New easyJet Aircraft Order
easyJet PLC
14 November 2006
easyJet plc
MAJOR NEW EASYJET AIRCRAFT ORDER
- EASYJET EXERCISES OPTIONS OVER 52 AIRBUS 319 AIRCRAFT
- SECURES OPTIONS OVER A FURTHER 75 A320 FAMILY AIRCRAFT
- 104 AIRCRAFT NOW ON FIRM ORDER WORTH OVER $4 BILLION
easyJet today announces that it has reached agreement with the European aircraft
manufacturer, Airbus, to exercise existing options ('Additional Purchase
Rights') over 52 Airbus A319 aircraft for delivery between 2008 and 2010 and to
secure new options over a further 75 A320 family aircraft.
This will underpin easyJet's growth over the coming years and ensures that the
airline continues to operate some of the cleanest, quietest aircraft available.
It will also help to secure thousands of European manufacturing jobs.
Today's announcement means that easyJet now has 104 aircraft on firm order with
Airbus, with a list price of over $4 billion, and holds purchase rights over a
further 123 aircraft. The total size of easyJet's order of Airbus aircraft
(including options), first announced in October 2002, is 315. Of these, 88 have
already been delivered.
The exercise of the 52 options is subject to shareholder approval.
Andy Harrison, easyJet Chief Executive, said:
'This major new aircraft order underpins our continuing rapid growth, which has
been driven by our winning combination of low fares with care and convenience.
'This order supports both our growth and our environmental credentials. The
combination of our modern fleet, with an average age of 2.2 years, and high
utilisation means that we emit nearly 30% fewer emissions per passenger
kilometre than traditional airlines flying similar routes. We welcome the Stern
Review, which says that aviation accounts for just 1.6% of greenhouse gas
emissions, and we have long campaigned to bring aviation into the European
Emissions Trading System as soon as possible.
'easyJet's growth over the coming years and the scale of this order will also
support thousands of European jobs in aircraft manufacturing, tourism, airports
and the many other industries that aviation supports.'
Under the 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 'Additional Purchase Rights'.
The agreement was conditional upon shareholder approval which was obtained at an
Extraordinary General Meeting on 12 March 2003. easyJet announced that it had
exercised Additional Purchase Rights over 20 Airbus A319 aircraft on 22 December
2005.
easyJet today has exercised its right to acquire a further 52 A319 aircraft
under the Additional Purchase Rights granted to it pursuant to the Airbus
Contract. It has also agreed certain amendments to the Airbus Contract including
the grant of new Additional Purchase Rights over a further 75 A320 family
aircraft; the release by easyJet of an undertaking given by Airbus relating to
the maintenance costs of the A319 and a number of provisions which are of
considerable economic benefit to easyJet. The exercise of the 52 Additional
Purchase Rights and the amendments to the Airbus Contract are subject to
shareholder approval and a circular setting out details of the amendments to the
Airbus Contract and containing a notice convening an Extraordinary General
Meeting will be despatched to easyJet shareholders in due course.
The terms of purchase of these 52 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, which were described in the circular to shareholders dated
24 February 2003 (the 'Circular'). However, in recognition of the exercise of
the Additional Purchase Rights and the release of the undertaking referred to
above, Airbus has granted price concessions under the agreement amending the
Airbus Contract in relation to these 52 aircraft and the other 68 aircraft
subject to the Additional Purchase Rights. As confirmed in the Circular, under
the Airbus Contract the aircraft basic price of each A319 aircraft, as at
January 2001 being the date by reference to which the contractual base price is
quoted, was approximately US$44.2 million. Thus the total list price for 52 new
A319 aircraft would be approximately US$2.3 billion. However, under the Airbus
Contract (as to be amended) easyJet has been granted substantial price
concessions by Airbus and the selected engine manufacturer - all prices above
are subject to price escalation which reflects inflation.
Of the 240 A319 aircraft covered by the original Airbus Contract, 192 have now
been ordered of which 88 have been delivered with 32 scheduled for delivery by
the end of September 2008.
ENDS
CONTACTS:
easyJet plc
Press:
Toby Nicol Corporate Communications +44 (0) 1582 525 339
Analysts:
Julia Collins Investor Relations +44 (0) 1582 525 258
There will be an analyst presentation to discuss our Preliminary results for the
financial year ended 30th September 2006 and the above announcement at 9:00 am
on 14 November 2006 at ABN AMRO, 3rd floor, 250 Bishopsgate, EC2M 4AA. A live
webcast of the presentation will be available at www.easyJet.com.
There will be an analyst and investor conference call at 2:00 pm on 14 November
2006. For further details, contact Katy Balderston at Financial Dynamics on 020
7269 7228.
This information is provided by RNS
The company news service from the London Stock Exchange
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