Sample Term Paper

1. Reason for Acquisition; – Intensify competition with traditional full-service airlines

Area of Motives; – Capability (Cost Efficiency) and Environment (Competitive situation)

As the competitive advantages of these cost-saving methods are increasingly adopted by traditional full-service airlines and increasingly achieve market acceptance, the competitive tensions between the traditional airlines and the low-cost carriers can therefore be expected to intensify, with the additional boost that comes with the acquisition which is Go’s enlarged fleet, which would enable EasyJet to increase competition with other European carriers

Easyjet directors strongly believe that for EasyJet to become a successful company long-term, they (Enlarged Group) would not only need to compete with other low-cost carriers i.e. Jet2 airways, Ryan air etc but national flag carriers which include many airlines, from British Airways to Air France and Lufthansa. Also they believe that the combination of EasyJet and Go would enable the Enlarged group to offer passengers a greater choice of destinations, some destinations once EasyJet’s acquisition of Go airline is completed would include the following below;-

Go Network (Before Acquisition)

  • Between London Stansted and: Alicante, Barcelona, Belfast, Bilbao, Bologna, Copenhagen, Edinburgh, Faro, Glasgow, Ibiza (seasonal), Malaga, Milan Linate,

EasyJet Network

  • Between London Luton and: Aberdeen, Amsterdam, Athens, Barcelona, Belfast, Edinburgh, Geneva, Glasgow, Inverness, Madrid, Malaga, Nice, Palma de Mallorca, Paris Charles de Gaulle, and Zurich.

(Source-EasyJet website-2002)

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