Aircraft Order
easyJet PLC
25 June 2007
25 June 2007
easyJet exercises options over 35 Airbus A319 aircraft for 2011 - 2012
Adds to easyJet's fleet of the youngest, cleanest and quietest aircraft in their
class
easyJet today announces that it has reached agreement with Airbus to exercise
existing options over 35 Airbus A319 aircraft for delivery during 2011 and 2012.
This will underpin easyJet's long-term growth and ensure that we continue to
operate one of the youngest fleets of any major airline in Europe consisting of
135 of the cleanest, quietest aircraft available in their class. The A319 is
one of the most environmentally efficient aircraft available. It is roughly 15%
more efficient per seat than the older-generation Boeing 737-300 aircraft which
it replaced. The new aircraft coupled with easyJet's efficient business model
(higher seat densities and higher load factors), means that a traditional
airline emits 27% more CO2 per passenger kilometre than easyJet flying similar
routes with the same aircraft.
The total size of easyJet's order of Airbus aircraft (including options), first
announced in October 2002, is 315. To date, Airbus has delivered 105 A319
aircraft to easyJet. Today's announcement means that easyJet now has 122
aircraft on firm order with Airbus, with a list price of over $7 billion, and
holds purchase rights over a further 88 aircraft. These aircraft are subject to
substantial price concessions from the list price.
105 Airbus 319 have been delivered to easyJet since September 2003 meaning that
on average the airline has taken an A319 into its fleet every 13 days.
Andy Harrison, easyJet Chief Executive, said:
'This major new aircraft order supports our continuing growth making us one of
Europe's largest airlines.
Last week easyJet outlined its demands for the next generation of aircraft
technology from 2015 and unveiled its 'easyJet ecoJet' design concept. In the
intervening years, easyJet is proud to operate one of the youngest fleets of
clean, quiet aircraft of any major airline in Europe. Our combination of a
modern fleet, with an average age of 2.3 years, and efficient business model
means that a traditional airline emits 27% more CO2 per passenger kilometre than
easyJet flying similar routes with the same aircraft.
Regulators and legislators should take note of today's order for the some of the
newest, cleanest, quietest aircraft. Unlike road transport, there is very
little understanding of the differing environmental credentials of different
airlines. Politicians need to develop policies which incentivise consumers to
choose those airlines operating the newest, cleanest aircraft and penalise those
that do not.
Our partnership with Airbus has underpinned our growth in the last few years and
puts us in a fantastic position to continue to take advantage of the outstanding
opportunities that Europe represents for us.'
REGULATORY ANNOUNCEMENT TO SHAREHOLDERS
Under the conditional agreement, dated 30 December 2002, and made between
easyJet plc and Airbus G.I.E. (the 'Airbus Contract') the Company agreed to
purchase 120 new Airbus A319 aircraft and was granted the right to purchase, at
the same basic price, up to 120 additional Airbus A319 aircraft, subject to
certain conditions. The agreement was approved by easyJet's shareholders at an
Extraordinary General Meeting on 12 March 2003.
To date, Airbus has delivered 105 A319 aircraft and a further 87 aircraft are
expected to be delivered between now and 2010.
easyJet today announces that it has exercised its right under the Additional
Purchase Rights granted to it pursuant to the Airbus Contract to acquire a
further 35 A319 aircraft for delivery during 2011 and 2012 to ensure its
continued growth.
The terms for the purchase of these 35 aircraft, including the basic price,
certain purchase incentives and credits made available and the terms of payment
are substantially the same as those for the purchase of the first 120 aircraft
under the Airbus Contract and the Purchase Rights exercised since that date,
which were described in the circular to shareholders dated 24 February 2003. As
confirmed in the circular, under the Airbus Contract the aircraft basic list
price of each A319 aircraft, as at January 2001 being the date by reference to
which the contractual base price is quoted, was approximately $44.2 million.
Thus, the total list price for 35 new A319 aircraft would be approximately $1.6
billion. However, under the Airbus Contract, easyJet was granted substantial
price concessions by Airbus and the selected engine manufacturer - all prices
above are subject to price escalation which reflects inflation.
easyJet presently finances its fleet through a mix of bank lending, secured on
the relevant aircraft which are owned by easyJet, and sale and lease back
transactions.
The company intends to retain flexibility in determining the method of financing
theses additional aircraft but expects that it will use a number of sources of
debt finance and other financial structures in addition to easyJet's internal
resources and cashflow.
ENDS
CONTACTS:
easyJet plc
Analysts:
Julia Collins, Investor Relations +44 (0) 1582 525 258
Press:
Toby Nicol, Corporate Communications +44 (0) 1582 525 339
This information is provided by RNS
The company news service from the London Stock Exchange