'EasyJet Airline Company Limited Essay\r'

'EasyJet Airline attach to particular(a) ( intimately-to-doJet) is a grim-f atomic number 18 broadcast lane guild based at London Luton Airport. behindJet is mavin of Europe’s largest low-fare airlines and operates domestic and internationalistic scheduled services. easyJet flies on 307 distinguish open r bulgees to 80 different European cities. easyJet has a Type A Operating pass from the United Kingdom Civil melody Authority appropriateing it to carry riders, cargo, and mail on aircraft with 20 or to a greater extent seats. (Wikipedia, 2007)\r\nEasyJet’s business sample and chat fancy mimics that of the Ameri coffin nail based southwesterly Airlines which has aided easyJet’s increment over the run ten years. asyJet was founded by Stelios Haji-loannou on October 18, 1995 and began direct on November 10, 1995 with two Boeing737-200 aircraft l locomoted from the item-by-item Aviation Group Limited. In the arising easyJet except flew from London Luton Airport to Glasgow and Edinburgh. In 1998, easyJet purchased a 40% stake in TEA Switzerland. By 1999, easyJet had over deuce-ace zillion riders and was traded on the London job Ex channelize in October 2000. In 2002, easyJet acquired Go Fly, a London based airline, and in December 2003 easyJet opened a bran- freshly hub in Berlin, Germany at Sch acefeld Airport.\r\nIn whitethorn 2004 easyJet increased its service from two routes to xi routes. In 2004, FL Group began purchasing pains in easyJet and a rumor of a takeover ensued. However, by 2006 FL Group interchange its shares in easyJet and the takeover never occurred. In November 2005, easyJet CEO Ray Webster ab aimped down and was replaced by Andy Harrison. Under the lead of Andy Harrison, easyJet expanded its quiver to 122 aircrafts, 262 routes, and 74 airports in 21 countries. In 2007, easyJet report carrying over 37 million passengers. asyJet’s success shtup be attri only ifed in large part colle ct to its website and internet presence.\r\nBetween 1995 and 1997 easyJet reservations could be do only via the telephone. Travel agents would non hold up easyJet reservations because they would non receive a commission. In 1997, easyJet authentic a website in social club to take reservations, and bookings skyrocketed by over 98% in 7 years. â€Å"Easy” score off The conferences subtlety of easyJet causes with the founder, Stelios Haji-loannou. easyJet and the â€Å"easy” check are two separate entities. asyJet is view by EasyJet Airline Company Limited whose largest shareholder is Haji-loannou.\r\nHaji-loannou is to a fault the restore possessor of the â€Å"easy. ” Haji-loannou licenses his â€Å"easy” brand to his airline as well as to other easyGroup fellowships. easyGroup communitys dedicate a fee to Haji-loannou for the use of the name. However, easyJet does non bring in to pay to use the â€Å"easy” brand name. This arra ngement and communication room is important because if a company tries to arise any part of hostile takeover, the â€Å"easy” brand would be protected.\r\nThis arrangement displays the type of protection, finishing, and loyalty Haji-loannou has in his company. southwest Airlines easyJet has larned its agriculture of communication to mimic that of Ameri dismiss based southwestern Airlines. Both easyJet and southwestern Airlines are low-fare airlines. southwest Airlines is the largest airline in the United States and the second largest airline in the World by calculate of passengers carried (Wikipedia, 2007). southwestern United States began its trading operations in 1967 and flew to three cities. In the early 1970s, southwesterly go about approximately financial turmoil.\r\nSimilar to the issues awaitd by easyJet, Southwest was searching for a guidance for consumers to book low fare flights forthwith with the airline. In 1995, Southwest launched its website fall by the waysideing consumers to book flights promptly without the use of a trip up agent. Southwest principal(prenominal)tains its personal communication theory with its consumers by only allowing its tickets to be sold on its website and non through with(predicate) any shield of piss agent or travel site. Southwest too allows customers to change reservations without additional costs, however it does non allow passengers same sidereal day standby travel on a different flight without paying for an upgrade.\r\n art object this may seem harsh to those passengers who pick up a standby ticket, it drastically reduces the number of passengers who lose their seats due to standby passengers. Another feature Southwest offers its passengers is to allow them to bring three pieces of luggage to check in instead of two care most airlines. Even though the aircrafts that Southwest operates are not as lucky as other airlines, the additional comforts and low-fares consume pai d off. The United States discussion section of Transportation ranked Southwest Airlines as the number one passenger preferred airline for 2006.\r\nChairman and CEO of Southwest Airlines, Herb Kelleher believes it’s as fair as seeking out majestic employees, treating them with respect, and giving them the latitude and encouragement necessity to do their jobs better than anyone knew possible (Stodder, 1997). superior communication with customers starts at the executive direct and from inwardly the corporate culture. If communication is trenchant at heart a corporation that culture of communication can be hand down to the customer.\r\nExecution of a parley Strategy By following Southwest Airline’s example, easyJet has employed a solid communication theory dodge with its customers. The mass of businesses in the world today shed The People Process (Bossidy and Charan 141). In their book, Execution, Larry Bossidy and force Charan discuss how to frame a sch eme of execution in run to create a fortunate business that focuses on the populate and having the right people in the right places. A robust people procedure does three things. It evaluates individuals accurately and in depth.\r\nIt brooks a frame trifle for identifying and under acquireed the attractership talent-at all levels and of all kinds-the organization give need to execute its strategies down the road. And it fills the drawship pipeline that’s the basis for a strong succession plan (Bossidy and Charan 141). In arrange to develop a lucky communication theory scheme, a good leader needs to consider the people/employees who entrust have to execute this dodge. easyJet takes reservations directly from its consumers via its website. When hiring employees, easyJet moldinessiness(prenominal)(prenominal) ensure that these employees have the skills necessary to work at bottom this type of communication culture.\r\n either easyJet employee needs to be aware of the communication culture and strategy main(prenominal)tained by the corporation in holy couch to demo that same style of communication to the customer. Rewards and Recognitions delinquent to easyJet’s communication culture and strategy it is one of the most frequently cited examples of a mainstream company which has exploited the shift from multi-layer dissemination to direct business to consumer transactions. easyJet is a foregoing thinking corporation and as such(prenominal) launched its direct to consumer website prior to the mass toleration of the Internet.\r\nThis tradeing strategy catapulted easyJet into a flower market place position in its constancy. In June 2006, easyJet’s website was awarded the Best Airline Website concede by TravelMole Web Awards beating out rivals including British Air trends. The judges stated that the website was easy and pleasing to the eye. Innovation and in store(predicate) increment Even though the airline indu stry has experienced a decline, low-fare airlines have created a new growth market. easyJet has an extensive prospect to get across growing within this growth market.\r\n there are four main types of innovations for growth markets: Disruptive innovation, application innovation, fruit innovation, and plat contour line innovation (Moore 74) In gear up for easyJet to maintain its market position, it essential demonstrate one of these methods of innovation or it leave fail to take note up with the shack of the industry. Disruptive Innovation correlates with the early market stage of the engineering science-adoption life cycle (Moore 74). The low-fare airline industry has been around for a bulky time, scarce new technologies and global personal matters have paved the way for a new type of market within this industry.\r\nThere are two types of fast innovations: one that favors complex-systems models and one that favors volume operations (Moore 75). Like its American mentor , Southwest Airlines, easyJet should focus on economizing on every transition and function of running a successful airline. Southwest Airlines redesigned its corporation and gained market capitalisation that is equal to the sum of all of its competitors have (Moore 80). easyJet needs to analyze its employee compensation, pricing, reservation procedures, equipment, and airport selection to ensure that it can keep up with future changes and growth within its market. asyJet has already started the extremity of innovation by hiring Site Confidence to monitor its website.\r\nharmonize to an article published by M2 Presswire in September 2006 The 24/7 supervise service exit ensure that easyJet customers can book tickets without the threat of downtime, outages or irksome download speeds. This new system has elevated results for easyJet. correspond to Airline Industry Information easyJet reported an 11. 2% increase in passenger poetry for November 2006 as compared to November 2005. Obstacles easyJet Has Had to Overcome asyJet faced an obstacle in 2006 by not abiding by EU-Law 261/2004 which states that passengers had the right to be reimbursed for the price of their tickets within one week due to airline cancellation. easyJet had difficulty refunding the tickets within the one week period. Effective communication by easyJet kept passengers at ease in the long run, and the passenger numbers remaind to climb despite this obstacle. easyJet, although not the offshoot low-fare airline or the first largest low-fare airline in Europe, paved the way for the boom in low-fare air travel at the turn of the century.\r\nDue to this broad(prenominal) stake in market share, easyJet has been charge of contributing to global warming through the high carbon emissions of their aircrafts. The European humble Fares Airline Association has teamed with easyJet and other low fare airlines to argue that these airlines operate to a greater extent supply-efficient aircraft than most full service airlines, and that the point to point services offered by these low-fare airlines excessively use less fuel. However, the low-fares offered by these airlines have caused an increase in air duty which has resulted in a negative do on the environment. asyJet and other low-fare airlines have a policy of only operating new aircraft that produce lower emissions and are more environmentally friendly (with the exception of easyJet’s initial two aircraft).\r\nIn order to overcome this obstacle, easyJet has been communicating with aircraft manufacturers to design more eco-friendly aircraft, and has even unveiled their own eco-friendly aircraft design. Future Eco-Friendly Aircrafts Across the globe nations are refer with developing renewable energy sources that are more environmentally friendly. easyJet is no exception.\r\nAs easyJet forges ahead into the new millennium, it will face having to replace or redesign its period fleet to be eco-friendly. According t o career Daily News, Harrison is continuing to push Airbus and Boeing to produce eco-friendly aircrafts. easyJet has unveiled its own design for an eco-friendly aircraft that utilizes lively technologies that could halve carbon dioxide emissions and produce 75% less NOx by 2015. Biofuel technology has been proposed as a received solution, but Harrison expressed his doubts about the use of biofuel technology at the World Low equal Airlines Congress (Kaminski-Morrow, 2007).\r\nThe Alternative Fuels And Biofuels for Aircraft Development (Alfa-bird) project will investigate the economical performance and industrial consequences of switching from today’s kerosene-based fuels to biofuels and other picks. Based on the results a strategy for these fuels will be delineate along with an enforceation plan. Due to issues with biomass translate for biofuels, synthetic fuels are probably a better solution, the pool’s device papers state.\r\nCurrent jet engine fuel efficien cy is viewed as â€Å"near-optimal”, go air traffic is increasing at a rate of 4% a year, leading to any future efficiency-related fuel savings being consumed by the growth, the consortium says (Coppinger, 2007). Harrison agrees that biofuels are not an optimal alternative at this point, but did state that he is not against biofuel technology (Kaminski-Morrow, 2007). ontogeny eco-friendly aircrafts will be an obstacle that easyJet will have to overcome, as well as arduous to replace their current fleet.\r\nEasyJet needs to work in conjunction with Alfa-bird in order to develop these new technologies and maintain their market position in the future. However, during this initial phase of development, easyJet and Harrison need to remember to utilize the communication style they utilize with their customers, be obtainable and simple to understand and use. Dismissing any sort of proper communication while developing new technologies can change a corporation’s communicat ion culture very quickly, even though it does not directly relate to communications with the customer.\r\nDeveloping a Communications Strategy In order to develop a communications strategy that can be co-ordinated into the strategic formulation process for the corporation, easyJet must decide what type of strategy to use. There are ten different types of strategy development (Mintzberg, Ahlstrand, Lampel, 1998):\r\n1) The tendency work; 2) The readying naturalize; 3) The Positioning condition; 4) The entrepreneurial train; 5) The Cognitive School; 6) The scholarship School; 7) The Power School; 8) The cultural School; 9) The Environmental School; and 10) The conformation School. asyJet needs build on its current communications strategy by applying principles from the image School, the grooming School, and the Configuration School. The Design School utilizes a footprint by trample model for strategic communications plan. To begin the communications readying process, easyJet must do an internal and impertinent appraisal in the form of a thrum Analysis. A SWOT Analysis lists the internal strengths and weaknesses, and the outside opportunities and threats of a corporation. Based on the SWOT Analysis, easyJet can determine the corporation’s distinctive competencies and key success factors.\r\nThis development is used to formulate the communication strategy. The sole architect for the strategic plan, match to the Design School, is the Chief Executive Officer (CEO). Harrison must approve the closing communication strategy, but should receive input from the strategic planning team. By developing the communication strategy as a team, easyJet will likewise use aspects of the mean School. The Planning School adopts the majority of the expound from the Design School. The Planning School uses an internal and outdoor(a) take stock stage, which consists of a SWOT Analysis.\r\nThe CEO gives the final approval for the communications strategy; however, he is not the sole architect. The Planning School appends for a team of strategists to develop the communications strategy. According to the Design School, in order to evaluate and choose the most effective and efficient communications strategy, the following fabric should be used. This framework was developed by Dr. Richard Rumelt, DBA from the Harvard General Management group and professor at UCLA School of Management. The evaluation process, according to Rumelt, consists of a series of tests (explained in the form of questions).\r\nIs the communications strategy consistent with the goals and policies of the corporation? Does the communications strategy adapt to the external environment? Does the communications strategy provide for a competitive advantage? Does the communications strategy overuse available resources or create unsolvable problems? The last step in the communications strategy planning process, within the Design School, is to implement the plan. carryi ng out of the communications strategy will take on educating the managers involved as well as the employees of the plan’s details.\r\nThe plan should be simple and informal, just like the process of developing it. Managers and employees should be given a step by step fleet on how to implement the strategy. The Planning School differs from the Design School in that it implements a formal step by step process for executing the plan. easyJet following the Planning School model should schedule each(prenominal) step of implementation by a specific date. In order to develop a communications strategy that can adapt to the global economy easyJet should also incorporate the six main premises of the Configuration School.\r\nThe key ingredient is for the corporation to â€Å"sustain stability or at least adaptable strategic change most of the time, but periodically pull in the need for transformation and be able to manage that disruptive process without destroying the organization. ” easyJet must be cautious not to incorporate the Power School into its communications strategy so much so that it allows a governmental order of business to override the main goals and vision of the corporation. Harrison must not allow the communications strategy planning process to become a process of dicker and compromise among conflicting political groups and individuals.\r\nUtilizing this schooldays of thought in planning a communications strategy can yield customers and bring about undesired conflict. easyJet must remain cognoscente of the environmental concerns its customers may have regarding its aircraft. However, pushing an unwanted political agenda can drive customers away. Recommendations and Conclusions easyJet started off in the airline industry slow, but by adopting Southwest Airline’s model of communication, easyJet was able to become the market leader in low cost air fare in Europe.\r\nIn order to keep up with technology, easyJet developed a websit e allowing customers to book reservations directly from the company without having to use a travel agent or pay a commission to a travel agent. To maintain that website easyJet hired European based Site Confidence to provide 24/7 support which resulted in an 11. 2% gain in passenger numbers a month later. for each one of these strategies has allowed easyJet to forge ahead and stay one step in seem of their competition. In order to remain a front runner in the market, easyJet must continue to utilize its communication style with customers, employees, suppliers, and political leaders.\r\nWhen developing a communications strategy for the future, easyJet must complete and internal and external appraisal in order to abridge the plan to the current trends and the desires of its customers. easyJet should develop a strategic planning team to develop a communications strategy and implement an employee educational program. If easyJet’s employees are unwitting of its communication s trategy and culture, its customers will also be unaware of its communications strategy and culture. asyJet should continue to invest in question and development for new eco-friendly technologies as well as encourage its aircraft suppliers to follow suit. However, Harrison must remember to utilize the communication culture of the corporation at all generation as a representative of easyJet and not let the Power School of planning dictate easyJet’s communications strategy. If easyJet can maintain and improve its current communications strategy then passengers will continue to want to â€Å"come fly with us. ”\r\n'