Alexandra, Ryan, Jordanna

EasyJet’s Background EasyJet Airline Company Limited (styled as easyJet) is a British Airline headquartered at London Luton Airport . It carries more passengers than any other United Kingdom -based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports. The parent company, EasyJet plc, is listed on the London Stock Exchange and is a constituent . As at 30 September 2009, it employed 6,666 people, based throughout Europe but mainly in the UK.EasyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of acquisitions and base openings fuelled by consumer demand for low-cost air travel. The airline, along with franchise airline EasyJet Switzerland, now operates over 180 aircraft, mostly Airbus A319 It has 20 bases across Europe, the most important one being London-Gatwick.In 2009, EasyJet carried 45.2 million passengers and is the second-largest low-cost carrier in Europe, behind Ryanair

EasyJet’s Purpose

• EasyJet’s purpose is to provide quick, efficient, eco-friendly air travel, and complete satisfaction to its customers.

• EasyJet attempt to provide a customer care which is unmatched across the world.

• As well as this, EasyJet are on the forefront of cutting edge technology to reduce carbon footprint and the use of CFC’s.

• EasyJet carry more passengers than any other airline company in the UK.

• EasyJet has achieved significant growth since its formation in 1995 and has become the highest profile although not the largest operator in the European ‘no-frills’ short-haul airline sector.

• Its assertive public profile and successful stock market flotation in November 2000 reinforced its reputation for focused and effective management.

• The transition from private ownership to public quotation is a significant one for a fast-growing business to make, given the need to recognize institutional investors' perceptions as well as those of the public and of employee shareholders.

• The paper proposes that EasyJet is a prime example of entrepreneurial management in both its strategy and practice and that the case study can contribute to the theoretical and practical understanding of entrepreneurial management.

EasyJet’s Background Management

• EasyJet carries more passengers than any other United Kingdom-based airline, operating domestic and international scheduled services on 500 routes between 118 European, North African, and West Asian airports.

• EasyJet has seen rapid expansion since its establishment in 1995, having grown through a combination of acquisitions and base openings fuelled by consumer demand for low-cost air travel. The airline, along with franchise airline EasyJet Switzerland, now operates over 180 aircraft, mostly Airbus A369. It has 20 bases across Europe, the most important one being London-Gatwick. In 2009, EasyJet carried 45.2 million passengers

and is the second-largest low-cost carrier in Europe, behind RyanAir.

• EasyJet opened bases in Germany, France, Italy and Spain, establishing a sizeable presence in continental Europe. On 25 October 2007 EasyJet announced that it had agreed to purchase the entire share capital of GB airways from the Bland Group. The deal was worth £103.5 million and was used to expand EasyJet operations at London Gatwick Airport and also to establish a base at Manchester Airport.

EasyJet’s Size

• EasyJet provides competitive pay, as well as performance-driven bonuses.• Employees can also have the chance to purchase shares in the business and

become shareholders.• Other benefits of working for EasyJet include free travel on company airlines, a

very competitive pension scheme and training schemes to further your career.

EasyJet’s Employees

• EasyJet was floated on the London Stock Exchange on the 5th November 2000. In October 2004 the FL Group, owner of the airlines Icelandair and Sterling, purchased an 8.4% stake in EasyJet.] Over the course of 2005, FL increased its share in the company periodically to 16.9%, fuelling speculation that it would mount a takeover bid for the UK carrier. However, in April 2006 the threat of takeover receded as FL sold its stake for €325 million, securing a profit of €140m on its investment. In November 2005, Ray Webster stood down after 10 years as EasyJet's chief executive officer (CEO) and was replaced by former RAC plc CEO, Andrew Harrison.

EasyJet’s Finance

EasyJet’s Finance (contd.)

• EasyJet's early marketing strategy was based on "making flying as affordable as a pair of jeans" and urged travellers to "cut out the travel agent". Its early advertising consisted of little more than the airline's telephone booking number painted in bright orange on the side of its aircraft.[

• The Airline TV series created by LWT and filmed between 1999 and 2007 made EasyJet a household name in the United Kingdom. The series, while not always portraying EasyJet in a positive light, did much to promote the airline during this time. EasyJet has used a number of slogans since its establishment. Its current slogan is "Come on, let's fly!", a reflection on the airline's cheeky and cheerful image. EasyJet has previously styled itself as "the web's favourite airline", a play on the British Airways slogan "the world's favourite airline".

EasyJet’s Marketing

• Michael O'Leary, the Ryanair chief executive, is expected to announce a new twice-daily route to Alicante and a daily service to Barcelona-Girona as he takes various pot shots at his main low-fare rival.

• The services are Ryanair's first two from Gatwick – where easyJet bases 35 aircraft – outside three routes to Ireland: Cork, Dublin and Shannon

• Mr O'Leary, who is hosting a London press conference as a spoiler to easyJet's full-year results, is likely to portray the new services as a raising of competitive heat just when the easyJet board is riven by a row over strategy.

• EasyJet founder Sir Stelios Haji-Ioannou wants to slow easyJet's growth and see dividend payments from 2011. Sir Stelios, who speaks for 26.9pc of the carrier's shares, is threatening to oust chairman Sir Colin Chandler and take the chair himself unless easyJet bows to his demands to appoint two non-executive directors.

• The row has triggered concerns in the City. Wyn Ellis, a Numis analyst, yesterday downgraded his price target for easyJet shares from 273p to 227p.

• "The main beneficiary of Sir Stelios' proposed strategy, in our view, would be Ryanair," he said.

EasyJet’s Pressures

• easyJet announced today that it is evaluating an opportunity to franchise its brand following a recent joint approach by Jeddah based National Air Services (NAS) and Dubai-based Abraaj Capital, the major private equity firm in the Middle East, to use the easyJet name in the Arabian Gulf. NAS is applying for a licence to operate domestic flights initially in the Kingdom of Saudi Arabia and at a later date other flights within the Arabian Gulf - a region with minimal low-cost airline penetration.

• The decision on whether to progress with this opportunity, which will not involve easyJet investing any equity or cash, will be made in conjunction with NAS and will depend on the progress of its application for a licence, the completion of an agreement in a form satisfactory to the Board of easyJet; and the delivery of significant shareholder value. Since it is expected that this will take the remainder of 2006, a decision in relation to this opportunity is unlikely before early 2007.

EasyJet’s Evaluation

• EasyJet has expanded rapidly since its establishment in 1995, driven by base openings both in the United Kingdom and continental Europe, and by a number of acquisitions. Its expansion has also been fuelled by a rise in consumer demand for low cost travel.[

• Go Fly Boeing 737-300 in 2004• In March 1998, EasyJet purchased a 40% stake in Swiss charter airline TEA Basle for a

consideration of three million Swiss francs. The airline was renamed EasyJet Switzerland and commenced franchise services on 1 April 1999, having relocated its headquarters to Geneva International Airport. This was EasyJet's first new base outside the United Kingdom. On 16 May 2002, EasyJet announced its intention to purchase rival airline, London Stansted-based Go for £374 million. EasyJet inherited three new bases from Go, at Bristol International 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.

• In 2001, EasyJet opened its base at London Gatwick Airport, and between 2003 and 2007, EasyJet opened bases in Germany, France, Italy and Spain, establishing a sizeable presence in continental Europe.On 25 October 2007 EasyJet announced that it had agreed to purchase the entire share capital of GB Airways from the Bland Group. The deal was worth £103.5 million and was used to expand EasyJet operations at London Gatwick Airport and also to establish a base at Manchester Airport.

EasyJet’s Further Prospects