EasyJet places bumper aircraft order
EasyJet has confirmed an order for more Airbus jets, including 35 current generation A320s for delivery between 2015 and 2017 under its existing agreement with the European manufacturer and 100 new generation A320neo aircraft for delivery from 2017 under a new agreement.
The airline said the newer 180 seat A320neo aircraft would deliver a cost saving of between 11% and 12% compared to the 156-seat current generation A319 aircraft it will replace.
85 of 135 ordered aircraft will be used to replace ageing aircraft, with the remaining aircraft used to continue easyJet’s existing strategy of capacity seat growth of between 3% to 5% a year, said the airline.
EasyJet chief executive Carolyn McCall added: "All manufacturers competed hard for the easyJet business. Both Airbus and Boeing offered us new generation aircraft that met our requirements and offered greatly improved fuel efficiency.
"Ultimately, Airbus offered us the best deal, and at a price with a greater discount to the list price than their landmark fleet purchase with easyJet in 2002.
"These arrangements combined with easyJet’s cost advantage, leading network and compelling customer proposition mean that easyJet is uniquely positioned to be a structural winner in European aviation.
"This is a great outcome for easyJet, our shareholders and our passengers, and will ensure that easyJet is able to continue its successful strategy of delivering profitable growth and returns to shareholders."
EasyJet’s total expected fleet acquisition and overhaul expenditure as a percentage of revenue is expected to fall from 18% in the period 2005 to 2012, to 10% to 12% in the period 2018 to 2022.
Under its new agreement with Airbus, the airline has the option to buy a further 100 new generation A320neo family aircraft.
EasyJet chairman John Barton added: "Since joining the easyJet Board, I have spent a significant amount of time reviewing the rationale for ordering new aircraft and have been actively involved in the selection process, which I am sure has been robust and thorough. We have planned that the new fleet arrangements will be financed without recourse to shareholders and believe that the arrangements will enhance returns and dividends to shareholders."
A circular is expected to be sent to shareholders later today giving details of the purchase and containing notice of a general meeting to be held on or around July 11 at which a resolution to approve the New Framework Arrangements will be proposed.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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