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Old 18th Jun 2015, 22:33
  #4016 (permalink)  
EI-BUD
 
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easyJet do not typically stay in the market where intense competition exists unless the competitor is less strong, i.e. it will go up against higher cost OR weaker competitors. Examples include putting it up to Flybe or Aer Lingus, however, where Norwegian, Ryanair or Vueling (and Wizz I guess, but no big cross over), they will bow out rather than make small or no returns. An unwavering interest in shareholder return. And to date the company is performing strongly and returning good profits, so clearly some merit in its approach.


easyJet is a prudent operator and do not waste time losing money in markets that long term will not be profitable or secure.
Nonetheless, as the saturation of the market by the lower cost operators continues a pace easyJet may find this competition more prevalent, hence, they need to continue to focus on areas that are more fruitful, I.e. hitting the legacy carriers and focusing on hub airports etc.


EI-BUD
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