Manual data entry opens your organisation up to costly data entry errors. EasyJet announced it had lost more than $1 billion in the 12 months through September 2020. Many of EasyJets competitors in Europe are national flag carriers: Air France, KLM, Lufthansa, SAS, Iberia, TAP Air Portugal, Swiss Air, and British Airways. We're here to answer any questions you have about our services. The first is to reduce the bottom line costs of operation (low cost strategy) and the second is to increase the value of the organisation and its reputation to customers, so that they will demand more or pay more for what they receive (differentiation strategy) (ACCA Paper 3.5 (2001)). Each stands elevated on hydraulically controlled legs, with doors reached by a short metal staircase. Please do not hesitate to contact me. The first is the threat posed by new entrants, as with the European deregulation of commercial aviation and the emergent of low cost carriers. These large airline groups are so big and so important for so many economies that the national governments will do whatever they can to keep them alive, saysDirk-Maarten Molenaar, atravel and tourismindustry consultant at Boston Consulting Group. The global, interconnected nature of the aviation industry means that airlines, lessors, MROs and suppliers are highly vulnerable to external factors out of their control. EasyJet also faces potential threats in terms of unprecedented tragic events like September 11th. It is possibly not as good in terms of operations and its inbound logistics. That delay exposed EasyJet to greater risk of both hefty fines from Britains chief data protection regulator and class-action lawsuits from customers. We will consider the value chain for EasyJet in more detail later in our discussion. The way the report has classified the risk is whether the risk is a generic risk that will affect the whole industry of whether the risk is specific to the company. And hes moved aggressively to grab additional takeoff and landing slots in markets he sees as important. Marketing and sales will involve making customers aware of EasyJets services are price information and also selling. Lundgren has pulled every financial lever available to him to keep EasyJetaloft. Balance your retirement plan with your other financial goals. Funding strategies developments is clearly important in that the nature of funding must be appropriate and compliments the low cost strategy of EasyJet, by ensuring that interest costs are low. In terms of support activities, EasyJet takes advantage of technological developments in order to reduce costs. A PESTEL analysis of the industry will examine the local, national and global influences of political, economic, social and technological factors to understand opportunities and threats well. Findlay said only that after almost six years with EasyJet, it will be the right time to pass the financial reins to someone who will help take EasyJet into its next chapter, and Lundgren said he was sorry to see [Findlay] leave.. All rights reserved. Highly utilised fleet of aircrafts that are large, modern, efficient and relatively environmentally friendly. In 2020, those months were grim. Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. As hard as it has tried to inoculate itself against the pressures of the pandemic and to convince passengers it will be safe to fly, its fate remains up in the air, subject to unexpected and unwelcome turbulence. This will help the companies decision makers understand where the organisation is now. But in the past, he says, most budget airlines have fallen down on execution, unable to make package holidays a profit-driver. Pandemics, lockdowns, trade disputes, financial crises and more can depress travel demand and threaten the bottom lines of industry players. Just two EasyJet aircraft were in the air, one en route from Londons Gatwick Airport to Lyon in France; another from Belfast to the English Channel island of Jersey. Currently, around 12% of boarding passes issued by easyJet are mobile passes, although this can be as high as 50% for some flights. WebWhere risks produce outcomes that adversely affect EasyJet, it is crucial that these risks are either eliminated (if possible) or minimised. The primary outcomes were anxiety (GAD-7), depression (PHQ-9), risk perception towards COVID-19, interprofessional teamwork attitude, and coping strategies during the Coronavirus disease-19 pandemic. Paperless operation, the management and administration of the company are undertaken on IT systems, which are accessed through secure servers; provide flexibility in the running of the airline. Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Objectives To assess the psychological distress, anxiety, depression, coping strategies, In a sign of faith in EasyJets prospects, the bond sale was almost six-times oversubscribed. This is done in order to maximise the yield from a flight, as many of the costs associated with running a flight are fixed relative to the number of passenger on board. EasyJet appears to have internal strengths in terms of brand awareness, cash flows, and operational efficiencies. Consumers are optimistic and the travel and tourism industry are now booming again. (The others are rival budget airlines Ryanair and Wizz Air, as well as Southwest Airlines in the U.S., on which EasyJet originally based its business model. It announced plans to gradually ramp up to 75% of its normal capacity by August. This has the highest risk, but EasyJet raised $1.5 billion by selling seven-year bonds, with a 1.875% annual interest rate. WebSome compliance risks are specific to an industry or organizationfor example, worker safety regulations for manufacturers or rules governing the behavior of sales representatives in the pharmaceutical industry. Healthcare workers were exposed to this highly infectious virus during the pandemic and suffered several social and psychological consequences, such as anxiety, psychological distress, and burnout. The U.K. is doing well: It had approved two vaccinesone from Pfizer and one from AstraZenecain December and a third, from Moderna, in early January; by mid-May it had given 68% of the adult population at least one shot. In fact, Haji-Ioannou continued to press his allegations that corruption underpinned the Airbus contract, raising the matter at EasyJets general meetings in July and December. Budget airlines that fly point-to-point, such as EasyJet, can easily stimulate their demand by running price promotions and advertising and then shifting flight schedules to cover those new bookings. Ryanair continues to lower costs, which enables it to persist lowering fares aggressively. Once a saver, always a saver: Warren Buffett says generational wealth isnt what it used to be in his annual letter Salesforce is paying Matthew McConaughey reported $10 million a year for creative help despite laying off 8,000 CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. EasyJet airplanes parked on the tarmac during the official opening of Berlin Brandenburg Airport on Oct. 31, 2020. However, if EasyJet could significantly differentiate its service over its competitors then it could obtain higher prices. All work is written to order. EasyJet is an international example, The introduction of Airbus A319 aircraft, combined with the retirement of old generation Boeing 737 aircraft, will result in a two-type new technology fleet, which will commonality and lessen complexity and deliver high level of asset utilisation and reduce unit costs. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. 1 Based on share price of 6.62 at 30 September 2021 The airlines hopes for summer 2021, like those of almost all airlines, rest on vaccinations. Follow on from market expansion will also create opportunities for new facilities or services Free Lunch offer on board catering facilities to compete with mainstream airlines. The reason for EasyJet to put so much emphasis on the human factor as one of the primary risk sources is quite understandable. liability for the information given being complete or correct. This report will provide a detailed analysis of EasyJets current corporate appraisal or SWOT analysis. Analysis of financial resources in order to understand the strategic capability of EasyJet will need examination of financial capability and performance. Upgauging the fleet enables easyJet to improve competitiveness on costs. And at least one key holiday localeTurkeywound up on the red list, meaning those traveling there would have to quarantine in a hotel for 10 days. The fuel-efficient jets could help EasyJet reduce its carbon footprint at a time when consumers and governments seemed increasingly likely to hold airlines accountable for their climate impact. Building on our existing leading positions in Western Europes top leisure destinations to provide network breadth and flexibility. In the long term, this is concerned with the extent to which the organisation is operating profitably. Another major industry wide threat is the volatility in price of fuel Oil price record high of $53 a barrel. this was the headline in the business pages of all the newspapers last November. As a budget airline focused exclusively on short-haul flights within Europe, it had more flexibility than long-haul carriers to adjust its flight schedule, canceling flights without worrying about losing connections or violating alliance agreements. Its also hard to monitor the performance of each individual. Accepting this fact and having a strategy in place to mitigate risk is critical to being a successful innovator. Since March 2020,European governmentshave provided more than$32.2 billion in bailouts to the airline industry,through a mix of grants, loans, and debt-for-equity deals, according to a report from HSBC. Having considered the possible future opportunities what are the potential threats that EasyJet needs to bear in mind? Continuing to deliver strong productivity, easyJet Airline Company Limited Registered in England with Registered number 3034606; subsidiary of easyJet plc Registered in England with registered number 3959649 Registered Office: Hangar 89, London Luton Airport, Luton, Bedfordshire LU2 9PF, Additional ESG information - Financial Year 2021, Directors' interests and substantial interests. Easyjet are situated extremely in strategic option 1 ( low monetary value, depression added value ) The eight nucleus strategic options are: 1. Ryanair had even tried to capitalize on this connection between vaccinations and travel in its marketing, rolling out at jab and go advertising slogan in January, which it had to withdraw after objections from Britains Advertising Standards Authority that it was not promoting responsible behavior. Background Coronavirus disease-19 emerged in December 2019. All Rights Reserved. Weaknesses identified earlier could also offer potential opportunities in terms of development of brand awareness globally. It was enough to make any airline CEO play the blues. It renegotiated contracts with ground handling firms at several airports helping to lower costs. They have focused on expanding into new markets in Eastern Europe. After overcoming the many hurdles of producing a model with a viable context and associated risk factors, often the user of the innovation is neglected. In addition to that, EasyJet has been offering no in-flight meals, no in flight movies. EasyJet cost efficiency is achieved in a variety of way as shown in the following diagram: The success of low-fare (cost) strategy is primarily dependent on the maintenance of a low cost base. In terms of competitive advantage, the internet offers overall cost leaders new abilities to reduce costs in primary activities such as marketing (i.e. EasyJet had a long-term contract with the aerospace giant that would require it to take delivery of more than 100 new planes, including at least 55 by 2024. Disappointing your customers. EasyJet also has a strong cash flow position primarily from its policy to retain profits and reinvest it back to the business. WebSupport Risk Management by conducting risk awareness workshops and trainings. Market Development. Haji-Ioannou founded EasyJet in 1995, eventually using it as a springboard to create of an Easy-branded empire that extended from car rentals and pizza delivery to a hemp business. Opportunities in terms of worldwide destinations are now popular with holidaymakers and also the growing trend in international business ventures, e.g. Transfer the risk. Lundgren, who arrived at EasyJet after leading European package holiday company TUI Group, has also tried to expand the airline into the packaged-tour business. In the May showdown vote, the disgruntled founders effort was roundly defeated, with 99% of the shares not held by the entrepreneur and his family casting ballots against removingthe directors. Ryanair uncompromisingly fought its way into the market with an aggressive pricing strategy. Being low cost, driving efficiency and investing only where it matters most to our customers and our people. This is intensified as a result of little or no differentiation in the service offered. The increase growth of world tourism will offer opportunities in terms of undertaking joint venture with local/foreign travel companies; hence, Going places and Thomas Cooke are already providing such services to growing number of holidaymakers each year. Threats that EasyJet needs to bear in mind price of fuel Oil price record of! 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