Easyjet also in Linate and Fiumicino: « Because we are the best option to fly among the European cities »

Easyjet expands to Italytries to capture premium customers from other traditional companies, studies the launch of a loyalty program but is kept away from the consolidation process of the European skies. Where, given its capitalization of the market higher than groups such as Air France-Klm, it would be up to her to be an active part in the acquisition plans. « Why should we complicate our lives by buying companies with higher operating costs than ours? », Kenton Jarvis, Easyjet CEO since January, wonders during a chat with the Courier In Rome, on the sidelines of the presentation of the opening of the base of Rome Fiumicino after being chosen by the European Commission as a carrier who will have to report the competition after the wedding between Ita Airways and Lufthansa.

How are these first three months from CEO after making the financial director?
“I’m really enjoying this experience. I am having a lot of fun. I managed to visit many of the bases. And for me this confirmation that, in Easyjet, people are truly our differentiation point. The reception you receive in the sky really distinguishes us from other competitors ».

You are not a low cost, you are not a low cost ultra, you are not a traditional company. What are you?
«Well, I think what Easyjet has always done has been to be provided. We are very attentive to where we want to fly. And we try to fly from primary airports to the main cities throughout Europe ».

Why do you focus on primary airports?
« Because they have large basin areas and it is easier for customers to get to these airports. »

Who are your rivals today?
«When I look at the whole network, about 70% of our flights are more in competition with the Legacy companies than with the low cost ones. But where we operate against and low cost, we discover that we still have slightly different routes ».

Meaning what?
«For example, if we are in the north of England, as in Liverpool and Manchester, our main competitor is Ryanair. Those bases are also the most profitable, because Ryanair serves Dublin, instead we worship in Belfast, Ryanair serves Eastern Europe, we west and the capital. And this is repeated in the rest of the CONTINETE ».

But he did not answer my question: what company are you?
«We are the company with the best network of connections at the best price. If we fly from Rome to Zurich or from Rome to Frankfurt, or similar routes, we will be the best alternative in terms of timetables and price to ITA and the Lufthansa group ».

About Ita and Lufthansa. You have opened the base in Rome Fiumicino and Milan Linate thanks to the slots issued by the two carriers. For three years you are forced to fly on some routes, which may not be profitable.
«The plan would be to keep them as long as they provide the commercial returns that we want them to provide. Realistically, this never happens in the first year, it takes time to make our product known ».

How did the similar experience in Lisbon go where you inherited tap portugal slots?
«We are coming to the end of the three years: some of those routes to be made for sure we would like to keep them because they are working. Maybe others would like to reduce them.  »

In the Italian market this year you will expand significantly. Yet it’s not easy to make money. Ryanair has a large portion of the market. How will you hold the competition?
«By offering flights during the right times and with good service. We must make ourselves known by the business travelers on some routes for example ».

Loyal clientele …
«And in fact we offer Miles & More customers (the loyalty program of the Lufthansa group, editor’s note) a 51% discount on our EasyJet Plus card, so we will start building a base. We did something similar with British Airways when they changed their loyalty program ».

He mentioned Easyjet Plus. A almost loyalty program. When will the real one arrive?
«We are thinking about seeing what makes sense for us. Easyjet Plus is the best subscription program for the low cost aviolinee. But you have to take the time necessary because once you launch such a thing if it is too generous it will end up costing a lot. But at the same time it must be a right proposal because it is interesting. We are not in a hurry ».

How many subscribers does Easyjet Plus have?
« At least a quarter of a million. »

You have a slot wallet in some primary airports that can be enviable. An increasingly larger slices of your travelers is premium. Does this make you the company that must absolutely have in its perimeter?
« We certainly have the best interconnection network between cities: all traditional carriers cover only a part of these primary airports ».

She wanders the question. Are you considering melting and acquisition opportunities?
«We are very focused on organic growth. This summer will be record for number of places offered for sale. The past summer was record in terms of profitability. We are growing Easyjet Holidays (the holiday division, editor’s note). This is working incredibly well in the United Kingdom and we are taking it to Europe ».

And what about mergers and acquisitions?
«I am not interested in buying Wizz Air today or something similar. I believe that, among traditional carriers, our market capitalization is higher than that of Air France-Klm ».

So you would be if you position in a position to buy traditional carriers?
“I’m not interested in buying them. Surely they could not buy us ».

Maybe you could end up in the sights of IAG, the group that controls British Airways, Iberia, Aer Lingus, Vueling …
« British would not be able to do it, nor the IAG group. »

Why?
«Easyjet is the largest airline in the United Kingdom, larger than British Airways as regards our short -range fleet. And therefore, many slots should be sold on London to make this union possible ».

And Lufthansa?
«As far as I know Carsten Spohr (the CEO of the German group, editor’s note) is not trying to buy Easyjet today. He is committed to integrating Ita ».

London City, the city airport of London, is trying to have the green light to make the Airbus A320neo fly, larger than those authorized today. Would you be interested in flying there?
«The problem is that in London City you cannot fly on Saturday afternoon when there is the peak of people who want to fly for free time. There is a lot of inactivity for planes and lack of productivity for pilots. No, it’s not very interesting for us ».

Unless they take away that stop on flights …
« If they do it and if they offer us incredible take -off rates then ok. »

The tourist segment is the one that gave the most satisfaction to European carriers last year, to you too.
«It is incredibly important for Easyjet. 47% of our offer is connection between the cities, another 20% are made up of national flights. And then the bathing destinations and the non -EU cover the rest of the seats for sale. The leisure is growing. We are increasing the frequencies for seaside destinations, for North Africa, the non -EU, Egypt. We are starting to fly more to Capo Verde, which proved to be very interesting ».

You are flying further and further. Where do you want to push you?
«Where can we bring us the A321neo. We don’t have the A321 XLR, so we can fly for a maximum of 5 and a half hours.

But are you thinking of ordering xlr?
«Not at the moment. We can convert some ordained A320neo. But we are satisfied with the performance we get from the current model ».

Will it be possible to take flights in connection with other carriers?
«We are working on projects to see if we can connect the luggage between our flights. At the moment, customers have to collect the suitcase from our delivery, exit the factual airport and return. Not a good solution. So we will try first with our flights. As for the others, there has always been an interest from Emirates and some US airlines. We will see in the future ».