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Friday, July 19, 2013

Airlines of the world: easyJet


EasyJet is a British low cost airline. Their main base is at London Luton Airport, but London Gatwick Airport is the largest base for easyJet. EasyJet is the largest operator of the Airbus A319. In 2003, EasyJet purchased a competitor Go!, Which was a low-cost carrier launched by British Airways to compete with EasyJet.

EasyJet's strategy was to serve mainly customers who paid their ticket itself, and primarily wanted the lowest price on the short routes operated the company. All unnecessary costs like meal on board, business class (extra legroom), travel agency sales and physical tickets were replaced by cost-effective offers of cheap one-way tickets without meal and without flexible tickets. easyJet was one of the first airlines in the world to offer internet ticket sales.
The company offered low prices to customers who booked early and increased prices since the planes approaching full booking. easyJet thus stimulated demand before the flight was fully booked, and slowed demand when the individual retirement was almost fully booked. This pricing model discrete diametrically from other companies' model, but gave better capacity utilization and took seriously the fact that airlines have fixed costs and have everything to gain by exploiting each departure fully.

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