E-Marketing Review for Easy Jet Essay Example | Topics and Well Written Essays - 5000 words

E-Marketing Review for Easy Jet - Essay Example By the year 1999, the airline grew to be the fifth biggest airline in the US in context of the total number of domestic passengers it flied. Not only the airline grew in size but it also managed to be profitable for the entire period of thirty odd years when many well established large airlines like the USAir or the Continental were making losses. This established the fact that there is room for low cost no frills airlines like Southwest and if operated judiciously, the model could offer good revenue and profit. In Europe the initiator of low cost model of airlines was Ryanair, an Irish company, which incidentally when launched in 1985 was offering traditional airlines services but at a comparatively lower price. Though Raynair’s low prices pushed big competitors like British Airways to reduce their prices, yet Ryanair itself was unable to make any profit till 1991. But during this period the management gave a visit to Southwest’s Texas operations and came back decided to introduce the no frill low cost structure in their airline also. This resulted in profit in 1992 and since then Ryanair has become a marquee name in this industry. (Doganis R., 2006). In the year 1995 EasyJet was founded by Haji Ioannou based on the same philosophy of low cost and no frills, in footsteps of Ryanair and Southwest airlines. EasyJet has setup its base at Luton airport which is a secondary one, to cut operational costs and beat congestion and maximize turnaround time. The airline has been successful in implementing the low cost model and has become the 2nd largest airline in the low cost arena, just after its main competitor Ryanair in Europe (Rothwell S., October 2008). At the initial stages during 1995 EasyJet operated with two Boeing 737-200 aircrafts which were leased and contract pilots and other staff. Financials: EasyJet had revenue of  £1797.2 million in 2007 with corresponding profit of  £ 152.3 million. In 2008 EasyJet had much