Easyjet case study
EASYJET
“To have happy customers a firm ha sto create expectations and meet them.”
Starting from this awareness, easyjet become one of Europe’s first low cost airlines by adopting :
Efficiency-driven operational model ( tutto quello che c e scritto sotto)
Maintaining high customer satisfaction ( low prices and high quality can be pursued together)
Creating brand awareness ( 10% of Easyjet revenue were spent in advertising)
Creating a corporate culture implementing educating programs.Stelios also believed in transparency: all documents had to be scanned and placed on the computer system, so that anyone in the company could access them.
At thebeginningHe began operating Easyjet with 2 leased aircrafts, a staff made up of teenagers who served as reservation agents. Stelios chose Luton (London secondary airport) because it offered lower labor costs and close proximity to downtown London, and charged lower airport fees. He focus also on customer’s loyalty through public relations and advertising.
Easyjet modeling was based on Southwest Airlines: one type of aircraft, point to point short haul travel, no in-flights meals very high aircraft utilization, airplanes fly 11,5H per day , instead of 6 per day( industry average) rapid turnaround time
Stelios to this concept add also : (measures to Competing on Costs) encouraged direct sales on Internet , in order to cut Agent’s costs. In that way it was also possible to offer discounted fares to customers. Stelios also avoided computer reservation systems , because they are with travel agents 25% of operating costs.
Everything during the flight is for sale. no drinks or peanuts for free. when someone is on a bus he doesn’t expect any free lunch. Easyjet has to educate its passengers to expect no frills on board.
Use the maximum seat capacity, not offering business class seating
To achive Customer satisfaction:
Stelios considered himself a man of the people, and worked hard to cultivate this
“To have happy customers a firm ha sto create expectations and meet them.”
Starting from this awareness, easyjet become one of Europe’s first low cost airlines by adopting :
Efficiency-driven operational model ( tutto quello che c e scritto sotto)
Maintaining high customer satisfaction ( low prices and high quality can be pursued together)
Creating brand awareness ( 10% of Easyjet revenue were spent in advertising)
Creating a corporate culture implementing educating programs.Stelios also believed in transparency: all documents had to be scanned and placed on the computer system, so that anyone in the company could access them.
At thebeginningHe began operating Easyjet with 2 leased aircrafts, a staff made up of teenagers who served as reservation agents. Stelios chose Luton (London secondary airport) because it offered lower labor costs and close proximity to downtown London, and charged lower airport fees. He focus also on customer’s loyalty through public relations and advertising.
Easyjet modeling was based on Southwest Airlines: one type of aircraft, point to point short haul travel, no in-flights meals very high aircraft utilization, airplanes fly 11,5H per day , instead of 6 per day( industry average) rapid turnaround time
Stelios to this concept add also : (measures to Competing on Costs) encouraged direct sales on Internet , in order to cut Agent’s costs. In that way it was also possible to offer discounted fares to customers. Stelios also avoided computer reservation systems , because they are with travel agents 25% of operating costs.
Everything during the flight is for sale. no drinks or peanuts for free. when someone is on a bus he doesn’t expect any free lunch. Easyjet has to educate its passengers to expect no frills on board.
Use the maximum seat capacity, not offering business class seating
To achive Customer satisfaction:
Stelios considered himself a man of the people, and worked hard to cultivate this