Impact of Brexit and Covid-19 on Easy Jet

CONTEMPORARY
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Market structure of UK................................................................................................................3
Economic factors that affect UK business of easy jet..................................................................4
Impact of Brexit on UK airlines industry....................................................................................6
Analyse the impact of Covid-19 on Easy jet...............................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Easy jet is a budgeted British multinational airline situated their headquarter in London,
Luton Airport. Easy jet is listed on London stock exchange, established in 1995. They are
operating in different markets of domestic and international and fights are available on over more
than 30 countries (Ponomarev, 2020). Easy jet is operating in different countries and European
market is having more than 15000 employees for operating properly and provide better service to
their customers. They are also affiliated to many other airlines like Easy jet Switzerland, Easy jet
European and Easy jet UK.
In this report, different market structure in UK airline industry is bing discuss. Secondly,
economic factor of UK market and in which manner they affect company through influencing
factors like income level of consumers, demand and supply, taxes, inflation rate, Forex rate,
employment rate and recession. Further, how Brexit had affects UK markets of airline and
addition to this effect of Covid -19 impact on current investment and future effects on market. At
last, conclusion is mention of overall report that is finding through analysis.
MAIN BODY
Market structure of UK
Market structure in economic terms shows the level of competition among sellers which
are selling different or homogeneous product in a market that offers goods and services. The
sellers are being selling goods and service according to market demand of product which shows
the competition of among each other. They all are affected by external factors and elements.
The different type of market structure are: Monopoly: In this market only one producer sell his product in whole market and there
are barriers for new entrance in market. The producer is selling a product in market which
had no close substitute and which shows low cross elasticity of demand. Perfect competitor: It is the most common market where large number of buyers and
seller are selling homogeneous products without any restrictions in market. Consumers
purchase these products through various companies selling same products at different
price. In this market easy entrance of competitors in market and which sell products at
market price (Ruiz-Moreno, Mas-Ruiz, and Sancho-Esper, 2021).

 Monopolistic competitor: these market had large number of producers which are selling
differentiated products but in same market. Here, one competitor can't determinant the
price of other producer in same market. This market is not perfectly competitor. Duopoly: This market is a same form of Oligopoly where two producers are being selling
same goods in present market. Both producers are independent in selling of goods and
service they are dealing in. But change in price and output of one producer may affect the
other producer.
 Oligopoly: This market had few firms which offers same homogeneous product or
differentiate products in same market. There is high competition between few firms as
they are dependent on each other to operate in market. Easy jet airlines is being operating
in oligopoly market where there are few firms and barrier to entrance for new firms as it
involve high investment cost and already established firms (Eugenio-Martin, and Perez-
Granja, 202I).
Hence, the market of Easy Jet is oligopoly where existing firms are being operating in
same market of Europe. There are barriers to entrance of new firms due to its nature of working
which include high cost of investment and huge time consumption to establish in market where
already firms are operating successfully. Easy Jet main competitor are few firms only where they
are operating with same motive of offering budgeted flights to consumers. Easy Jet is majorly
operating domestic flights to consumers which are very low fairs that are offerings and major
competitor are Wizz Air, Ryanair and Pegasus Airlines. These are dependent on each other in
price factors as one competitor change the price of fair ticket can lead to change in demand of
other airline competitor.
Economic factors that affect UK business of easy jet.
The economic factors of airlines are external factors which affect the operation of airlines
overall. These factor can be monetary factors which are affect UK business. Economic factors
are those factors which directly impact on operation of business through various ways. These
factor may include demand and supply, inflation and recession, tax rate by government,
employment rate, foreign exchange rate, Income level of consumers etc.
 Demand and supply: This factor shows the demand of consumers which are being
generated by consumers for the easy jet in market. The demand of consumers are being
generated through offers and low prices which attract customers towards company. This