Ref: IMD-3-0873

Case study

Reference: IMD-3-0873

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Easyjet: The web's favorite airline

By Nirmalya Kumar and Brian Rogers

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.

KeywordsAirline, General Management, Industry Analysis, Marketing Strategy, Service Management
SettingsEurope
Easyjet
1999
TypeField Research
Copyright©2000
Available LanguagesEnglish, Spanish, Japanese, Portuguese
Related materialTeaching notes, video
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Reference: IMD-3-0873

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