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Quantitative and Qualitative Analysis of EasyJet's Annual Report 2013

Including a Comprehensive Analysis of Financial Ratios and Industry Standards Benchmarked against Main Competitors

Term Paper 2015 38 Pages

Business economics - Accounting and Taxes

Summary

Luton-based EasyJet is UK’s largest low-cost airline, employing 8,945 people and carrying 61m passengers annually. EasyJet follows Porter’s low-cost strategy, effectively distinguishing itself from other LCCs by competing against established flag-carriers at primary European airports. The company streamlines its operations to cost-reduction, facilitated by a strong capital structure.
Europe’s airline industry has experienced a structural change since the recession in 2009, with major legacy-carrier continuously reducing their short-haul-capacity. Simultaneously, a KPMG study revealed that the cost gap between traditional and budget airlines has recently shrunk by 30%.
EasyJet’s business model distinctly differs from LCC-pioneer Ryanair as the Irish have strategically built a route network focused on serving secondary airports and thereby managed to keep the cost per seat 50% below EasyJet. However the Britons cost-control strategy resulted in a 48% favourable cost base compared to competing legacycarrier such as IAG.

Details

Pages
38
Year
2015
ISBN (eBook)
9783656892229
ISBN (Book)
9783656892236
File size
4.8 MB
Language
English
Catalog Number
v288365
Institution / College
University of Newcastle
Grade
1,0
Tags
easyjet annual report analysis impression management ryanair corporate communication

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Title: Quantitative and Qualitative Analysis of EasyJet's Annual Report 2013