EasyJet has stuck to their core values, which allowed them to do well during the recession and as business pickups in the country, they will further see many improvements which will lead to even greater profits. In response to In response to the question on the fluctuating oil prices, he added that Easyjet’s hedging is a form of averaging, which means that their fuel prices respond with a lag to movement in market prices. So for 2010, they expect GBP100 million improvements as their fuel hedges adjust to market prices. Easyjet continues to grow steadily and they have expectations of 10% increase in capacity during 2010 as the passeneger numbers grew by 3 to 4 percent during the recessionary period. Easyjet remains focused on short haul a flight which proves to be working as they seem to be in line to achieve growth plans of 7 to 8 percent annually. The passenger growth easily outstripped easyJets capacity increase over the recessionary period of just 0.8%, indicating that demand is still matching its growth strategy despite the Europe-wide recession.
Gert Zonneveld, analyst at Panmure Gordon, said easyJet had weathered the recession so far but a lengthy downturn could dampen the airlines recovery. "The company is performing well given the current economic environment, but a sustained downturn could clearly delay a profit recovery."
Ryanair’s CEO Michael O’Leary commented on the tough recessionary times the airline industry was facing and he added “Ryanair’s ability to grow both traffic and profits during the half year is a testament to the strength of Ryanair’s lowest fare model, and our relentless cost discipline. However these results are heavily distorted by a 42% fall in fuel costs, which has masked a significant 17% decline in average fares. We expect average fares to decline by up to 20% during Quarters 3 and 4, which will result in both these quarters being loss making. Despite this our full year guidance remains unchanged and will be ...
Cite this document
(“Economics Assignment Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/401377-economics
(Economics Assignment Example | Topics and Well Written Essays - 750 Words)
“Economics Assignment Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.net/miscellaneous/401377-economics.
There is a reduction in growth rate as experienced in other developing countries for example 3.2%-2.6% rates in Kenya during the same period. Like other developing country, its population has doubled since 1990 due to the high population growth rate. However, its fertility rate is reducing just as the case in other developing countries for example from 7.0% between 1990-1995 and to a projected rate of 4.8% between 2010-2015.
The disappearing jobs and the devaluation in the home prices had compelled the consumers to cut down on their costs which adversely affected the labor market as the business laid off their workers to reduce costs, eventually making the country enter into a vicious downward cycle.
oyment is perilous for a country which is the reason why the governments of both developing and developed countries are taking steps to cope with this problem in a better way.
Actually, when employment starts to create problems, no one but government can handle it in the right
Oftentimes, economics strongly asserts or assumes that the world behaves according to the models that it has developed and recommends policies based on models that do not adequately consider or factor in social and historical
The market system is said to be a very just system where everyone gets what he or she deserves and there are no monopolies and government control on prices.
There are many reasons why market system is considered the best mechanism of allocating scare resources.
“The Hunt brothers believed that inflation would result in silver becoming a haven, just like its more expensive cousin, gold... Bunker foresaw at least a tenfold increase in the price of silver as a result of the plummeting
The overall structure of the industry suggest that there are two type of producers i.e. the one who produce and manufacture mobile phones and other ones who provide data services to communicate and perform other tasks
p1 by purchasing excess supply, there will be a problem in case there will be a rise in supply due to better than predictable yields of wheat at harvest time. This will cause the supply of wheat to shift out to Supply of wheat 2 as shown in graph putting down ward pressure on
While, the long run is the overall period till the period comes to termination. The long run has the disadvantage that the insurance policy might come to an end or the insured is compensated before the