MGT488 easyJet Case Response - Christopher 1 Taylor...

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Christopher 1 Taylor Christopher Professor Watkins SP14 MGT488 SEC2 February 25, 2014 easyJet Study Case The budget airline segment appears to be an attractive place to compete. After reviewing the financial statement for “Comparative Financial and Operational Statistics for Selected Air- lines”, all of the airlines with the exception of two received a healthy net profit. However, easyJet did experience a loss in 1997 according to another financial statement listed in the case. The study case never really seems to establish whether the budget airline segment is an attractive place to compete. Nevertheless, it does discuss how in regards to the European Airline Industry that of the 80 carriers that had begun operating after 1992, 60 of those carriers had filed for bankruptcy by 1996. Aside from this disappointing statistic, an airline segment is generally a low cost business. Analysts had predicted at the time that despite the failure of several of those
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  • Spring '14
  • Watkins
  • Management, Low-cost carrier, EasyJet, budget airline segment, easyJet Study Case

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