transferring risks into success ( easy jet and airblue )

TRANSFERRING RISKS INTO SUCCESS :

AN EASY JET CASE STUDY COMPARISON

TO PAKISTAN AVIATION( AIRBLUE).

Mohammad Haider Haroon 1384306

Shehzad Balti 1395125

Samir Mirza 1384300

Muhammad Waqas 1384337

CONTENT

Introduction

Facts & Figures

SWOT Analysis

Success Story

Transferring Risks Into Success.

Pakistan comparison

Conclusion

INTRODUCTION

EasyJet is UK based Low Cost Carrier

Founded in 1995

Owner by Greek Entreprenuer :Sir Stelios

Haji-Ioannou

FACTS & FIGURES

Initially started with 2 Wet lease planes.

Grown massively in almost 2 decades.

Now 203 Planes in Fleet.

187 Brand New planes on Order.

600 + Routes in 30+ Countries ( Mostly Europe ).

134 Destinations

UK’s Largest and Europe’s 2nd Largest of Low Cost Carrier.

8500 + Employees.

Based In London Luton Airport UK.

No “Frills”

No free meals and

beverages onboard, no

frequent fliers program etc

More seats are available in

one flight to maximize profits

Low Cost Carrier

Reverse Price System

The further the date of

departure, the cheaper the

ticket

Encourages customers to

book early

Able to gauge demand for

every flight

LOW COST CARRIERS

SWOT Analysis

Strengths

Weakness

Opportunity

Threats

STRENGHTS

STRENGTHS

• Connects to all the major

destinations.

• A convenient airliner for the

low

budget traveler.

• Attractive pricing.

• Airport network & market

share.

• Reserve pricing strategy.

• Encouraging internet

reservations.

• Quick turn around flights.

STRENGHTS

• Highly distinctive branding.

• Feature on television airline

series.

•Website painted on the aircraft.

•Bright orange color.

• Catchy slogan:

“Come on, lets fly!”

WEAKNESSES

WEAKNESSES

• Cost base not as low as Ryanair.

• Brand Vs. Legacy carriers.

• Seasonality of earnings.

OPPORTUNITIES

OPPORTUNITIES

• Market growth.

• Further cost cutting.

• Fleet.

• Business passengers.

• Allocated seating.

THREATS

• Airport price increases.

• Labor unrest.

• Increasing complexity.

• Return of competitor capacity

growth.

• Stagnant economies.

• Fuel price & currency

movements.

• Air travel taxes.

• Accidents & failures.

SUCCESS STORY

SUCCESS STORY

Revenue £4,258 million (2013)

Operating income £478 million (2013)

Net income £398 million (2013)

Total assets £4,412 million (2013)

Remember: Just Started with not even

owned planes and see now.

SUCCESS STORY

Easyjet filled the gap by giving tickets at very

low price compared to main airlines in UK

Enabling the common man to think of flying

aswell.

As low as Pound 15 to 25 , enables people to

fly more.

Such a success that it has become Europe’s

2nd best LCC .

ROUTE MAP

COMPARISON WITH PAKISTAN

Pakistan has 4 Airlines Currently .

2 of them fall in the category of LCC .

AIRBLUE

AIR INDUS

Bhoja Air ( Defunct )

AIRBLUE

At first AirBlue was full Legacy Airline

How ever due to an Air crash in 2010 at

Margalla Hills , the model of Airlines was

swapped to type of LCC Variant from a full

legacy Airline.

All Economy class was introduced.

Meals converted to snacks on Domestic

Routes

RISK FACTOR

After 2010 tragedy , Airblue customers

reduced drastically.

Airblue came up with EasyJET type of model

to stand in tough time.

They leased Planes.

Internet marketing ( Early Bird Discounts)

Salaries Reduction

AIRBLUE WEBSITE

RISK TRANFER TO SUCCESS

On verge of Bankruptcy, Airblue with strong contingency measures enabled it self out of trouble

Earning profits now.

Introduction of Saudi Route have been Very profit scoring generating good revenue.

Leasing more planes

20-25% of Domestic market share now in Pakistan.

CONCLUSION

Risk can be transferred into success

Takes time.

Opportunities if availed on right time can lead

to a great success

Never give up ! Risk Taking leads towards

success.

“PLEASE FASTEN YOUR SEATBELTS, WE ARE ABOUT TO

TAKE OFF!”

- THANK YOU -

“Please fasten your seatbelts, we are about to take off!”

- Thank you -