1. What are the negative effects of revenue or yield management on customer relations? easyJet has successfully adopted the use of revenue management. It came into existence in November 1995 and was known for low cost and easy service access. The easyJet slogan is ‘making flying as affordable as a pair of jeans’. easyJet was the first airline to operate without agents, with no tickets and no meals (snacks and drinks). Food was not included in the ticket fare. Stelios Haji-Ioannou (now Sir Stelios), the founder, got his idea from researching the successful low-cost American airline, Southwest Airlines, with the aim of managing an airline at the lowest cost. He planned the business to run with the same type of plane and the same number of seats in the plane, flying a similar length of route.

In 2001, John Lennon Airport in the northern UK recorded a massive transformation, with total passenger numbers of about 2.35 m, of which 75% was attributed to easyJet operations, as it compared with 500,000 passengers in the previous year before the arrival of easyJet. easyJet chooses less expensive airports to operate from, using every opportunity to reduce cost in order to maximize sales and profits.