easyjet geography case study

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Geography Unit 1, Going Global Case Study 3 - easyJet

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• going global

Resource summary

The easyJet airline was founded in 1995 by Sir Stelios Haji-Ioannou. It began as a small venture, running flights solely within the UK. Most of Europe's major cities are now interconnected via easyJet's cheap flight network.At the start, the airline had just two aircraft. Inaugural flights from Luton to Edinburgh and Glasgow were supported by the advertising slogan 'making flying as affordable as a pair of jeans - £29 one way'. In 1996, flights to Barcelona commenced and thereafter the company expanded at breakneck speed. Now it has around 300 flight routes in the EU. Shortly after its 100 millionth passenger flight in 2005, easyJet announced another massive expansion, this time into new markets outside the EU (to Marrakech, Istanbul and Rijeka).Clear signs of the firm evolving into a major TNC came early on in 1998 when easyJet acquired 40% of the Swiss air company TEA Basel AG, allowing it to establish its first European base in Geneva.Technology has helped to build the easyJet global network. It was one of the first airlines to embrace the opportunity of the internet, and the company's first online sale was made in April 1998. Now approximately 95% of flights are purchased in this way, making easyJet one of Europe's biggest internet retailers. By 2006, the company owned 122 aeroplanes (both Airbus and Boeing), carrying 33 million people to their destinations that year and bringing revenues of nearly £2 billion.Places that easyJet adds to its flight network become more 'switched on'. For instance, Tallinn in Estonia is home to 400 000 people. On 31 October 2004, easyJet started to fly British tourists there for just £40 each. Suddenly, the city became an affordable destination for UK citizens, especially groups of young men and women seeking a cheap but interesting destination for 'stag' and 'hen' weekends. There have been complaints of bad behaviour, and a rise in sexually transmitted diseases has been reported. However, the new route has brought more money to Tallinn and boosted trade for its hotels, restaurants, bars and nightclubs.

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Shrinking World

The 21st century has been dominated by rapid development in ICT and mobile connections, as shown by this map. This has meant that globalisation is deepening its connections at an unprecedented rate. The proliferation of the internet and mass consumption of mobile phones has caused space-time compression, meaning we can call people anywhere in the world, or book a flight to most places at the click of a button. This is happening at a much greater speed than previously, accelerating globalisation hugely.

Factors of Acceleration

The factors that have accelerated globalisation are wide and varied. These are the main factors in the 20th and 21st Century that have accelerated globalisation.

Colonialism

Containerisation

International Monetary Fund/World Bank

Increased Trade

Financial Market Trading

Information Exchange

This table shows a timeline of events that have accelerated globalisation.

The easyJet airline was founded in 1995 by Sir Stelios Haji-Ioannou. It began as a small business, but now most of Europe’s major cities are connected via easyJet’s network.

At the start, the airline had just two aircraft flying within the UK. In 1996, flights to Barcelona commenced, now it has around 300 flight routes in the EU. Shortly after its 100 millionth passenger flight in 2005, easyJet announced another massive expansion, this time into new markets outside the EU (to Marrakech, Istanbul and Rijeka).

In 1998 easyJet acquired 40% of the Swiss air company TEA Basel AG, allowing it to establish its first European base in Geneva.

Technology has helped to build the easyJet network. It was one of the first airlines to embrace the opportunity of the internet, and the company’s first online sale was made in 1998. Now approximately 95% of flights are purchased in this way, making easyJet one of Europe’s biggest internet retailers . By 2006, the company owned 122 aeroplanes, carrying__ 33 million__ people to their destinations that year and bringing revenues of nearly__ £2 billion__.

Places that easyJet adds to its flight network become more ‘switched on’. For instance, Tallinn in Estonia is home to 400 000 people. In 2004, easyJet started to fly British tourists there for just £40 each. Suddenly, the city became an affordable destination for UK citizens. The new route has brought more money to Tallinn and boosted trade for its hotels, restaurants, bars and nightclubs.

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Mathematics, health & fitness, business & finance, technology & engineering, food & beverage, random knowledge, see full index, lesson two - easyjet case study flashcards preview, geography-human > lesson two - easyjet case study > flashcards.

Who was the founder of easyJet?

Sir Stelios Haji-loannou

In what year year was easyJet founded?

What was the first slogan of easyJet?

Making flying as affordable as a pair of jeans

How many passengers did easyJet have in 2014?

By 2014 the company owned how many aeroplanes

What was the revenue of the company in 2014

Decks in Geography-human Class (57):

• Lesson One Globalisation
• Lesson Two How Globalisation And Developments In Transport And Communication Has Impacted Businesses Globally
• Lesson Two Easy Jet Case Study
• Lesson 3 Causes Of Globalisation
• Lesson 4 Trade Blocs And Nafta
• Lesson 4 Uk And China
• Lesson 5 Switched On And Switched Off Places
• Lesson 6 Causes Of Globalisation And Why It Has Accelerated
• Lesson 7 Economic, Social And Environmental Impacts Of Global Shifts In Economic Activity
• Lesson 8 Migration
• Lesson 8 Megacities And Urbanisation
• Economic Migration Due To Globalisation
• Mumbai Vs Lagos
• Cultural Changes Due To Globalisation
• Cultural Changes Case Studies Indigenous People Of Amazonia And Papa New Guinea
• Cultural Changes Case Studies Athletes At The Rio 2016 Summer Paralympic Games
• Cultural Changes Case Studies Changing Diets In Asia
• Lesson 10 Global Hubs + Migration
• Lesson 11 Global Culture
• Lesson 12 Still Global Culture
• Lesson 13 Outcomes Of Globalisation For Development And The Environment
• Lesson 14 Outcomes Of Globalisation For Development And The Environment At Different Geographical Scales
• Lesson 15 Tensions As Consequences Of Rapid Changes + Globalisation
• Mekong Delta Conflict
• Diverse Places Key Terms
• Lesson 1 Population Growth + Structure
• Lesson 2 Variations In Population Density + Structure
• Lesson 2b Variations In Population Density + Structure
• Lesson 3 Factors Affecting Population Structure
• Lesson 4 Differences Within And Between Settlements
• Jesmond Stats
• Elswick Stats
• Lesson 6 Cultural Diversity
• Lesson 7 Lived Experience + Perceptions Of Urban Places
• Lesson 7 Victorian London
• Lesson 8 Differing Perceptions: Inner City V Suburbs
• Lesson 9a Desirability Of Rural Places
• Lesson 9a Wessex
• Lesson 9b Desirability Of Rural Places + Case Studies
• Lesson 10a Internal Migration In The Uk
• Lesson 10b Internal Migration
• Lesson 11a International Migration In The Uk (Colonial)
• Lesson 11a International Migration In The Uk (Eu)
• Lesson 11b International Migration In The Uk (Boston)
• Lesson 12a Ethnic Segregation
• Lesson 12b Ethnic Segregation
• Lesson 13 Diverse Living Spaces
• Lesson 14a Conflict + Tension (Luton)
• Lesson 14b Conflict + Tension (Pepys)
• Lesson 14c Conflict + Tension (Docklands)
• Lesson 15 Assessing Management
• Lesson 16a Assessing Strategies In Urban Areas
• Lesson 16b Assessing Strategies In Urban Areas
• Lesson 17 Assessing Strategies In Rural Areas (Anglesey)
• Lesson 17 Assessing Strategies In Rural Areas (Cornwall)
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Case study : How easyJet is delivering on its mission to become the world's most data-driven airline

During the job interview, I think the interviewers (who are data scientists themselves) didn’t know about some of the things I mentioned, but that just tells you how cutting edge the information Cambridge Spark provides is. Overall, I would say the course is a great future-proofer."

Edgar Tse, Data Scientist at easyJet

easyJet is one of the largest airlines globally and one of Europe’s leading low-cost point-to-point airlines. Back in 2018, the company announced a new mission to become the “most data-driven airline in the world”, setting plans in motion to use data to improve passenger experiences, customer loyalty, operational efficiency and revenue. In this case study, we catch up with Edgar Tse, a Data Scientist at easyJet, and recent graduate of our Level 7 AI and Data Science apprenticeship to find out more about how he is applying his new skills at work.

Building the world’s most data-driven airline

Since the onset of the COVID-19 pandemic in early 2020, it’s been no secret that the aviation industry has been among those hardest hit amid international lockdowns, travel restrictions, and consumer unease keeping would-be travellers from flying. easyJet realised that it was going to have to double-down in its data-driven pledge in order to become more nimble in response to rapidly shifting demands. 

Ben Dias , easyJet’s Director of Data Science and Analytics recently shared how the pandemic has transformed the way the company uses data , including increasing the use of automation to support increased workloads; using external data to signal market changes and evolving customer needs and, finally; using reinforcement learning to learn from the new data sets in real-time so the organisation can respond to shifts in demand much faster.

Equipping staff with the data skills to succeed

In order to achieve easyJet’s data-driven goals, Ben knew he needed a team that had the cutting-edge skills to remain one step ahead of the curve. To find the right members for this team, Mr Dias looked inwards as well as outwards to fill the skills gap.

“One day I was in a meeting with Ben Dias, the Head of Data Science, and he says ‘hey, do you want to be the first guinea pig of the Level 7 AI and Data Science course?’ And I’m excited and say ‘Okay, I'll give it a go!’”  

This was the meeting that kicked off Edgar’s upskilling journey with Cambridge Spark. But of course, it wasn’t just the chance to test out the programme that drew Edgar to our apprenticeship. Taking time out from work to pursue expensive, inflexible full-time education again was not something that appealed to Edgar. However, he was keen to advance his data science knowledge on a time and value scale that made sense to him.

My previous study had covered a lot of the stuff I needed to know except for the coding part, so an apprenticeship made perfect sense to me. You're not only able to learn new theories and techniques, you're also able to apply them to your daily role. That's a really big positive. With a traditional degree, you more than likely have to quit your job to study. Plus, an apprenticeship is sponsored by the government. In my opinion, there’s no better deal out there!”

Ultimately, to Edgar the most appealing aspect of the Level 7 AI and Data Science apprenticeship   was that he recognised it as a way to move and fast-track his career from data analytics into data science , which is where he saw his future moving in the long term;

“One thing that really appealed to me about this apprenticeship is that it provides a high level view on every single data science topic. It’s great to get a macro perspective. I saw my existing role of data analyst slowly transforming into a data science role. So in my mind, I thought, why don't I learn it now and future-proof myself?”

12 months into his apprenticeship, Edgar took the plunge and put himself forward for a new role in data science ;

"During the job interview, I think the interviewers (who are data scientists themselves) didn’t know about some of the things I mentioned, but that just tells you how cutting edge the information you guys are providing is. Overall, I would say the course is a great future-proofer, and it also allowed me to move from one place to another."

The best parts of learning with Cambridge Spark

We asked Edgar to tell us which parts of the Level 7 AI and Data Science programme he found to be the most useful and interesting to him. Here’s what he had to say;

I enjoyed the module covering software best practice for designs the most because that type of stuff doesn't get mentioned too often. If you search ‘data science’ you always find information about this or that model, but you don’t really find information about best practices. For example, I learned about simple things like how to increase speeds, or reduce memory size. I also found it really useful learning about how to architect your data, project structures, and your whole pipeline. Again, it's the less glamorous stuff that people don't care about but it’s critical!”

Applying new advanced data science skills at easyJet

Coming out at the other end of the apprenticeship, we asked Edgar if he could give us some insight into the kinds of things he has been able to apply and achieve at easyJet, armed with the new knowledge and skills he learned on the course. 

He took us through a number of examples of practical solutions he had been working on, starting with improvements he had made to a statistical model using a Bayesian optimisation approach. Explaining it in layman terms, here’s what he did;

“Within a statistical model, you can tune different variables to make them behave differently. Previously, I would have used methods called the grid search, and random search, right? But those methods tend to waste a lot of time. Later on during the course, I learned about the Bayesian optimisation approach. 

On a high level, what it does is speed up the whole process. I found that really, really useful because easyJet’s data platform is still not at its best status just yet. The memory, the CPU, the GPU is not fully optimised, if you like. So speeding up the machine learning model in itself, is very important for easyJet. And by using Bayesian optimisation tuning techniques for this particular model, I was able to execute the predictions, which is fantastic.

In one example, using this approach yielded a x5 increase in speed ” 

In the same area of Bayesian optimisation, he helped to solve an important query for easyJet;

"One of the operational analysts came and asked me whether we are able to use Bayesian techniques or use a probability approach to predict which airport has the highest level of flight delays. I looked through my Cambridge Spark resources and tried to formulate the problem through this Bayesian formula but surprisingly, the solution only came to me later when I was playing tennis. It’s usually the most unexpected time when the aha moment comes! I was playing and thought, ‘Ah, yes, I could do that!’ and worked out the solution. It’s a good example of how I used what I learned from Cambridge Spark to try to formulate a problem, to give it a framework within which to solve it.

The result is that Ground Operations are now able to ramp-up the crew standby based on airports that have the highest delays” 

As a final example, the following describes the system Edgar is working on to predict the correct number of standby cabin crew replacements; 

"For every flight there's always a chance of pilot or cabin crew absences. And when that's the case, you always want to have a standby replacement on hand. Trying to estimate how many crew members should be on standby can be tricky. We don't want to overestimate the number because if you do that, we are wasting money. But if the standby number is underestimated, it risks flights being cancelled. So there's a fine balance. As a solution, we've been trying to use a machine learning model to predict the actual standby usage needed . This new model is currently in its testing phase.”

Closing thoughts

Finally, we asked Edgar if he would recommend Cambridge Spark to others looking to upskill in data science and here’s what he had to say;

I feel I've become ambassador of Cambridge Spark in easyJet, to be honest! I have a lot of people asking about my experience, and I always recommend you guys.”

Ready to start your own data science journey?

Cambridge Spark offers both entry level data science apprenticeships as well as the more advanced Level 7 AI and Data Science apprenticeship referenced in this case study. 

And if your company doesn’t meet apprenticeship requirements, we also offer corporate training courses such as our Data Fluency for Leaders course, our Data Analysis Foundations course and our Digital Leader Executive programme. 

What to find out more? Fill out the form below and one of our consultants will contact you directly to answer any questions you may have.

Register your interest

Fill out the following form and we’ll email you within the next two business days to arrange a quick call to help with any questions about the programme. We look forward to speaking with you.

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An Analysis and Assessment of EasyJet's Strategy and Options: A Case Study

Student thesis : Master thesis

This analysis describes, analyzes, and assesses easyJet and the market it operates in. It proves a statistically relevant and strong relationship between the highly regulated and capital-intensive airline industry’s (and its individual companies’) top-line (i.e. revenues) growth and the condition of the overall economy (i.e. the GDP growth rate). It also shows how in an extremely competitive market, that nevertheless has a tendency for oligopolies on a specific route, an individual carrier’s bottom-line (i.e. the profit margin) is largely a function of (i) finding the right place in the value chain, (ii) differentiating services, and (iii) building comparative (cost) advantages. The analysis of easyJet’s strategy and options, furthermore, reveals that its business has relative to peers to cope with (i) weak non-seat revenues and (ii) higher costs, meaning easyJet is facing issues with respect to both top- and bottom-line. The assessment of easyJet’s theoretical value follows a present value approach, based on models looking at discounted cash flows and the economic value added. The results being challenged by multiple sensitivity analyses. As per reference date (November 15, 2016) and based on the analyses and assessment of strategy and options, the theoretical value of easyJet comes in at 1,766.44 pence per share, indicating a premium of 62.5% relative to the corresponding London Stock Exchange closing price (1,087 pence), however, it is approximately only 14% above easyJet’s pre-BREXIT level, and 6.6% below the shares’ all-time high (April 13, 2015). Consequently, the analysis and assessment of easyJet’s strategy and options c.p. indicate: easyJet is better suited relative to its peers than market price suggests and/or that investors on average assume higher uncertainty and/or make more conservative assumptions regarding its prospective top- and bottom-line development.

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ESSAY SAUCE

FOR STUDENTS : ALL THE INGREDIENTS OF A GOOD ESSAY

Essay: A case study of EasyJet and the airline industry

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• Subject area(s): Business essays
• Reading time: 10 minutes
• Price: Free download
• Published: 21 February 2021*
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• Words: 2,794 (approx)
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Introduction

Easy Jet Airline is one of leading low-cost British airline established in 1995. Easy Jet has seen a rapid expansion, operating domestic and international service on 500 routes between Europe, North Africa and Asia. Its successful strategies based on low-cost, no frills model which derive from the a concept that demands for short-haul air transportation is price elastic. That means if the price of plane tickets are being reduced, more people will fly.

Microeconomics

Major determinants of demand.

The demand for a particular good or service depends on a variety of factors. Key influences include the price of substitutes especially goods that are close substitutes and the price of complements, the levels of consumer income, consumer’s expectation.(……) The availability of alternative modes of transportation for air travel are increasing ownership of automobile and the railway development. The close substitutes might be a threat of traditional airline company, dominating short journey (less than 3 hours) However, the rail is hard to challenge low-cost airline company. For example, Euro star’s cheapest tickets to Paris is E149. Easy Jet costs from E17.99 Airline costs per passenger, and rail fares, from Barcelona

Price Elasticity

As demand law, when other factors on demand remain unchanged, a higher price for a product lead to a lower quantity demanded. The price elasticity of demand measures the responsiveness, or sensitivity, of the demand for a good to changes in its price when other influences on demand are held constant. It is defined as the percentage change in quantity demanded resulting from a given percentage change in price. For example, if a 1% increase in price results in a 1.2% decrease in quantity demanded, the own-price elasticity of demand is 1.2. In this case, since the percentage fall in demand is greater than the percentage rise in price, total spending on the good will decline, and the demand for it is said to be “elastic”. If, on the other hand, a 1% price rise causes a smaller percentage decline in the quantity demanded, the own-price elasticity will be less than one, and demand is said to be “inelastic”. the demand for air travel demand should distinguish among markets for: business and leisure travel; long-haul and short-haul travel; and international and long-haul travel. Accordingly, to examine the sensitivity of the demand for air travel to its price, separate estimates of the own-price elasticity of demand are gathered for each of these distinct markets. Since the availability of alternative modes of transportation that are reasonably close substitutes for air transport diminishes with distance travelled, it is expected that the demand for air transport will be less elastic for longer flights than for shorter flights. Further, international travel tends to be spread over more time than domestic travel, so that the airfare is a smaller proportion of overall trip costs, which makes international travel less sensitive to changes in ticket prices. In addition, leisure travellers are more likely to postpone trips to specific locations in response to higher fares, or to shop around for those locations offering more affordable fares. Consequently, it is expected that the demand for air transport for leisure reasons will be more elastic than business travel.

Price Elasticity of Supply and Demand

The demand with price of traveling by air is both elastic and inelastic to large extent depending on various customers who it is that is traveling. Say, a family is planning a trip just to take a vacation by air traveling, if the price of an airline ticket is extremely high, they are more likely decide to delay on the trip until the prices are lower. This shows that leisure travelling by aircraft is considered elastic. However, if a business customer needs to travel across the country by the next day, he will need a plane ticket regardless of the ticket price. For business travelling, the price of airline would be considered inelastic because it is a necessity. The current market has a big part in the supply and demand in the airline industry. in economic downturn with the price of oil rapidly increasing, the cost of an airline ticket is also rising and the demand for leisure travel is falling. In addition, another reason of demand declining is that after 9/11 people were afraid there would be another terrorist attack involving a plane .Another factor in the price of an airline ticket is the date it is purchased. If there is anemergency, customer need to booked a ticket on the day before travelling or purchases a ticket close to the departure date, even though there are unsold seats available the price will be higher. http://www.associatedcontent.com/article/1013568/the_economys_affect_on_the_airline.html?cat=27

Market structure of Airline industry

There are many factors impacted on the recent poor financial performance of traditional airlines, including the effects of 9/11, the global economic recession, the increasing growth of low cost airlines that operate under a different business model, and the recent surge in fuel prices. As described below, several simultaneous factors are transforming the global airline industry. The growth of low-cost airlines: The increasing growth of the market share of low-cost, low cost fares during the last few years is one of the most significant trends in the industry, and has presented a considerable threat to the viability of network of traditional carriers. The response of the traditional network airlines to the growing low cost airlines challenge will be critical to determining the future structure of the airline industry, both in the United States and in Europe.

Competitive analysis

The most obvious competitive advantages Easy Jet possessed are delivering low-cost and maximizing margins. easyJet keeps costs low by cutting off the unnecessary costs and ‘frills’ which is in ‘traditional’ airlines. This is done in several major ways:

• Easy jet Use the Internet to reduce distribution costs Maximize the utilisation of the substantial assets and maximize utilisation of each aircraft and therefore, significantly reduces the unit cost.
• Ticketless travel .Passengers receive an email containing their travel details and booking reference instead of get a paper ticket when they book online. This helps to lower significantly the cost of issuing, distributing, processing and reconciling millions of tickets each year.
• No free lunch because everybody always jokes about airline food so why bother to provide it if people don’t want it? Cutting off free catering on-board decrease cost and unnecessary bureaucracy and management. It is also an important differentiator between easyJet and other airlines and a potent reflection of our low-cost approach. Passengers can purchase food on-board if they need it and, ironically, Easy jet have won awards for our catering service. The new concept of a ‘simple service model’ also reflects a more general need about eliminating other unnecessary, costly services. pre-assigned seats, interline connections with other airlines and cargo/freight carriage are the characteristics of traditional airline result in high complex to manage cost.
• Efficient use of airports easyJet flies to main destination airports throughout Europe with high effienciency, but gains efficiencies through rapid turnaround times, and progressive landing charges agreements with the airports. By reducing turnarounds time to 30 minutes and below, easyJet can achieve extra trunaround on the high-frequency routes, thereby maximizing utilisation rates of its aircraft.
• Paperless operations Since easyJet has simplified its working practices by delivery the concept of the paperless office. The management and administration progress of the company is undertaken entirely on IT systems of the company which can be accessed through secure servers from anywhere in the world enabling huge flexibility in the running of the airline.

The operation

easyJet currently has operating various bases throughout the UK and mainland Europe. It is a truly European operation and was one of the few airlines to take advantage of the reforms offered by the single European aviation market.

Manage cost

Fuel cost is one of the biggest and volatile single cost for Easy Jet therefore fuel efficiency is very important to Easy Jet. In 2009, Easy jet saved 1.2%of fuel they burn through the improvement of fuel efficiency and new flight planning system. Easy Jet have aimed a 3% improvement in fuel burn, which will deliver 20million by 2012. It is crucial for Easy Jet to manage cost effectively so that it can continue to offer competitive fares profitably. Easy jet plans to make at least 190million of cost reduction by the end of 2012, which will allow Easy Jet to offset inflationary pressures and produce 1 per seat benefit to the bottom line. The crew efficiency will be improved by 10% through route and crew optimal tools and a new roster system.

Marco-economic

Transport economics in general, especially air transport has been viewed as the laboratory of economic activity. Flourishing transport derived by booming economy, as an increasing economic activity, expanding industrial production and booming trade relation will inevitably lead to an ever-greater need for transport. A decline of the same parameters will reflect on a decreasing demand for transport. Within the transport industry, air transport seems to be more sensitive to such economic environment. In the face of recent financial crisis that affected world economic growth and international trade, airline industry are affected by this crisis. The EU’s air transport system has been considered as a very important factor of the Union’s economy. In the meanwhile, it is quite sensitive to economic environment and economic development in other industry. In 2008, the worldwide financial downturn had increasingly resulted in a global economic crisis. At the same time, the impacts of this crisis for air transport sector reflected on obvious decline of air travel demand because of less transported passengers and goods, reduction of supply through reduction of frequency, and lower company profits.

Inflation and Oil Price Impact

The inflation rate in Europe was 0.90% in February of 2010. Inflation rate reflected on a general rise in prices measured against a standard level of purchasing power. The effective measures of Inflation are the CPI which measures consumer prices, and the GDP that measures inflation in the whole of the domestic economy. Oil prices are pushing up inflation across Europe. And oil price really matters to the health of global economy. The global economic downturn in 2000-2001 resulted from higher oil price since 1999, and global GDP growth have decreased. Higher oil price are contributing to high level of cost and unemployment and accelerating budget-deficit problem. The vulnerability of oil-importing countries to higher oil prices varies mainly depending on the degree to which they are net importers and the oil intensity of their economies. According to the survey implemented by the IEA in collaboration with the OECD Economics Department and with the assistance of the International Monetary Fund Research Department, a sustained $10 per barrel increase in oil prices from $25 to $35 would lead to the OECD as a whole losing 0.4% of GDP in the first and second years of higher prices. Inflation would increase by half a percentage point and unemployment rate would also go up. The OECD imported 20% more than previous year in 2004, which account for more than half its oil needs. European countries are highly dependent on oil imports, which would suffer most in the short term, their GDP went down by 0.5% and inflation increasing by 0.5% in 2005. The United States would suffer the least, with GDP declining by 0.3%,mainly because its domestic production meets a bigger part of share of its oil needs. Japan’s GDP decreased 0.4%, with its low oil intensity compensating for its almost high dependence on imported oil. The problem of fuel rates/ cost is one of many factors all airline companies faced with. The price of a barrel of oil has been a huge impact on airliner and global airline industry. According to the statistics, the cost of fuel has been made up by 31% of the total cost of business of airline companies. The aviation industry is always sensitive to the change of fuel price. In the economic recession, the number of the passenger would scare away if airline company rise the ticket price, despite of the situation of fuel price surge. Therefore, the only ways for airline company to minify the loss because of the higher oil price are strengthening management, cutting cost and efficiency improving, instead of simply raise the price. Another financial risk exposure in the airline industry is interest rate. Interest rate risk is important to airline companies in terms of the cost of debt finance. Higher financial leverage ratios are dominant in the aviation industry because of its capital intensive nature and high cost of equity. High earnings volatility made cost of equity increase. Equity can be less attractive due to lower price earnings ratios found in the airline industry. In the meanwhile, cost of debit is closely related to the interest rate changes. Therefore, the impact of interest rates on general business could be large consequential effect. Moreover, high interest rates result in higher cost of distress, this is especially for the airline industry.

Legislation Impact

One of the most difficult balancing acts that airline companies faced is the challenge of balanceing global warming and remaining competitive position in marketplace. The airline industry is responsible for 2% of the world’s man-made carbon emissions and 6% of the Uks. It has already achieved a great deal in keeping emissions down,and it is continuing to take its responsibilities seriously through industry-wide initiatives, in-depth research, roadmaps, not to mention new airframe and engine technology.In 2005,the climate impacts of aviation have finally landed on european political agenda.because the air travel is the worst climate choice of all transport modes, per passenger kilometer of aircraft emits tree times more than cars. Per tonne kilometer of freight, aircroft measured about an order of magnitude worse than lorries. the UK Climate Change Act, passed last November called into question how quickly the industry could deploy into new aircraft and fleets the technological advancements it was claiming were going to help it deliver a percentage reduction in CO2 emissions. Airline companies must act quickly to lower its own CO2 emissins to meet goverment regulation,many people argued that the climate change policies will destory the development of aviation industry. However, the study shows that climate change legislation could be designed in a sustainable way.

Survival of the Easy Jet’s Low-cost Model

Low-cost airline model has proven to be successful, and has been copied by the many airline company worldwide. Low-cost airline model is based on strict adherence to several major principles: point to point flight, maximization of flying hours, short-haul, use of secondary airports, no-frill, and no delay, which result in low cost, low fares and high demand and capacity utilization. ( Macario et.al.2007) Although the air transport market is heavily impacted by the economic crisis, in turn, economic recession provides a potential opportunity to low-cost airline company. Easy Jet announced a profit increase in 2009. Low cost airline companies are increasing their market share compared to traditional airline.

Potential strategies for Easy Jet

Firstly, Easy Jet should build stronger air transport network. Although Easy Jet has a leading presence on Europe’s top 100 routes, it still needs to strengthen its positions in the key market and focus on the routes customers find the most attractive, at convenient times. Easy Jet needs to continually manage schedule quality and fine-tune its network. Which means it will offer customers the opportunity to arrive when they want and when they want. It will allow Easy Jet get increasing market share of flight and have higher load factors than its competitors. Increasing frequency and stability on major routes with launching new the route mix offer more choice to its customers based on market research. For instance, Easy Jet launched flight with daily return flight from several cities in UK to many European cities. As the demand declines through the summer months, it should manage its schedule and move assets to leisure routes in order to maximize its capacities. In addition, unnecessary cost created by overnight stops could be avoided by base management, in order to improve efficiency and maximize revenue. Secondly, it is important to listen to customer and understand their need and then design schedule and service to match. the relative effective way to get close to its customers is to collect all customer data, which provides a fast and intelligent view on trends in customer’s travelling habits. With these customer databases, it allows marketing department tailor marketing emails according to individual customer purchasing patterns and preferences. Moreover, build increasing customer experience to appeal business travelers. Departure time is vital for customer and ensuring customers arrive at their destination on time is a key to delivery of a winning customer proposition. In a recession economic environment, Easy Jet has potential opportunity to increase share of the business travel market due to many corporate tend to low cost air travel company to cut business cost.

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• Population change and migration Case studies Globalisation
• Created by: HannahPink1
• Created on: 08-01-18 11:41

Founded in 1995, it began as a small venture running flights solely within the UK. Most of Europe's major cities are now inter-connected via easyJet's cheap flight network.

Started with two aircraft, flying London Luton to Edinburgh and Glasgow at the 'cost of a pair of jeans' just £29 one way.

Just a year later flights to Barcelona were introduced, since then the company has expanded at breakneck speed.

200 airplanes, 300 flight routes in the EU and several that go beyond, 65 million people were using the services and bringing in revenues of £4 billion.

Connects switched-off places, Estonia has become more switched on with cities like Tallinn becoming an affordable place for stag and hen vacations.

The EU and ASEAN

• Evolved from a simple trade bloc to a multi-governmental organization with its own currency and some shared political legislation.
• Member states are eligible for EU Structural Funds to help develop their economies, whilst agricultural producers benefit from subsidies issued under the Common Agricultural Policy.
• 'Capital of Culture' and 'European Capital of Innovation' help them gain global status.
• Two world wars promoted European Countries to wanting to find peace and so interdependency was created.
• The EU is the only group to grant interdependency to its users.
• 10 member states and a combined population of 600 million people.
• Established in 1967, works to eliminate tariffs in favour of free trade.
• The Philippines has gained global status for call centres since.
• ASEAN is looking to develop into a single market called the ASEAN Economic Community, much like the EU to allow free movement of labour and capital.
• The members have agreed to peace and stability by pledging to not have nuclear weapons

China's 1978 Open Door Policy

Prior to 1978, China was poor and politically isolated. Under communist leadership, millions died from famine and many lived in poverty. This changed with the Open Door Policy.

• Earliest reforms occurred in rural areas, agricultural communes were dismantled and farmers were allowed to make a small profit for the first time.
• Strict controls on the number of children were introduced to curb population growth.
• Over the next 30 years, the largest migration in human history took place: 300 million people left rural areas in search of a better urban life.
• Hukou stopped rural villages depleting completely, but soon there were 200 Chinese cities with 1 million inhabitants or more.
• Urbanisation fuelled the growth of low-wage factories, giving China's its nickname 'workshop of the world'.
• TNCs were quick to establish branches and trade relationships with these factories, whilst new Special Economic Zones at the coasts were set up.
• China today has the world's largest economy, with 400 million said to have escaped poverty since the reforms began.

China is still closed to companies like Google, Facebook and Coca-Cola, where they blocked the company's acquisition of a local company. Only 34 foreign films are allowed a year.

Switched-Off Places: North Korea and the Sahel Reg

North Korea: Chosen to remain politically isolated by;

• Ordinary citizens do not have access to the internet or social media
• There are no undersea data cables connecting North Korea with anywhere else
• Cultural influences have no effect at all on North Korea

North Korean divided from South Korea in 1948, South Korea has since become a developed country home to global brands like Samsung.

The Sahel Region:

• Home to some of the world's least developed countries, mismanagement of natural resources and human resources have played a role in the region remaining largely switched-off
• LDCs lacking coastline, like Chad, struggle to attract FDI
• Desert conditions further hinder development

Neighbouring countries, however, are experiencing rapid economic growth - such as Nigeria.

Global Outsourcing of Services to India

• By 2040 India is thought to be the second largest economy in the world.
• Some success can be attributed to their call centres because;
• Most Indian citizens are fluent in English, in part due to the legacy of the English rule.
• Broadband capacity is unusually high in Bangalore specifically, a long-established technology hub.
• Some call centre workers complain they are exploited
• Work can be highly repetitive with 10-hour shifts 6 days a week
• Gap between rich and poor has widened in society
• Workers earn good middle-class wages
• Indian outsourcing companies have become extremely profitable with revenues of US$9 billion seen often

Global Outsourcing of Manufacturing to China

• Poverty has fallen from 60% to 16% in just 15 years
• Low-cost labour had China being recognised by the workshop of the world in the 1990s
• Since the millennium, conditions improved for workers after protests and workers striking in Honda, Toyota, Carlsberg and other global brands
• Wages increased from 30-65%
• Many workers exploited in the early years with 2500 in some factories losing limbs each year due to unsafe work conditions
• The environment continues to suffer from air pollution extremes, causing cancer and disease and concerning WHO.
• Conditions improving, people enjoying large income gains
• Chinese companies developing their own products, technology vastly improving

Karachi: A Megacity

• Karachi was founded as the capital port city of Pakistan.
• 24 million live in Karachi in 2015, making it the second most populated city in the world (after Tokyo).
• Pakistans centre of finance, industry and trade.
• People flock to the country from all over the country, especially from rural areas.
• Work found in manufacturing, shipping, banking and retailing.
• Karachi is a famous university city, producing skilled graduates that have helped it become a hub for media and software companies.
• TV channels like Geo TV and CNBC Pakistan are based in the city.

Migration from India to the UAE

Known as low-wage international migration.

2 million Indian migrants live in the United Arab Emirates, making up 30% of the total population.

Many live in Abu Dhabi and Dubai.

US$15 billion is estimated to be returned to India annually through remittances.

Most migrants work in transport, construction and manufacturing industries.

1/5 are professionals working in service industries.

Changing Diets in Asia

• Traditional Asian diets and often low mean and high vegetables
• This is giving way to meat and fast food among the emerging middle classes, especially in China.
• Within a decade, China's meat consumption per capita increased ten fold from 5kg to 50kg.
• By 2015 China had the biggest market for processed food.
• The physical environment is affected.
• Livestock farming has become the new focus of Asian agriculture, bringing steep rises in emissions of methane.
• Ctops are imported from across the world to feed the farm animals.
• The Amazonian rainforest is being cleared to make space for soya to feed Chinese cattle.
• China has since embarked on land acquisition from poorer countries like Cuba and Kazakhstan to feed its populations.
• The number of sharks killed for sharks fin soup has doubled to accompany rising demand.

Global Culture affecting the Indigenous People of

Among the worlds last insolated groups of indigenous people, these ethnic groups have occupied the place where they live for thousands of years without interruption.

More tribes are becoming aware of Western culture and lifestyles.

Because of the hot climate, the tribes traditionally wear little in the way of clothing, though today many wear modern clothing such as T-shirts.

Many are moving from the rainforest to urban areas like Manaus, leaving traditional thatched homes built on stilts.

Many no longer value local ecosystems due to cultural erosions.

They want income, education and health improvements for their children and so are driven to hunt endangered species for food or to sell.

Papua New Guinea's Tre Kangaroo is under threat, as are Peru's jaguars.

Global Paralympics

Cultural attitudes towards disability are changing on a global scale. 1983-1992 was declared the 'Decade of Disabled Persons' by the UN.

The UN Convention on the Rights of Persons with Disabilities seeks to bring cultural change on a global scale in line with the Universal Declaration of Human Rights.

In the USA, sterilisation programmes sometimes targetting disabled people lasted until well into the twentieth century.

The seismic shift in cultural attitudes has taking place globally.

Global media has turned to Paralympics into one of the world's biggest sporting events by celebrating physical achievements of elite athletes with disabilities.

Rise of Extremism in Europe

Nationalist parties, such as France's Fron National, of Britain First, are commanding significant support.

Nationalist parties often oppose immigration, some reject multiculturalism and openly embrace fascism.

The murder of Stephan Lawrence in Elthan in 1993 was an example of a race driven assault.

The Charlie Hebdo mass murders in France in 2015 was another race driven assault, the murdered saying their Islamic faith had been mocked.

Jo Cox was murdered in 2015 by a man shouting 'Britain First'.

Events like these are still rare but demonstrate tensions in multicultural Europe.

Around 25% supported France's Front National part in the 2014 European Parliamentary elections.

Internet Censorship in China and North Korea

• For 70 years the country has been run by a communist party, with China's rulers being intolerant of any criticism mounted against them by their own citizens.
• In 1988 Chinese students demonstrated against communism and 100s died as the army intervened.
• Many still do not know what happened that day in China, due to strict censorship of the press and the internet.
• Google withdrew its services in 2010 when the government insisted the search engine should hide information from the protests.
• The Great Firewall of China restricts Western social media, though 400 million citizens interact on the local media sites.

North Korea:

• No access to the internet as a result of state controls.

Trans-Boundary Water Conflicts in Southeast Asia

In 2013 the Lower Mekong River Basin flooded with the 'Mekong River Tsunami' has dams overflowed, taking Thai livelihoods with it.

China is heavily invested in continually building dams.

Bangkok based Save the Mekon coalition and TERRA (Towards Ecological Recovery and Regional Alliance) have challenged the development rational behind the dam-building spree in Yunnan Province.

Aside from highlighting the lack of public transparency and participation in the Chinese decision-making process, they also point out how electricity generated by these dams do little to contibute to China's nor regional development.

All said to bring water insecurity downstream, though unlikely to form all-out water wars, conflict is sure to be on the horizon.

Migration Controls in the UK

Sine 2010 there has been a five-tier point system in place designed to help control immigration by checking that economic migrants possess skills or resources that the UK economy needs.

Tier 1 migrants must be prepared to invest more than £2 million n the UK or possess 'exceptional talent'., though these rules do not apply to EU migrants who are allowed free movement.

In 2010 government pledged to cut net migration to 100,000 a year, though this has not been met because:

• Fewer British citizens have left the UK to love overseas since the Global Financial Crisis.
• The pound-euro exchange rate has weekended, making living in Europe more expensive.
• The government has no control over EU migrants wanting to work in the UK.
• Refugees are allowed to remain in the UK under human rights law.

After choosing to leave the EU, this will all change for the UK with free movement stopping.

First Nations of Canada

• Canada is home to 6 groups of indigenous people.
• Occupation of lad pre-dates Europeans.
• Some First Nations oppose the attempts of global oil companies to 'switch on' their region, having experienced negative impacts.
• Over 200 million barrels of conventional oil has been extracted since 1920 in the Norman Wells.

1. Death of trout and other fish in oil-polluted lakes

2. Effects of alcohol and drugs on the behaviour of the people

Companies like Shell and Imperial Oil continually exploit the region.

Todmorden Transition Town and Government Actions

Town in the South Pennines, much of the food on sale in the town is locally grown.

'Incredible Edible Todmorden' campaign, receiving National Lottery funding, aims to encourage consumers and growers to work together, creating 40 public fruit and vegetable gardens and stages regular educational talks and events in the town.

Government actions:

Local authorities run their own recycling schemes under Local Agenda 21. In 2011 the Welsh Assembly banned shops from giving away free plastic bags, instead putting a 5p fee on paper and plastic bags.

In 2015 Northern Ireland followed suit followed by Scotland in 2014 and England in 2015.

Report Fri 12th January, 2018 @ 13:17

this is good

Report Thu 6th December, 2018 @ 18:09

Brobdingnagian

Report Tue 4th June, 2019 @ 22:17

Amazing, thank you

Report Thu 6th January, 2022 @ 14:20

This is really useful and it summarises it perfectly. 

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Easyjet’s Success and Challenges Case Study

In business world, organizations must be smart to identify the areas that can bring commendable returns. The airline industry is a very competitive industry. Since Easyjet airline was a small company it would not have made it if it decided to compete with big companies such as British Airways, which is among the top airline companies.

The leading airlines concentrate on the high-end markets. They offer outstanding services just for the sake of luring customers. These additional services cause the cost of flights to increase, thus eliminating low-income earners.

Easyjet noticed the potential that was in the low market niche and decided to try it. The company had to do things differently by eliminating the services that customers dislike; after all, the low-income earners are not interested in the unnecessary services.

The only thing that matters to them is getting to their destination. However, the flights were to provide basic services without compromising the comfort of passengers. When Easyjet followed this approach, more customers started flowing in because the flights were cheap.

Easyjet was able to cut back on expenses that were incurred during the flights, especially connections flights. This was achievable through short direct flights, and therefore the planes did not make occasional landings for connection purposes.

Likewise, the company reduced operations costs by establishing virtual offices in the Internet – the clients booked their flights via the internet. According to Nielsen this approach requires less personnel to be carried out, hence is essential in trimming the operating costs (1).

Customers embraced the strategy of implementing the Internet platform because it was very convenient, which meant they could book their flights from any location. The Internet platform is an efficient tool of marketing because it has a wide market outreach and a relatively cheap method of marketing.

In addition, using the Internet boosted the company’s reputation because it created an impression that the management was committed towards protecting the environment by using green technology.

Consequently, the selection criteria of airport by Easyjet contributes to its management because the short flights are less demanding because the customers do not need more incentives compared to long flights. The airline collaborates with busy airports because they broaden the chances of success for the company.

This is because the airline has to make many flights to realize the profits that are equivalent to long flights. Establishing flights with airports that have bigger capacities can enable the company to realize its goals.

More flights mean that more revenue will be generated for the company and the operation costs will be kept at bay. From another perspective, busy airports are appropriate because that is where convenience is mostly needed.

The airline maximizes on its potential by aligning itself with airports that offer unlimited opportunities. Furthermore, Easyjet success is because of its choice of airports. This is because it collaborates with airports that are concerned with reducing the costs of operation.

However, the operating margins of Easyjet have been on the decline. Before the company moves to the next financial year, it should evaluate the areas and approaches that have contributed to its success. The company has managed to overcome the challenge brought about by imitation through a clear goal plan. The competitors did not have an action plan and that is why they did not make it.

Easyjet should have a clear vision of future expectations because the airline market is very dynamic. The managers should indentify and address threats in the company’s environment before they engulf the company. Redinius advices that companies like Easyjet should adopt more cost reduction strategies without compromising quality of service because good quality contributes to a bigger market share (20).

The company should solve the issue of increase in fuel and recession should without extending the cost to the customers. While recession might be a threat, it can be transformed into a goldmine. This is because the key players may increase the cost of flights, thus Easyjet should take the opportunity in such situations.

Works Cited

Nielsen, Lisa. Key Business Success Factors . Web.

Redinius, Don. The New Era of Financial Success: Powered by the Reach Methodology . Durham, CT: Strategic Book Group, 2010. Print.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2023, December 21). Easyjet’s Success and Challenges. https://ivypanda.com/essays/easyjets-success-and-challenges-case-study/

"Easyjet’s Success and Challenges." IvyPanda , 21 Dec. 2023, ivypanda.com/essays/easyjets-success-and-challenges-case-study/.

IvyPanda . (2023) 'Easyjet’s Success and Challenges'. 21 December.

IvyPanda . 2023. "Easyjet’s Success and Challenges." December 21, 2023. https://ivypanda.com/essays/easyjets-success-and-challenges-case-study/.

1. IvyPanda . "Easyjet’s Success and Challenges." December 21, 2023. https://ivypanda.com/essays/easyjets-success-and-challenges-case-study/.

Bibliography

IvyPanda . "Easyjet’s Success and Challenges." December 21, 2023. https://ivypanda.com/essays/easyjets-success-and-challenges-case-study/.

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EDEXCEL A LEVEL GEOGRAPHY CASE STUDIES: #1 Globalisation

Subject: Geography

Age range: 16+

Resource type: Unit of work

Last updated

1 July 2022

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This pack contains all the detailed case studies required for the topic of Globalisation in Edexcel A Level Geography. Notes are concise and written in bullet points (so easy to read!). They are written to match with topic questions that may come up in the exam!

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does not include nearly all the case studies, going on about the Mekong river? wtf does that have to do with globalisation - this product is not selling what it claims to be selling especially for its crazy price, when all the info is just copied and pasted from a textbook...

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