Thread: EasyJet - 4
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Old 17th Sep 2014, 13:39
  #3776 (permalink)  
Join Date: Sep 2012
Location: Essex
Posts: 1,241
This is starting to go a little off topic now but I just want to clarify this:

This is not just about comparing EasyJet to Legacy carriers based on the level of service they provide. On that basis yes you may be inclined to compare them to legacy carriers, but others will not. Personally I don't rank them much if any higher than FR for the overall service, but that's just a difference of opinion.

This is about EasyJet as a business, the strategy and business model that they adopt. On that basis you can't compare them to legacy carriers, because the way in which the company works is completely different. They don't compete to be more like BA. That is fact!

Now that's not to say EZY cannot compete for BA's passengers and undoubtedly they do that well (evidently by some of the posts on here). The reason why they do that well is because they come across to passengers more like a full-service airline but differentiate themselves through their low-cost business model (which is an internal factor, meaning the typical passenger doesn't see that).

You may be thinking, well what's wrong with that? But the issue is that EZY doesn't operate a completely unique business model therefore it competes with those who also follow that model (which again is based mainly on low costs, speed and efficiency). Now when you look at it like that, FR, W6, DY, VY etc. are the clear competition there. BA, AF, LH much less so.

Notice that you see BA for example upping their game by having to cut costs, when quite contrastingly FR are having to up theirs by improving the service. That means BA having to adapt their model and make cuts within the company (such as having to cut cabin crew costs as SOE points out). FR for example doesn't need to make such drastic internal changes, only building upon the model they have in order to compete more strongly with EZY's product. The result of that is that FR comes across of more of a threat to EZY in the future, hence why I think it's a little worrying that EZY still see legacy carriers as their biggest competition.
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