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Jet2 is a mainly internet-based airline company which flies from six UK based airports to over 30 various locations around Europe.

Jet2 places its emphasis on low costs, safety and reliability to ensure a satisfied customer base and therefore with the aim of increasing its potential revenue.

The company, Jet2, have many strengths to its name. One such asset is, as mentioned above, the six UK based airports from which it flies from. These six locations, Belfast International, Newcastle, Leeds/Bradford, Manchester Blackpool and (from 3 April this year) Edinburgh, are very well spread throughout the UK. Being a UK based firm, it is important for a firm like Jet2 to have locations throughout the UK, so that potential customers can use their services, and this is possible due to the accessibility of each of their base airports.

Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.

(Source:http:www.jet2.com/faqsection)

There have been reports which suggest the number of travel agents has increased steadily for the past 40 years. (Source: Vocational Learning; See Resources Section below) This has also coincided with the steady increase of package holidays. Jet2, being a low cost operator, has close links to the main four travel agents which organise these tour packages; Thomson Holidays, Thomas Cook, First Choice and My Travel. This benefits Jet2 as people booking package holidays would prefer the low cost airlines.

These increased number of travel agents have been created due to the increased demand of people wanting to go on holiday.

Despite these strengths, there are a number of weaknesses which restrict Jet2’s performances and revenues.

Jet2 only operate within Europe. This may be seen to be beneficial for Jet2, but anytime a customer wants to go to a location outside Europe, for example to the USA or to Japan. Low-cost airlines generally do not fly outside Europe, but this leaves the non low cost airlines to dominate the non-Europe market.

Furthermore, in comparison to other low cost airlines, Jet2 operate less flights and therefore are restricted and hand their rivals a competitive advantage. Jet2 currently have 31 destinations compared to EasyJet’s 80 and Ryanair’s over 100 destinations, thus again giving their competitors an advantage.

Jet2 have a number of opportunities available. and these must be taken advantage of to help improve their market position and their current revenue.

Jet2 fly from their 6 base airports to over 30 destinations within Europe.

Passengers on flights in 2002, went on holidays within the EU rather than outside it, eg: Australia or USA. In a survey, 74% of all holiday go-ers in 2002, went on holiday within Europe, with Spain being the most popular destination, therefore customer tastes, wants and demands are catered for as the current market trends are favourable for Jet2.

However, Jet2 must build on this and counteract their weakness of having fewer destinations that their rivals. This is done by flying to more destinations within Europe. This will allow Jet2 to capitalise on customer trends; ie: going on holiday within Europe. Offering customers more choice and freedom when booking their holiday could also increase customer loyalty to the company, and ensure future bookings from those customers.

Another way in which Jet2 could potentially increase its revenue and/or customer base is to lower their prices of their flights, thus creating a Unique Selling Point (USP). One way to finance lower flight prices is to become more efficient, ie: this could be done by hiring smaller aircraft for less popular routes, or cancelling them altogether to cut costs further. The lower prices offered could also create positive publicity which Jet2 could also take advantage of to advertise the brand and quality of Jet2.

There are, however, a number of threats to Jet2. The most obvious threat is the potential of terrorist attacks. The market demand has fallen steadily since the Twin Towers Attacks in 2001, and is only starting to recover now. Despite that being five years ago now, with relations between the UK and foreign countries being so volatile, there is always the possibility, however slight it may be, that it could happen again. Tighter security and checks need to be made before every journey, and assurances through advertisements and PR events need to be made to customers to prove the airlines safety.

Also, Jet2 need to be aware of its competitors who will always act as threats to them. New innovations such as newly designed aircraft, fleet modernisation and exclusive deals between travel agents and rival firms could hit the performance of Jet2.

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