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EasyJet - 4

Old 14th Sep 2014, 20:59
  #3761 (permalink)  
 
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It's the Rabbit from Alice in Wonderland, surely you get that. "I'm late, I'm late....." I know the guys who did this. I'll have a chat.
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Old 14th Sep 2014, 21:17
  #3762 (permalink)  
 
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Interestingly, the add as per usual protocol comparisons are with BA. That's a fair approach for LGW operations, but on a serious not, with FR at more primary airports, and with good track records with regard to punctuality and price, are easyJet shying away from the elephant in the room?

I'm certainly an easyJet fan, but FR are moving fast and with so many new Boeings in the pipeline, these 2 are going to end up infringing on each other patch more than ever. Enter FR's foray into UK domestics and onto 2 of easyJet's leading STN routes....
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Old 14th Sep 2014, 23:20
  #3763 (permalink)  
 
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FR operated against EZY to Glasgow albeit from PIK for well over a decade, there is room for both.
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Old 15th Sep 2014, 06:00
  #3764 (permalink)  
 
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Easyjet sees the legacies as it competition more than FR. Plus, they have been going after the business traveller for quite a while now (the aim of the ad) and generally speaking who does the business traveller fly with? BA or Ryanair?
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Old 15th Sep 2014, 08:23
  #3765 (permalink)  
 
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Do you have knowledge/opinion why they went up 60% so fast and then retreated 30% equally quickly?
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Old 15th Sep 2014, 10:43
  #3766 (permalink)  
 
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That's the bit that worries me. EZY don't seem to recognise the competition from FR as much as they should.


Despite what they say, they don't really compete with legacy carriers, they just target their passengers. There's a difference.


As businesses, the legacies are stagnant, inefficient and often loss making in short-haul operations. Why on Earth would EZY compete with that?


They almost don't seem to recognise the real threats, the real competition from the likes of FR, W6 or DY who like EZY have lower cost models than the legacies who can compete more on price and are able to open up more routes in competition with EZY.


They seem to just say they are better than FR because they use primary airports!? If you look at FR, they just slag off the legacy carriers because they recognise that they are of virtually no threat to them. They see EZY as their competition because they are the biggest threat to their business model which is primarily based upon low costs, speed and efficiency.


Personally I think EZY have over emphasised on the business traveller almost to the point where it seems to be cannibalising new products, services and overall growth for leisure passengers. Contradictory to FR who through their business plus and family extra products, are evidently trying to lure both from their competition.


But EZY need to get their act together if they don't see FR as their biggest and most threatening competitor. And crappy TV adverts that don't even really make sense or even that much relation to a business product is certainly not going to help!
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Old 15th Sep 2014, 11:55
  #3767 (permalink)  
 
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FR operated against EZY to Glasgow albeit from PIK for well over a decade,
there is room for both.
Yes this is true Skipness, but my point is more that easyJet makes a comparison with BA while increasingly they are competing with FR in between the same airport pairs. easyJet could in the past have avoiding comparison with FR ex PIK but now it same airports.

At a point in time there were up to 8 rotations on PIK STN by 73S's.. but that was a long time ago, and so much has changed in that time...

While there may be room for both, it is clear that easyJet are moving their STN services away increasingly. ALC has moved to SEN as have others. They are increasingly leaving STN to be the routes where FR will not enter, such as CPH Bilbao etc. So yes there is plenty of room, but easyjet may not like the yield environment up against FR.... we shall see...
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Old 15th Sep 2014, 12:28
  #3768 (permalink)  
 
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Despite what they say, they don't really compete with legacy carriers, they just target their passengers. There's a difference.
They really, really do compete with legacy carriers, they took an enormous amount of passengers from exisiting legacy carriers who felt they were being ripped off by BA. At LGW, people stay with BA for Avios and complain about the complete lack of onboard service. Unless a lounge is an absolute for you, a huge amount of the exisiting market uses EZY over BA when spending it's own money, which allows EZY to run a frequent schedule to be attractive to business. What you mean is they don't do connections, however given P2P is a huge part of legacy business and EZY are taking it from them, that's clearly competing.
Your analysis mixed apples with pears.
As businesses, the legacies are stagnant,
Or in terms of KLM and say BA, the short haul operation supports the more profitable long haul, they're co dependent and in good years, the profits roll in. Aviaiton is notoriously loss making btw. When you say stagnant, that does rather ignore the aggresive cost cutting measures BA have taken to put their cabin crew costs into line as near as possible with the market rate. A network carrier will always have big overheads, but they're slightly different business models.
In terms of market placement, Ryanair are still going to be positioning themselves as cheaper than EZY, but moving away from the growth spurt as an ULCC. The business models are moving closer and the overlap will increase but there's still going to be a distincitive place in the market for both. I think this discussion is a little focussed on STN which in terms of EZY alone is the loser out of a LGW/LTN/STN/SEN sandwich.
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Old 15th Sep 2014, 16:51
  #3769 (permalink)  
 
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What you mean is they don't do connections
No, that isn't really what I mean.


What I mean is that EasyJet is not competing with legacy carriers in terms of the business model. When EasyJet first revealed services like the FLEXI fare and allocated seating, it's not changing their model to compete with legacy carriers.


If rolling out those services effected their low-cost model (eg. allocated seating slowed down turnaround times) they would simply not do it. It simply just gives them some extra added value.


EasyJet use this model the give them a cost advantage to then go in and penetrate the markets the legacies operate in (eg. BA at LGW, AF in CDG, KL in AMS) and gain market share through lower costs and lower fares. They don't need to operate connecting flights because as you say, they are able to do it with just P2P passengers and again operating connections would effect (negatively) their low-cost model.


Despite also what they say, they are not the best at opening up markets because as I say, they penetrate markets already well established. This reflects their claim that 75% of their new aircraft deliveries will be used on exiting routes and only 25% for new routes (it isn't made clear if they are exclusively "new" routes or just linking up more of the dots in their current network).


The real competition to EZY is as I say airlines like FR, W6 and DY as they are the ones who operate with similar business models to EZY in the sense that it's based on low costs, speed and efficiency.


FR competes with EZY but not just for passengers and market share, but also in the way that the business works and how it's structured, which is fundamental.


All I'm saying is I think EZY need to recognise that sooner rather than later. At the end of the day, you compete with who poses the most threat to you, and for EZY I don't believe that is the legacy carriers.
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Old 16th Sep 2014, 00:02
  #3770 (permalink)  
 
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rolling out those services effected their low-cost model (eg. allocated seating slowed down turnaround times) they would simply not do it. It simply just gives them some extra added value.
I don't think there is any evidence to support the statement that allocate seating slowed turn. It was introduced alongside an ongoing focus on turn times, and improvements have been made on the turn such as removal of head count on board.

Ref who the competition are; Carolyn has said clearly that Norwegian , Ryanair, Vueling all have lower costs than ezy. No secret. Hence, going after the legacy business and rowing in with slightly lower fares than legacy carriers is a lucrative strategy . My original point was that they compare with the legacies in adverts etc but progressively it is FR they worried about ...
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Old 16th Sep 2014, 01:59
  #3771 (permalink)  
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When the overcapacity tsunami hits the EU airline market in the near future EZY has an extremely well designed shelter on high ground. Rabbits in adverts won't come into it.


WWW
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Old 16th Sep 2014, 08:59
  #3772 (permalink)  
 
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I don't think there is any evidence to support the statement that allocate seating slowed turn.
EI-BUD, Please read my post carefully. I never said it did.


I said, as an example McCall has used when talking about this, that IF allocated seating slowed turnaround times then they wouldn't be doing it because it would harm the low-cost model.


The fact that they ran the trial and successfully do use allocated seating means that as you say, it hasn't had any significant impact on turnaround times.
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Old 16th Sep 2014, 09:45
  #3773 (permalink)  
 
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I travel on business regularly and know a lot of people who do the same. I can state quite categorically that as a business traveller I do compare Easyjet with the legacy carriers and along with many others have moved from the legacies to Easyjet for many flights.

I can also say from the evidence of my conversation with other business travellers they do not perceive Ryanair in the same manner.

Whilst I accept the above is not scientific I personally believe that Easyjet's comparison of themselves in the advert to British Airways is exactly the correct course of action.

Also I actually find the advert quite amusing.
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Old 16th Sep 2014, 11:21
  #3774 (permalink)  
 
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I travel for work on a reasonably frequent basis using several different carriers. I avoid Ryanair wherever possible but I genuinely enjoy the easyjet product. By no means is it perfect but I believe they have a product that competes favourably with many legacy carriers. Ok, you might not get your free scotch but the service is pretty good and their crews are, on the most part, genuinely very friendly.


Anecdotally, there seems to be a lot of surprise at how good Easyjet are when I've come across first timer flyers of the airline, you never really get that at Ryanair......not always complaints but a hell of a lot of indifference. Amongst a lot of business travellers, my colleagues particularly, there does seem to be a certain affection of easy if not a degree of loyalty. That's pretty hard to achieve in this business and in todays climate.


I compare Easy to BA and Lufty. I can't say the same for Ryanair.
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Old 16th Sep 2014, 16:22
  #3775 (permalink)  
 
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You might compare EZY to BA ex LGW with 40+ aircraft based there. However, up North at MAN, at best you have one flight a day up against multiple daily departures by LH, LX. KL & AF.
The vast majority of the pax using the legacies ex MAN are interlining. I still view EZY up north as a bucket & spade operator & their competition here is Jet2, Ryanair & Monarch.
Maybe one day, one of the major locos would offer interlining ? Something that SouthWest has done very successfully in the USA.
As for the pesky wabbit.....more pointless than timeless.
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Old 17th Sep 2014, 12:39
  #3776 (permalink)  
 
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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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Old 17th Sep 2014, 12:54
  #3777 (permalink)  
 
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Anyone here from Easyjet?

When will they post their 2015 summer timetable and prices on the website?

Many thanks
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Old 17th Sep 2014, 13:28
  #3778 (permalink)  
 
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I fear easyJet could be easily wrong footed by Ryanair, who seem now to be on the right track. Ryanair have been talking up 500+ aircraft in 10 years (with easyJet in the 300's), new business/family options, allocated seating and network changes to be more 'business friendly' are all encroaching on the EZY advantage.

Regarding legacy short haul, both AF/KL and LH are launching lower cost offshoots, and it should be more of a level playing field. FR with a lower cost base, competing on the same (or if not similar routes), with more aircraft could possibly stifle both markets.
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Old 17th Sep 2014, 13:32
  #3779 (permalink)  
 
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Yeah and FR have been talking about transatlantic for at least ten year. What is said, and what is reality are often at odds.

They park planes up all over as it is in winter, where are going to park the extra 200 and where are they going to fly more importantly?

F Castro: the hat I believe was a trial by a handful of crew in one base about six months or so ago. As far as I was concerned the trial finished and nothing was heard about the hats. But I spotted a picture of one taken by a passenger last month, so I am really unsure. They look a bit silly.
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Old 17th Sep 2014, 13:41
  #3780 (permalink)  
 
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FR are trying to break into mainline airports - just look at the schedules for STN to Barcelona, Madrid, Rome - they are all multiple per day, and will increase utilisation in the winter, rather than flying to marginal destinations on yield through the off season (French regional routes/summer holiday destinations for example).
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