Easyjet, a British airline carrier, is reporting a £5M revenue boost following Air France’s pilot strike. Easyjet is modelled off of Southwest Airlines; it is a focus strategy – low cost company. The company does not offer connecting flights or complimentary snacks and utilizes quick turnaround times between flights.

Easyjet attracted many of Air France’s customers who had their flights cancelled. Because of its low cost model, Easyjet can offer more flights with cheaper fares. This meant there were many flights available for fliers when news of their competitor’s pilot strike arose. Though this boost was brought on by the misfortune of Air France, it is just one of many positive signs coming from the company. Its fuel bill is expected to be £50M lower than last year, its revenue per seat is expected to grow around 1.5%, and they are about to make their largest ever dividend payment – something that will be viewed favourably by investors.

Easyjet is seeing success because they identified a solid business plan that they have kept consistent for years. Consumers are willing to sacrifice some of the extra service for the low price that Easyjet offers and it is likely the company will continue to grow.

Source:

http://www.bbc.com/news/business-29471988