functions as a point-to-point operation rather than a hub-and-spoke service unlike its competitors. (wwws.ameritrade.com/cgi-bin/apps/Main) Southwest has unique various competitive advantages, which have led it to be a strong performer within the industry. Due to Because of the growth in the low-cost segment of the airline industry, Southwest has tomust continue to innovate and differentiate itself from others to perpetuate its success and popularity.
However, Southwest Airline also expand their business to long- distance domestic airline and international fight in recent years, and they successfully enter the new area with the low- price advantage. Section 2: External Analysis Southwest Airline is the 4st large airline company in United States, but it is the most profitable company. Even though after 9.11 terrorists attacked happened, Southwest still kept their airline business in a good position. And in 2011, when the U.S stock market decreased, Southwest Airline decided to buyback the stock , which shows the confident they had. However, Southwest Airline are affected by business related issues.
In 1994, the idea for a more personable, reasonably priced airline from Canada to United States was in the mist of development. The airline industry is a rough one in which ninety percent of start-up companies’ fail. One airline, on the other hand, has been profitable since its start. It began with only two planes in 1996 and grew to an unbelievable twenty-one by 2000. Finally, in April 2001 Olive Beddoe, Don Bell, Mark Hill, and Tom Morgan officially unveiled WestJet Airlines.
JetBlue took off on February 11, 2000, with an inaugural flight between New York City’s John F. Kennedy International Airport and Fort Lauderdale, Florida. The exhibit 1.6 shows the performance of JetBlue, even after suffering some recent setbacks that have severely affected profitability, it is second only to Southwest Airlines in profitability over the past three years. From the U.S. Airlines Cost Structure, JetBlue has the lowest cost per
Capacity Next, we assume that Ryanair plans to operate at a higher capacity than BA, which will have a direct impact on the spread of fixed costs per unit. In the case, airport authorities claimed a volume of 500,000 passengers per year, which has remained stagnant over the last decade. Additionally, 750,000 round-trip travelers used rail and sea ferries rather than aircraft (which takes 9 hours to travel versus 1 hour for air travel). Together, this makes approximately 1.25 million round trip travelers per year on the DUB-LHR route. Ryanair intends to enter the market with a 44 seat turboprop.
He moved into airline industry, starting ‘Virgin Atlantic Airways’, which become second biggest English haul in international airline, which had flights to New York, Miami, Los Angeles and Orland and many others international cities. In 1985 at that time Richard was 35, his boat ‘Virgin Atlantic Challenger II’ in the fastest record time ever cross Atlantic Ocean. In 1987 his hot air balloon ‘Virgin Atlantic Flyer’ again beat all record by crossing Atlantic Ocean. As many of us know Richard Branson has many other businesses, for example Virgin Mobile which are running in Australia, Canada, UK and US and other countries. Another business which is in Virgin Group is Virgin Media which services are TV channels,
In 2009, these four airlines included, Delta & Northwest, American Airlines, United Airlines, and Continental. These airlines held 60.1% of the market (“Airline Competition”, 2013). Competition between firms in oligopolistic markets causes the elimination of economic profits. When economic profits are zero, inventories are stable, there are no incentives to enter or leave the market and the market is in equilibrium (Brickley, Smith & Zimmerman, 2009). For the airline industry, this means that the average cost of operating are being met.