After a thorough technical evaluation, easyJet has earmarked the Airbus A320neo for its future fleet requirements.
easyJet has entered into arrangements with Airbus to acquire 35 Current Generation A320 Aircraft for delivery between 2015 and 2017 under its existing agreement and 100 New Generation A320neo Aircraft for delivery from 2017 until 2022, under a new agreement. Under this new agreement, Airbus has also granted easyJet the right, but not the obligation, to acquire up to 100 further New Generation A320neo Family Aircraft.
Currently easyJet operates a fleet largely based on the smaller A319 seating 156 passengers.
Of the 135 aircraft, 85 will be for replacement.
“The NEO is without doubt the most productive and fuel efficient aircraft around. It has the widest and tallest cabin of any single aisle aircraft for faster turnaround operations and better passenger comfort. We are delighted our reliable aircraft have met easyJet’s demanding criteria,” said John Leahy, Chief Operating Officer-Customers.
easyJet states that the transaction allows it to continue to execute its successful strategy and acquire new generation aircraft sourced at “highly attractive prices and at a greater percentage discount to list price than the Company’s existing Airbus contract”.
The increased capacity offered by the 180 seater New Generation A320neo Aircraft is expected to deliver a cost per seat saving of between 11% and 12%, compared to a 156 seater Current Generation A319 Aircraft.
Whilst the announcement today will deliver a fleet of 276 aircraft by 2022, as of today, the new arrangements also give easyJet the ability to manage the fleet size to between 165 and 298 aircraft in 2022 depending on economic conditions and opportunities available.
Carolyn McCall, easyJet Chief Executive, commented: "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."
A circular is expected to be sent to shareholders later today giving details of the New Framework Arrangements and containing notice of a general meeting to be held on or around 11 July 2013 at which a resolution to approve the New Framework Arrangements will be proposed.