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easyJet embraces LCC hybridisation but holds firm on no connecting flights or loyalty programme

Analysis

easyJet is hitting a strategic sweet spot as it cautiously moves away from a stripped-down LCC model to a hybrid that caters to business passengers. Not only does easyJet have a low cost base that it says it uses to encourage business people to do the "right thing" for their company and book orange, but 22 bases across Europe give it frequency and timing advantages that competitors cannot match. Entering key business routes, such as London-Moscow and Milan Linate-Rome Fiumicino, further add to appeal - and profit, which increased 28% for the year to Sep-2012.

But easyJet is putting the brakes on hybridisation. Commercial director Cath Lynn, speaking on the sidelines at CAPA's Airlines in Transition conference in Dublin, said easyJet is not interested in pursuing other hybrid LCC activities like connecting flights, having a loyalty programme or vast array of ancillaries for sale during the booking process. In 2013 easyJet will be looking to grow in the UK, France and Italy in particular.

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