http://www.bbc.com/news/business-29471988
The Airline industry is one of the toughest industries to compete in; with new innovative airlines forming, companies always have to stay on top of their game. Recently an issue has occurred within Air France’s airline, their pilots and workers refused to work and went on strike regarding issues with their contracts. Not only did this strike cost the airline hundreds of millions of euros but also allowed ‘Easy Jet’ a competitor to come in and sweep there customers away.
It’s been a great year for Easyjet airlines so far, not only have they boosted there total revenue but have reached efficiency. Due to increased sales, Easyjet planes are 90% full and this offsets the costs to do with fuel. Its expected fuel bill would be 50million euros lower than last year. Easyjet has focused on reducing costs within their airline and allowing an increase in capacity. The airline has executed this strategy and in return this has delivered record profits for the company. This just shows us how risky an industry can be, when one company starts to lose focus in their strategy another competitor is right behind them ready to take over.