easyJet

Origins and formation

EasyJet has its roots in the business activity of Greek-Cypriot Stelios Haji-Ioannou, who reportedly gained an interest in the aviation business after being approached as a potential investor in Virgin Atlantic's Greek franchisee. Recognising a vacant niche in the market, Stelios decided to examine the prospects for launching his airline, having secured a commitment of a £5 million loan from his father. While studying various business models in the industry, Stelios took a significant interest in the American operator Southwest Airlines, which had successfully adopted the practice of price elasticity to be competitive with traditionally cheaper buses and attract customers that wouldn't normally have considered air travel. This principle became a cornerstone of EasyJet's operations.In 1995, EasyJet was established by Stelios, being the first company in what would later become the easyGroup conglomerate. Upon launch, it employed just 70 people; the company is based at London Luton Airport, which was traditionally used only by charter flights. To encourage the company, Luton Airport chose to give EasyJet free use of a 15,000 square feet building for its headquarters, which it named easyLand; its management style typified minimal overhead, such as an early implementation of the paperless office concept. EasyJet initially operated a pair of wet leased Boeing 737-200 aircraft, capable of seating 130 passengers. These were flown on two routes: Luton to Glasgow and Edinburgh. Early on, EasyJet operated as a paper airline, the aircraft themselves being flown and maintained under a lease.Early promotional activity focused on the airline's relatively low pricing compared to incumbent operators. Within its first year, easyJet reportedly carried approximately 40,000 passengers.In April 1996, the first wholly owned aircraft was delivered to EasyJet, enabling the company's first international route, to Amsterdam, which was operated in direct competition with rival airlines British Airways and Dutch flag carrier KLM. Competitors responded to the emerging EasyJet in different ways; while BA was largely indifferent, KLM allegedly chose to respond with a predatory pricing strategy that led to an investigation by the European Union over unfair competitive practices. Despite commercial pressure from the emergent no-frills sector, traditional airlines have been unable to directly adopt similar practices to EasyJet due to vigorous protection of existing employee privileges by unions.Until October 1997, all of EasyJet's aircraft were operated by GB Airways, and subsequently by Monarch Airlines and Air Foyle, as EasyJet had not yet received its Air Operator's Certificate.

Flotation

On 5 November 2000, EasyJet was floated on the London Stock Exchange. In October 2004, the FL Group, owner of the airlines Icelandair and Sterling, purchased an 8.4% stake in the airline. Over the course of 2005, FL increased its share in the company periodically to 16.9%, fuelling speculation that it would mount a takeover bid for the UK carrier. However, in April 2006, the threat of takeover receded as FL sold its stake for €325 million, securing a profit of €140m on its investment.In March 2013, EasyJet was promoted to the FTSE 100; during the same month, the company launched its 100th route from Gatwick Airport, offering flights directly from London to Moscow. By 2015, the company was flying routes to more than 130 destinations in 31 countries, operated 26 bases centred around Europe, and had a total of 10,000 employees.

Expansion and acquisitions

In March 1998, EasyJet purchased a 40% stake in Swiss charter airline TEA Basle for three million Swiss francs. The airline was renamed EasyJet Switzerland and commenced franchise services on 1 April 1999, having relocated its headquarters to Geneva International Airport. Geneva was EasyJet's first new base outside the United Kingdom. In 2002, rival airline Go Fly was purchased for £374 million; the airline inherited three new bases from Go, at Bristol Airport, East Midlands Airport and London Stansted Airport; the acquisition of Go almost doubled the number of Boeing 737-300 aircraft in the EasyJet fleet.In 2002, the airline opened its base at Gatwick Airport. Between 2003 and 2007, it opened additional bases in Germany, France, Italy, and Spain, establishing a presence in continental Europe. By 2007, EasyJet was claiming to be operating more flights per day than any other European airline.On 25 October 2007, EasyJet purchased the entire share capital of GB Airways from the Bland Group. This acquisition was valued at £103.5 million, and was used by the airline to expand its operations at Gatwick, and to establish a base at Manchester Airport.In June 2011, the airline opened its eleventh British base – at London Southend Airport, offering flights to Alicante, Amsterdam, Barcelona, Belfast, Faro, Málaga, Jersey, Palma de Mallorca and Ibiza.In July 2017, EasyJet announced it would open a new European headquarters in Austria to enable it to operate after Brexit.On 28 October 2017, EasyJet announced it will lease 25 former Air Berlin A320 aircraft to operate across EasyJet Europe's network, under its European AOC. Several of these aircraft were based at Berlin-Tegel Airport, before its closure. These aircraft have subsequently been transferred to Berlin-Brandenburg Airport. Previously EasyJet had only operated from Berlin-Schönefeld Airport and Berlin-Tegel Airport, where EasyJet had taken over some of Air Berlin's old services.On 30 March 2020, EasyJet suspended all flights, grounded its entire fleet, and furloughed its crews due to travel restrictions imposed. This came after the company had flown 650 'rescue flights', taking 45,000 people back home. In April 2020, EasyJet secured a £600 million loan from the UK Government with no environmental conditions attached. In June 2020, EasyJet announced their intention to resume flights, flying half of their routes in July 2020 and up to 75 per cent in August 2020, though with reduced frequency.In April 2020, EasyJet became involved in a dispute with its owner and largest shareholder, Stelios Haji-Ioannou. Haji-Ioannou criticised the airline's decision not to seek to cancel the outstanding Airbus order, claiming it would create an additional £4.5bn of capital which the airline could not afford to spend. He threatened to call a general meeting to remove a director every three weeks unless subsequent action was taken. A general meeting was held on 22 May, where shareholders ultimately voted over 99% in favour of the EasyJet board and retaining the Airbus contract.On 19 May 2020, the company revealed that it had been the subject of a cyber-attack resulting in the release of the personal information of 9 million customers.On 17 August 2020, EasyJet confirmed in a statement they would be closing three bases in the UK. Stansted, Southend, as well as Newcastle from the end of August due to low levels of air travel demand as a result of the COVID-19 pandemic.On 10 September 2021, the company claimed it had rejected a takeover bid from rival Wizz Air.On 30 September 2021, Stelios Haji-Ioannou and his family lost control of the company, after failing to take up the rights issue and being diluted: their stake was just 15.27% as of 30 September 2021.