Easyjet case study

Disponible uniquement sur Etudier
  • Pages : 5 (1245 mots )
  • Téléchargement(s) : 0
  • Publié le : 7 avril 2011
Lire le document complet
Aperçu du document
easyJet Chris Walton

easyJet plc

Slide 1

Agenda

easyJet plc

1. What’s changed / not changed since the IPO? 2. Our current challenge 3. Focus on costs: what we’re doing about airports 4. Focus on revenues: what we’re doing for business travellers 5. Conclusion

Slide 2

What’s changed since the IPO? (1)

easyJet plc

We are now five times the size…
Liverpool Luton 1Amsterdam 4

Geneva 2

Planes: 19 >> 100 Bases: 4 >> 15 Airports served: 15 >> 60 We are the largest European low-cost carrier
Slide 3

What’s changed since the IPO? (2)

easyJet plc

We’ve introduced a new aircraft type..

Airbus A319: price we couldn’t ignore Low-cost growth secured Attractive financing
Slide 4

What’s NOT changed since the IPO? (1)

easyJet plc

Low-cost rootsstill very firmly in place

easyLand then…

… easyLand now

Slide 5

What’s NOT changed since the IPO? (2)

easyJet plc

easyJet: low-cost by design
High aircraft utilisation – currently 11.2 hours per day High-density, high-frequency network Simple pricing structure, no connecting traffic (unless you do it yourself), no channel-based pricing 100% ticketless, 97% online distribution… we aim to be consistently the lowest-cost airline for the markets we serve
Slide 6

By the way..

easyJet plc

Who has the lowest cost?
“Southwest has the lowest operating cost structure in the domestic airline industry ”, Southwest Airlines website, company profile Southwest 2003 unit operating cost = 7.60 cents / ASM “For the year ended December 31, 2003, our airline cost peravailable seat mile of 6.07 cents was lower than any of the major U.S. airlines”, Jet Blue Annual Report, 2003

… answer = BOTH. They have very different business models.
Slide 7

Agenda

easyJet plc

1. What’s changed / not changed since the IPO? 2. Our current challenge 3. Focus on costs: what we’re doing about airports 4. Focus on revenues: what we’re doing for business travellers 5.Conclusion

Slide 8

Our challenge (1)

easyJet plc

We may have grown 5x since the IPO, but our profits haven’t
Unit revenues have fallen as stage length increased Unit costs have been stable in aggregate, but should have fallen with stage length unit revenues vs unit costs (EBITDAR basis)
Pence 5 per ASK 4.5
4 3.5 3 2000 5.5

2001

2002

2003

2004
Slide 9

Our challenge (2)easyJet plc

Most unit costs have fallen: airport costs have risen sharply
Some inflation Move into higher-cost airports unit airport charges vs non-airport unit costs (rebased)
200 180

160

140

120

100

80 2000 2001 2002 2003 2004

Slide 10

Agenda

easyJet plc

1. What’s changed / not changed since the IPO? 2. Our current challenge 3. Focus on costs: what we’re doingabout airports 4. Focus on revenues: what we’re doing for business travellers 5. Conclusion

Slide 11

Costs: what we’re doing about airports (1)

easyJet plc

Producing good deals, cutting out bad deals
Airport negotiations team set up, reporting directly to Ed Winter, COO Ceased flying to Zurich Airport: 31st October 2004 Reduced flying to Amsterdam: 31st October 2004 New deal withBasel Airport - becoming a base from summer 2005

Our scale allows us to do much more of this than we could before. But NB: This is a long-term process – focus on partnerships, not price gouging.
Slide 12

Costs: what we’re doing about airports (2)

easyJet plc

Working on infrastructure
Common check-in at key bases reduces required check-in space AND improves service to customersSelf-check-in easyKiosks further reduce required check-in space, improve service to customers AND simplify baggage processes easyKiosks already introduced in East Midlands and Geneva; introduction in Berlin last week Working closely with airports on infrastructure that suits easyJet: big projects at Luton / Berlin

…reducing the cost to ourselves and the airports, and improving the service to the...
tracking img