14th Feb 2007 10:00
easyJet PLC14 February 2007 Wednesday, 14th February 2007 easyJet publishes its environmental strategy - Major promises for action on environmental-efficiency - - Time for a more balanced debate - easyJet today publishes its Corporate and Social Responsibility Report whichoutlines its strong environmental credentials and includes three "promises" tohelp balance aviation's huge social and economic contribution with its impact onclimate change. Andy Harrison, easyJet Chief Executive, said: "It's hard to see how anybody who has read the recent IPCC report and the SternReview can deny that global warming is a clear and present danger and that thisgeneration has a responsibility to take action now. Most within the aviationindustry recognise that aviation pollutes and that we must improve theenvironmental efficiency of today's operations and work on tomorrow'stechnologies. "It is time for a proper debate of the sort that has been largely missing oflate. Given that aviation CO2 only accounts for 1.6% of global greenhouse gasemissions, grounding every aircraft in the world would have a miniscule impacton climate change yet a vast impact on our economies. So, airlines have aresponsibility to do what they can and governments have a responsibility toensure that their policies incentivise the right behaviour. "It is for this reason that easyJet has today published its Environmental Code,which contains three promises - that easyJet will be efficient in the air,efficient on the ground and will help shape a greener future for the industry. "The same business model which gives us low fares (new aircraft, high occupancyrates, direct flights) also gives us environmental efficiency in the skies -easyJet emits 27% fewer greenhouse gasses per passenger kilometre than atraditional airline on an identical route. In addition we recognise that we canand we will expect more of our ground suppliers at airports. "We also intend to play a leading role in improving the future environmentalperformance of our industry - reforming Europe's famously-inefficient airtraffic system, implementing a meaningful European emissions trading scheme,working on the next generation of aircraft, giving customers the mostcomprehensive range of environmental information available for travel to aparticular destination, and helping them to offset the carbon emissions of theirflight. "I believe that we are on the cusp of major advances in aircraft and enginetechnologies which will lead to dramatic reductions in emissions, which have notyet been factored into the environmental forecasts about our industry. "In the meantime airlines have an obligation to maximise their environmentalefficiency (particularly by operating the cleanest available technology). Fortheir part, Governments must ensure their policies balance the vast economic andsocial benefits of flying with its impact on climate change, particularly bymandating minimum environmental standards for aircraft to operate in Europe. "Governments should also recognise that some airlines are already more efficientthan others - something that the UK's Air Passenger Duty dramatically fails todo. APD provides no incentive for airlines to operate the cleanest aircraft; itcompletely omits airfreight and private jets; the proceeds are not allocated toany scheme to improve the environment; and it is disproportionate - on a UKdomestic return flight, the £20 APD is now 25% of the average fare and about 10times the cost of off-setting the carbon emitted on an easyJet flight. "Surely, it would be better to incentivise consumers to choose airlines, likeeasyJet, operating the cleanest aircraft available. In fact, last year weremoved 22 older aircraft at a cost of over £275 million as part of our drivefor efficiency and in the coming four years we will buy 100 brand-new AirbusA319s - surely this substitution is the very definition of the "Green growth"that was foreseen in The Stern Review." easyJet's Environmental Code contains three promises for a greener future. Thefirst promise reflects easyJet's current environmental credentials; while thesecond and third outline the full and leading role that easyJet can play toimprove the environmental performance of the industry. 1. easyJet strives to be efficient in the air • Since 2000, easyJet's CO2 emissions per passenger kilometre has reduced by 18% • Each of easyJet's A319s carries 26% more seats than the norm and carries up to 57% more passengers per flight than the European norm meaning that the "typical" European airline operating an Airbus A319 would burn 27% more fuel per passenger • easyJet only operates direct point-to-point flights, without the wasteful "hubbing" operations associated with other European airlines • Only 2% of easyJet's flights could be undertaken by city-centre to city-centre rail journeys in less than four hours. All London to Scotland routes are over four hours - if included, still less than 10% of our flights could be considered in any way substitutable by rail. 2. easyJet strives to be efficient on the ground • easyJet's use of local, convenient airports connected to good, transport links means surface journeys are kept to a minimum. While at the airport, easyJet uses airport infrastructure efficiently with short dwell time, minimal use of ground equipment and prefers simple airport infrastructure. 3. easyJet aims to lead the way in shaping a greener future for aviation • easyJet has long led the way in campaigning for the inclusion of aviation in the European Union's Emissions Trading Scheme and on publication of the legislative proposal on 20th December 2006 called for ETS to be brought into "as wide as possible and as soon as possible" - anything else would be gesture politics • In addition, it is estimated that the implementation of the EU's Single European Skies programme could lead to a 12% reduction in flying distances by reducing the patchwork of European traffic control centres, which is why easyJet is actively engaged in the programmes to make SES a reality. • easyJet is actively engaging with airframe and engine manufacturers on the application of new technologies for the next generation of short-haul aircraft. ENDS Contact: Toby Nicol, easyJet Corporate Affairs 01582 52 52 52 Note The easyJet Corporate and Social Responsibility Report is published today aspart of the easyJet Annual Report and Accounts 2006. A full copy of the reportcan be found online in the Investor Relations section of www.easyjet.com CORPORATE AND SOCIAL RESPONSIBILITY REPORT From the easyJet plc Annual Report and Accounts 2006 easyJet and the environment easyJet's goal is to ensure that its existing business is as efficient aspossible, both in the air and on the ground, and to strive to find ways tominimise its environmental impact in the future. Below are the details of howeasyJet will monitor and manage its environmental impact. easyJet's impact on the environment involves the following: • Greenhouse gas emissions: carbon dioxide (CO2), water vapour, nitric oxide and nitrogen dioxide (together NOx), some of which at altitude • Particulate emissions: sulphate particles (formed from sulphur oxides) and soot, some of which at altitude • Waste: chemicals involved in aircraft maintenance, on board waste and office waste • Noise Noise As of September 2006 all of the aircraft in easyJet's fleet were compliant withthe latest international noise standards, known as "Chapter 3". Beyond this, 91%of easyJet's fleet as of September 2006 conformed to a more stringent standard,known as "Chapter 4". Emissions and waste One gramme (g) of CO2 emitted from an aircraft has the same climatic effect asone g of CO2 emitted from a ground source. The scientific understanding of theeffects of CO2 emissions is well advanced. The non- CO2 environmental effects ofaircraft are not well characterised by the Kyoto Global Warming Potential metric(GWP). According to the first Intergovernmental Panel on Climate Change (IPCC)special report on aviation the non- CO2 effects of aircraft are not as wellunderstood "because of the many scientific uncertainties" remaining. Forexample, NOx emissions at altitude have both a warming and cooling effect. The IPCC considered the best measure of the combined effects of greenhouse gas(GHG) emissions, particulate emissions and contrail formation from aviation tobe radiative forcing. According to the IPCC the best estimate (for 1992) of theradiative forcing by aircraft is 0.05Wm-2, or about 3.5% of the total radiativeforcing by all anthropogenic activities(1). The IPCC will report on aviationagain in 2007, but more recent estimates suggest that (for 2000) radiativeforcing by global aviation has remained at a similar proportion to that seen in1992(2).. According to the Stern Review on the Economics of Climate Change,aviation CO2 emissions currently account for 0.7 Gt CO2 (1.6% of global GHGemissions). In 2050 under 'business as usual' projections, CO2 emissions fromaviation would represent 2.5% of global GHG emissions. However, taking intoaccount the non-CO2 effects of aviation would mean that it would account foraround 5% of the total warming effect (radiative forcing) in 2050(3). easyJet's business is to fly passengers between European cities. easyJet doesnot carry cargo. Therefore, for easyJet, the most appropriate measures ofenvironmental efficiency with regard to CO2 emissions are: grammes per passengerkilometre and kilogrammes per passenger flight. In 2006, easyJet flightsproduced an average CO2 emission of 95.7g per passenger kilometre and 91.8 kgper passenger flight. All aspects of easyJet's business model are designed around safety andefficiency. This focus on efficiency minimises easyJet's and the airlineindustry's environmental footprint. From its inception in 1995, easyJet'snetwork development has focused on substituting services in markets dominated byinefficient former state-owned airlines with its more efficient product. easyJetstimulates demand through its low fares when it enters a market: the efficiencythat easyJet brings to a market, though, can mean an overall reduction inemissions in absolute terms. easyJet's network development has the following attributes: • 80% of easyJet's current and future capacity is employed in established markets; easyJet aims to grow those markets but in the process easyJet aims to substitute existing, less efficient services. • easyJet also competes on some of its routes against rail and road transportation; however, there are only two routes (London to Newcastle, and London to Paris) where the city centre to city centre rail journey would be less than 4 hours. These routes represented less than 2% of passengers carried by easyJet in 2006. In both cases, easyJet caters for demand which is not necessarily travelling city centre to city centre. There is no accepted single measure for an airline's environmental efficiency.In the absence of such a measure, easyJet has set itself the target of being aleading environmentally efficient and responsible airline. easyJet hasestablished an environmental code, which it aims to use to monitor progresstowards this target. The environmental code is centred around three promises: 1) easyJet strives to be efficient in the air 2) easyJet strives to be efficient on the ground 3) easyJet aims to lead the way in shaping a greener future for aviation The easyJet environmental code 1. easyJet strives to be efficient in the air A. Investment in the latest technology easyJet's policy is to grow its fleet using the latest technology aircraft,whilst retiring older aircraft usually within seven to ten years of delivery.New technology aircraft are more fuel efficient than older models. At 30September 2006, easyJet's fleet had an average age of 2.2 years, a reduction of0.8 years from September 2005. Since FY 2000 easyJet's emissions of CO2 per passenger kilometre has reduced by18%. B. Efficient use of aircraft Our standard aircraft is the Airbus A319. The typical seating configuration of an Airbus A319 is 124 seats (source:Airbus). Our no-frills service allows us to reduce the space and weight insidethe plane devoted to galleys, lavatories and storage. Our Airbus A319s fly with156 seats. Each of our Airbus A319s carries 26% more seats than the norm. Our simple automated pricing allows us to sell significantly more seats than atypical European airline. Our average load factor (percentage of seats sold) in2006 was 84.8%; the average load factor for European airlines in 2005 was 68.3%(4). easyJet sells on average 132 seats per flight; a typical European airlinewould sell 84 seats per flight. Each of our Airbus A319s potentially carries 57% more passengers per flight thanthe European norm. Using a conservative estimate and assuming the carriage of no cargo (plus thesame baggage allowance) the weight of the additional passengers carried byeasyJet in this calculation would require an additional 23% more fuel for thesame route length than carriers flying with 84 passengers. easyJet estimates that, compared to easyJet, the typical European airlineoperating an Airbus A319 would burn 27% more fuel per passenger. C. Direct point to point flights, no connections Conventional airlines operate networks based on a 'hub and spoke' system. Inthese networks, the majority of passengers will take two flights to reach theirdestination, connecting through the hub. easyJet always flies direct, or 'pointto point', and does not offer any connecting services. A direct service betweentwo points will produce lower emissions than two flights via a hub. Example: easyJet offers a direct service from Berlin to Madrid. If a customerchooses to fly the same route via Paris Orly, which lies on the path of thedirect flight, easyJet estimates that this routing would result in 19% more CO2emissions than if the customer had taken the direct flight. Example: on a shorter route, the effect of changing aircraft at an airportpositioned away from the direct route adds considerably more to the fuel burnper passenger trip. easyJet estimates that a trip from Berlin to Nice via ParisOrly would add 45% to the direct route distance and would add 57% to the CO2emissions generated per passenger A small proportion of easyJet's customers do buy combinations of flights toreach their final destination, where a direct easyJet service does not exist. Ifnumbers of customers build up on certain routings, easyJet will actively look toopen direct services to satisfy this demand. Example: in July 2006, easyJet opened a direct service to Malaga from Glasgow,after having seen an increasing trend in our customers choosing to fly thatroute via one of our three London airports. easyJet believes this flight willgive our passengers a better, quicker service, reduce congestion at the Londonairports and reduce fuel burn per passenger trip. D. Avoidance of air congestion easyJet prefers to avoid the largest, most congested hub airports. easyJet doesnot fly to London Heathrow or to Frankfurt Main. It should be noted thateasyJet's network is very different to that of a conventional 'hub and spoke'carrier. easyJet has no hubs but places capacity at the airports that localdemand requires - airports serve no other operational purpose than to allowpassengers to board or leave an aircraft. easyJet therefore has 16 local crewand aircraft bases in five countries. Example: large central hubs such as London Heathrow and Frankfurt tend torequire aircraft to fly longer holding patterns and longer taxi times to andfrom the runway. Below are the average time each aircraft spends in a holdingpattern, the proportion of aircraft held plus the proportion of easyJet flightsat each of the four main London Airports for January-June 2006: Source: NATS Operational Performance Report: July 2006 E. easyJet monitors its performance relative to other transport options Comparison with long-haul flying Many of easyJet's passengers are using easyJet to fly to specific destinations.A proportion of easyJet's passengers have a choice of holiday destination. Inmaking this choice, length of flight is the major determinant of the totalemissions produced per passenger. easyJet's average length of flight in FY 2006was 954 kilometres. Example: the chart below benchmarks a typical easyJet passenger journey (Londonto Nice, 1050 kilometres) against a range of long-haul alternatives. A typicallong-haul flight to Miami would create approximately 10 times more emissions perpassenger than an easyJet flight from London to Nice. (source: climatecare.org). Source: easyJet based on climatecare.org data for long-haul Comparison with rail In contrast to aviation, data on the fully-costed environmental impact of railjourneys is poor. The comparison with rail journeys should include some assessment of theenvironmental cost of the infrastructure used to provide the service, ratherthan just the marginal energy use of the single train journey. The environmentalcost of rail infrastructure is unclear, but considerable. According to the Association of Train Operating Companies(5), the average CO2emissions (i.e. directly-attributable marginal impact, as opposed to fullimpact) for passenger rail in the UK were 49 g per passenger kilometre in 2004. Comparison with road The European Environment Agency estimates that the average specific CO2emissions of the total EU15 passenger car fleet were 164 g per kilometre in2003. Its estimate for average car occupancy is 1.6 passengers. This equates to102.5 g of CO2 per passenger kilometre, or 7.1% more than easyJet's average. The EU's key instrument for reducing emissions from passenger cars is thevoluntary commitment agreed to by the European, Japanese and Korean carindustries to reduce average CO2 emissions from new passenger cars; a target of140 g per kilometre for 2008 in the EU and 2009 in Japan and Korea has been set(6). The EU's aim is to reach, by 2010, an average CO2 emission figure of 120 gper kilometre for all new passenger cars marketed in the Union (7). According to the Stern Review, transport accounts for 14% of globalgreenhouse-gas emissions, three-quarters of these emissions are from roadtransport, while aviation accounts for around one eighth and rail and shippingmake up the remainder(8). 2. easyJet strives to be efficient on the ground A. short dwell time on ramp - quick turns easyJet's business model is designed to achieve high aircraft utilisation. Keyto this is minimising the turnaround time (measured as the time between theaircraft arriving at the gate and pushing back for departure). During aturnaround, the crew secure and prepare the aircraft for the next flight beforeboarding passengers and their baggage. This process includes safety checks,cleaning the aircraft cabin and in most cases refuelling. By operating to this standard, to service the same number of passengers throughthe day, easyJet requires fewer gates and other airport infrastructure than fullservice airlines. B. minimal use of ground equipment easyJet's policy is to use the most efficient and simple ground equipment inorder to facilitate our quick turnaround time. As such, easyJet prefers, wherepossible, not to use air bridges. easyJet also prefers not to use motorisedsteps. As a no frills airline, easyJet typically loads catering onto theaircraft only twice a day, which further reduces the amount of ground activityand related emissions involved in every flight. easyJet cabin crew clean thecabin interior; a full service airline will require a separate cleaning crew tobe delivered to each turnaround. C. simple airport infrastructure easyJet has simple airport infrastructure requirements. As a short haul point topoint airline with one class of service and no cargo offering, easyJet has noneed for segregated check-in areas or for complex baggage handling systems andfacilities to transfer passengers between flights. Wherever possible, easyJet works with airports to adapt and develop existingfacilities efficiently to minimise airport capital expenditure, and reduceenvironmental impact. easyJet is launching an online check-in product, whichhelps reduce the need for expensive airport infrastructure. D. easyJet keeps surface journeys to a minimum easyJet prefers to use local, convenient airports connected to good publictransport links. As part of our airport selection process, easyJet assesses theconvenience of an airport with respect to surface transport options. According to latest census data, 200 million people in Europe live within 60minutes local journey of an easyJet airport. easyJet analyses address datasupplied by customers when they book, in order to draw conclusions about how farcustomers are travelling to their departure airport. Where a particulardestination appears to be drawing customers from a very wide field, easyJet willactively look to serve that destination from multiple departure airports. Example: in easyJet's 2006 summer schedule, half of the daily departures ateasyJet's three London airports (Gatwick, Luton and Stansted) were todestinations served from all three airports, allowing customers in south eastEngland to travel from their most convenient airport, reducing the emissionsfrom ground transport. Example: 5.4 million people live within 30 miles of Stansted Airport, accordingto the 2002 census. On routes that easyJet serves from all three of its Londonairports, typically between 45% and 50% of outbound passengers have giveneasyJet an address within 30 miles of Stansted. In contrast, on a route which isonly served from one of easyJet's London airports, the proportion of outboundpassengers giving easyJet an address within this catchment can be as low as 15%. E. minimal waste easyJet's no frills service is designed to reduce waste in all areas. Office waste easyJet is a ticketless airline and also has a policy of operating a nearpaperless office, where the majority of paper documents including all post arescanned into a document management system. All paper is disposed of through ourrecycling programme. This programme principally covers papers, including printertoner cartridges. Paper sent for recycling represented 13% of all waste byweight generated by head office activities On board waste By not offering free food, easyJet eliminates meals that people do not want. Atthe same time, the food that easyJet sells in flight does not requirepreparation on board. At present, the small volume of food waste containedwithin easyJet's onboard waste generally means it cannot be accepted forrecycling. easyJet is initiating a program to collect paper waste separately sothat it can be sent for recycling at as many airports as possible. If this issuccessful, other recyclable waste may also be segregated. Chemicals easyJet monitors closely its use of fluids for aircraft de-icing. The majorityof de-icing fluid used by easyJet have been designed to meet stringentenvironmental requirements (i.e. do not contain triazole) and are considered tobe non-hazardous and readily biodegradable. The transfer and shipment of oils ismaintained to a level as low as is practicable. Solvents and oils used inaircraft maintenance are either recycled or treated through approved licensedoperators. 3. easyJet leads the way in shaping a greener future A. shaping European policy on emissions trading easyJet has the chair of the European Low Fares Airlines Association (ELFAA)environment working group and in that capacity was invited to join the EuropeanCommission's Aviation Working Group set-up to review how international aviationcould be included into the EU Emissions Trading Scheme (ETS). easyJet supportsthe inclusion of aviation into the EU ETS, but not at any cost. A legislativeproposal is due to be published by the EU at the end of 2006. easyJet has beenpressing for a scheme that will cover the largest carbon footprint i.e. includeflights both within Europe and all departing and arriving flights, and rewardairlines that are environmentally efficient and punish those that are not. B. shaping European policy on making ATC more efficient The implementation of the EU's Single European Sky (SES) legislation isfundamental to improving the safety, reducing the cost and increasing theproductivity of Europe's highly fragmented and inefficient air trafficmanagement (ATM) system. easyJet is actively supporting the delivery of the SESinitiatives, especially through its involvement in ELFAA and ELFAA'sparticipation in the SESAR programme. SESAR is the operational part of SES,which is proposing a new approach to reform the ATM structure in Europe. C. actively engaging with aircraft manufacturers to influence next generationtechnology With new aerospace technologies emerging and their application primarilydirected at the new generation of wide body long haul aircraft, easyJet isactively engaging with both airframe and engine manufacturers in a dialogueaimed at the application of these technologies to a new generation of short haulaircraft. However it is not currently anticipated that a new generation of shorthaul aircraft will come to market before 2015. easyJet and its people As an employer, easyJet's aim is to create an environment where people feel thateasyJet is a great place to work; to nurture pride in the Company and people'sindividual efforts; to deliver outstanding performance to our internal andexternal customers and to promote our low cost model. Our aspiration to be thebest is underpinned by our five pillars of safety, customers, people,operational excellence and shareholder return together with our cultural values. A. Equality and diversity easyJet is a committed equal opportunities employer. Our policy aims to ensurethat no job applicant or employee receives less favourable treatment on thebasis of their age, colour, creed, disability, full or part time status, gender,marital status, nationality or ethnic origin, race, religion or sexualorientation. At 30 September 2006, easyJet employed 4,859 persons (2005: 4,152) as set outbelow:Location of employees (including secondments) Age of employees 2006 2005 2006 2005UK 3,648 3,131 Under 20 288 147Switzerland 364 506 21 - 30 2,133 1,833Germany 387 355 31 - 40 1,543 1,360France 167 158 41 - 50 693 612Spain 201 2 Over 50 202 200Italy 92 - 4,859 4,152 4,859 4,152 Our growth across Europe is reflected in our multinational workforce. Pilot retirement age In order to ensure compliance with the new laws against age discrimination inOctober 2006, easyJet is raising the normal retirement age for all pilots to 65,the maximum age limit allowable under the regulatory regime in force. Prior tothis it was compulsory for pilots to retire at the age of 60. Now all pilotshave a choice as to whether they wish to keep flying until they are 65. B. Training & Development easyJet is committed to providing high quality training to support the safeoperation of the business, and the cultural and personal development of ourpeople. During the year, the easyJet Academy opened a 30,000 square foottraining facility, which will contribute towards achieving these objectives. easyJet Academy The easyJet Academy has now completed its first successful year and has seenapproximately 5,000 Pilots, Cabin Crew and Contact Centre and Management andAdministrative staff pass through its doors, along with an additional 3,500people passing through our recruitment and assessment centres. The facility is astate-of-the-art training centre, primarily for the flight crew, but withfacilities for training telesales and customer service agents for our ContactCentre. The 30,000 square foot building is home to easyJet's flight crewrecruitment and training teams, as well as its ID processing cell, whichproduces all employee IDs in-house. The facility also houses a cabin simulatorand aircraft slides that are used to train Cabin Crew and Pilots. Employee Induction In addition to our already well-established and thorough induction trainingprogramme for crew, all new employees to easyJet Management and Administrationfunctions can now look forward to a thorough induction process that will takethree months to complete. easyJet wants new people to the organisation to settlein as quickly and efficiently as possible, and has introduced a new process toensure that this happens. C. Employee information and consultation The process of designing efficiency into easyJet's core business extends to a "flat" management structure, where few organisational layers exist between theoperational and customer-facing teams. easyJet is committed to providing openinformation to its people, and to consulting over key issues. A number of forumsexist where issues of concern can be raised across the board. easyJet's BusinessForum allows for high level consultations with both staff groups and recognisedunions. easyJet has a good relationship with its Management and AdministrationConsultative Group and recognised trade unions, Amicus, BALPA and the TGWU.easyJet has lost no days to industrial action during the year. easyJet has also developed a new Culture Network, which recognises the airline'sEuropean personality and the location of staff. This Network gives everyone anopportunity to get involved in communicating issues and ideas to management. Thegoals of the Network are to support the aspirations, vision and values of theCompany and its employees. easyJet has a number of means of keeping its people informed about both internaland external news. The easyJet intranet is the official portal to a wide rangeof Company information, which is actively updated and expanding in subjectcoverage. This is a proven, successful communications medium and events rangingfrom daily operational performance to long term plans are posted here. Using the intranet, access is provided to both common policies and procedures,such as in the People Handbook, or specific activities related to one of thebusiness groups e.g. aircraft technical discussions. Our people also publishtheir views on any topic via open discussion forums covering technical,employment, cost issues and more; in fact anything our people wish to debate. A measurement of travel delivery achievement to our customers is a keyperformance indicator. easyJet reports the end result of its efforts bypublishing the preceding day's on-time performance on the intranet front pageeach weekday morning. A wide range of topical news from inside and outside thebusiness, management announcements and general social activities, is alsoavailable. To connect the management with any person in the business, Directorshave instigated a monthly on-line chat forum, which draws a wide audience withlively discussion. To supplement the general intranet information, a range of magazines andnewsletters are published. These include the business development focused PlaneTimes, in electronic form every three weeks, the quarterly Plane People,containing articles on a wide range of subjects and which is delivered to thehome address of each of our people. Individual business groups producespecialist publications such as The Stable Approach for pilots, Cabin Fever forcabin crew and Crew Safety for the operations team. People opinion survey In May 2006 easyJet launched its new annual people opinion survey - easyJetPulse - in order to fully understand its people's issues and measure progress.With a commitment from the Board to share the results of Pulse 'warts and all'67% of easyJet people responded to Pulse (higher than average for a firstsurvey, particularly in the airline industry) with an overall satisfaction scoreof 68%. Linked to an engagement 'index', Pulse not only measured satisfaction,but also levels of motivation, pride, commitment, engagement and advocacy. A keypositive headline for easyJet was the high degree in which easyJet people areadvocates of the company and the service it provides, while there is more workto be done in the areas of employee engagement communication. Corporate andlocal level action plans have been drawn up throughout the business and targetshave already been set to better the response and satisfaction rates in Pulse2007. New Employee Uniform One of the things our uniform-wearing staff were keen to let us know about wastheir opinion on our current uniform. As a result of their feedback, ChiefExecutive Andrew Harrison initiated 'Project Uniform', the aim of which is togive easyJet employees the uniform they want at no extra cost. All easyJetemployees were invited to submit their designs for their dream uniform and thebest three designs were put on the easyJet intranet for the people to choosetheir favourite two. The final two designs have now been chosen and both arebeing put into production so the crew can make the decision about which one theywant to wear. easyJet expects crew to be in their new uniform early in 2007. Flight Plan 2007 To improve two-way communication around easyJet and to galvanise our peoplebehind our strategy for the next three years, our Directors have taken easyJet's'Flight Plan' for 2007 out to the network and across the whole Company. Througha series of roadshows delivered to crew and support functions, easyJet peoplehave heard all about easyJet's performance last year and the part everyone canplay to reach our targets for next year and beyond. D. Staff rewards & recognition Share schemes easyJet once again offered all employees the opportunity to join its popular allemployee share plans - easyJet Shares 4 Me - through our Save As You Earn (SAYE)and Buy As You Earn (BAYE) schemes. Take-up of the schemes is very positive with40% of eligible staff participating in one or both plans. These are HM Revenue &Customs (HMRC) approved schemes open to all employees on the UK payroll. Under SAYE participants may elect to save up to £250 per month under athree-year savings contract. An option is granted by the Company to buy sharesat a price based on the market price of the shares at the time of the grant. Atthe end of the savings period, a tax free bonus is applied to the savings andthe option becomes exercisable for a period of six months. The Company madegrants under the Sharesave scheme in June 2005 and June 2006, with options beinggranted at a discount of 20% to the market price at the time of the grant. Forthose employees who are on non-UK payrolls, an international scheme has beenestablished with similar terms and conditions to the UK scheme, albeit withoutthe UK tax benefits. BAYE is a share incentive plan and is open all year. This scheme is open to allemployees on the UK payroll. Employees can allocate part of their pre-taxsalary up to a maximum of £1,500 per annum, to purchase "partnership" shares ineasyJet. For every share purchased through the partnership scheme, easyJetpurchases a "matching" share. Employees must remain in employment with easyJetfor three years from the date of purchase of partnership shares in order toqualify for matching shares, and for five years for shares to be transferred tothem tax free. The employee retains rights over both their own shares and thematching shares, receives dividends and is able to vote at meetings once theshares are purchased. For those employees who are not paid on the UK payroll,an international scheme has been established with similar terms and conditionsto the UK scheme, albeit without the UK tax benefits. Free shares To further encourage share ownership, easyJet has given all employees a one-offaward of free easyJet shares, equivalent to two weeks' pay. This is also underthe HMRC approved Share Incentive Plan. Employees who are not paid on the UKpayroll are included in the international Share Incentive Plan. easyJet Shares 4 Me has been the recipient of three major industry awards thisyear: 'Best New Share Plan' at the ifsProShare Annual Awards 2005 'Most Effective All-Employee Share Plan Strategy Award' from Employee Benefitsmagazine 'Most Innovative Employee Share Plan' at the Institute of Chartered Secretariesand Administrators Company Secretary Awards 2006 Staff Travel In April 2006, easyJet introduced an improved staff travel incentive for allemployees. Without adding any further cost to the business, a team of peoplefrom within easyJet implemented a number of enhancements to the system alreadyin place, which meant that staff could be on more of our seats that would havedeparted empty. Part of the development programme was to widen the number ofpeople who could use the easyJet staff travel facility. Each employee now hasthree named others on their staff travel account, plus dependants up to the ageof 21. The result saw a year-on-year increase in use of staff travel by almost100%. Go the Extra Mile Awards One of the key differentiators between easyJet and other low-cost carriers isour people. Regardless of where in the company our people are working, they workhard and give their all. For this reason, easyJet introduced a new employeeincentive scheme called the 'GEM' (Go the Extra Mile) awards. The awards aredesigned to recognise employees who go beyond what can rightly be expected ofthem in the role they are in. There are five different types of GEMs whichrecognise different areas of an employee's contribution and these are matched byan exciting range of rewards. This year, 253 people have been recognised withGEMs, and five have been awarded the ultimate accolade of a diamond GEM. E. Health & Safety Safety is the number one priority for the business. easyJet aims to provide asafe and efficient work environment for all its people. Beyond those engaged inoffice-based work, the large majority of people are aircrew. They have been oneof the mainstays to easyJet's success, giving a great deal of effort to theirrole. easyJet is continuing to invest substantial effort and money intorostering practices and systems. easyJet is committed to the development of anindustry leading Fatigue Risk Management System (FRMS) for its pilots, as anintegral part of the airline's safety management processes. The aim of theprogramme is to detect any sources of fatigue risk within the airline operationand act upon them. F. Charitable donations Our charity policy is to recognise and devote efforts to a single charity eachyear. This year the charity, chosen for the first time by a staff vote, was TheAnthony Nolan Trust. easyJet has worked with The Anthony Nolan Trust to help promote the Trust, withactivities including on-board collections, a click and give campaign from ourwebsite, staff fundraising, being featured in the in-flight magazine and otherpublic relations activities. Close to £560,000 was raised to 30 September 2006and the Anthony Nolan Trust received coverage in European press, UK regionalpress and National television. easyJet also donated £50,000 to the Anthony NolanTrust. Money raised from onboard collections was also donated to other bone marrowregisters in Europe; close to £15,000 to the German register, DKMS and over£5,000 to the Italian register IBMDR. G. Ethical easyJet is committed to the highest standards of corporate behaviour from itsDirectors and employees. easyJet requires all of its people to perform theirduties with efficiency and diligence and to always behave to customers and otherpeople alike with courtesy and decorum. easyJet's procurement process has strong controls to ensure that any dealingsare open and transparent, and avoids any suspicion of conflicts of interest. Inparticular, easyJet has specific clauses in each employee's contract ofemployment, which set tight rules in respect of accepting gifts or gratuities. Gifts and Gratuities Some easyJet employees are sent gifts from various companies throughout theyear. The airline has a strict policy that prevents any employee accepting giftsover a nominal value. Every Christmas (and less frequently, at various timesthrough the year) easyJet holds a staff raffle of all the gifts that arereceived. Every employee across Europe is entered into the draw and allocated aunique reference number. Numbers are then drawn at random and winners have thegifts sent directly to their home in time for Christmas. -------------------------- (1) IPPC special report 'Aviation and the global atmosphere'1999 (2) Ingenta Connect Aviation radiative forcing in 2000: An update on IPCC (1999)Meteorologische Zeitschrift, Volume 14, Number 4, August 2005, pp. 555-561(7) (3) Stern Review on the Economics of Climate Change, 30/10/06 (4) Association of European Airlines (AEA) Annual Results 2006 (5) "Rail and the Environment", 1994 http://www.atoc-comms.org/Document/c423969.pdf#search=%22atoc%20rail%20environment%22) (6) EEA Report No 9/2006 Greenhouse gas emission trends and projections inEurope 2006, 27/10/06 (7) EEA Report No 3/2006 Transport and environment: facing a dilemma, TERM 2005:indicators tracking transport and environment in the European Union, 28/03/06 (8) Stern Review on the Economics of Climate Change, 30/10/06 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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