Such A Shocking Way to do Business?
Such a shocking way to do business? Well, that all depends. I can certainly understand why a dramatic reduction in EZY's commitment to STN is profoundly disappointing to those who champion the airport. Believe me, I empathise. But that does not translate to poor business strategy from the point of view of a profit-orientated company. They have to prioritise the 'big picture' over local expediency. Loyalty to a locality is strictly the remit of mayors and councillors, not experienced corporate decision-makers.
EasyJet has in recent seasons seized the opportunity to expand rapidly at a competing airport serving the same conurbation as STN. As events abruptly freed up precious blocks of scarce slots on LGW's heavily-subscribed single runway, EasyJet was the carrier which very smartly took advantage. Each time slots came available, EasyJet was proactive in adding them to its portfolio. As a result of this policy, EasyJet has now secured a predominant position in short-haul at an airport which has become by far their most strategically-important base. Their fleet at LGW has grown at a phenomenal rate; the recent acquisition of former FlyBe slots facilitates another leap in capacity this year. What are they up to now … is it 68 based units at LGW? Something like that, anyway. And EasyJet is making good money. I haven't studied the accounts in any detail, but could LGW perhaps represent a higher-yield profit opportunity than STN? An airport where they are not head-to-head with Ryanair to such a significant extent?
Unfortunately, EasyJet is even more constrained than most other carriers in allocating additional airframes at short notice, as they are suffering the hangover from the dispute with Stelios concerning the rate of fleet expansion. So the airframes to support the LGW opportunity had to be sourced from other bases in a hurry. STN has been one of the losers as a result of this strategy, but not the only one. Other EasyJet bases have also seen cuts or slower-than-anticipated expansion to accommodate the LGW invasion. But of course STN, serving the same major city, is more in the crosshairs than most. I know we PPRuNers can argue passionately that STN and LGW catchment areas are different … that is true … but there is very considerable overlap, and EasyJet has determined that LGW is the airport which will maximise their bottom line in the long term. Placing supremely capital-intensive scarce resources (aircraft assets) at your most important profit centre isn't "a shocking way to do business". It is the only LOGICAL way to do business.
Note that I do not present this case out of any bias towards LGW. My local airport is MAN. EasyJet's fleet there is stubbornly frozen at eight based units … I would dearly love to see double that. But I can completely understand why it just can't be so (yet). LGW is an opportunity that EasyJet as a profit-driven business must seize. I empathise with the frustration of STN cheerleaders on this issue, but I cannot for one moment agree that EZY's strategic decision to colonise LGW represents "a shocking way to do business".