Impact of Brexit and COVID-19 on EasyJet

Airline Industry
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Market structure in the UK within which Easy jet operates...................................................3
Economic factors within the UK that affect the business of Easy jet....................................3
Impacts of Brexit on the business operation of the company.................................................3
Impact of COVID-19 on the business of the company..........................................................3
CONCLUSION................................................................................................................................3
RECOMMENDATION...................................................................................................................3
REFERENCES................................................................................................................................3
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INTRODUCTION
Airline industries are the companies which provides air transport services to the
passengers to move from one place to another The first airline commercial was developed by
Ferdinand Graf Von in 1912 it help the economy to reach their location in short period of times.
The airline services are basically provided to cargo and human travellers. These services are
offered mostly via jets but helicopters are also used by some airline services In today's world
airline services are more in demand which helps the business to increase their profit in the
market but to covid situation airlines industries has faced a big loss due to which its demand in
the market has been decreased due to covid people avoid to travel through the airlines services
which affected the growth of the business in the market (Claussen and Peukert, 2018).
EasyJet is the low cost multinational airline group its headquartered is in London Luton Airport.
EasyJet operates international and domestic schedule services on more than 1,000 routes. It was
founded by Stelios Haji-loannou on march 1995This services of airlines saves times and money
of the passengers it helps the people to reach their location easily without any issue. In this report
it will be analysed that how various factors in the economy affects the profit of airlines industry
in the market.
MAIN BODY
Market structure in the UK within which Easy jet operates
Market structure basically refer to the various characteristics of markets that analyse the
relationship between the sellers which helps the business to increase its profit in the market at the
end the main motive of the sellers is to increase their productivity and revenue. In the economy
there are four types of market structures.
 Monopolistic: It is a markets structure in which huge numbers of small firms compete
against each other, firms sell similar products but they are also differentiated from other
firms in the market. under monopolistic competition seller does not sell the perfect
substitute product they sell the differentiated products. In this competition no business in
the market have the control over the prices of the market.
 Oligopoly: In this type of marketing structure competition is limited due to which
entering into this structure is difficult. Few firms exists in this type of structure most
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powerful firms have the control over different resources like patents, physical resources,
raw material etc. which create issue for the new entries.
 Pure monopoly: If the single firm control the entire market then it comes under monopoly
market structure. Entry and exit of the firms are restricted under pure monopoly.
 Pure competition: Under this market structure demand and supply determines the goods
and services which is to produces so that business cannot face any loss. In pure
competition there is no restriction for the firms to enter and exit the market.
Easy jet operated under the oligopoly markets structure because under oligopoly firms imperfect
competition is there due to limited firms operates in the airline industry. These firms have the
power to set the prices for the products by establishing different level of outputs. Competitors in
this market structure can plan strategies to increase their market share such as cutting of prices
which will increase their demand in the market. Under the oligopoly firms are interdependent in
each other. Easyjet is planning to create a data management system which will helps the them to
improve there services if proper management will take place in the organisation it will increase
the demand of firms in the market also it will provide the competitive advantage (Kefallonitis
and Kavoura, 2019). Easy jet is the low price airline services which provides the services to the
customer at the affordable prices due to which its demand and profit is high in the market as
compared to other firms. Under oligopoly various few largest have the control over various
resources which creates a barrier of the other firms to increase its profit in the market but easy jet
has planned various strategies which helps them to increase their revenue and compete
effectively in the market.
Economic factors within the UK that affect the business of Easy jet
The factors which helps in determining the competitiveness of the firms which exists in
the environment is know as economic factors. It helps in analysing the demand and supply of the
business in the markets so that business perform its activities effectively. Below are the factors
which affects the business of Easyjet in the market.
 Demand and supply: It plays an important role in the business to increase its performance
demand of the customer can increase in the economy according to the needs and
requirement of the customers. Airlines industries also enable the access to other services
like business meeting, vacations, foreign-sourced products due to which demand of the
industries increases in the market. if the demand if high but supply of the business is
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