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.............................. EasyJet Airline
Logo and Trademark..............................
EasyJet (LSE: EZJ), styled as easyJet, is a low cost airline officially known as EasyJet Airline Company Limited, based at London Luton Airport. It is one of the largest low-fare airlines in Europe, operating domestic and international scheduled services on 307 routes between 80 key European cities. The company holds a United Kingdom Civil Aviation Authority Type A Operating Licence permitting it to carry passengers, cargo and mail on aircraft with 20 or more seats.
The airline was established on 18 October 1995 and started operations on 10 November 1995. It was launched by Stelios Haji-Ioannou with two Boeing 737-200 aircraft wet leased from Independent Aviation Group Limited ("IAG"). IAG, in turn, sub-contracted the operation of the aircraft to GB Airways, and then to Air Foyle from May 1996 onwards. EasyJet initially operated two routes: London Luton to Glasgow and Edinburgh. Its early marketing strategy was based on 'making flying as affordable as a pair of jeans' and urged travellers to 'cut out the travel agent'. This caused much outrage among travel agents. In March 1998 it purchased a 40% stake in TEA Switzerland, renamed EasyJet Switzerland. EasyJet was floated on the London stock exchange in October 2000. Operations were boosted in 2002 with the acquisition of rival airline, London Stansted based Go Fly. In December 2003 EasyJet announced it would open a new hub in Berlin, at Schönefeld Airport, from which it started flying on 11 routes from May 2004.
In October 2004 the FL GROUP, the owner of airlines Icelandair and Sterling, purchased an 8.4% stake in EasyJet. Over the course of 2005, FL increased its share in the company periodically to 16.9%, fuelling speculation that it would mount a takeover bid for the UK carrier. However, in April 2006 the threat of takeover receded as FL sold its stake for €325m, securing a profit of €140m on its investment. In November 2005 chief executive Ray Webster stood down after 10 years at the helm. He was replaced by ex RAC/Lexx Group chief, Andy Harrison.
EasyJet was prevented from launching its Milan Malpensa-Olbia route in April 2006 by the Italian aviation authorities. The route had been assigned to Meridiana as a public service obligation route. The Italian authorities had granted exclusivity in return for fixed low fares for Sardinian residents on routes from Milan and Rome to the Sardinian airports of Alghero, Cagliari and Olbia. This was however overturned and EasyJet commenced flights from Milan Malpensa airport to Olbia (21st October, 2007) as well as Sardinia's capital, Cagliari (29th October, 2007).
EasyJet announced preliminary results for the year to September 2006. In the year it had grown its fleet to 122 aircraft and expanded its network to 262 routes and 74 airports in 21 countries (58 new routes and 11 new destinations had been introduced in the year). Passenger numbers rose by 11.5% to 33 million and it was able to post a record profit of £129 million before tax, a rise of 56% over 2005
It was announced on 25 October 2007 that EasyJet is to buy GB Airways. The deal is worth £103.5M and will be used to expand EasyJet operations at London Gatwick Airport. GB Airways will continue to honour its British Airways franchise agreement and continue to operate as GB Airways until 29 March 2008, after which it will merged into EasyJet. Slots used by GB Airways at London Heathrow Airport are not included in the sale.
Borrowing their business model from American air carrier Southwest, EasyJet and its Republic of Ireland-based rival Ryanair are by far the largest low cost airlines in Europe, and the rivalry between them is intense (especially on Ryanair's side from its high profile chief executive Michael O'Leary). The two companies have slightly different strategies. EasyJet flies mainly to leading airports while Ryanair uses far more secondary airports to reduce costs. EasyJet places more focus on attracting business travellers as well as leisure travellers, although all its aircraft have single-class cabins.
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