Case Study - EasyJet

1. INTRODUCTION

The air passage fabrication had experienced a revolution since the deregulation conducted by the governments thought the world. The deregulation allowed companies to operate with fewer constraints than out front and created many new opportunities. However, while the major big companies move hub and spoke strategies, and global alliances, a different approach or image emerged and that is the no-frills airlines which used regional airports. (Piercy, 2000)

Following the terrorist attack on September 11, 2001, a number of major airlines filed for bankruptcy, including companies such as Swissair, Sabena, U.S. Airways, United Airlines, and most recently Lufthansa. Major Airlines were faced with speedy cost cutting initiatives in order to survive the speedy change in the business organization environment. On the other go past the low cost segment of the market remained strong, and the no-frills concept survived and actually achieved growth (Please see Appendix 1.) (A.T. Kearney and the Society of British Aerospace Companies, 2003)

In the past five years , globalization issues, structural changes in the world economy, technological breakthroughs, and also the threat of terrorist attacks, had create momentous changes in the airline industry, affecting all the aspects of their operations, and strategies. Airlines responded differently to these changes in the environment, the new model of value chain structure and low-cost-carrier business design with its key components (please see Appendix 2.



) for no-frills airlines emerged, which prove to be efficient and profitable. (A.T. Kearney, 2002)

EXTERNAL ENVIRONMENT ANALYSIS

2. KEY ECONOMIC FEATURES

2.1. marketplace size and market growth

This section provides some summary information to illustrate the size and growth of European market industry as well as future market forecasts ground on IATA organization survey. The actual market size for the airline industry in general can be conventional by the actual number of passengers transported in the EU market. In...

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