Essay: EasyJet’s acquisition of Go

Essay: EasyJet’s acquisition of Go
18/05/2012 Comments Off on Essay: EasyJet’s acquisition of Go Academic Papers on Business Studies,Sample Academic Papers bernard

Sample Essay

The deal, in my opinion, was an overall success and I rate it 10 out of 10, as EasyJet has made a clever acquisition of Go, which already had a large amount of fleet of aircraft and a team of senior members of Directors and Executives that are willing to join the Enlarged Group (Easyjet company). EasyJet has done their research and the possibility of providing more routes for their customer, that if they didn’t do the acquisition would have created more risks and cost more money but once they had acquired Go they know they will be able to provide more routes to satisfy present customers and attract future customers, the comparison can be clearly identified by table below;-

The deal will aid EasyJet greatly by substantially enhancing its scale and growth potential, as the acquisition of Go by EasyJet would come with EasyJet owning 56 Boeing 737’s compared to Ryan air’s fleet of 44, This will help in reduction of market risk arising from the Enlarged Group’s ability to add capacity to a new route without adversely affecting its ability to maintain capacity on existing routes. With another 100 aircraft on order over the next decade according the Easyjet Website at the time, which resulted in a number of mature routes not currently operated by EasyJet which will create additional opportunities for EasyJet to develop its network density by “joining the dots”, thereby reducing the cost and risk of network development which would otherwise be incurred were EasyJet to develop new routes from start-up; and the provision of EasyJet services to a larger customer base, particularly in the key target markets of London and south-east England, and increasing the potential market from which to draw demand for new destinations. The company “Go” airline was already successful company a, as Go was a profitable and established business with strong growth prospects.

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