Quantitative and Qualitative Analysis of EasyJet's Annual Report 2013

Including a Comprehensive Analysis of Financial Ratios and Industry Standards Benchmarked against Main Competitors

Markus Bäder

• Publisher: GRIN Verlag
• Year: 2015
• eBook ISBN: 9783656892229
• Edition: 0
• Topic: Business
• Subtopic: Accounting
• Index: Business

Seminar paper from the year 2015 in the subject Business economics - Accounting and Taxes, grade: 1, 0, University of Newcastle, language: English, abstract: Luton-based EasyJet is UK's largest low-cost airline, employing 8, 945 people and carrying 61m passengers annually. EasyJet follows Porter's low-cost strategy, effectively distinguishing itself from other LCCs by competing against established flag-carriers at primary European airports. The company streamlines its operations to cost-reduction, facilitated by a strong capital structure.Europe's airline industry has experienced a structural change since the recession in 2009, with major legacy-carrier continuously reducing their short-haul-capacity. Simultaneously, a KPMG study revealed that the cost gap between traditional and budget airlines has recently shrunk by 30%.EasyJet's business model distinctly differs from LCC-pioneer Ryanair as the Irish have strategically built a route network focused on serving secondary airports and thereby managed to keep the cost per seat 50% below EasyJet. However the Britons cost-control strategy resulted in a 48% favourable cost base compared to competing legacycarrier such as IAG.

Table of contents

• 1. Introduction