ECONOMICS

Business Environment

Introduction3

Mission Statement4

Values4

Safety4

Pioneering5

One team5

Passion5

Integrity6

Objectives6

Build strong number 1 and 2 network positions6

Maintain Cost advantage7

Drive demand, conversion and yields across Europe7

Disciplined use of capital7

Current Situation8

Stake Holders9

Customers9

Employees10

Share holders11

Responsibilities and strategies13

Competitive Behaviour13

Economic system at EasyJet14

Policies and EasyJet16

Regulation 2407/92/EC (Licensing of Air Carriers Regulation)16

Regulation 2408/92/EC (Route Access Regulation)17

Regulation 2409/92/EC (Fares Approval Regulation)17

Regulation 2410/92/EC (amended Regulation 3875/87/EEC)17

Regulation 2411/92/EC (amended Regulation 3936/87/EEC)17

Corporate Social Responsibility20

Safety20

People20

Environment21

Actions22

Resource Utilization at EasyJet22

Impact of Macroeconomic variables and World's economy24

Market Structure and Perfect Competition24

Market Forces and Organization's Behaviour26

Competitive strategies and regulatory bodies26

Conclusion27

Business Environment

Introduction

EasyJet is Europe's top of the line airline. It is operating on over 600 routes across 30 countries with a total fleet of 200 aircrafts. Currently it employs 800 people in total, among them, 2000 pilots and 4500 cabin crew members. On an average, 59 million passengers travel each year (easyJet.com, 2013, p. n.d.).

EasyJet was established in 1995 by Stelion Haji-loannaou as a part of EasyGroup conglomerate. Initially it started its operations with two leased Boeing 737-200 aircraft with routes operating from London Luton to Glasgow and Edinburgh. In the very next year, the airline extended her routes to Abredeen Amsterdam, Nice and Barcelona. It was the same year when the airline acquired the aircraft on its own. EasyJet launched its official website, i.e. easyJet.com and purchased 40% share in the Swiss based charter airline TEA Basel AG, at the later state it revitalized it as EasyJet Switzerland.

During early 2000s, EasyJet became listed on the London Stock Exchange and the route was further expanded across the Europe. In addition to that, EasyJet set up its bases at airports in countries such as Italy, Spain, Germany & France, that further strengthened her routes in the every corner of Europe.

In the subsequent years EasyJet emerged as a prominent airline in the industry. It completed the acquisition of GB Airways and entered into a partnership with HostelWorld.com for the provision of accommodation to its customers. In the year 2012, the airline made a deal with UK travel management businesses.

Mission Statement

Easy Jet's mission statement is “Leverage Easy Jet's cost advantage, leading market positions and brand to deliver point-to-point low fares with operational efficiency and friendly service for our customers” (EasyJet plc, 2012, p.8).

EasyJet is significantly well established due to its cost benefit, market leader positions at well-situated airports and an enhanced customer scheme of low cost fares with pleasant and efficient service. Easy Jet's balance sheet strongly supports the above claim, and is dedicated to delivering long lasting growth and returns in European short-haul aviation.

Normally the European short-haul airlines generate their major profits chunks in busy summer periods and try to curtail her loss over winters. However, during the first six months of the financial year, EasyJet reduced her winter loses by 45.5% via its conscious focus on network returns through early and a proactive approach. This, as a matter of fact, led to the declining of competitor capacity by 2.8% on its routes.

EasyJet is adopts a highly comprehensive approach in order to fulfil her ambitions and ...