Stmnt re - The Airline Group

easyJet PLC
27 March 2001



easyJet to invest £6.6m in The Airline Group

The government has today announced that 'The Airline Group' has been awarded
the contract to run the UK's air traffic control system (NATS) under a 'public
private partnership' for a 30 year term.

The Airline Group consists of seven UK airlines, including easyJet.

easyJet's investment is £6.6 million. This is considered a long-term capital
item. easyJet's involvement in The Airline Group was listed in its flotation
prospectus in November 2000.

Ray Webster, easyJet Chief Executive, said:

'The development of a safe, reliable and efficient air traffic system with
capacity growth is absolutely essential to the future growth of easyJet, which
is why we are delighted to be part of the consortium that has been awarded the
contract to run NATS.

'The aims and objectives of NATS and the Airline Group are inextricably linked
and we always maintained that it would be the users of air traffic services -
i.e. the airlines - which represented the best overall option to take control
of NATS.

'The long-term challenge for the low-cost airline industry is to ensure that
sufficient capacity exists in the air and on the ground to ensure that
sustained growth is possible. Therefore, there is an important strategic
dimension, which requires airlines and NATS to be much more closely aligned in
long-term development - rather than a third-party which may place profit above
the long-term aims of the industry.

'This issue was identified over 30 years ago and we now have the best chance
yet in the European aviation industry to get it right.'



Notes to editors

As part of the deal the Airline Group will pay the government around £800m on
completion of the process on 1 June 2001 when the Airline Group formally
becomes NATS' strategic partner.

The Airline Group consists of:

Airtours International Airways

British Airways

Britannia Airways

bmi British Midland

easyJet

Monarch Airlines

Virgin Atlantic Airways

The Airline Group was supported in its bid by BT, as technology partner, and
the Irish Aviation Authority who provided air traffic management expertise.
The Airline Group was advised by Schroder Salomon Smith Barney, Spectrum
Capital Ltd and Norton Rose.

The Department of Environment, Transport and the Regions (DETR) announced on
27th July 1999 its proposal for a public/private partnership (PPP) for
National Air Traffic Services (NATS). The Government will transfer 51% of NATS
to a strategic partner and employees, but will retain 49% and a so-called '
golden share'. It is anticipated that the Strategic Partner will assume
operational control of NATS. The NATS PPP formed part of the Transport Act.