6th Apr 2020 14:12
(Alliance News) - easyJet PLC on Monday said it has secured GBP600 million from the UK government's Covid-19 Corporate Financing Facility, as part of the company's effort to maximise liquidity in the event of an extended aircraft grounding period.
Shares in the FTSE 100 company were up 14% at 541.40 pence each in London.
Further, the Luton-based company has fully drawn on its USD500 revolving credit facility, secured against its aircraft assets, and said that it will continue to consider further liquidity and funding options.
As a result of the liquidity measures, easyJet is expected to have access to cash reserves of GBP2.3 billion by Thursday.
CEO Johan Lundgren said: "We remain absolutely focused on ensuring the long-term future of the airline, reducing our costs and preserving jobs, to make sure easyJet is in the best position to resume flying once the pandemic is over. We are pleased that we have now reached agreement with both Unite and BALPA regarding furlough arrangements for UK-based easyJet pilots and crew."
The budget airline at the end of March grounded its entire fleet of aircraft due to "unprecedented" travel restrictions imposed by governments around the world in response to the new coronavirus pandemic and the implementation of national lockdowns across many European countries.
The company, which is facing calls from its founder and biggest shareholder Stelios Haji-Ioannou to cancel its GBP4.5 billion aircraft order with Airbus SE, additionally said that it has reached an agreement with British Airline Pilots Association on furlough arrangements for its pilots.
Last week, easyJet announced it had reached an agreement on furlough arrangements for its cabin crew and training instructors.
The furlough agreements for the company's pilots, cabin crew and training instructors is effective from Wednesday last week.
Earlier on Monday, Haji-Ioannou renewed his call for a general meeting to remove Chief Financial Officer Andrew Findlay and Non-Executive Director Andreas Bierwirth from their positions in a bid to force the company to cancel the Airbus contract.
easyJet is set to release a trading update in the second half of April and a half year results announcement on June 30.
By Tapan Panchal; [email protected]
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