EasyJet 2011 Annual Report Download - page 12

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10
easyJet plc
Annual report
and accounts 2011
Chief Executive’s introduction
Continued
Customer satisfaction
The improvement in operational performance has
been reflected in increased customer satisfaction.
Overall satisfaction was up by six percentage points to
79% compared with the same period last year.
easyJet continues to develop its end-to-end customer
proposition and announced on 15 November 2011 that
it will start trialing allocated seating on selected routes
from spring 2012.
Engagement
At easyJet people are at the heart of delivering for
ourcustomers and executing the strategy to create
value for shareholders. Consequently improving
communication and engagement have been given a
high priority this year as the whole of the Executive
Management Team have travelled extensively across
the network.
europe by easyJet
easyJet has made good progress implementing its new
European structure. Country managers are now in
place in each of our key European markets and are
focused on improving the end to end customer
proposition driving better route decisions and better
engagement and lobbying with key regulatory and
governmental agencies.
In September easyJet launched its new advertising
campaign "europe by easyJet". We have seen
promising initial results from the campaign with a 250%
increase2 in customers describing themselves as “much
more likely to buy from easyJet”
Note 2: source – Gfk Brand tracking.
Strategic position
easyJet business strengths
easyJet is the fourth largest short-haul carrier in Europe
with a market share of 7.6%3. easyJet derives its
competitive advantage from the following attributes:
– leading short-haul network in Europe with the highest
number of market pairs within Europe’s top 100
market pairs3 and strong market shares in valuable
markets such as London Gatwick, Paris, Milan
Malpensa, Amsterdam and Geneva
– low cost and efficient business model derived from
scale and cost advantage, high asset utilisation, a
young efficient fleet with low cost of ownership and
industry leading load factors
– financial and balance sheet strength
Note 3: Market share data from OAG.
Competitive and regulatory environment
In the past year capacity in European short-haul grew
by 2.8%, and by 3.1% on easyJet’s routes3. It is expected
that due to higher fuel costs, rising airport costs,
taxation on air travel and a weak economic
environment that over the coming year capacity
growth will be at lower rate as carriers seeks to rebuild
margins.
A significant proportion of easyJet’s cost base is
determined by governments and regulators and
easyJet continues to constructively engage with them
on a number of issues that will impact easyJet’s cost
base in the future
Example only. Not a current offer.