Easyjet started by entrepreneur and shipping scion Stelios Haji-Ioannou in 1995 with two leased B737-200s and services from London Luton to Glasgow and Edinburgh, is now Europe’s biggest LCC by revenue.
The carrier since modified its approach away from the low-costs-at-all-costs technique made famous by Southwest and Ryanair to one that places a greater importance on revenue generation. Its decision to move many of its operations from London’s prototypically low cost facility at Luton and into more congested, higher cost, but also more lucrative Gatwick is an example.
The decision to install a base in Geneva is another example of this philosophy (although it did threaten to leave if the airport authority did not erect a low cost terminal for it).
The carrier similarly was the first to abandon LCC gospel concerning simplicity of operations by ordering A319s when it already had a large fleet of new-generation B737s. The cost of operating a dual-type fleet, it said, were compensated for by the low price offered by Airbus, then anxious to break into the low cost market.
Outlook bright for the LCC pioneer
Easy Jet’s future is bright. It has established 16 bases in seven countries (Milan Malpensa the most recent), with its service pattern of multiple daily frequencies to major airports winning passengers (32 million per annum) and yields. With new aircraft arriving (62 A319s of its order if 140 have yet to be delivered), growth is assured. And heightened cost reduction and ancillary revenue initiatives have it forecasting 2006 profits of GBO95 million.
Centre for Asia Pacific Aviation Premium: The Boeing Company announced that South Korea-based Jeju Air has ordered five B737-800s to meet future growth plans. The new aircraft are valued at USD370 million at list prices.
Easyjet, The UK’s champion home-grown LCC has created its own trail in showing that one size does not fit all when it comes to low cost business models.
Simon Else good is the owner of http://peanuts.aero/low_cost_airline_news/
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