EASYJET Come on, lets fly!!

HISTORY

1995: Stelios creates easyJet and starts

flights between Luton and Scotland

1996: easyJet opens international routes

to Amsterdam, Nice and Barcelona

1997: the website easyJet.com goes live

1998: easyJet acquires a Swiss airline and

becomes Geneva’s defacto home carrier

1998: BA launches GO airlines in

response to easyJet – Stelios is on their

first flight

1998: easyJet is elevated by the media as

the arch rival of BA and credited with

sparking a price war

1998: as the airline becomes a “brand”

Stelios starts to work on brand extension

and founds the easyGroup

1999: the TV docusoap on easyJet is first

broadcast on Britain’s ITV to an audience

of 9m viewers

2000: easyJet PLC is partially floated on

the London Stock Exchange

2001: easyJet PLC acquires go airlines

nearly doubling in size

2005: easyJet reaches 100 aircraft in the

fleet.

AND NOW, IT IS

One of Europe’s leading airlines with

some 170 aircraft flying over 400 routes

between 103 airports in 26 countries.

Approximately 45 million people a year fly

with easyJet enjoying more value for less!

The airline is based at EasyLand, at

Luton Airport.

EASYGROUP

easyJet

easyInternetcafe

easyValue

easyCar

easyMoney

easyCinema

easyBus

easyHotel

easyJobs

easy4men (male

toiletries)

easyPizza

easyMusic

easyCruise

easyMobile

easyWatch

easyVan

easyOffice

BRAND VALUES

great value

taking on the big boys

for the many not the few

relentless innovation

keep it simple

entrepreneurial

making a difference in people’s lives

honest, open, caring and fun

SHOW VIDEO: Stelios with Riz Khan.flv

Modeled after Southwest Airlines of the

US.

Stelios borrowed these features from SW

airlines:

One type of aircraft

Point to point short haul travel

No in-flight meals

Rapid turnaround time

High aircraft utilisation

AND THEN,

STELIOS ADDED HIS OWN TWIST:

• No travel agents

• No tickets; A six character booking reference number is issued.

• Encouraged direct sales over the internet

• Flew brand new Boeing 737’s

• Used maximum seat capacity of 149 seats

• No free drinks or peanuts.

Stelios championed the idea of no frills

travel.

The only free item on board an easyJet

flight is an easyRider, the airlines in-

flight magazine.

Stelios remains the biggest single

shareholder of easyJet PLC and a non-

executive director

MISSION STATEMENT

To provide our customers with safe, good

value, point-to-point air services.

To effect and to offer a consistent and

reliable product and fares appealing to

leisure and business markets on a range

of European routes.

To achieve this we will develop our people

and establish lasting relationships with

our suppliers.

TARGET SEGMENT

Young people

Leisure Travellers

Business clients able to plan in advance.

KEY MARKETS

UK

Germany

Switzerland

Italy

France

Spain

COMPETING ON COST

Up to 50% lower costs compared to

traditional carriers.

Higher plane productivity.

Secondary and regional airports. (Luton)

One type aircraft fleet.(Brand new Boeing

737’s)

Focus on direct sales(90% on internet)

COMPETING ON SERVICE

No pre-assigned or business class seating.

First come first serve basis.

Yield management: ‘more the demand,

more the fare.’

No meals.

Outsource everything except planes,

pilots, cabin crew, marketing and sales

people.

ORANGE

Extensive use of the color orange.

The crew wore orange clothes, the planes

and the office building were painted

orange, and even the trash bags were

orange.

The neon orange represents

value for money.

creates a theme park kind of atmosphere.

CREATING BRAND AWARENESS

Does not use television advertising much.

Relies heavily on press, outdoor and radio

advertising , mobile display unit (buses)

and PR.

EasyJet also uses its own aircraft as

airborne billboards.

All EasyJet sales promotions are exclusive

to the internet.

Awareness of EasyJet has also been

raised by 'Airline' the ITV docu-soap.

CREATING BRAND AWARENESS

Run into well publicized, frequent trouble

with the Advertising Standards Authority.

Low fares needn't B A con -2003

The airline once painted the Loch Ness

monster on the side of its aircraft to

announce the launch of its services from

Luton to Inverness.

'Web’s favourite airline’ as against BA’s;

‘World’s favourite airline’

COMPETITION AND CONSOLIDATIONS

Ryanair: took over BUZZ: KLM’s low cost

airline, in 2003.

British Airways’ low cost carrier, ‘Go Fly’

was acquired by easyJet in 2002.

CHALLENGES

High overcapacity

Race of traditional airlines to catch up

Airline offerings are becoming homogeneous.

Lowcost carriers, charters, and scheduled airlines are

battling for many of the same price-sensitive

customer groups.

Lowcost carriers need to pursue three strategies:

cost leadership,

differentiation, and

diversification.