EasyJet

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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

“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 (€)

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...

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