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EasyJet Plc SWOT and PESTLE Analysis

ID : 52679353| Feb 2023| 11 pages

COMPANY PROFILE -EasyJet Plc

Business Sector :Aviation

Operating Geography :United Kingdom, Europe, Global

About EasyJet Plc :

EasyJet is a British low cost airline company that flies both domestic and international routes. Its headquarters are located at the London Luton airport, UK. The company was established in 1995. The company has a presence in over 30 countries through its affiliate airlines like EasyJet UK, EasyJet Switzerland, and EasyJet Europe. As of September 2019 EasyJet, operated over 1000 routes, has a fleet of more than 331 Airbus aircrafts, 96 million customers across 34 countries and 159 airports. The airline is currently the second largest budget airline in Europe based on passenger count and seventh largest airline in the world. The company has 15000 employees as per early 2020 records.
EasyJet ranks first or second brand in United Kingdom, France and Switzerland. It employs people on local contract from across seven countries in Europe. EasyJet is also engaged in trading and leasing aircrafts. The British low cost airline is listed on London Stock Exchange and is a constituent of the FTSE 100 Index. It supports a lot of local charities and has a corporate partnership with UNICEF to help vulnerable children.
EasyJet is launching a new easyJet Holidays business for the 2020 summer season. This business is expected to capture additional revenues from 97% of their leisure customers who schedule accommodation elsewhere.
The USP of the company lies in the fact that the airline is able to provide business and leisure travellers with high frequency, point-to-point services between major European airports. The airline was the recipient of Best Low-Cost Airline in Europe at the Skytrax World Airlines Awards 2019 The mission statement of EasyJet reads, “To provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes”. Easyjet’s vision is “Becoming Europe's preferred short haul airline”.

EasyJet Plc Revenue :


Total Net Sales:
£6,385 million – FY ending 30th September 2019(y-o-y growth of +8.3%)
£5,898 million – FY ending 30th September 2018

Competitive Analysis of EasyJet Plc

SWOT
PESTLE
Due to the COVID-19 pandemic, EasyJet had restricted its entire fleet of planes on March-30 2020, nevertheless, in June 2020 it proclaimed to resume its fleets for hundreds of summer destinations. This resumption will be executed with biosecurity measures like improved aircraft cleansing, disinfection, and demanding travelers and crew to wear masks.
EasyJet is all set to make a comeback with the biggest ever summer sale launched by the company. At an attractive price of only £29.99 over one million flights are set to holiday destinations across Europe. This travel offer is expected to avail from 1st July to 31st October 2020.
Thus, SWOT tools assist in identifying more such strategic initiatives taken by the company to stay ahead of competitors and attain a competitive advantage. The SWOT analysis provides a clear view of EasyJet's strengths, empowering it to build on them, and meet business goals. It highlights internal weaknesses and external threats that could be eliminated or reversed by making most of the possible opportunities that lie ahead.
High Brand value, access to more than 150 airline destinations, unparalleled network, low-cost model, operational efficiency, customer loyalty, expansion via mergers and acquisitions, etc are few amongst many greatest strengths of EasyJet.
EasyJet serves majorly in Europe, its services are not available to many destinations, thus EasyJet can overcome this weakness and gain wider brand visibility by tapping on the opportunity to expand its services over Europe. The same could be achieved by mergers and acquisitions, attractive travel packages to get new customers on board, provide better services than existing market players, etc.
Intense competition, fluctuating oil price, digital interruption, uncontrollable accident, and incidents are some of the business threats that prevail in EasyJet's external environment.
The SWOT Analysis for EasyJet Plc is presented below in a matrix followed by detailed analysis:
StrengthsWeaknesses
1. Modern aircraft fleet with unparalleled network
2. First choice brand and increasing customer loyalty
3. Strong operational efficiency leading to a low-cost model
4. Higher resilience against external factors to maintain the margins
5. First major international airline to offset all carbon emissions
1. Aggressive competition at Berlin airport and Tegel ramp-up
OpportunitiesThreats
1. EasyJet-Airbus MoU regarding research project on electric and hybrid aircraft
2. Launching of EasyJet Holidays Business
1. Impact of consumer uncertainty on Brexit
2. Potential disastrous impacts of Covid-19 on the aviation industry
3. Slowing growth in the European airline industry
4. Cancellation of flights for political issues such as French strikes
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Detailed SWOT Analysis of EasyJet Plc

Strength

1. Modern aircraft fleet with unparalleled network: EasyJet has established itself as one of the most prominent players in the industry with its exceptional services. One of the major components that helps the company in delivering a unique customer experience includes its operating modern fleet of Airbus A320 family aircrafts, with EasyJet owning around 70% straightaway. Currently, the firm is making intensive investments in a fuel-efficient and environment friendly new-gen aircraft that would lower its operating costs as well as carbon emissions. Furthermore, EasyJet owes a part of its success to its unparalleled network of operating in 1,051 routes in 2019 as compared to 979 in 2018, and covering 56 primary airports in 2019 as compared to 51 in 2018.

2. First choice brand and increasing customer loyalty: With its continuous efforts towards positioning its brand in the premium segment, EasyJet has surpassed all the previously-set scores attributed to the brand parameters including first choice brand and brand affinity across different markets. The company has been strengthening its brand value by offering affordability, easy and enjoyable travel to both its customer segments, leisure and business. Also, the sustainable approach of the company in its day-to-day activities, which include offsetting carbon emissions, participating in development of green aircrafts, promoting modern fuel-efficient fleet family, helps the company to build a reputable brand image as well as acquire and retain customers. Owing to all these factors, in 2019, the company has seen a 2% increase in the number of returning customers as compared to 2018.

3. Strong operational efficiency leading to a low-cost model: To remain unmatched as a low-cost service provider, EasyJet has continuously invested in its network’s core strengths, building a higher operational resilience along with providing the best customer experience. The company strives to provide the best value by efficiency from all the functioning programmes across operations. EasyJet has been able to build a successful low-cost model because of the 15% reduction in emissions and fuel consumption from new generation aircrafts and the significant increase in cost savings from 107 million pounds in 2018 to 139 million pounds in 2019. The company has been able to deliver the ongoing savings because of its strategic cost reduction programmes including cost reduction projects for all cost lines and fuel & FX hedging programmes, fleet programmes that include fleet up-gauging and modern aircraft fleet, and operational resilience programmes involving data initiatives, schedule refinement, standby aircraft and first wave efficiency.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • easyJet
  • Flybe
  • Norwegian Air Shuttle
  • Ryanair
  • Wizz Air
  • British Airways

Major Brands :

  • EasyJet UK
  • EasyJet Europe
  • EasyJet Switzerland (40%)
  • EasyJet Holidays
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WHY BUY THIS REPORT?
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?

1. The SWOT and PESTLE reports present a comprehensive study of the major internal and external factors influencing Easyjet
2. The SWOT analysis process involves four areas: Strengths, Weaknesses, Opportunities, and Threats. This business analysis helps in integrating data, identifying the company's competitive stance and analyzing its impact on the organization
3. Gain overall company analysis to gain acquaintance about company information, company profile, business model, business plans and marketing strategy
4. Interpretation of Easyjet’s USP or unique selling proposition, mission statement, and vision statement that makes it a trendsetter in the aviation industry.
5. Intelligence on Easyjet's major mergers and acquisitions, strategic partnerships and alliances, capital raising, and equity transactions and the synergy behind those acquisitions. Gives a clear picture on deal valuations and how specifically they contributed to growth or revenue for the airlines.
6. A PESTEL analysis or PESTLE analysis or PEST analysis is a framework or tool used to interpret and observe the macro-environmental factors that may have an intense impact on an Easyjet's performance.
7. PESTLE/ PESTEL/ STEEPL Analysis covers in-depth analysis of all external factors namely, political, economic, social, technological, legal and environmental and highlighting their impact on the operation of Easyjet
8. Record strategic initiatives that are exerted by Easyjet, to stay ahead of its peers and competitors and attain competitive advantage
9. Summarization of Easyjet's business model, along with the further diagnosis of key business segments and business case study
10. A glance into the Easyjet’s key performance indicators, success factors, value proposition, and core competencies
11. Obtain highlights of the key competitors of Easyjet, brands and business diversification

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References used in EasyJet Plc SWOT & PESTLE Analysis Report

1. EasyJet maintains expectations as it improves cost performance - https://www.sharecast.com/news/news-and-announcements/easyjet-maintains-expectations-as-it-improves-cost-performance--6841498.html
2. Berlin Tegel: easyJet's operation revives the airport but needs time - https://centreforaviation.com/analysis/reports/berlin-tegel-easyjets-operation-revives-the-airport-but-needs-time-470126
3. Annual European Flight Growth Drops To Lowest Rate Since 2013 - https://simpleflying.com/annual-european-flight-growth-drops-to-lowest-rate-since-2013/
4. Easyjet adds AR bag-scanning feature to iPhone app - https://www.businesstraveller.com/business-travel/2019/02/07/easyjet-adds-ar-bag-scanning-feature-to-iphone-app/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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EasyJet Plc SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). EasyJet Plc SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/easyjet/ [Accessed 29 Mar, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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EasyJet Plc SWOT and PESTLE analysis has been conducted by Anindya Anindita and reviewed by senior analysts from Barakaat Consulting.

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