Analysis of Easy Jet Airlines and Heathrow BAA Airport Operator

This report provides an analysis of Easy Jet Airlines and Heathrow BAA Airport Operator, including their strengths, weaknesses, operational characteristics, and marketing strategies. It also includes information on their profitability patterns, marketing channels, and competitive situation.

Airline Industry
Table of Contents
Part 1................................................................................................................................................3

INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Easy Jet Airlines:....................................................................................................................3
Strengths................................................................................................................................3
Heathrow BAA (Heathrow British Airport Authority) Airport Operator..............................4
CONCLUSION................................................................................................................................6
Part 2................................................................................................................................................6
INTRODUCTION...........................................................................................................................6
Operational characteristics.....................................................................................................7
Marketing and competitive situation......................................................................................8
Environmental practices.......................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................16
Part 1
INTRODUCTION
In this seminar paper there is a focus on strengths and weaknesses of an airline organisation and
an airport authority. For the following purpose an airline company Easy Jet is taken into
consideration established in the year 1995 and headquartered at England, UK. Another is the

airport operator BAA (British Airport Authority) which was formed in the year 1965 and its head
office in Hounslow, England (Han, Yu and Kim, 2019). With it producing a report on strategy
used by them to attract more and more customers, thereafter how it does lacks behind at certain
issues which are not fulfilled by them. The report also shows the efforts they make to do better
and withstand competition and where they require improvements (Zou and et. al., 2017). At last
it presents ten weaknesses and ten strengths from an industry viewpoint of the airline and airport
operator.
PART 1
Easy Jet Airlines:
Strengths
 Cost Advantages: Easy Jet focuses towards strengthening its strategy as such to develop
cost effective trips for customers to have more affordable fares.
 Aircraft Customisation: Configuration of aircraft enables the company to carry more
number of people, helps in space distribution, and low maintenance cost per flight.
 Innovations in Data Reports: With the use of latest technology customer feedback is
obtained and accordingly satisfaction to customers is ensured (Xu, Chan and Zhang,
2019).
 Focus on primary Airports: The flights of the company have obtained a strong foothold
in primary airports to gain loyalty by representing a sense of patriotism.
 Attainment of bigger and Fuel Efficient Planes: It helps to reduce operating costs and
high number of passenger accommodation could be gained.
 Safe and Responsible: There is a provision regarding passenger insurance and safety
during the flight which gives sense of future security to the customers.
 Commitment to Reduce Carbon Emissions: In collaboration to projects towards
offsetting carbon emissions and zero emissions make the company environment friendly.
 Derives Revenue for Country’s Economy: With the continuous rise in supply capacity
the company is able to increase its support to Country’s revenue generation.
 Loyalty Programmes: There are various discount programmes that the company offers to
its most frequent customers through club programme schemes.

 Motivated Workforce: The Company has approximately 15000 people working in that
organisation who are rewarded with packages for their incentives.
Weaknesses
 Inadequate Spacing in aircrafts: The spacing in the aircraft is minimal as its objective is
to fit maximum people in a single flight.
 No Complimentary Services: There aren’t any such services that it provides during the
flights.
 Uncomfortable Terminal Services: There is shortage of seating and food facilities at the
terminals that customer complaint about (Hongli, 2018, January).
 Strict Baggage Allowances: There are strict rules for baggage carrying in the plane and
even the tiny of other things are not allowed.
 Lots of additional charges: There is a package for every trip anything extra than that
package adds to the costs.
 Cancellation and Refunds: There are malwares and viruses in that cause improper
refunds and late refunds for cancelled tickets.
 Mismanagement: Sometimes it happens with the carriages that are lost or misplaced
during the trip.
 Delayed Customer support: The customers may have to wait for long to get in touch to
customer support due to busy lines. Unsupportive Air Crew: Most of the flights are very good but sometimes the air crew is
unsupportive to the passengers. Inconvenient seating: The seats have very less foot spacing for the smooth seating
experience.
Heathrow BAA (Heathrow British Airport Authority) Airport Operator
Strengths
 Future Scopes for UK Economy: With over approx. 250 million passengers per year in
UK, airports make a scope for future economic advantages.
 Provides Sustainable Growth: It pledge towards sustainability to lower 1.5 º C crises, cut
down emissions to carbon neutral by 2030. Among the Largest Airport Operators: It significantly is among the world’s largest
airport operators which have millions of customers.

 Improves quality of Life: Transportation and easy affordable services aims to improve
the quality of lives of all the people in country.
 Development of Infrastructure: Development in infrastructure and airports around the
country to facilitate easy access to all the locations. Derives opportunities for Business: Access to various remote places through
transportation generates opportunities for new business establishments. Quick, Safe and Easy Transportation: The Services involves keeping check over its
flight operations to provide quick and safe transportation facilities to (Tsai and Hsu,
2018). Delivering Customer Services: Customer queries and requests are solved by the CST on
regular basis. Employment Generation: It is among the largest holder of shares in aviation business
that provides employment across UK. Helps in Supply Chain: Supply Chain Operations are also connected to the airports for
swift delivery of products and services across nation.
Weaknesses High Cost of Operations: The operations of this company involve huge costs, due to
which overall operating costs rises. Adds to Environmental Degradation: The airports impact the environment negatively
which reduces its values to the customers. Violation of Human Rights: Including entire community of Longford was forced out to
create new place for airport. Expansion through Pressure and persuasion: Longford conspiracy is a example how
the company forces expansion strategies. Disruption from Construction: Construction activities cause damages that are overseen
by the company. Improper Aviation Operations: The operations of flight control, passenger seat allotment
are improper which causes dissatisfaction to customers. Air pollution & Noise Pollution: The pollution caused by its activities leads to health
declination of people.

 Rising Costs of fares: Due to continuous expansion activities it takes high fare charges
from the customers. Controlled by Climatic Conditions: Flight operations are under the control of the
prevailing climatic conditions. Doesn’t stand on Society’s ethics: Societal norms and ethics are avoided at the
workplace due to diverse ideology of people (sai and Hsu, 2018).
CONCLUSION
Through the above mentioned report strengths and weaknesses of Easy Jet Airlines as well as
BAA Airport Operator are clarified. It had been done in order to access and make comparison of
airport and airlines to that of its competitors. Along with analysis of strengths of the airlines that
makes it competitive and those shortcomings which needs urgent recognition. Furthermore
robustness and infirmity of the business operations of BAA Airport Operators are given so they
can be evaluated by the managers.

REFERENCES
Books and Journals
Han, H., Yu, J. and Kim, W., 2019. An electric airplane: Assessing the effect of travelers'
perceived risk, attitude, and new product knowledge. Journal of air transport
management, 78. pp.33-42.
Hongli, Z., 2018, January. Using Revised Importance Performance Analysis to Improve Service
Quality of Airlines. In Proceedings of the 2018 2nd International Conference on
Management Engineering, Software Engineering and Service Sciences (pp. 12-17).
Tsai, W. H. and Hsu, J. L., 2018. Corporate social responsibility programs choice and costs
assessment in the airline industry—A hybrid model. Journal of Air Transport
Management, 14(4). pp.188-196.
Xu, S., Chan, H. K. and Zhang, T., 2019. Forecasting the demand of the aviation industry using
hybrid time series SARIMA-SVR approach. Transportation Research Part E: Logistics
and Transportation Review, 122. pp.169-180.
Zou, L. and et. al., 2017. The pricing responses of non-bag fee airlines to the use of bag fees in
the US air travel market. Journal of Air Transport Management, 65. pp.209-219.

Part 2
INTRODUCTION
The present changing external environment aspects have affected the functioning of online
industry and the covid 19 aspect has lead to a complete transformation of various other
industrials sectors. Easy jet plc is styled as easy jet British multinational low cost airline that is
having its headquarters are in London Luton airport. It is operating and having its international
schedules services across 1000 routes in more than 30 countries (Huderek-Glapska, 2020). This
brand is listed on stock exchange and also affiliate airlines are constituent of ftse 250 INDEX.
Present report is based on making analysis of the Operational characteristics and Marketing and
competitive situation.
Operational characteristics
Profitability patterns: easy jet is suffering from quarter in the end of year 2020 as the revenue
was down by almost 90 percent but his budget airline has been holding surge for traveller
numbers. The revenue of this airline has been fallen for last three months of 2020 by 88 percent.
This global air travel brand has also been decimated in the past year because of high pandemic
restrictions and the reduction in customer demand. But with the rapid creation and the approval
of covid 19 vaccines the airline rand has given the executive reason that 2021 will be the year of
sales are bound.
In the year 2019 the airline brand panned to fly only 10 percent of flights as it rand between 2019
that is in January and March 2020. Easy Jet is maintaining the disciplined approach towards cash
management and capacity during the third quarter in the year 2021 resulted into cash fun during
the quarter that reduced to 55 million pounds (Evans, 2019). Fixed cost + capex have approx 34
million pounds per v that is outperforming the 40 million pounds per week guidance that is given
in the quarter 1. Disaster management and discipline cost has helped easy jet in maintaining a net
that of broadly flat as 2 billion pounds and the headline loss before text of 3 18 million pounds.
Easyjet capacity in quarter 4 will be up to 60% of the year 2019 levels that is up from 17 % in
the third quarter in a year 2021. For the purpose of capitalising the opening up of travel in
continental Europe and the easing of restrictions because of fully vaccinated citizens across UK
easyjet continues to power the capacity to be popular routes. There is rising customer demand

and easyjet will emerge from pandemic transform that is driven by cost program delivering
industry-leading schedule flexibility and is a step change in Ancillary revenue.
Easy Jet is flying on Europe most popular routes it includes connections with key city like
London to Paris and Amsterdam while Spain Greece and islands apart from this there are also
having connectivity with Portugal that is from favourites for European travel. Government have
made changes that are related to enable the vaccinated customers to travel without any need for
testing. There is also help provided to customers so that they are able to navigate with the
government restrictions it includes having proper entry requirements and taking of official
government sources before travelling. Easyjet has also launched its covid travel help in order to
make it easy as possible for customers to find all the relevant information (Annual net profit of
easyJet plc from 2009 to 2020).
(Source: Annual net profit of easyJet plc from 2009 to 2020)
Marketing and competitive situation
Marketing:

The overall marketing strategy of easyjet is focused on development of strong positions in
Europe during airport. The structural cost advantage of easyjet has helped in offering customers
with affordable fares. The cost advantage in easyjet is created through various combinations of
factors that include:
 AIRCRAFT configuration: it helps in enabling a higher number of seats for aircraft
 There is higher load factor and aircraft utilisation that is driven by the point to point
model
 Youngest fleet and advantages fleet d that helps in managing the maintenance and
ownership cost
Easyjet is an airline brand that is confident that the strategy is helping them in building the
required competitive advantage. It has helped this brand in building of unparalleled network of
market positions with efficient low cost model and a strong balance sheet (Grant, 2021). It is one
of the values that they are offering to their customers by delivering them with disciplined growth
sustainable benefits and high return for its associated shareholders.
Outlining the easy jet marketing strategy:
Attracting customers: Easy Jet is working towards enhancing the customer awareness by focusing
on ensuring that customers understand the process of brand and offering.
Improve conversion: Easy Jet online website data transfer nominal amount of traffic but the main
key challenge is to improve the conversion Reigns and ensure a proper digital reach. For this easy
Jet is investing in conversion rates and exploiting of news channel, social media applications and
implementation of greater personalization.
Exploiting existing communication channels: Easy jet is aimed attention calling that the present
customer relationships are fully utilised by using segmented communications that is designed to
generate conversions.
Marketing channels:
TV advertising: Easy jet is conveying a message by using television advertising options. This is
not a destination focused plant but also a low-cost airline that helps in reaching to middle class
segment of the target market.
Website: Easy Jet is generating approximately 2 lakh bookings everyday that is through the
significant efforts of improving the user customer experience. This brand is working towards

using a simplified design and personalization techniques. They are having a site core platform by
using and creation of a personalized user experiences (Ritter, 2020).
CRM: easy jet is not segmenting their audiences strictly but they are using a broad segmentation.
They are approaching different segment of customers at a specific time period by using content
marketing.
Charter: Easy has introduced a strong internal culture that is based on best practices to motivate
and inspire from a growing customer experiences and differentiating from competitors.
The present marketing strategy of Easy Jet can understand the marketing mix strategies:
Products: Easy Jet is one of the well-known and renowned low-cost carrier brands that is
offering comfortable and safe air travel option to travel for hours at economical charges (Bodnár,
Jackle and Linzner, 2020). This one is having connectivity over a vast network of airports that is
adding benefits for large number of travellers. By offering senior customer services at reasonable
prices has helped this brand in capturing a larger market share. They were also able to maintain a
database of present you and frequent customers by offering them with customised services.
Pricing strategy: Easy Jet is a brand that is able to maintain the fuel and maintenance cost by
offering premium services at reduced rate to stay competitive. This brand is focusing towards low
cost competitive pricing and is also offering rental cab services to travellers so that they are able to
commute and provide additional benefits to their customers. Brand has always focused on use of
construction pricing to capture Raja market share.
People: Easyjet is having a brand image of offering premium quality services to the customers
they are using regular training programs in customer relationship management to understand the
needs of customers (Weetman, 2019). It is a customer centric brand that encourages its
customers to give the regular feedback on various services that are being offered on the way for
the services can be improved. It also helps in creation of a positive image in customer mind and
enhances the process of customer relationship and commitment.
Promotion: There is need of proper advertising and promotion strategy that can help easy jet in
enhancing is customer reach. They are using customise emails for regular customer discounts and
encouraging them to offer with previous services. It is helping them in offering exceptional
services to customers at nominal prices which leads to enhancing the customer loyalty and word-
of-mouth marketing. Easy Jet as part of its marketing strategies have added choices for upcoming
next summer’s which city breaks beach holidays that are available on their website. They are

adding more holidays to offer the customers more choices for making their new bookings and re
planning of the holidays that have been disrupted because of the covid-19 pandemic. They are also
offering great savings with thousands of free child places they are offering these that are available
during school holidays across hundred hotels and selected flights.
Process: Easyjet is working towards integrating the offline and online mediums having a proper
customer services across the airport and online mediums. This brand is also working towards
making regular analysis to identify the areas where services can be improved and satisfactory
experiences can be delivered to customers.
Physical evidence: Easyjet is having it services completely based on online but many times there
are physical aspects that is related to the way customers are willing to have preferences for
booking. It helps easyjet in managing the administrative cost and also offering services as per
changing customer preferences. All the easyjet holiday plans are covered by the protection
promise that is the industry-leading policy offering customers with ultimate protection flexibility
and the assurance. They also promise to offer a refund guarantee and freedom to change the
booking in case of last minute changes and letting the customer’s book with required amount of
confidence (Ringhamand Miles, 2018). It helps in creation of a brand identity and brand
preferences over other competitors which helps them in dealing with the high threat of
competition.
From the above analysis it is summarised that easy that is a brand that is working towards using
social media marketing strategies as a part of digital transformation across various industries. This
brand is working towards enhancing the customer loyalty by offering them with affordable easy
and enjoyable travel for business and recreational purposes. They are offering customers with
reasons to spend on them and offering them with loyalty programs.
Porter’s five forces:
Porter five forces is a tool that is used for the purpose of analysing the impact of various five
forces that are part of the external environment. It is important to evaluate the overall impact of
forces to understand the present impact on strategic positioning. For this purpose presently there
is an analysis of competitive forces that are affecting easy jet in long run:

Threat of new entrants: there is low threat of new entrants for easyjet because it is not possible
for any new start-up or new brand to affect the present brand positioning of easyjet. They have
been able to build a higher brand image and a loyal customer base by offering High quality
services and lower price range that is leading to affect the present positioning of easy jet in a
positive manner. Easy Jet has can deal with the threat of new entrants if there is innovation of
new products and services.
Bargaining power of customers: In context of easy jet it is a low-cost airline brand that is
offering products and services on high quality and reasonable prices. It is leading to this brand
having high competitive advantage as there is low possibility of other competitors offering the
similar standard of services at similar price range (Fonseca, 2020). Easyjet is also having a
smaller and powerful customer base that is leading to lower bargaining power of customers in
long run.
Bargaining power of suppliers: suppliers are in a dominant position that may lead to decreasing
margins for easyjet in the present market scenario. There are powerful suppliers in the customer
service sector that are using the negotiating power to extract high prices in the travel and leisure
field. Easyjet can manage the overall bargaining power of suppliers but development of
dedicated supplier base they can also experiment with new products and by using different
materials and a loyal supplier base.
Threat of substitution: when a new product or service is able to meet the similar customer needs
in different face then the can be impact on the industry profitability. There are a lot of
competitive brands that may affect the present choices of customers as they easily switch and
substitute because they possess zero switching cost. So, there is a threat of substitution for
easyjet that can be managed by offering of value proposition and uniquely different product
range (Tahanisaz, 2020). They can also offer high-quality services by being service-oriented
understanding the core customer needs and increasing the switching cost for customers.
Competitive rivalry: Easy Jet is having a competitive advantage by creation of energizing and
inclusive environment that helps in attracting right people and also inspired us to learn and grow.
This brand is working towards having a workforce with right people and building up of right
talents. They are using millions of data points for the purpose of making smart decisions and
shaping the future of travel so that they are able to become the world's leading data-driven

airline. Main aim is to become world’s leading data-driven airline by making job easier for
people and creation of deeper relationship with customers.
From the above made analysis it can be summarised that easyjet PLC has to focus on using
present brand positioning and cost advantage for the purpose of enhancing their market share in
long run.
Environmental practices
For the purpose of understanding the impact of various external forces on the present functioning
of easy chat there is need to apply pestle analysis that is going to help in developing a detailed
overview of the impact of such external factors:
Political factors: There are some of the political factors that reflect the political stability of the
region. For easy jet the government has grant permission for purchasing of new aircraft. There is
impact of the present brexit situation that will lead to high amount of uncertainty. Another threat
is an impact of French industrial action on the pension changes that may possess a impact on the
present functioning of Easy jet.
Economic factors: The present covid-19 situation has led to a negative impact on the functioning
of economy and GDP structure. It has affected the present functioning of various airline brands.
There is reduction in the personal disposable income as well as the purchasing power of people
which is leading to the shift towards for fulfilment of only necessity products. This factor may
lead to higher amount of threat for future profitability and productivity structure of easy jet.
Social factors: The changing shift customers are towards having High quality services easy that
is having an opportunity in terms of the present brand positioning (Leeman, 2021). Apart from
this the airline brand is also taking initiative for maintaining gender balance in the coloured
community that is a positive approach towards societal benefits.
Technology factors: There are various factors that are helping easy jet in the process of
continuous improvement in digital interface like introduction of back sizer on the easy jet online
application. They are using latest social media marketing strategies to create customer
engagement and customer interaction. Easy Jet is also working towards introduction of new
Bank scanning feature for various iPhone users.

Legal factors: There are some of the legal regulations that includes heavy regulatory
environment with different European airlines regulations. There are changes made in the
European near space that is supply controlled by Air traffic controller. But apart from this there
are also bribery charges on airbus that has led to difficulty in maintaining the customer loyalty in
long run. It may result into long-term set on the present functioning of easy jet and may affect its
profitability.
Environment factors: Easyjet is making a contribution towards environmental resources as their
operating in a net zero carbon flight across network. This band is also researching on electric
green aircraft population technologies and hybrid technologies. It helps them in managing their
present brand image as they are working towards effective utilisation of present resources
(Hwang and Lyu, 2020).
From the above discussed factors can be summarised that there are many external factors
that are affecting the present functioning of easyjet this brand is engaged in offering low-cost
airline services but they have to understand the impact of various external factors to reduce its
negative impact on long-term functioning. Airline industry is governed by technology so there is
need to harness the challenges and transform them into profitable opportunities to remodel it for
the purpose of meeting changing technological aspects.

CONCLUSION
From the above made analysis it can be summarized that with the changing Times airline
industry is going through a rapid scenario of being affected by the macro environmental factors.
With the covid-19 pandemic there have been restrictions on travelling which has also affected
the productivity and profitability of airline industry. It becomes important to develop some
strategic initiatives in order to achieve the required competitive advantage and be ahead of
competitors. For this purpose there is requirement to build up a effective strategies in order to
deal with the situation of intense competition. There are many opportunities that are related to
diversification and service development which can be used by the present airline brands which
can help them in managing their present competitive position and dealing with the external
environment uncertainty in long run.

REFERENCE
Books & Journal
Huderek-Glapska, S., 2020. The air transport markets in Central and Eastern Europe. In Air
Transport and Regional Development Case Studies (pp. 121-144). Routledge.
Evans, N., 2019. Strategic management for tourism, hospitality and events. Routledge.
Grant, R.M., 2021. Contemporary strategy analysis. John Wiley & Sons.
Ritter, A., 2020. The TUDAPOL Principle: The Way to Think Unlimited, Develop Agile,
Produce & Operate Lean. BoD–Books on Demand.v
Bodnár, M., Jackle, F. and Linzner, T., 2020, April. Exploring the difference in perception of
service quality of Low Cost Carrier customers through online reviews: Social Media
Analysis. In ISCONTOUR 2020 Tourism Research Perspectives: Proceedings of the
International Student Conference in Tourism Research (p. 231). BoD–Books on Demand.
Weetman, P., 2019. Financial and management accounting. Pearson UK.
Ringham, K. and Miles, S., 2018. The boundary of corporate social responsibility reporting: the
case of the airline industry. Journal of Sustainable Tourism, 26(7), pp.1043-1062.
Fonseca, A.C.H., 2020. Equity valuation of the EasyJet Company (Doctoral dissertation).
Tahanisaz, S., 2020. Evaluation of passenger satisfaction with service quality: A consecutive
method applied to the airline industry. Journal of Air Transport Management, 83,
p.101764.
Hwang, J. and Lyu, S.O., 2020. Relationships among green image, consumer attitudes, desire,
and customer citizenship behavior in the airline industry. International Journal of
Sustainable Transportation, 14(6), pp.437-447.
Leeman, J., 2021. Export Planning: A 10-step approach--. BoD–Books on Demand.
Online
Annual net profit of easyJet plc from 2009 to 2020 [online], Available
through<https://www.statista.com/statistics/1007557/net-profit-easyjet-plc/>
Strategy, 2020 [online], Available through<https://corporate.easyjet.com/about/strategy>