Easy Jet: Brexit, COVID-19 Impact and Business Operations

This report provides a comprehensive analysis of Easy Jet, an airline company based in the United Kingdom. It begins with an introduction to Easy Jet, its establishment, and recent financial challenges. The main body delves into the market structure of the UK's airline industry, characterizing it as oligopolistic and highly competitive. The report then examines various economic factors influencing Easy Jet, including economic growth, inflation, fuel prices, employment rates, and foreign exchange policies, detailing their potential impacts on the company's profitability and operations. Furthermore, the report assesses the likely effects of Brexit on Easy Jet's business, considering implications for air service agreements, cross-border movements, and potential tariff impositions. Finally, the report analyzes the impact of the COVID-19 pandemic on the company's business environment and operations.

EASY JET

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1 Explain the market structure in the UK within which Easy Jet operates...............................................3
2 What are the economic factors within the UK that affects the business of Easy Jet.............................4
3 What are the likely impacts of Brexit on the business operations of the company................................6
4 Analyse the impact COVID19 is likely to have on the business of the company..................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10
Books and Journal.................................................................................................................................10

INTRODUCTION
Easy Jet is an airline organization headquartered in United Kingdom. It is a multinational firm
that facilitates international as well as domestic airline services for over thirty countries. The
respective airline firm was establishes in 1995 by Johan Lundgren. Easy Jet recently faced major
financial implications and losses due to the COVID-19 pandemic across the globe (Maneenop
and Kotcharin, 2020)The loss affected the operations as well as the profitability of the firm in its
market industry as well. The report highlights upon the examination as well as assessment of the
existing market scenario in United Kingdom in order to determine the impact of the same on the
business activities. The report will reflect upon the prevailing market structure in UK. It will
discuss the impact of economic factors as well as the Brexit policy on the business operations of
Easy Jet. The report also incorporated an analyses pertaining to the affects of COVID-19
pandemic on Easy Jet’s business environment as well as operations in its concerned industry.
MAIN BODY
1 Explain the market structure in the UK within which Easy Jet operates
Market structure can be defined as a concept which facilitates the business firms to understand
the characteristics as well as the level of competition prevailing in the market of respective
business industry. In order to lead sustainable business operations and ensure that the company is
heading towards the right direction, it is very important that to analyses the market structure .It
helps the business organizations to draw necessary pointers and can facilitate the firm in the
process decision-making as well as formulation of competitive strategies. Market structure of an
industry influences the business operations, profitability, performance as well as the share of the
business organisations in the respective industry. It is a very integral and significant component
that drives the business process. For instance, the demand of the products and services in an
industry is dependent upon the market structure of the same.
The airline industry in the United Kingdom follows an oligopolistic market structure. Oligopoly
can be characterised as a form of market wherein the competition and rivalry among the
organisation is imperfect. It means that few firms have the major dominance in the industry and
the rest are not considered as a competition (Sobieralski, 2020). Oligopoly can be stated as a

form of market structure in which the power lies in the hands of the dominating companies as
they have the necessary leverage to alter the business scenarios as well as fluctuate the business
game. In United Kingdom, specifically in airline industry it can be realised that all the firms
produce and provide the similar services to their customers which means that the airline firms are
edge to edge competing with each other in order to gain benefit over the rest. There is a major
interdependence between the firms as the decision of a particular firm in respect to price,
technology, strategy or promotion can have a major impact on the other firms prevailing in the
airline industry. It is not very easy for the budding organisations or the new firms to make a
potential place for them in the market structure of airline industry due to the high level of
competition within the same. It can be stated that the barrier for entering in the airline industry is
very high in United Kingdom. Easy Jet has been able to secure a position for itself in the airline
industry by providing enhanced competition to the other firms through facilitating differentiation
in context to the service quality as well as price. It can be stated that the market structure in UK
is very competitive in mature which makes it very difficult and complex for the new enterprises
to enter the same. In order to enter the airline industry, the business enterprises are required to
invest huge capital in the business operations. The promotion and adverting of the firms also
need to be regulated on a large scale in order to set a base in the respective industry (Nižetić,
2020). Hence, it can be said that Easy Jet monitors the market changes on a consistent manner so
as to indentify the potential alterations in the same. This assist the company in aligning its
business activities in accordance with the prevailing market structure of United Kingdom and to
smoothly operate within the same.
2 What are the economic factors within the UK that affects the business of Easy Jet
The primary objective behind establishment of a business organisation is to facilitate profit
generation. Profit maximisation is the ultimate goal of the organisation and business firms
formulate and implement various strategies and procedures in order to achieve the same. There
are numerous factors prevailing in the business environment which have the potential to create
implications and affect the business functioning of the firms in their respective industries.
Economy of the country in which business firm operates, plays a very significant role in the
regulation of the business operations carried out by the same.

Economic factor is one of the most important factors in the business environment which can
cause major implications on the processing as well as regulation of the business operations in the
target market. Thus, it is really important for the business organisation to study the economic
environment as well as to determine the economic factors which may affect the profitability of
the business firms in their respective industry(Amankwah-Amoah, 2020).There are various
economic factors prevailing in United Kingdom which can impact the short-term as well as long-
term business objectives of the firm. Some of the economic factors which can lead to implication
on the business functioning of Easy Jet in United Kingdom are as follows:-
The first and foremost economic factor can be categorised as the economic rate of growth and
development in United Kingdom. Economic rate of development can be characterised as an
important attribute that can impact on the success of a business organisation. The growth
facilitated in UK as well as the development policies of the same can have major implications on
the business of Easy Jet. The amount invested by the government authorities of United Kingdom
in the growth and development of the society and the population can also lead to severe impacts
the operations of Easy Jet. UK’s economic rate impacts the buying capacity of the local citizen
residing in the same. If the country enjoys a good economic rate, the population’s ability to
invest in the products and services will be enhanced. If the country faces a low in its economic
rate, the population buying capacity will also hinder due to the same. Thus it can be asses that in
order run the operations smoothly, it is important to assess the rate of economy prevailing in
United Kingdom. It is necessary for the Easy Jet to have the relevant awareness about the buying
capacity of the consumers in order to establish the prices of its services in accordance with the
same.
Inflation can also be characterised as an economic factors that can impact the business
procedures of Easy Jet. It can be characterised as a situation where in the intake of money in
economy is higher than the existing availability of products and services in the market
environment. Inflation enhances the cost of the raw materials as well as the other essential
utilities required for providing the services to the consumers. Inflation can also lead to the hike in
prices demanded by the organisation from their respective consumers. The reason for the same
can be stated as the immediate necessity of the business firms to generate enough cash inflows
that can be adjusted to the expenses of the same. Hence, Inflation is a condition that can also

create pressure for Easy Jet to facilitate hike in its prices so as to meet the expenses of the same.
Easy Jet is an airline firm that leverages upon price and the fact that the company has been able
to lead its operations successfully in the past is due to its low pricing (Mustapha, Yazid and
Shamsudin, 2020).
If the company due to any given reason facilitates a rise in its prices, this will further lead to
reduction in the retention of its current customers. Thus, it can be stated that the inflation in the
economic environment of United Kingdom is ought to adversely impact the profits of the
respective firm.
Fluctuation in the fuel prices in United Kingdom can potentially lead to major implication on
business operations of Easy Jet. Fuel can be termed as the most essential raw material for the
facilitations of the flights in an efficient manner. The hike in the fuel prices will lead to
enhancement in the expenditure of the company as it will have to beat extra expense on
acquisition of the respective raw material. The finance budget of the cornered business
organisation will be negatively affected due to the same. Hence, it can be said that sudden
alteration in the cost of fuel can impose major threat on the financial operations of the Easy Jet
and can heighten the complexity of budget constraints for the respective airline enterprise.
One of the most attribute of economy that can affect the business procedures of Easy Jet can be
characterised as employment. When the employment rate is high, the purchasing power of the
consumers in a country rises and they tend to invest more in the services of their interest. When
the employment rate is low, the population gets restricted from availing the services due to lack
of adequate finances. Hence, it can be derived that the work operations of affected due to rise in
rate of unemployment in United Kingdom.
Foreign Exchange policies and procedures are also likely to create a very significant impact on
Easy Jet. Being an airline industry, Easy jet is required to comply with the foreign exchange
policies in an appropriate manner (Amankwah-Amoah, 2020). Modifications in the foreign
exchange procedure which are not in the favour of the business organisation can affect the graph
of the passengers in the same. This can further lead to serious complication for the respective
firm.

3 What are the likely impacts of Brexit on the business operations of the company
United Kingdom’s aviation policies and procedures are quite effective but with the regulation of
Brexit, they may struggle a lot. The implementation of Brexit will lead to complication in
various agreements. For example, air service agreement in the respective industry.
Disrupted agreements will also impact the work operations of Easy Jet. The firm will not be able
to connect with the other countries as it used to do before. The connectivity within various
nations will also be reduced which will lead to negative implications on the travel and tourism
through airlines. The Company will not be able to exercise its operations more flexibility and
will be restricted to the contract.
The Brexit Policy results in more control over the cross border movement. Easy jet will not be
able to provide optimum service quality to its passengers in order to comply with the regulations.
For instance, delay in flights may happen due to the requirement for instant documentation,
legalities, compliance procedures and policy requirements. The passengers may not like to invest
their time and money in the respective organisation due to inefficient facilities which will further
impact the company’s overall brand image and market share in the industry.
According to the Brexit policy, tariffs needs to be charge on imported goods and products. The
respective policy can undermine the potential operational flexibility of Easy Jet. The company
will not be able to effectively implement its operations pertaining to the supply chain
management which will impact the efficiency of the same as well. Enhancement in the
procedures pertaining to the administration policies as well as the demand required for
facilitating the infrastructure will also hamper the business process of Easy Jet in the long run.
It can be assessed that the revenues will likely to drop with the application of Brexit policy in the
airline industry. Easy Jet will also be hampered due to the same and will not be able to realise
good amount of profit after the implementation of the respective policy in United Kingdom. The
inability of the passenger to spend access amount on acquisition of visa of other countries as well
as the complicated border policies will reduce their retention in the near future.
It can be said that the regulation of Brexit Policy will not be an asset to the Easy Jet and the
company will have to struggle with the consequences of the same as well. It will reduce the

passenger rate of the company as well as prohibits its capacity to expand its operations in the
upcoming years as well (Akbar and Kisilowski, M., 2020).
. The management will have to be very assertive while facilitating its dealing. In order to suit to
the Brexit Policy, major alterations and addition of several specifications will have to be
exercised by the respective airline organisation.
4 Analyse the impact COVID19 is likely to have on the business of the company
COVID -19 pandemic has changed the entire scenario of global market. The emergence of
pandemic has emerged as a potential threat to the business operations of various multinational
firms across the world ( Roy, S., 2020). According to the reports, it has been evaluated that Easy
Jet airline has recorded its first major financial failure in the last 25 years of existence.
The pandemic restricted the human interaction to the minimum. The governmental authorities in
United Kingdom imposed a ban on the unnecessary travel or tourism of the individuals in the
country in order to eliminate the risk of COVID Virus among the population. The respective step
impacted the airline industry in a very adverse manner. The reduction in the percentage of
passenger, affected the revenue generation of Easy Jet and the company was not able to cope up
with the grand expenses incurred during the COVID period. This led to a severe loss to the
company which can be termed as a big threat to the future operations of the same in its respective
industry.
Not only financial loss, the company also lost hold of its market share in the industry due to its
incompetency to align with the uncertainty in the business domain. The retention of the
passengers and client were reduced to minimum and the firm was not able to cope up with the
same as well.
Due to the ongoing pandemic, the company is required to implement serious measures in order to
ensure the safety of the individuals during the flights (Kim, K., 2021). The guidelines set out by
World Health Organisation are required to be regulated by every business firm in order to
promote wellbeing and safety of their employees, staff members, clients etc.
The management structure of the company also went through major disruptions because of
COVID-19. Several employees head back to their native places which impacted upon the

turnover of the employees. The decrease in the staff members resulted ineffective and
incompetent work operations which impacted upon the servie quality delivered by the personnel
of the respective airline firm.
The level of motivation within the employees also reduced due to the pandemic as they were
away from their homes and was tensed about their families and closed ones. The decrease in the
motivation led to unproductive work operations. It became very critical for the business firm to
manage the staff and guide the same in the right direction. All the above mentioned reasons can
be characterised as the major triggers that facilitated a huge loss to the company.
It can be assumed that the company will have to work really smart in order to recover the
incurred losses in the future (Schuler, T., 2020).
. The company will have to rely upon the advance digitalisation strategies in order to manage the
work n a deliberate manner. COVID -19 has given rise to the online culture wherein payments,
tickets, visas, documents, passports and communication will be required to be facilitates through
online medium in order eliminate the requirement for in person contact. Easy Jet will be required
to alleviate its business functions through the capitalisation of online portals in order to precede
its work in efficient manner and provide satisfactory customer experience to the passengers as
well.
CONCLUSION
From the above analysis, it can be concluded that Easy Jet has not been able to effective exercise
and execute its business operations in competent manner. The reason for the same is examined to
be the emergence of COVID pandemic. The insufficiency and incapability of the firm to respond
to the implication and affects of the global pandemic contributed to its first failure from the day
of its establishment. It can be stated that the economic environment United Kingdom is currently
not optimum for the company to take higher risks. The company should be equipped with the
contingency strategies in order to reduce the severity of the obstacles and overcome the same in
an effective way. The Brexit Policy is also likely to add more complication to the work
operations and sustainability of Easy Jet as well. All and all, it can be summarised that in order to
sustain in the airline industry and acquire good market position, the company will have to rely

upon excellent strategies in termed of management competency and service quality. Increase
focus and concentration upon the abovementioned strategy can help the firm to revive back its
position and earn major profits in its concerned industry.

REFERENCES
Books and Journal
Maneenop, S. and Kotcharin, S., 2020. The impacts of COVID-19 on the global airline industry:
An event study approach. Journal of air transport management, 89, p.101920.
Sobieralski, J.B., 2020. COVID-19 and airline employment: Insights from historical uncertainty
shocks to the industry. Transportation Research Interdisciplinary Perspectives, 5, p.100123.
Nižetić, S., 2020. Impact of coronavirus (COVID‐19) pandemic on air transport mobility,
energy, and environment: A case study. International Journal of Energy Research, 44(13),
pp.10953-10961.
Amankwah-Amoah, J., 2020. Stepping up and stepping out of COVID-19: New challenges for
environmental sustainability policies in the global airline industry. Journal of Cleaner
Production, 271, p.123000.
Mustapha, N.N.S.N., Yazid, M.F.M. and Shamsudin, M.F., 2020. How airline industry may rise
post covid-19 pandemic. Journal of Postgraduate Current Business Research, 1(1).
Amankwah-Amoah, J., 2020. Note: Mayday, Mayday, Mayday! Responding to environmental
shocks: Insights on global airlines’ responses to COVID-19. Transportation Research Part E:
Logistics and Transportation Review, 143, p.102098.
Akbar, Y.H. and Kisilowski, M., 2020. To bargain or not to bargain: Airlines, legitimacy and
nonmarket strategy in a COVID-19 world. Journal of air transport management, 88, p.101867.
Kim, K., 2021. Impacts of COVID-19 on transportation: Summary and synthesis of
interdisciplinary research. Transportation Research Interdisciplinary Perspectives, 9, p.100305.
Schuler, T., 2020. Impact of the COVID-19 lockdown on trade in travel services. Economic
Bulletin Boxes, 4.
Roy, S., 2020. Economic impact of COVID-19 pandemic.