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easyJets 500 million gamble

...
easyJets operations clearly mirrored the model pioneered by Herb Kelleher at Southwest Airlines: one type of aircraft, point-to-point short-haul travel, no in-flight meals, rapid turnaround time and very high aircraft utilization. ... However, easyJets founder modified the model to benefit from Southwests experience:
`The main reason for these modifications was that Southwest had been in the business for 25 years whereas I was starting from a clean piece of paper. ... Stelios decided to fly easyJets 737s using their maximum seat capacity of 148 seats. ... Stelios and Ray believed the easyJets operational model could be copied, but that their corporate culture could create a sustainable advantage that competitors would have difficulty emulating. ... easyJets ? ... The routes between London and these three Scottish cities represented almost 30 per cent of the 14 million domestic UK passengers in 1995, allowing easyJet to rapidly reach critical scale.
To support easyJets rapid growth, Stelios recruited several seasoned airline executives, including Ray Webster 末 formerly General Manager Strategic Planning in Air New Zealand 末 who joined easyJet as Managing Director with full responsibility for the day-to-day management of the airline. ... easyJet in 1998
By early 1998, easyJet owned a fleet of six Boeing 737-300s, each of which was emblazoned with easyJets phone number 0900 292929 painted in bright orange, and flew 12 routes in five countries (Table 3). easyJets headquarters were in `easyLand a bright orange airplane hangar adjacent to the runway of Londons Luton airport. ... easyJet Destinations
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easyJets management team occupied two Spartan rooms opposite the reservation center. ... 1998)

Until early 1998 Luton airport served as easyJets exclusive hub. Stelios initially chose the United Kingdom as easyJets base because it offered lower labor costs and more sophisticated consumers than most Continental European countries, and he selected Luton airport as easyJets hub because it was close to London (30 minutes from central London by train) and charged lower airport fees than Londons major airports 末 Heathrow and Gatwick. Although Lutons convenient location and low costs had contributed to easyJets initial success, the airlines demand was beginning to outstrip Lutons capacity. ... easyJets marketing focused on its low fares and punctuality, emphasizing both its low prices and impressive record of on-time departure. stelios summarized easyJets marketing strategy, `we make limited promises, but make sure we consistently deliver on them.


Approximate Word count = 1869
Approximate Pages = 7.5
(250 words per page double spaced)
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