EasyJet Essay -- Business and Management Studies

EasyJet EasyJet has become the European leader in a no frills frenzy for low cost, cheap air travel. This market however has since the mid nineties gone from strength to strength and we have witnessed the arrival of a number of low cost airline companies which cater for the no frills approach. In Europe the top two competitors in this market are EasyJet and Ryan Air which serve their customers from London Luton and Dublin respectively. They offer a differentiated product compared with the major traditional airlines and the key to their success has been to offer the lowest cost/fare structure possible and the differentiated â€Å"no frills† product is purely a consequence of the implementation of this rigorous low cost strategy. Background information about the companies is listed below: Comparative Company statistics EasyJet Ryanair Date of commencement 1995 1985 Date of IPO 2000 1997 Passenger Numbers 20.3m 15.7m Number of Staff 3,453 1,897 Aircraft 73 67 Routes served 109 133 Source: http://www.easyJet.com, http://www.Ryanair.com Comparative Key Financial Data EasyJet ( £) Ryanair (Ââ‚ ¬) Share Capital 758,461,000 563,732,000 Earnings per share 8.24pence 31.71cents Operating revenue 931.8m 842.5m Retained profit 32. 4m 239.3m Source: Company Accounts 2004 Both airlines have adopted similar business models and strategies. Key common features of the business model of both companies are: - Point to point se...