As Carolyn McCall works her way rapidly to completing her second year as CEO of easyJet she has already faced a variety of challenges. This is perhaps inevitable in the airline industry. What is more unusual is that she has had to navigate a difficult relationship with a key shareholder which continues to play out very publicly. In spite of this, she has made very real progress in the airline’s operational and financial performance
When I met her last year she made an interesting point concerning the period of appalling punctuality and poor operational integrity which was being experienced when she joined the company in late summer 2010.
This, she told me, taught her just how easily an airline can be brought to its knees. Since this time she has ensured that the company has applied the necessary focus to now achieving more than acceptable levels of punctuality. It’s a point worth dwelling on because not all airline CEO’s are in sufficient touch with the complexities of operational delivery in an airline, preferring to dwell on the more “sexy” commercial aspects of the business.
easyJet’s own experience shows that no amount of marketing effort or brand profile is worth anything without on time flights and minimal cancellations.
Very personable and an eloquent communicator (coming from a media industry background) Carolyn explained to me how she has simplified the company structure and ensured that internally everyone is singing from the same hymn sheet. She knows how important it is that one hand knows what the other one is doing-very important considering the size easyJet has grown to since its modest beginnings.
She is certainly on the case with airline fundamentals, grappling with higher fuel prices and network and aircraft deployment issues.
When I asked her why easyJet wasn’t as opportunistic as Ryanair when it comes to route decisions, she acknowledged that historically the company had greater choices in what to do with its aircraft. However, with fewer new deliveries coming, combined with the polarisation of winter losses and summer profitability, there now needs to be greater certainty of achieving adequate returns when making these choices.
This fits closely with easyJet’s stated strategy in focussing more on business traffic; nevertheless it will still take new opportunities when appropriate.
With this in mind easyJet sees weakness in Air France’s short haul network as an opportunity to grow in the French market and JLS Consulting client Aeroport de Lille will gain 2 new easyjet routes to Nice and Toulouse this summer.
Another market to benefit for the first time from new easyjet services in 2012 will be Keflavik Airport Iceland operated by JLS Consulting client, Isavia. Flights from Luton begin at the end of March.
With record profitability for the year ended September 2011 and first quarter results just due out, I expect to check in again with Carolyn and her team on progress as the year plays out.
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Well written article; she has her priorities in exactly the right areas to hopefully get through the current economic turbulence and emerge in a good position to capitalise on the upturn.