UK-based budget airline easyJet plc announced today at the Paris Air Show that it has entered into an agreement with Airbus to purchase 35 new aircraft, following a competitive fleet selection process where Boeing is also reported to have competed to win the Easyjet deal.
The company reportedly sourced the new generation aircraft at highly attractive prices, compared to its existing Airbus contract, and at a greater percentage discount to list prices, of which the Current Generation A320 Aircraft is listed at USD76,260,569 and the New Generation A320neo Aircraft is listed at USD92,346,946. Easyjet plans to buy around 30% of the new aircraft outright and lease the remainder through third parties
Subject to shareholder approval, Easyjet said it will take delivery of 35 Current Generation A320 Aircraft between 2015 and 2017 under its existing agreement with Airbus. The airline has also formed a new agreement with Airbus for 100 New Generation A320neo Aircraft to be delivered from 2017 until 2022, with 85 of the 135 ordered aircraft to be used to replace ageing aircraft. Under the new agreement, Airbus also grants Easyjet the right, but not the obligation, to acquire up to 100 further New Generation A320neo Family Aircraft.
The 180 seater New Generation A320neo Aircraft is expected to enable Easyjet to continue its successful strategy of offering customers low fares to convenient airports, with a cost per seat saving of between 11% and 12% and improved fuel efficiency, compared to the current 156 seater A319 Aircraft. The airline’s new aircraft will enable it to fulfil aims to increase its seat capacity by between 3% and 5% a year, while total expected fleet acquisition and overhaul expenditure as a percentage of revenue is expected to drop from 18% for the period 2005 to 2012, down to 10% – 12% in the period 2018 to 2022.