Corporate Governance and Performance: Comparative Discussion on Easy Jet Plc and Wizz Air

Corporate Governance and Performance
Comparative Discussion on Easy Jet Plc and Wizz Air

Table of Contents
Introduction......................................................................................................................................3
Comparison of Organisations based on performance and Corporate Governance..........................4
General Comparison....................................................................................................................4
Discussion on Performance..........................................................................................................5
Discussion on products and Services...........................................................................................7
Discussion on Corporate Governance..........................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
The aviation industry is one of the leading sectors in the United Kingdom. This is one of the
sectors that contributes highly to the growth and development of the economy. Over the years
the traveling interest of people has increased significantly which has helped companies to grow
and develop steadily. It is important to note that the constant increase in traveling interests of
people has given birth to new and effective aviation business plans. When earlier British
Airways was one of the key passenger carriers in the UK then companies like Easy Jet and
Wizz Air have captured the market to a large extent. From the low cost airlines to the premium
airline services UK airline industry is one of the most active airlines industries in the world with a
total global market share of nearly 1% (Khan, Serafeim and Yoon, 2016). There are number of
different airlines companies like Ryanair which has already gained significant market share in
UK which shows that the definition of flying has also changed among the consumers. The UK
airline market is clearly highly competitive with different numbers and types of organisations
competing against each other. The biggest rivalry at this point of time being between Ryanair,
British Airways, and Easy Jet and Wizz Air has shown the importance of this market. Different
kinds of customers could be seen in the market presently where most of the people are traveling
for business and some for leisure but the recent trend that has taken over the airline industry is
the concept of low cost airline which has attracted a number of people to believe in companies
like Easy Jet and Wizz Air (Chang et al., 2015).

Comparison of Organisations based on performance and Corporate Governance
General Comparison
Organisations have different motives to operate in the market but most of them operate with
profit motive. It is extremely important for each and every organisation operating with profit
motive to achieve their financial goals which would help to ensure success in the long run. Most
of the organisations in the current market environment fail to understand the fluctuations which
really affect their business strategy and hence lead to their downfalls (Casado-Díaz et al.,
2014). Since, most of the industries are highly competitive nowadays it is important for the
organisations to keep a track of their operational activities and constantly assess what could be
done better. One of the effective tools to retrospect on the performance of an organisation is the
annual report that is developed keeping in mind the various fields of operation and putting the
right information for the stakeholders to learn (Tavassoli, Faramarzi and Saen, 2014). The
annual report acts as a mirror for the organisation as it highlights the key achievements in the
field of finance, stakeholder management, corporate governance et cetera. This also helps the
organisation to make its future strategies accordingly. The present comparison helps to analyse
two low cost and similar service providing organisations namely Easy Jet and Wizz Air.
Europe is not only important from political perspective but it is also extremely important in terms
of business. The European market is effective for a number of sectors and Airline is one of
them. Over the years companies like British Airways have dominated the European market but
with the new trend of low cost airline services British Airways have lost a part of its glory.
Emerging organisations like Ryanair, Easy Jet and Wizz Air have encashed on this situation of
changing interest. From the present market statistics Easy Jet and Wizz Air are at loggerheads
given the similar situation that they are in whereas Ryanair has grown to a bigger stature hence,
it could be said that the trend of low cost airline has already brought a new wave which is clearly
changing the course of the business. Apparently there might seem a number of similarities
between Easy Jet and Wizz Air but they differ in number of aspects (Chang et al., 2015).
There are number of key aspects which have to be discussed in this case and hence, the first
parameter of comparison that is taken is the time of existence of both these organisations. Easy
Jet came into being in the year 1995 whereas Wizz Air is comparatively younger as it started its
operation in the year 2003. Easy Jet since then has expanded to 136 destinations whereas
Wizz Air has already crossed that mark to send its fleets to 141 destinations. Hence, in this
segment the latter is already ahead. In terms of fleet size Easy Jet is a tad ahead with 319