Easyjet Airline Company 1
Report on the Analysis, Evaluation and Expansion of Easyjet Airline Company into the Indian
Market
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Table of Contents
1.0 Introduction
1.1 EasyJet Airline Company Limited
2.0 Indian Airline Industry
2.1.0 EasyJet to Expanding into the Indian Market
2.1.1 Price strategy
2.1.2 Promotion strategy
3.0 Opportunities of Expanding into the Indian Market
3.1 Estimated Growth
3.2 Privatization and increased air movements
3.3 An Increase in Passenger Traffic Market
3.4 The Cargo Traffic Market
4.0 Threats of Expanding into the Indian Market
4.1 The threat that come as a result of substitutes
4.2 Threat from new entrants into the market
4.3 Threat from power of suppliers
4.4 Competition among existing airline companies
5.0 Conclusion
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1.0 Introduction
Air transport is and continues to one of the largest industry globally (Mark M 2006, p.
30). As a major economic sector, it helps in promoting the growth of the economy, trade within
nations, tourism and international investment. Therefore, the airline is great player and
contributor towards globalization in the world.
In the last ten years, the growth experienced in the air travel industry was more than 7
percent per annum. This can be attributed to an increase in travelling of individuals for both
leisure purposes and business grew strongly worldwide. As a result of an increase in passengers
who are travelling for leisure, large aircraft like the Boeing 747 have become more convenient as
well as affordable for them (Mark M 2006, p. 30). The growth and expansion of economic
sectors such as tourism has led an increase in the development of infrastructure and resorts as a
way to attract more tourists from Europe and North America.
On the other hand, business travelling has also increased as a result of companies
engaging in international investments and hence this has led to an expansion of business
activities such as supply, production chains as well as customers from different places around the
world. From an economic perspective the profitability of airline companies is related to both
economic growth and trade. The world economic recession experienced in recent years and
which seems to continue in continents such as Europe has led airline companies to rethink the
manner in which they are doing business (Mark M 2006, p. 5). This is in order to ensure their
survival and prosperity within high competitive industry that is constantly being faced by
emerging economic challenges.
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1.1 Easyjet Airline Company Limited
In particular this report takes a closer look at one of the major airline companies in the
United Kingdom and in Europe (Mayer F 2003, p. 10). With its headquarters in London Luton
Airport EasyJet Airline, the company has a huge capacity in terms of the number of passengers
carried, operations within the domestic and the international. EasyJet plc which is the parent
company is listed in the London Stock Exchange.
Easyjet Airline Company experienced quick growth and expansion since established in
1995 as part of the Easy Group conglomerate (Mayer F 2003, p. 10). This expansion has been as
a result of business strategic factors such as taking advantage of low cost air travel which has
been in great demand. Another factor is acquisitions (Mayer F 2003, p. 10). The airline has
subsidiary airline the EasyJet Switzerland and has a fleet of over 200 aircraft.
Early marketing strategy was based on making flying as affordable as a pair of jeans and
urged travelers to cut out the travel agent (Shaw, S 2011). This is a similar approach that EasyJet
airline company. With an emphasis on advertising which comprised very the airline's telephone
booking number painted in bright orange on the side of its aircraft for the potential clients.
The Strategic and Competitive Position of in both the UK and the European Airline Industry
The strategic objective of EasyJet airline is to establish itself firmly as a leading low-fares
scheduled passenger airline within Europe. The strategy has been designed to achieve the
following key driving forces for the company;
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
The presence of Low fares

To provide customer service that is of optimum quality

Provide regular flights for short distances or short-haul routes

Ensure that operating costs are maintained down, address efficiently issues of aircraft
equipment, productivity of personnel, airport access fees and cost to customer service.

Use the internet in facilitating the expansion of the company

Maintain high commitment to safety and quality maintenance
EasyJet airline has been operating under a policy of offering the lowest fares available
compared to any carrier both in the United Kingdom and Europe. This has given the company a
competitive advantage over its major competitors in Europe and the United Kingdom.
The strategy of utilizing the small regional airports has also played a crucial goal in the
growth of the company (Khurana K 2009, p. 99). This has led to a reduction in the costs incurred
on entry to the airport and also these small regional airports are less congested in terms of traffic
which in most cases results to delays for passengers. By providing, short-haul flights the
company is not required to provide services similar to the ones provided for passengers on longer
flights such as meals.
The strategy of cost cutting to a minimum is and continues to be a key factor in making the
success of the operations of EasyJet airline (Mayer F 2003, p. 25). The presence of the internet
has helped in keeping the prices by seeing the removal of agents or the middle men. About 96
percent of the bookings are through the internet.
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2.0 Indian Airline Industry
The airline in India is among the fasted growing in the world. Since the Indian aviation
sector was liberalized, the Indian airline industry has been undergoing great transformation
(Budhwar, P & Varma, A 2010, p. 25). Up until recently the industry has been primarily a
government-owned sector but in the recent years the Indian airline industry has become
dominated by privately owned airlines as well as low cost carriers. About 75 percent of the
airlines in India are privately owned. For a long time the prospect of a travelling using air was
considered a privilege of a few in the Indian, but in today society travelling using air has become
cheap and hence affordable to many in the Indian society. The Airport Authority of India is
responsible for managing about 122 Airports which are within the country, 11 of which are
International Airports, 28 are civil enclaves and 94 are domestic airports. 70 percent of the
passengers’ traffic is handled by the top five airports. 50mpercent of the passenger traffic are
handled in both Delhi and Mumbai together.
2.1.0 EasyJet to Expanding into the Indian Market
India being one of the major emerging markets has for the last decade been experiencing
tremendous economic growth (Budhwar, P & Varma, A 2010, p. 25). This has resulted in the
creation of jobs both skilled and unskilled for the people. In addition, foreign direct investment,
as a result of the availability of cheap labour and government policies that promotes investment.
Easyjet Airline Company is planning an expansion into the Indian market for the period between
2012 and 2017. Entry into the Indian market is a strategic decision for Easyjet Airline Company
that is set to boost the continued growth and expansion of the company. As a result of increased
deregulation and liberalization, the Indian aviation industry ahs witnessed a significant increase
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in the entry of private players in the aviation industry (Khurana K 2009, p. 298). The Indian
aviation industry comprises of three types of players, mainly;

Low cost carriers

Full cost carriers

Other start up airlines
2.1.1 Price strategy

Promoting low price can be key element of the EasyJet airline brand.

Enhancing the use of different pricing strategies; the off-peak travelling and booking in
advance makes a ticket less expensive.

Providing discounts for the tickets which are booked online.
2.1.2 Promotion strategy

It is the number one airline in Europe that offers low cost airlines

Uses a lot of internal marketing and encourages creativity within the staff
3.0 Opportunities of Expanding into the Indian Market
The Indian Government has come up with a policy called the open sky policy which is
designed to attracted foreign players into Indian Aviation Market (Harvey G 2007, p. 45). This
has proved to be working well towards the growth of the industry. This is an opportunity for
EasyJet Airline Company. The strong market fundamental, Easyjet Airline Company is expected
to register a compound annual growth rate more than 160 per. In addition, the plan of Easyjet
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Airline Company to expand into India is favoured greatly by some steps of the Indian
Government has taken.
3.1 Estimated Growth
There is an estimated growth of 12 percent per annum within the domestic passenger
market. There is an anticipated growth in the International passenger market by 7 percent and a
growth in the International Cargo by around 12percent.
3.2 Privatization and increased air movements
The plan to privatize International Airports has been progressing very well via the
method of a Joint Venture (Budhwar, P & Varma, A 2010, p. 25). There is an expected an
inflow of massive foreign investment for construction as well as maintenance of the airports.
There is an increase in the number of air movements and this is expected to grow. This growth
can be attributed to an increase in the number of smaller aircrafts operating.
3.3 An Increase in Passenger Traffic Market
Both domestic and International passenger traffic handled annually is expected to grow as
a result of the economic growth in India (Stone, B & Jacobs, R 2008, p. 24). This economic
growth has led to a growth in the middle class and an increase in foreign direct investment.
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3.4 The Cargo Traffic Market
India is increasingly becoming a destination for companies that are outsourcing for
labour and raw materials. As a result this has greatly contributed towards the growth of the
Indian airline industry in terms of cargo transportation.
4.0 Threats of Expanding into the Indian Market
There are challenges that are likely to come with the expansion of Easyjet Airline Company
into the Indian market. Nonetheless, these challenges are less different from the challenges that
face airline companies around the world (Cento A 2008, p. 17). Indian is one of the major
emerging markets in Asia and second from china in terms of growth rate. With every economic
boom there are social as well as economic dysfunction facing the community and the investors.
The major challenge or threat that can and will face easyjet entry into the Indian market is how to
penetrate the market with ease and at low cost for the company. The company is planning to
spend more on actual operations than on the marketing but this does not mean that marketing is
at the bottom of its list. In fact this is and continues to be very crucial in shaping the growth of
the company.
There are threats that arise as a result of legal and political issues. These political and legal
threats might to an extent affect the company’s cost of operating (Cento A 2008, p. 32). Issues
such as high tax demands and the ever increasing cost of fuel is and continues to put more and
pressure on the company’s expenditure bill. In addition, being a developing country means that
the per capita income is still very low and therefore the purchasing power of majority of Indians
is also low. The high population is a promising market for easyjet limited but also this means that
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the level of competition in the Indian airline industry is growing and will continue to grow. With
a cut throat competition, the company faces the prospects of spending a lot on marketing and
developing new products before it expects to make any profits for a period that is unknown.
Other political threats include; government policy and instability in some parts of India. The
country is about to undertake an election and every election comes with a measure of uncertainty
for the investors.
4.1 The threat that come as a result of substitutes
There are minimal threats from other form s of transport that are very common in India such as
the use of train and motor vehicle. The time as well as cost advantage for the carriers which are
low-cost is much more than the comfort and flexibility that comes with the use cars or trains or
cars.
4.2 Threat from new entrants into the market
This expansion requires high capital in order for the company to have an effective start and
entry. As a bigger airline it properly positioned in terms of finances to have a comfortable entry
into the Indian market. On the other hand the expansion of EasyJet airline will prove more
challenging once it is established. The reason for this is because of the presence of more
Since India is a developing country, the infrastructure is also being upgraded. As a result of this
there are some few cases where the airline can lack slots for taking-off as well as landing which
is challenging for new carriers to find suitable airports.
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4.3 Threat from power of suppliers
The Issue such as the ever fluctuating cost of oil, EasyJet airline does not have any control over
the prices of oil. Similarly the dependence of on spare parts from a single manufacturer can pose
a great challenge and especially in the new territory.
4.4 Competition among existing airline companies
It is important to take note of the fact that it is not only EasyJet airline is planning and working
on expanding to the emerging markets such as India but there are also other airline companies
like Ryan air, MyTravelLite, BMIbaby, and Buzz are major competitors.
5.0 Conclusion
From the analysis in this report, it has become clear that the strategy of Easyjet Airline
Company depicts several differences from the ones of its competitors. Also these differences
have a direct and indirect contribution the company’s competitive advantage. For an organization
such as EasyJet Airline Company, there must a presence of very strong leadership and which is
able and willing to make decisions that make a definition the available trade-offs (Sauvant,
Mendoza & Ince, I 2008, p. 100). There is a strong relationship between good strategies as well
as strong leaders (Harvey G 2007, p. 45). This is also a potential weakness which is closely
associated with Easyjet Airline Company strategy that regular change in management and
leadership is likely to have a significant impact on the operation (Mayer F, 2003, p. 54).
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References
Budhwar, P & Varma, A 2010, ‘Doing Business in India’, New York, Routledge
Cento, A 2008, ‘the Airline Industry: Challenges in the 21st Century’, City Physica-Verlag
Heidelberg
Harvey, G 2007, ‘Management in the Airline Industry’, New York, Routledge
Khurana, K 2009, ‘Aviation management: global perspectives’, New Delhi, Global India
Publications
Mayer, F 2003, ‘A case study of Easy Jet and the airline industry’, München, GRIN Verlag
Mark, M 2006, ‘The airline industry’, Bradford, England, Emerald Group Pub
Sauvant, Mendoza & Ince, I 2008, ‘the Rise of Transnational Corporations from Emerging
Markets: Threat or Opportunity’, Aldershot, Edward Elgar Pub
Stone, B & Jacobs, R 2008, ‘Successful Direct Marketing Methods’, New York: McGraw-Hill
Shaw, S 2011, ‘Airline Marketing and Management’, Aldershot, Ashgate