Juan Pablo Ortiz
EasyJet Airline Company Limited, (EasyJet) is a low-cost international airline based at London Luton Airport. EasyJet is owned by HoldingsLimited, whose majority shareholder is Stelios Haji-Ioannou and that is domiciled in the British Crown Dependency of the Isle of Jersey. Other major shareholders are Polys Haji-Ioannou and Icelandair.Jones, L (2007).
EasyJet operates 387 routes across Europe, and 104 airports in Europe and North Africa, selling directly to the user online or by phone without going through travel agents. Easyjetweb-page (June 12, 2010)
To reduce costs, easyJet outsources much of its activities to other companies, does not include the cost of food on flights but there are hot and cold food and drinks andgifts at lower prices than at the airport for sale, does not emit tickets, all seats of their planes are tourist class and free-seating distribution (no seat assignment). Shipment is by prioritygroups, usually granted by the order in which passengers check their luggage. Unlike other low cost carriers, easyJet flies to most major European airports. Like other low-cost airlines, charges asupplement to its passengers for check-in. Jones, L (2007).
2. Porter’s Five Forces affecting Easyjet
Go! (Now taken over by easyJet
Many barrers to new entrantsPlanes(Airbus)
Low Power of negotiation
Bus (National Express)
High Speed Rail
1. Substitutes: Other transportation* Bus (National Express)
* High Speed Rail
* Car Flag
* European Airlines
• Air Swiss, Iberia Airfrance
2. Threat of new entrants:
Barriers to entry: very high initial investment.* Economy of scale (this requires a certain size to be competitive)
* Differentiation: This involves a large investment in advertising and marketing
* administrative and legal...