Secondary Activities of EasyJet
• Procurement: EasyJet procures its aircraft primarily from Airbus. A portion of its aircraft is also supplied by Boeing. Its supplier for Resource Planning Software in ground operations is Workbridge. Its food is procured from Gate Gourmet Group (EasyJet, 2007; Food Business Review, 2007; Airport Suppliers, 2010).
• Technology Development: EasyJet is investing a significant amount on development of eco-friendly aircraft in order to reduce carbon emissions (EasyJet, 2008).
• Human Resources Management: EasyJet values employee relations and fosters better employee satisfaction with various facilities for employees like training, paid vacations, supporting the union and involving them in their key talks regarding airline operations. It also offers employee stock options plans (ESOPs) to give them a sense of belonging in the organisation (Employee Benefits, 2009).
• Organisational Infrastructure: EasyJet outsources its critical IT infrastructure to Savvis in order to enable high availability and increased resilience to this department. Currently 98% of its bookings come from its official website, making it the biggest online retailer in the country. The outsourcing provides EasyJet with real-time hosting and networking, support solutions to its website, flight operations systems and reservations, financial management applications etc. It has helped EasyJet not only reduce costs but also provide enhanced customer service (Continuity Central, 2006; Information Age, 2007).
Challenges in Operations and Human Resources Management in relation to relevant theories/ models
Challenges in Operations
As a lot cost carrier, EasyJet faces numerous challenges in its operational front. The recent economic downturn has made it even more difficult for the airline to operate under its present business model, i.e. providing tickets at extremely low prices while input costs are rising. It has to also strike a balance between operational and non-operational aircraft in order to not face losses due to high maintenance costs (Centre for Aviation, 2010).