Business
Proposed purchase of aircraft
Proposed purchase of aircraft.
About this update from Easyjet Plc
[{"type":"text","content":"\n \n\n\neasyJet plc (EZJ)\n\n\n\nProposed purchase of aircraft 21-Jun-2022 / 07:00 GMT/BSTDissemination of a Regulatory Announcement, transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\n\nThis announcement contains inside information\n\n \n\nFor immediate release \n\n \n\n21 June 2022\n\neasyJet plc\n\n \n\nProposed purchase of 56 Airbus A320neo family aircraft and conversion of 18 A320neo family aircraft to 18 A321neo aircraft\n\n \n\neasyJet plc (\"easyJet\" or the \"Company\") today announces that it has entered into conditional arrangements with Airbus S.A.S. (\"Airbus\") under which Airbus has agreed to supply 56 A320neo family aircraft for delivery between FY 2026 and FY 2029, utilising purchase options and purchase rights under the existing contract with Airbus (the \"Airbus Amendment\" and the existing contract with Airbus being the \"2013 Airbus Agreement\"). In addition, the Company proposes to convert 18 A320neo aircraft planned for delivery between FY 2024 and FY 2027 to 18 A321neo aircraft deliveries. The Company has also entered into conditional arrangements with CFM International S.A. (\"CFM\") to ensure that the commitments given under the current engine supply agreement between the Company and CFM will cover aircraft delivered under the Airbus Amendment (the \"CFM Amendment\", together with the Airbus Amendment, the \"Proposed Purchase\").\n\n \n\nThe Proposed Purchase firms up easyJet’s order book with Airbus to calendar year 2028, continuing the Company’s fleet refresh, as the 156 seat A319s and older A320s (180 and 186 seat) leave the business and new A320 (186 seat) and A321 neo (235 seat) aircraft enter providing up gauging, cost and sustainability enhancements to the business. The directors believe this will support the delivery of our strategic objectives and provide the aircraft to help build strong shareholder returns.\n\n \n\nThis purchase will:\n\n \n\n• Secure Certainty of Aircraft Supply: Airbus delivery slots are increasingly scarce, with no slots being available until 2027. By securing delivery slots now, easyJet ensures future deliveries between FY 2026 and FY 2029 to replace aircraft leaving the fleet. The Company and its group's ability to maintain desirable slots and sustain its route network depends on the...