25th Jun 2007 07:02
easyJet PLC25 June 2007 25 June 2007 easyJet exercises options over 35 Airbus A319 aircraft for 2011 - 2012Adds to easyJet's fleet of the youngest, cleanest and quietest aircraft in theirclass easyJet today announces that it has reached agreement with Airbus to exerciseexisting options over 35 Airbus A319 aircraft for delivery during 2011 and 2012. This will underpin easyJet's long-term growth and ensure that we continue tooperate one of the youngest fleets of any major airline in Europe consisting of135 of the cleanest, quietest aircraft available in their class. The A319 isone of the most environmentally efficient aircraft available. It is roughly 15%more efficient per seat than the older-generation Boeing 737-300 aircraft whichit replaced. The new aircraft coupled with easyJet's efficient business model(higher seat densities and higher load factors), means that a traditionalairline emits 27% more CO2 per passenger kilometre than easyJet flying similarroutes with the same aircraft. The total size of easyJet's order of Airbus aircraft (including options), firstannounced in October 2002, is 315. To date, Airbus has delivered 105 A319aircraft to easyJet. Today's announcement means that easyJet now has 122aircraft on firm order with Airbus, with a list price of over $7 billion, andholds purchase rights over a further 88 aircraft. These aircraft are subject tosubstantial price concessions from the list price. 105 Airbus 319 have been delivered to easyJet since September 2003 meaning thaton average the airline has taken an A319 into its fleet every 13 days. Andy Harrison, easyJet Chief Executive, said: "This major new aircraft order supports our continuing growth making us one ofEurope's largest airlines. Last week easyJet outlined its demands for the next generation of aircrafttechnology from 2015 and unveiled its 'easyJet ecoJet' design concept. In theintervening years, easyJet is proud to operate one of the youngest fleets ofclean, quiet aircraft of any major airline in Europe. Our combination of amodern fleet, with an average age of 2.3 years, and efficient business modelmeans that a traditional airline emits 27% more CO2 per passenger kilometre thaneasyJet flying similar routes with the same aircraft. Regulators and legislators should take note of today's order for the some of thenewest, cleanest, quietest aircraft. Unlike road transport, there is verylittle understanding of the differing environmental credentials of differentairlines. Politicians need to develop policies which incentivise consumers tochoose those airlines operating the newest, cleanest aircraft and penalise thosethat do not. Our partnership with Airbus has underpinned our growth in the last few years andputs us in a fantastic position to continue to take advantage of the outstandingopportunities that Europe represents for us." REGULATORY ANNOUNCEMENT TO SHAREHOLDERS Under the conditional agreement, dated 30 December 2002, and made betweeneasyJet plc and Airbus G.I.E. (the "Airbus Contract") the Company agreed topurchase 120 new Airbus A319 aircraft and was granted the right to purchase, atthe same basic price, up to 120 additional Airbus A319 aircraft, subject tocertain conditions. The agreement was approved by easyJet's shareholders at anExtraordinary General Meeting on 12 March 2003. To date, Airbus has delivered 105 A319 aircraft and a further 87 aircraft areexpected to be delivered between now and 2010. easyJet today announces that it has exercised its right under the AdditionalPurchase Rights granted to it pursuant to the Airbus Contract to acquire afurther 35 A319 aircraft for delivery during 2011 and 2012 to ensure itscontinued growth. The terms for the purchase of these 35 aircraft, including the basic price,certain purchase incentives and credits made available and the terms of paymentare substantially the same as those for the purchase of the first 120 aircraftunder the Airbus Contract and the Purchase Rights exercised since that date,which were described in the circular to shareholders dated 24 February 2003. Asconfirmed in the circular, under the Airbus Contract the aircraft basic listprice of each A319 aircraft, as at January 2001 being the date by reference towhich the contractual base price is quoted, was approximately $44.2 million.Thus, the total list price for 35 new A319 aircraft would be approximately $1.6billion. However, under the Airbus Contract, easyJet was granted substantialprice concessions by Airbus and the selected engine manufacturer - all pricesabove are subject to price escalation which reflects inflation. easyJet presently finances its fleet through a mix of bank lending, secured onthe relevant aircraft which are owned by easyJet, and sale and lease backtransactions. The company intends to retain flexibility in determining the method of financingtheses additional aircraft but expects that it will use a number of sources ofdebt finance and other financial structures in addition to easyJet's internalresources and cashflow. ENDS CONTACTS: easyJet plc Analysts:Julia Collins, Investor Relations +44 (0) 1582 525 258 Press:Toby Nicol, Corporate Communications +44 (0) 1582 525 339 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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