2. The business of Airline Company
Presentation of the company
Case Study
EasyJet Airline Company Limited
Founded in 1995, Luton (UK) : Strong Culture : Orange
12 years of amazing achievments Safety - Our number one priority,
no compromises
Teamwork - We'll get there faster
114 destinations together
Fleet size 170 Pioneering - Breaking the mould
to find new ways and new
opportunities
Passionate - We're ambitious to
be the best we can be
Integrity - We mean what we say
and we do it!
Upright devlopment : Hotels Booking etc..
3. Value Chain in Airline Companies
Case Study
Procurement
Organisational infrastructure
IT + IS
HR
In Bound Out-Bound
Operations Marketing Service
Logistics Logistics
4. Many
Destinations
Case Study
Low
Majors
Cost
Lower Quality Higher Quality
Niche
Charters
Players
¤ Concentration
¤ 2 dominant groups
¤ Cost-killing
= lowest price + safest travel
6. Operational Difficulties
Case Study
- Maximize the rate of occuped seats
- Maximize the price of sold seats
- High cost of offline booking (call centers)
- Merger with Go will increase the volume oof transactions
- Being ticketless (customers, security, process)
- High competition with other competitors (Ryanair)
- Some problems in the booking process date, the flight doesn ›t
correspond always at the choice of the customer.
7. Operational Difficulties
Case Study
Before :
- There was only a customer service via call center, a phone number to book
flights.
- Easyland callcenter was overwhelmed before the website birth
- Having only a manned callcenter doesn’t suit to the strategy of low-cost flights.
- Website with just some informations about the company
After :
- Automated service via on-line trace and track functionality
- Thanks to the website, Easy Jet has done the transition:
upstart airline à Europe’s leading low-cost career
- First airline company to provide only Internet-promotions
- Bugs during the bookings è necessity to improve the XML or HTML languages? If
it’s a problem from the server, Easyjet can’t deal with it.
Cancelled flights è unsatisfied customers (ex: Easyjet doesn’t reimburse unless it is
summonsed.)
“C'est avec regret que nous ne pouvons répondre favorablement à
votre demande de compensation. En effet, easyJet est une compagnie Aérienne Low-
cost et c'est pour cette raison que nous limitons nos dépenses liées aux retards et
annulations de nos vols. »
8. Goals of the Project
- Increase sales. Case Study
Abstract - Cost lower : reduce call centers
- Develop the Web site of easyjet.com.
- Offer real time promotions.
- Take advantage of internet to change the business model.
- To offer customers a reasonable choice of flights
- Be more competitive on the market
Concrete
- Simplicity : no heavy design
- No concerns with « stickyness »
- Fast transaction execution
- Security of transactions
- Integration of GO web site
9. Succes of IS initiatives
Case Study
90% of their sales are generated from the
Internet
Reduction of costs =>The strategy of the
company allowed the firm to have a cost
structure, 50% lower than those of its
competitors.
Sell online is cheaper than through the call
center
10. Succes of IS initiatives
Case Study
Exemples
Clear
Creative
Easy to Use
11. Succes of IS initiatives
Case Study
Exemples
Check in online
Booking Box
12. Succes of IS initiatives
Case Study
Exemples
Meets customers needs
13. Potential problems
Case Study
Evolution of the business secteur
- The cost higher and higher because of fuel
(sometimes companies loose less money by canceling flight)
- The concentration of the concurrence (low cost, charters,
majors and niche players)
- The crise: lower purchasing power
- New habit of consumption ( sustain developpement)
- Difficulties for the companies in being profitable
14. Potential Problems of the IS system
Case Study
Scaleability :
Very important : two significant European airlines (merger
with Go) increase the volume of transaction
Site maintenance : expansive
Intranet system can be busy.
Microsoft ability to keep up : XML can be costly to the firm.
Trivialization of the process : other companies have chosen the same
kind of system.
15. With its new strategy of opening its doors to e-commerce and
create a website, EasyJet has known a great success.
However, some problems are related. EasyJet is still working on it
and is trying to improve it...
Conclusions
