Easy Jet: The World's Favorite Airline

This report exit lose it easyJet?s business influence in this highly competitive aviation industry. easyJet is a low-cost, no-frills(prenominal) skyway founded by Stelios Haji-Ioannou in 1995. Stelios? military commission in excogitation this play along is to ? contribute low-cost ancestry duct service to the masses.? The concept of cipher airline is derived from the idea that demands for short-haul air transport is determine elastic. That means, if prices for flights ar being depressd, the consumers? demand forget increase significantly. The mission line of easyJet?s founder, Stelios is ?To provide our customers with safe, cracking value, point-to-point air services. To payoff and to offer a consistent and true(p) product and fares appealing to empty and business markets on a range of European routes. To progress to this we pass on develop our mountain and establish long-lasting relationships with our suppliers.? (easyJet)REVENUE SOURCES ANALYSISgross Streams1.easyJet employs multiple-stream evaluate model. The primary source of tax revenue is in the exchange of air-tickets. Besides, it launched easyKiosk which sells food, souvenirs or even cosmetics to substantially reduce operating cost go generating substantial ancillary revenues. The revenue for 1997 is £ 46 millions, increase 67% to £ 77 millions in 1998. supplement A shows the revenue map for easyJet from 1997 ? 2007. 2.In addition, easyJet utilizes ?loss-leader? model, which gives away free flight-tickets for promotional purposes.

This is an effective competitive marketing strategy aimed to stimulate consumers? purchases. As the operating cost for each(prenominal) flight are broadly fixed regardless of come up of passengers, this marketing strategy will maximize aircraft utilization. Revenue Model1.easyJet utilizes volume-based revenue model where customers pay a price and suck a product (air service) in exchange. However, easyJet uses ? income tax return Management? whereby prices will mechanically increase once the laden factor (percentage of sit exhaust sold) increases. 2.easyJet relies on two bearing of tickets reservation, internet and reservation agents. The high... If you apportion to get a lavish essay, order it on our website: Orderessay

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