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The concept of easyJet is based on the belief that demands for short-haul air transport is price elastic, meaning, that if flight prices were to be reduced, more people would fly. EasyJet keeps costs low by eliminating the unnecessary costs and 'frills' which characterise 'traditional' airlines.
Traditionally airline concepts are based on the assumption that airline traffic grows in line with the economy and that cutting prices will only lead to a decrease in revenues. In 1992 after the ’no-nonsense’ concept was deregulated (www.bbcnews.co.uk) , easyJet went from strength to strength by actually increasing the size of the market and furthermore by taking away passengers from other major airlines (as passenger figures show on www...
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