Earning Projection and Growth in Easyjet
We are using financial statements of Easyjet and British Airways to fulfil our objective. Data are collected mainly using Annual reports, websites and books and windows excel is used for the analysis. Mainly the report is about the European market so the extensive search is from the books and annual reports of British Airways and competitors in this region for short to long haul service.The operation of Easyjet is in short-haul aviation, serving 114 airports and 422 routes with 181 aircraft. The board of Easyjet comprises of ten members, eight non-executive including Chairman and two executive directors. The chairman performs the almost same operation, which is defined by Easyjet’s code of listing. To achieve the target, the internal control acts to manage the risk but not to eliminate it by a formal process of identification, evaluation, management, and reporting. This process is enhanced by creating a reporting function, whistleblower (external specialist third party operates the system). (Easyjet’s Annual report, 2009)The acquisition of GB Airways by Easyjet helped them to gain a capacity of around 12% at Gatwick. Easyjet protected itself from the revenue loss during the recession by providing services in primary airports and performing business from inside and outside. To optimize the routes, Easyjet expanded their services in new routes and closed the services in the underperforming routes. The business routes are oriented to the peak slots, ahead of the leisure routes, which are oriented to the latter part of the day. The company won a competitive battle on traditional sun routes with excellent load factors despite weak market pricing. Easyjet has also benefited from the legacy competitors after withdrawing on key business routes. Additional capacities on a few routes are added to improve the business appeal to travellers.