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EasyJet Plc SWOT & PESTLE Analysis

ID : 52679353| May 2020| 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, operates over 1000 routes and has a fleet of more than 331 Airbus aircrafts. The airline is currently the second largest budget airline in Europe based on passenger count. The airline has around 15,000 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.

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 :


£6,385 million – FY ending 30 September 2019
£5,898 million – FY ending 30 September 2018

Competitive Analysis of EasyJet Plc

SWOT
PESTLE
The SWOT analysis for EasyJet Plc is presented below in a table followed by the detailed analysis report.
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

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Opportunity

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Threats

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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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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in EasyJet Plc 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 & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2020). EasyJet Plc SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/easyjet/ [Accessed 28 May, 2020].

In-text: (SWOT & PESTLE.com, 2020)

Copyrights and Disclaimer

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

Copyright of EasyJet Plc SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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EasyJet Plc SWOT & PESTLE Analysis
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