Founded in 1995 by British-Cypriot entrepreneur Stelios Haji-Ioannou, EasyJet is a British low-cost airline company whose competitive prices, excellent customer service and vast network have contributed greatly to its success among business travelers (Amadeus, 2016; Calder, 2017). As of today, EasyJet has 132 destination in 31 countries, including Israel and Morocco. Unlike Ryanair, which tries to keep its costs as low as possible by flying to secondary or even tertiary airports, EasyJet has always favored primary airports, which explains its slightly higher ticket prices. As one of the largest low-cost carriers operating in Europe, EasyJet has been trying to secure its position by expanding its fleet and improving its services at a time when its main competitors – including Ryanair – are struggling to meet their stakeholders’ expectations (Martin, 2017).
Despite its efforts to increase its market share in key European markets such as Italy, France, Spain and Switzerland, EasyJet has never neglected its core market, i.e. the United Kingdom, where it boasts a customer base of 2 million (EasyJet, 2017). Similarly to other British airline companies, EasyJet is bound to be negatively affected by Britain’s withdrawal from the European Union, which is why the company has taken steps to minimize the negative impact of “Brexit” on its future performance and financial position. So how did EasyJet manage to reconcile its desire to remain in the United Kingdom with its need to safeguard its financial position?
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To keep operating flights between the United Kingdom and the European Union, Chief Executive Johan Lundgren decided to change the internal structure of the entire group by setting up a new company in Austria ; as part of Lundgren’s strategy, EasyJet will be a pan-European group consisting of three airline companies, a British one, a Swiss one and an Austrian one (EasyJet, 2017). Thanks to this new strategy, EasyJet will be able to keep operating in the United Kingdom without having to raise its ticket prices or lay off its employees.
- Amadeus (2016). EasyJet’s Success in European Business Travel. Retrieved from
https://amadeus.com - Calder, S. (2017). The Man Who Invented EasyJet But Couldn’t Sell Easypizza: Stelios Haji-Ioannou At 50. Retrieved from https://www.independent.co.uk
- EasyJet (2017). Annual Report. Retrieved from
http://corporate.easyjet.com/ - Martin, W. (2017). EasyJet is likely to be the major winner from Ryanair and Monarch Airline’s woes. Retrieved from http://www.thejournal.ie
