Impact of Brexit on EasyJet

CBE Report Template

Table of Contents
1. Introduction.......................................................................................................................................3
2 Discussion and Analysis......................................................................................................................3
2.1 Market structure.........................................................................................................................3
Explain the market structure of the UK’s Airline sector. Explain what structure it is and why is it
so......................................................................................................................................................4
2.2 Economic factors that affect business of the EasyJet.................................................................4
2.3 Explain the impact Brexit could have on the business of EasyJet...............................................7
2.4 Impact of Covid19 on EasyJet Should it Invest in UK.......................................................................8
2.4.1 Immediate impact ...................................................................................................................8
2.4.2 Future Impact..........................................................................................................................8
3. Conclusion.........................................................................................................................................9
4. Recommendations.............................................................................................................................9
5. References.......................................................................................................................................11

1. Introduction
The business environment is the sum and collection of the factors including internal
and external factors that affect the activities of the business. Internal factors like customers,
employees supply chain , suppliers owners etc. and external factors like economical, social,
technology etc. It is necessary for the organization to be aware of factors within the business
environment to take competitive advantages.
This report will cover study of the EasyJet which is a British multinational low cost
airline group and their schedule covers 1000 routes within 30 countries. In total 15000
employees are working for them and helping them to achieve success within the Airline
industry.
This report will discuss the negative impact of the COVID 19 on the UK airlines
financially and it will explain the market structure in the UK where EasyJet operates their
business. This report will help to identify the economic factors that affect the business of the
EasyJet, including the impact of the Brexit on the business operations of the EasyJet.
2 Discussion and Analysis
2.1 Market structure
There are various type of structure that any industry can adopt like oligopoly, perfect
competition, monopolistic competition, Monopoly. This all kind of structure also covered by
the airline industries.
Pure competition
Pure competition is the market structure that can be defined by the largest numbers of
small firs competing with each other (Badiani., 2019). A individual organization doers not
have significant power and as the outcomes that particulate industry produce the optimal
number of outputs as well because the companies do not have the ability and the power to
influence the market princess.
Monopolistic composition
It refers to the large numbers of small firms compete against each other. Companies
within Monopolistic sell the similar product and services but their products are different from
each other.
Oligopoly

An oligopoly is the dominated by the some of the organization within the industry.
Companies use the collaborative strategy and create power together by the collaboration ad
try to put pressure n each other.
Pure Monopoly
A monopoly exists when there’s a single firm that controls the entire market. The firm
and industry are synonymous (Benamraoui., 2021).
Explain the market structure of the UK’s Airline sector. Explain what structure it is and why
is it so.
According to the airlines' industry of the UK airline industry is characterized by the
Oligopolistic market but there are strong debate whether the airline industry is an
oligopolistic market- indeed, it does appear that it is. . However, they have only managed to
do so by differentiating their service substantially from well-established firms like British
Airways, who have a large market share
Airline industry of the UK collaborate with the government and mostly controlled by
the government, so they get the support from the financially (Bouoiyour and Selmi., 2018).
Almost all the airline within the Uk have their government shares but still companies give
competition to each and try to overcome. This is the reason the airline industry of the United
Kingdom are considerer as the Oligopolistic market. Uk Airline industry is the Third largest
aniline industry network in all over the work where EasyJet operating their business. Uk
airways industry is also a second largest aerospace manufacturing sector. According to the
data aviation sector of the UK create turnover around £60 billion and it contributes on the
UK's GDP around £22 billion (Fouquet and O'Garra., 2020). This sector is also creating e the
huge employment within the country and around 1 million people are working within the
airline industry of the United Kingdom It also employs over 100,000 highly skilled British
workers and provides technology and research that has significant catalytic spin off benefits
to the wider UK economy.
But recent pandemic COVID affect the whole industry including the EasyJet
financially because after the pandemic countries including the UK goes in the lock-down
state and airways industry face the losses. All the flights get cancelled but still companies
within this industry get order from the government to pay the salaries to their employees and
other charges like rent, taxes etc affect the company.