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Case Study

Easyjet: The web's favorite airline (Abridged)

By Nirmalya Kumar and Brian Rogers

4 pages

December 2000

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Reference: IMD-3-0872

Stelios Haji-Ioannou, the 32 year-old CEO and founder of easyJet airlines, achieved profitability for the first time in 1999, almost 4 years after launching his London-based low-cost carrier. The concept behind easyJet was “to offer low-cost airline service to the masses”, and the airline accomplished this by adopting an efficiency-driven operating model, creating brand awareness, and maintaining high levels of customer satisfaction. A key issue in the case is whether the airline will continue to grow and survive in the highly competitive low-cost segment of the market. In 2000, Stelios was anxious to try his hand at launching other businesses, so he started a chain of Internet cafés. Some questioned whether Stelios would be able to successfully transfer his low-cost business model to Internet cafés. Undeterred, Stelios moved ahead with his plan to create easyEverything, with the belief that he could make a profit by encouraging customers to surf the Internet, send email, and shop online.

Keywords

Marketing Strategy, Industry Analysis, Service Management, Airline

Settings

Europe
Easyjet
2000

Type

Published Sources

Available Languages

English

Related material

Teaching note, Video

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