21st Jun 2022 18:04
(Alliance News) - easyJet PLC on Tuesday announced it has gone plane shopping, though this news was soon overshadowed by talks of a strike among its Spanish crew.
The USO union in Spain said 450 easyJet cabin crew members at the El Prat, Malaga and Palma de Mallorca airports will strike for nine days in July.
easyJet and USO have been in talks since February, though the duo are now in "deadlock".
"The company has no interest in negotiating the improvement of the working conditions of the crew in Spain, so that we have the same working conditions as those who operate in other European bases such as France and Germany," USO said.
USO said easyJet crew members in Spain have a base salary of EUR950, EUR850 less than French and German counterparts.
The industrial action heaps more pressure on the travel sector, which has already been hurt by travel delays as firms struggle to fill up staff shortages amid a tight labour market.
The aviation industry has struggled to get worker numbers back to pre-virus levels. Demand for taking to the skies has outpaced travel industry worker number growth.
easyJet, perhaps mindful of recent disruption, has gone shopping for new aircrafts, however.
It is buying 56 A320 neo family aircraft from aerospace firm Airbus SE.
Meanwhile, Airbus will convert 18 A320neo family aircraft to A321neo aircraft for easyJet. The main difference is seat capacity. A320neos generally have 186 seats while A321neos have a capacity of 235 seats. EasyJet expects the converted aircraft to be delivered between its financial years 2024 and 2027.
"A chaotic time at UK airports may have prompted easyJet to make plans to cancel more flights throughout the summer, yet that hasn't dampened its appetite to be a much bigger player longer term," AJ Bell analyst Russ Mould commented.
"These planes will replace older aircraft and will be more fuel efficient, which is important as airlines are under increasing pressure to further cut costs. They will also enable more bums on seats. There is strategic logic to the deal, but easyJet must first obtain approval from shareholders who might be feeling angry at how its share price performance has been weak this year."
easyJet shares ended 1.5% lower at 436.96 pence each in London on Tuesday. The stock has fallen 21% so far in 2021.
By Eric Cunha; [email protected]
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