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Easyjet and budget airline case study.  

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B820 TMA 1 - Easyjet Stewart Brinn W4469160 3rd June 2004 Word Count - 2971 Contents Page 1. Executive Summary 3 2. Analysis of attractiveness of budget airline sector 4 2.1 Business environment 4 2.2 Competitive Environment 5 2.3 Threat of entry 5 2.4 Rivalry between existing competitors 6 2.5 Threat of Substitutes 7 2.6 Buyer power 7 2.7 Bargaining power of suppliers 7 2.8 Summary 8 3. Strategies followed by Easyjet 9 3.1 Analysis of mission statement 9 3.2 Success of Easyjet 9 3.3 1995 to present 10 3.4 Recommendations 11 4. Bibliography 12 Executive Summary Prior to 1992, the European Airline industry was an oligopolistic industry with virtually insurmountable entry barriers. Individual countries ensured the competitive success of their own national flag carrying airlines by imposing restrictions on the numbers of landing slots available at their airports. In December 1992, EU legislation was passed which ensured the deregulation of the airline industry, so any company could demand landing rights at any airport. With the restriction on landing slots removed the industry was opened up to competition. Entry barriers were still very high due to the expense of acquiring aeroplanes. Years of freedom from competition had ensured established...

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