Monday, March 19, 2007

easyJet

easyJet is a low cost airline (in some ways like Southwest Airlines) with a successful business model. Because it prides itself on being low-cost, easyJet must keep its own costs low, which it does by doing the following:

- Effective use of the Internet to reduce distribution costs
Approximately 95 % of all seats are sold over the Internet.
- Maximizes the utilisation of the substantial assets (i.e. aircraft)
- Ticketless travel
No tickets are generated; all correspondence is done via e-mail or online.
- No meals
While passengers can purchase food onboard, meals are considered superfluous, so they are not served, nor is the price included in the fare.
- Efficient use of airports
The company not only prides itself on quick turnaround times, but also negotiates competitive pricing with airports for using the space.
- Paperless operations
Saves trees and everything is easily accessible from all over the world!


Revenue streams:
- Food onboard
- Commissions
- Advertising (while using easyJet)
- Fees from purchases with credit cards
- Travel Partners (hotels, car rentals)
- "Be the first on the plane" revenues
- Insurance