Re: Aircraft negotiations

easyJet PLC
7 January 2002

Monday, 07 January 2002

easyJet enters negotiations over new aircraft order

easyJet, the fast-growing low-cost airline, is in negotiations for new
aircraft for delivery up to 2007.

The airline has entered discussions with Boeing and Airbus - over the Boeing
737-700 and the Airbus A319 aircraft - with the intention to make a decision
based on an analysis of the best medium and long-term financial and operating
benefits. Nominally, the discussions concern the possible acquisition by
easyJet of seventy-five additional aircraft - this number may change during
the course of the negotiations.

Shareholders will be kept informed of any further developments as it is
anticipated that any resulting contract would be subject to shareholder
approval.

Ray Webster, easyJet Chief Executive, said:

'Given the current state of parts of the global aviation industry, this is
potentially a very good time to be addressing our long-term aircraft needs.

'We have already committed to grow aircraft capacity by approximately 25% per
annum until 2004 and need to secure delivery positions beyond that date. The
exact growth rates will be dependent on both the final aircraft delivery
schedule and the retirement of a number of existing aircraft, which are still
under discussion.

'While commonality of fleet is an important component of the easyJet business
model, we feel it is appropriate to consider all options and have, therefore,
entered into negotiations with both Boeing and Airbus.

'The Airbus A319 has not previously been operated by easyJet or other low-cost
airlines as its original capacity was limited to 145 seats - against the
149-seat Boeing 737-300/700. However, Airbus has now informed us that the A319
will be available with up to 150-seat capacity, which makes it a viable
competitive alternative.

'We would only undertake to operate a mixed fleet if it would produce
substantial long-term shareholder benefits.'

Notes

The easyJet fleet currently consists of 18 Boeing 737-300 and 9 Boeing 737-700
aircraft, making 27 aircraft in total (the 'Next Generation' 737-700 is the
updated 737-300). A further 23 Boeing 737-700 aircraft will be added to the
easyJet fleet by May 2004. At that date, the easyJet fleet, according to the
existing arrangements, is planned to consist of 48 aircraft - allowing for two
737-300 retirements.

At the time of flotation in November 2000 and the subsequent Open Offer and
Placing in November 2001, the airline stated that it intends to maintain a
modern fleet and expects to hold its aircraft for a period of approximately
seven years when they will be sold in the second-hand market or returned to
lessors.