Impact of Brexit and Covid-19 on Easy Jet

CONTEMPORARY
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Easy Jet Market structure.........................................................................................................3
2. Economic factors that affect Easy jet within UK.....................................................................4
3. Impact of Brexit on operation..................................................................................................7
4. Impact of Covid-19 on Easy jet...............................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Easy jet is operating in UK and British multinational and budgeted airline situated its
headquarter in London at Luton Airport. They operate in domestic flights and international with
over more than 30 countries around the world. Easy jet is listed on London stock exchange and
was established in 1995. Easy jet had other affiliated airlines which include Switzerland and
Easy jet Europe Easy jet UK, Easy jet (Fonseca, 2020). Whereas, easy jet has more than 15000
employees in European market that are working to provide better service to customer with
effective working. In this report, market structure of Easy jet, their economic factor which affect
business and Brexit effect business on operation is discussed with Covid-19 impact analysis that
affect the operation of business and country, while strategies to overcome the losses incurred
from Covid-19.
MAIN BODY
1. Easy Jet Market structure
There are various market structure like monopoly, monopolistic, oligopoly and perfect
competitor.
Monopoly In this market only one industry rule the whole market and implementing barrier to
entrance of new companies. There is no close substitute in market that offer same product and
having low cross elasticity of demand.
Duopoly: duopoly is a part of Oligopoly where only two firms are present and operate in market
selling same goods. Change in price by one seller may affect other seller and leads to change in
market price while both seller are independent (Wu, and et.al., 2020).
Perfect competitor: In this market large number of buyers and seller are available and selling
homogeneous products in market without any restrictions and barrier to firms. Other firms can
easily enter and high competition in the market.
Oligopoly: This market offers homogeneous product or differentiate products by few
organizations in same market and lead the market through there marketing techniques. There is
high competition among few firms which are dependent on each other on price stability.
Monopolistic competitor: Here large number of firm are selling differentiated product and
service in same market. It is not a perfectly competitive market. While, one competitor is not
able to influence other price in same market.

However, Easy jet is operating Oligopoly market where there are few organizations
working with same nature of business (Chung and et.al., 2020). There is barrier to enter into
market of airlines as it carries huge cost investment. As there are already establish business and
leading the market of airlines by few organizations, new entrance of firms is very hard to
establish in same and attract customer towards them. New firm need to offer more unique
product to customer to attract towed them. Easy jet was operating in UK market as key
competitor by offering international and domestic flights and working in oligopoly market. The
major two market which are operating in the UK's airlines industry are long haul and short haul
market (Ponomarev, 2020). European market is more demanding in short haul market and low
carrier airlines like easy jet is being adopted the strategies of low fair price ticket which is being
prominent factor to attract more passenger towards easy jet. One of the key opportunities that is
being taken by easy Jet is providing low fair ticket to passengers with attractive offers like free
meal and drinks from airline.
There major focus is to provide customer with high faculties within low budget in
European market and was operating as one of the most successful airline company in European
market. One of the key competitor of easy jet are Ryanair, AirAisa, Jet2.com which are also
operating in same market with same strategies followed by each airline company. Easy Jet major
focus is to meet customer demand in market they are looking for. Easy jet carries values like safe
and responsible, always effective, forward thinking, in it together and on customer's side. Also,
easy had followed various strategies like aircraft configuration makes higher number of seats in
every aircraft and point to pint model is being used in higher load factor and aircraft utilization.
2. Economic factors that affect Easy jet within UK.
The economic factors that affect business operation of easy jet which company need to be
analysed and make changes in strategies according to various factors. The economic factors that
affect business operations and there revenue generation program. Easy jet is one of the largest
airline in European market and operate second biggest in European market. Total seats of
passengers easy jet is having is 86.7 million and 80.2 million passengers (Zhang and Graham,
2020).The economic factors are impact directly towards working and efficiency of company to
get more market share. There are many factors that affect the economic factor which affect
business operation. These factors may me taxes applied by government or airports, change in