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EZY-2006-06 NEW HQ
EZY-2009-12 DSA ROBIN HOOD
EZY-2011-06 - LONDON SOUTHEND BASE
EZY-2011-10 - EASYTV
EZY-2011-11 LAST 737 TROOP DISCOUNTS
EZY-2013-03 - MOSCOW LAUNCH
EZY-2013-04 - UPDATE-A
EZY-2013-04 - UPDATE-B
EZY-2013-05 - VOLCANIC ASH DETECTOR
EZY-2013-06 - PARIS AIRSHOW ORDER
EZY-2013-11 - FASTEST GROWING AIRPORTS
EZY-2013-11 - PASSENGER GROWTH
EZY-2014-07-TOP 12 GLASGOW AIRLINES
EZY-2014-11 - GLASGOW TO MARRAKECH
EZY-2015-09 - New Livery.jpg
EZY-2016-02 - London Southend to Paris CDG-A.jpg
EZY-2016-02 - London Southend to Paris CDG.jpg
EZY-2016-02 - Prague to Venice.jpg
EZY-2016-04 - Youngest Pilot.jpg
EZY-2017-06 - 1st A320neo.jpg
EZY-2017-11 London Luton to Alghero.jpgo
EZY-CABIN ATTENDANT - 2013-08
EZY-CABIN ATTENDANT AD 2003-08
EZY-FLIGHT CREW AD - 2014-07
EZY-Logo - 2015-09.jpg
FORMED AND STARTED OPERATIONS IN 1995. DOMESTIC, REGIONAL, & INTERNATIONAL, SCHEDULED, PASSENGER, JET AIRPLANE SERVICES.
EASYLAND, LONDON-LUTON INTERNATIONAL AIRPORT
LUTON, BEDFORDSHIRE LU2 9LS, GREAT BRITAIN
Great Britain (United Kingdom of Great Britain & Northern Ireland) was established in 1066, it covers an area of 242,432 sq km, its population is 59 million, its capital city is London and its official language is English.
APRIL 1996: EASYJET (EZY) FLIES TO GLASGOW & EDINBURGH. INITIAL SERVICE TO BE BY GB AIRWAYS (GBA) WITH 737-200'S UNTIL EASYJET (EZY) OBTAINS ITS OWN AIR OPERATOR'S CERTIFICATE (AOC), AND ADDS EUROPEAN DESTINATIONS. TO AMSTERDAM, NICE AND BARCELONA.
STELIOS HAJI-IOANNOU, EASYJET (EZY) FOUNDER, CHAIRMAN & CEO, IS OWNER AND FOUNDER OF THE STELMAR TANKERS SHIPPING COMPANY. HE APPOINTED RAY WEBSTER AS MANAGING DIRECTOR, EX-AIR NEW ZEALAND (ANZ) STRATEGIC PLANNING GENERAL MANAGER.
100 EMPLOYEES (INCLUDING 30 FLIGHT CREW (FC)).
COMPONENT SUPPORT BY FLS AEROSPACE (ATD).
ACQUIRED ITS 1ST 737-300 & PLANS TO PURCHASE MORE OF THE TYPE.
1 737-300 (23498), EX-MONARCH AIRLINES (MON) (JUNE 1996).
AUGUST 1996: TO GENEVA IN OCTOBER 1996.
ACQUIRED 4TH 737.
SEPTEMBER 1996: OWNER, STELIOS HAJI-IOANNOU, PLANS TO RUN LUTON BASED OPERATION FROM GREECE.
PLANS TO HAVE 6 AIRPLANE'S BY NEXT EASTER. 737-300 (24020), DELIVERY.
OCTOBER 1996: TO INVERNESS, ITS 4TH SCOTTISH DESTINATION.
NEGOTIATING 5TH 737. 1 737-300 (CFM56-3B2) DELIVERY.
NOVEMBER 1996: WHILE STILL AWAITING ITS AIR OPERATOR'S CERTIFICATE (AOC) - CONTINUES TO USE AIR FOYLE (FOY)'S (AOC).
NEW ROUTE TO GENEVA, WHEN 3RD 737-300 ARRIVES IN FEBRUARY 1997.
PLANNING TO RETURN 2 737-200'S IN APRIL 1997.
JANUARY 1997: ORDER FOR 737-300 (PP847), EX-TRANSBRASIL (TBL), CANCELLED. NOW ACQUIRING 3RD 737-300 (PQ223) (FEBRUARY 1997).
MARCH 1997: 1 737-300 (24462), EX-MONARCH AIRLINES (4TH).
APRIL 1997: CONSIDERING 6 737-700'S IN 1998, & 6 IN 1999.
200 EMPLOYEES (INCLUDING 100 FLIGHT CREW (FC)).
JULY 1997: 5TH 737-300, EX-NORDIC EUROPEAN AIRLINES (NOE). PLANS A 6TH, BY THE END OF 1997 TO OPERATE TO GENEVA, SWITZERLAND.
1 ORDER (NOVEMBER 1997) 737-375 (23708), EX-DEUTSCHE BA (DBA).
SEPTEMBER 1997: NEW ROUTE TO OSLO. CONSIDERING LIVERPOOL AS 2ND HUB DUE TO LACK OF SPACE AT LUTON. POSSIBLY BOURNEMOUTH. PLANS TO FLY TO MALLORCA.
$500 MILLION, 12 ORDERS (1998) 737-300'S FOR LONDON TO EUROPE. $85 MILLION ORDER FOR (CFM56-3) ENGINES FOR 737-300'S.
NOVEMBER 1997: 2 YEARS ANNIVERSARY!
737-375 (23708) EX-DEUTSCHE BA (DBA).
DECEMBER 1997: WILL TAKE BRITISH AIRWAYS (BAB) TO COURT IF IT INTRODUCES ITS "BLUE SKY" DISCOUNT SERVICE OUT OF LONDON STANSTED.
EASYJET (EZY) IS 1ST OPERATOR IN UK, WHICH IS LOOKING AT INSTALLATION OF HEAD-UP DISPLAYS (HUDS) FOR 12 737'S ON ORDER, TO ALLOW CATEGORY IIIA OPERATIONS FOR RUNWAYS ONLY EQUIPPED FOR CATEGORY I. ALSO CONSIDERING ENHANCED (GPWS) & PROBABLY (ACARS).
JANUARY 1998: LONDON LUTON AIRPORT RISKS LOSING EASYJET (EZY) AS ONE OF ITS MAIN USERS AS (EJA) PURSUES "FRIENDLY" TAKEOVER BID FOR AIR HOLLAND (HOL), AMSTERDAM, WHERE IT MAY SET UP OPERATIONS. RELATIONS WITH THE AIRPORT HAVE BEEN CLOSE TO HOSTILE SINCE LAST YEAR, WHEN (EZY) OFFERED TO ASSUME MANAGEMENT OF LUTON AIRPORT.
APRIL 1998: PARENT GROUP, EASYJET HOLDINGS TAKES 40% STAKE IN TEA SWITZERLAND (TEB), WITH OPTION FOR 90% IF SWISS LAW OK'S.
200 EMPLOYEES (INCLUDING 100 FLIGHT CREW (FC)).
1ST QUARTER = 264 MILLION (RPK) (TRAFFIC), 376,000 PASSENGERS (PAX).
JUNE 1998: 1 737-300 (26333), TEA BASEL (TEB) WET-LEASED FOR 5 MONTHS.
JULY 1998: $650 MILLION, 15/15 ORDERS (OCTOBER 2000) 737-700'S.
AUGUST 1998: 737-300 ("EASY GOLF" G-EZYG) 1ST DELIVERY.
SEPTEMBER 1998: CANCELS MAINTENANCE CONTRACT WITH MONARCH AIRLINES (MON).
2ND 737-300 (G-EZYH) DELIVERY.
NOVEMBER 1998: 1 737-300 (26307), TEA BASEL (TEB) WET-LEASED UNTIL JANUARY 1999. PAINTS FUSELAGE OF 737-33V (G-EZYH) WITH "STOP BA STOP GO." 737-33V (29333) DELIVERY.
DECEMBER 1998: 737-33V (29334) DELIVERY.
JANUARY 1999: TO BASE +2 737-300'S AT LIVERPOOL FOR NEW OPERATIONS TO BARCELONA, GENEVA, AND MALAGA.
1998 PRE-TAX = +$3.8 MILLION: 1.7 MILLION PASSENGERS (PAX) (+65%).
8 737-300'S TO BE RECEIVED IN 1999.
FEBRUARY 1999: 737-300 (23498) RETURNED TO (GEH) & (24068) RETURNED TO (ILF), SOLD TO SOUTHWEST AIRLINES (SWA). 2 737-33V DELIVERIES (29335).
MARCH 1999: 1 737-33V DELIVERY.
APRIL 1999: 200 EMPLOYEES (INCLUDING 100 FLIGHT CREW (FC)).
MAY 1999: ESTABLISHES NEW BASE IN GENEVA WITH SERVICE TO NICE, AMSTERDAM, AND BARCELONA.
JUNE 1999: NEXT MONTH, LIVERPOOL TO BELFAST, AND MALAGA.
737-33V (29337, G-EZYM) DELIVERY. USED FOR UK (CAA) CERTIFICATION OF HEADS-UP DISPLAY (HUD) SYSTEM.
JULY 1999: FISCAL YEAR (FY) 1998 PRE-TAX = +2.3 MILLION POUNDS: +65% PASSENGERS (PAX).
IN WINTER, LONDON GATWICK TO GENEVA.
737-700 RETURNED TO LESSOR.
AUGUST 1999: 737-33V (29338), 10 YEAR LEASED TO EASYJET SWITZERLAND (TEB). 737-33V (29339, G-EZYO) DELIVERY.
SEPTEMBER 1999: VILHELM HAHN-PETERSON, COO, EX-FLS AEROSPACE (ATD) MANAGING DIRECTOR.
PLANS IN 2000 FOR EASYRENTACAR, AN ONLINE CAR RENTAL OPERATION.
1ST CIVIL AVIATION AUTHORITY (CAA)-APPROVED EUROPEAN OPERATOR TO INSTALL ROCKWELL COLLINS FLIGHT DYNAMICS HEAD-UP GUIDANCE (HUD) SYSTEM WITH 12 FOR NEW 737-300'S & 4 TO RETROFIT OTHER 737-300'S.
737-33V (29340, G-EZYP) DELIVERY.
OCTOBER 1999: LUTON - MALAGA (15TH ROUTE FROM LUTON). FLIGHTS FROM LIVERPOOL TO MALAGA HAVE BEEN SUCCESSFUL.
TALKING TO AIR HOLLAND (HOL) ABOUT POSSIBLE EASYJET (EZY) BASE IN AMSTERDAM.
737-33V (20341, G-EZYR) DELIVERY.
NOVEMBER 1999: 6 737-300'S (29338; 29339; 29340; 29341; 29342; 29343), GECAS (GEH) 10 YEAR LEASED.
DECEMBER 1999: LONDON (GATWICK & STANSTED) - GENEVA.
JANUARY 2000: PLANS 4TH QUARTER 2000, INITIAL PUBLIC OFFERING (IPO) OF 25% TO FUND 15 ORDERS 737-700'S.
MARCH 2000: LUTON TO LIVERPOOL, GENEVA.
HANDLES 60% OF ALL BOOKINGS & EXPECT 70 TO 75% BY THE END OF 2000.
200 EMPLOYEES (INCLUDING 100 FLIGHT CREW (FC)).
$600 MILLION, 17/30 ORDERS (JULY 2001) 737-700'S. PLANS TO OPERATE 44 737-700'S BY 2004 AND INCREASE ITS WORKFORCE FROM 1,200 TO 2,500 EMPLOYEES.
JULY 2000: 1 737-3Q8 (26307) RETURNED FROM EASYJET SWITZERLAND (TEB). 1 737-33V (29337, HB-IIK), LEASED TO (TEB).
AUGUST 2000: NOW SELLS 80% OF TICKETS ON WEB.
1999 = 2.6 BILLION (RPK) TRAFFIC (+79.7%); 2.98 MILLION PASSENGERS (PAX) (+68.9%); 1,200 EMPLOYEES.
OCTOBER 2000: REPAINTS ALL 737 FLEET REMOVING TELEPHONE NUMBER ON FUSELAGE WITH "easyjet.com - THE WEB'S FAVOURITE AIRLINE."
1ST 737-73V DELIVERY.
NOVEMBER 2000: IN JANUARY 2001, NEW HUB AMSTERDAM TO EDINBURGH, BELFAST, AND NICE (737-700, 149 PAX).
1 737-73V (30236, G-EZJA) DELIVERY.
DECEMBER 2000: 3RD 737-73V (30237, G-EZJC), DELIVERY.
JANUARY 2001: STARTS 3 NEW ROUTES: AMSTERDAM - EDINBURGH (2/DAY) & AMSTERDAM - BELFAST & NICE (DAILY). CONSIDERING SERVICE TO DUBLIN.
FEBRUARY 2001: SCHRODER SALOMON SMITH BARNEY (SSB) NAMES EASYJET (EZY) "WORLD'S LEADING ELECTRONIC AIRLINE." (EZY) SELLS AN AVERAGE OF 82% SEATS ONLINE, WITH RYANAIR (RYR) AT >65%, AND SOUTHWEST AIRLINES (SWA) AT >30%.
MARCH 2001: CEASES OPERATIONS FROM STANSTED. DAILY FLIGHT TO GENEVA, SWITCHED TO LONDON GATWICK (LGW). (LGW) TO AMSTERDAM.
MAY 2001: LAST 6 MONTHS PRE-TAX = +$15 MILLION: 3.2 MILLION PAX (+3%); 81% LF LOAD FACTOR (+2); +24% FUEL COSTS.
JULY 2001: 1 737-73V TO BE BASED AT LIVERPOOL.
737-73V (30242, G-EZJD) DELIVERY.
AUGUST 2001: 737-700 BASED AT LIVERPOOL HAS PERFORMED SO WELL THAT A 2ND 737-700 WILL BE BASED THERE. NEW SERVICE: BELFAST TO EDINBURGH.
CHAIRMAN, STELIOS HAJI-IONNAOU'S LATEST VENTURE AT DIVERSIFICATION INCLUDES "EASYMONEY" ESTABLISHED WITH HELP OF LONDON SCOTTISH, A MANCHESTER-BASED BANK, THAT LENDS TO INDIVIDUALS, WHO HAVE BEEN TURNED DOWN BY HIGH STREET BANKS. WILL INTRODUCE 75,000 CREDIT CARDS, ULTIMATELY OFFERING A REWARDS SCHEME, WITHIN 1 YEAR.
2 737-73V'S (30238, G-EZJE; 30243, G-EZJF) DELIVERIES.
SEPTEMBER 2001: AMSTERDAM - BARCELONA.
1 737-73V (30239, G-EZJG) DELIVERY.
OCTOBER 2001: FISCAL YEAR (FY) 2000 PRE-TAX = +$58.2 MILLION (+82%): 7.1 MILLION PASSENGERS (PAX) (+26%), 83% LF (LOAD FACTOR) (+2.2).
NOW SERVES 17 DESTINATIONS AND OPERATES 35 ROUTES IN EUROPE.
737-73V (30240, G-EZJH) DELIVERY.
NOVEMBER 2001: PLANS TO MAKE LONDON GATWICK (LGW) ITS MAIN BASE.
NEXT FEBRUARY, (LGW) - BARCELONA. PLANS SERVICE FROM COPENHAGEN AND MAY MAKE IT, ITS NORDIC HUB.
90.1% OF SEATS WERE BOOKED THROUGH ITS INTERNET SITE, AND IN LAST YEAR, IT SOLD 88.1% OF ITS TICKETS ONLINE.
DECEMBER 2001: 10-YEAR, $400 MILLION CONTRACT FOR TOTAL MAINTENANCE SUPPORT FOR 44 737-700'S TO FLS AEROSPACE (ATD). (ATD) ALREADY PROVIDES MAINTENANCE SUPPORT FOR (EZY) 18 737-300'S.
737-73V (30241, G-EZJI) DELIVERY.
JANUARY 2002: 2001 = 7.7 MILLION PASSENGERS (PAX) (6 MILLION); 84.3% LF (+1.5); 88.5% E-TICKETS (71.4%).
NEXT MONTH, LONDON GATWICK (LGW) TO BARCELONA, EDINBURGH, ZURICH, AND MALAGA, PALMA DE MALLORCA. BELFAST INTERNATIONAL TO AMSTERDAM, EDINBURGH, AND GLASGOW.
POTENTIAL 75 ORDERS (2007) WORTH $4.1 BILLION FOR EITHER 737-700'S OR A319'S.
FEBRUARY 2002: 2 737-73V'S DELIVERIES.
MARCH 2002: IN SUMMER SEASON, PARIS ORLY - SWITZERLAND.
EASYJET (EZY) DECIDES TO CONTINUE WORKING WITH UK TV SERIES IN PRODUCING ANOTHER 6 EPISODES OF "AIRLINE."
BY MID-2006, WILL HAVE 4 AIRPLANES OPERATING FROM PARIS ORLY AND CHARLES DE GAULLE (CDG). NEW ROUTES LIVERPOOL - PARIS, LUTON - PARIS, ORLY - GENEVA, & (CDG) - NICE
APRIL 2002: GLASGOW - OSLO (TORP) (DAILY).
STELIOS HAJI-IOANNOU, CHAIRMAN, PLANS TO RESIGN AT THE ANNUAL GENERAL MEETING IN 2003. SIR COLIN CHANDLER, NOW DEPUTY CHAIRMAN, WILL SUCCEED AS CHAIRMAN. THE HAJI-IOANNOU FAMILY OWNS 58.5% OF (EZY). HE STATED "I NEED TO SELL MY PAST TO FINANCE MY FUTURE. HISTORY IS LITTERED WITH ENTREPRENEURS WHO HELD ONTO THEIR CREATIONS FOR TOO LONG, FAILING TO RECOGNIZE THE CHANGING NEEDS OF THE COMPANY, ITS BUSINESS AND ITS SHAREHOLDERS."
MAIN BASE: LONDON LUTON AIRPORT (LTN).
HUBS: LONDON GATWICK (LGW); LIVERPOOL JOHN LENNON AIRPORT (LPL); GENEVA INTERNATIONAL AIRPORT (GVA); & AMSTERDAM SCHIPHOL AIRPORT (AMS).
1 737-73V DELIVERY.
MAY 2002: NEGOTIATIONS UNDERWAY TO ACQUIRE "GO FLY" (GFL). EASYJET (EZY) NOW HAS ACQUIRED THE OPTION TO BUY DEUTSCH BA (DBA), BRITISH AIRWAY'S GERMAN SUBSIDIARY AND GERMANY'S 2ND BIGGEST AIRLINE FOR $40 MILLION. LATER, CLOSES DEAL ON ACQUIRING (GFL) FOR $544 MILLION/374 MILLION POUNDS.
LAST 6 MONTHS (EZY) = 4.3 MILLION PASSENGERS (GFL). 2001 = 4.3 MILLION PASSENGERS.
LAUNCH OF LIVERPOOL - PARIS SERVICE, WITH 737-33V (G-EZYO) PAINTED "2 STEAK FRITES OU 1 VOL."
1 737-73V (30249, G-EZJN) DELIVERY.
June 2002: 2 737-73V'S (30244, G-EZJO; 32412, G-EZJP) and 1 737-76Q (30283, G-OSLH), Boullioun (BOU) leased.
July 2002: London Gatwick (LGW) - Athens (737). In September, London Gatwick to Alicante, & Madrid (daily).
easyJet (EZY) took option to buy Deutsche BA (DBA) at anytime through 1st quarter 2003, and has to inject EUR 5 Million capital and pay EUR 600,000/Month until exercise of option, then another EUR 30 Million - 39 Million upon purchase.
2001 = +$55.72 Million (+32.49 Million): 5.13 Billion (RPK) traffic; 81.1% LF Load Factor; 5.98 Million passengers (-.3%); 1,632 employees.
Sells 6 737-700's to BBAM (BBB), and leases them back.
August 2002: 1 737-73V (32413, G-EZJR) delivery.
September 2002: 1 737-73V (32414, G-EZJS) delivery.
October 2002: Founder, Stelios Haji-Ioannou is to step down from his post as Chairman, when he announces the full-year results next month. He said he is confident these results "will be in line with market expectations."
$6 Billion, 120/120 orders (2003) A319's, 150Y. This order generated a "Seattle Times" front page, headline banner "Boeing (TBC) is slipping to No 2," stating that this order virtually guarantees Airbus (EDS) for the 1st time will deliver more airplanes than (TBC) in 2003, or, at the latest, 2004. Currently, Boeing (TBC) is still No 1, with 295 jets delivered in 2002, compared to 219 for Airbus (EDS). Building on its long and successful relationship with Southwest Airlines (SWA), (TBC) has had a virtual monopoly on low-fare airlines. 16 of 19 discount carriers around the world fly 737's rather than A320-family jets. (EZY) said it would continue to keep flying both Boeing (TBC) and Airbus (EDS) airplanes in its fleet, however, (EDS) has agreed as part of the deal, to take in as trade-in, some of (EZY)'s older 737's.
In April 2003, will open a new base at Newcastle, serving 3 cities with 2 737's.
November 2002: Plans to acquire Deutsche BA (DBA) next April. Plans to avoid job cuts at (DBA) by increasing the size of its fleet.
Fiscal Year (FY) 2001 = +49 Million Pounds/+$55.72 Million (+37.9 Million P/+$32.49 Million).
December 2002: Next month, Liverpool to Alicante (8/week). In February, London (LGW) - Belfast (International)/Inverness. In March, Newcastle - Alicante/Belfast/Barcelona. In April, Luton - Alicante/Faro. In May, London (LGW) - Milan (LIN). In August, Newcastle - Bristol/Paris (CDG)/Prague.
Applies to UK (CAA) to operate charter services.
Sir Colin Chandler, Chairman, ex-Vickers.
$1.2 Billion for (CFM56-5B) engines for 120/120 A319's.
737-73V (32415, G-EZJT), delivery.
January 2003: Receives OK from (UKCAA) to operate charter flights. The merger of Go Fly (GFL) into (EZY) is being completed. The (EZY) HQ at London Luton airport "easyLand" has been expanded using porta-cabin temporary offices for the location of network operations, (MOC) and Maintrol. The (GFL) fleet is now operating under (EZY) Air Operating Certificate (AOC) and all airplanes will eventually be repainted into the (EZY) orange/white livery.
February 2003: As the result of the enduring popularity of "Airline," London Weekend TV's "behind the scenes" look at life at easyJet (EZY), the cameras are now back filming a 7th series. This new series will comprise of 12 episodes, and is scheduled to be screened in the spring.
London Gatwick (LGW) - Inverness (daily).
Expects Vilhelm Hahn-Petersen, Operations Director, to leave the company within 6 months.
2 737-73V's (32216; 32416, G-EXJU) deliveries.
March 2003: Terminates its option to acquire "dba" formerly Deutsch BA (DBA), from British Airways (BAB), blaming inflexible German labor laws and a deteriorating airline market in Germany and aggressive price-cutting by Lufthansa (DLH).
April 2003: 2,870 employees.
May 2003: Last 6 months Fiscal Year (FY) = -46.9 Pounds/$74.9 Million (+800,000 P), although it carried more passengers than last year.
737-73V (32419, G-EZJX) delivery.
July 2003: 1,600 employees. SITA: LTNEJXH.
Paris Orly - Marseilles/ - Milan Linate/ - Barcelona (737). It will serve 9 cities from Paris.
Selected Teledyne as its sole-source supplier of the (FDIMU), Wireless GroundLink and AirFASE for newly procured A319's. Under the agreement, Teledyne Controls, a business unit of Teledyne Technologies, will supply the hardware and software.
Sold 6 new 737-73V's to SALE (SIL) and leased back: 2 (32419; 32420) just delivered, 4 in 1st Quarter 2004. 737-73V (32421, G-EZJZ) delivery.
August 2003: Lufthansa (DLH)'s regional partner Eurowings (EUY) has its backing for its low-cost subsidiary, Germanwings (RFG) to counter attack the growing challenge of other low-cost carriers (LCC)s, particularly Ryanair (RYR) and EasyJet (EZY), on its own turf. They do not feel threatened by Air Berlin (BER), Deutsche BA (DBA), Hapag Lloyd (HAP) Express, or Germania (GER) Express. (DLH) is also dribbling onto the market, special low fares for early bookers on its own domestic and cross-border services.
In October, London (Stansted) - Amsterdam (3/day).
737-33V (29338) returned from Easyjet Switzerland (TEB) after being damaged in a hailstorm near Geneva. 737-73V (32422, G-EZKA) delivery.
September 2003: EasyJet (EZY) founder, Stelios Haji-Ioannou sold share worth nearly GBP 20 Million to fund the launch of EasyBus (low-cost minibus journeys) and EasyPizza (pizza deliveries).
Next month, London Gatwick - Bilbao, Marseille, & Toulouse.
2002 = +$72.4 Million (+$54.5 Million): 9.21 Billion (RPK) traffic (+56%); +53.8% (ASK) capacity; 85.5% LF load factor(+1.2); 3,100 employees (+90%).
Currently has 73 (64) 737's & 1 A319. In 2004 will add 6 737's and 22 A319's.
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
66 (AIJ) 11.00; 67 (PIA) 10.78; 68 (RYR) 10.20; 69 (EGP) 9.65; 70 (ARG) 9.61; 71 (EZY) 9.21; 72 (HWI) 9.04; 73 (ARE) 9.03; 74 (CQT) 8.99; 75 (SPP) 8.98; 76 (SHY) 8.75; 77 (ARL) 8.69; 78 (PRH) 8.67; 79 (XIN) 8.61.
1st A319 (CFM56-5B), 156Y delivery to EasyJet Switzerland (TEB). 737-33V (29337, G-EZYM), returned from (TEB).
October 2003: In December, Newcastle - Malaga/Copenhagen (daily).
November 2003: Next month, Bristol - Amsterdam, Bilbao, & Copenhagen. In May, the next European base will be at outlying Berlin-Schoenefeld Airport, including operations by 6 airplanes (1 737 & 5 A319's), with 11 routes to 6 countries, and some 300 - 400 direct jobs. Routes include to London Luton, Liverpool, Newcastle, Paris, Nice, Palma de Mallorca, Barcelona, Naples, Copenhagen, and Athens. Berlin Schoenefeld is 20 km from central Berlin and is accessible by train in 28 minutes. Berlin Tempelhof airport will close permanently in October 2004, and all growth has been capped at Berlin Tegel, which also will close permanently (2009 - 2010) when the new Berlin Brandenburg International Airport opens.
easyJet (EZY) now offers over >500 flights/day on 125 routes from 39 airports in 36 cities. The airline employs 3,500 and has 75 airplanes. In the last 12 months, it carried 20.3 Million passengers.
2002 = +32.4 Million Pounds/+$55.2 million (-33.9%) (+49 Million P): 17.74 Billion (RPK) traffic (+92.4%); X2 (ASK) capacity; 84.1% LF load factor (+.7); 20.3 Million passengers (+79%).
737-3YO (24698, G-IGOF) returned to Oasis Leasing.
December 2003: 2002 = +$78.4 Million (+$51.2 Million).
January 2004: Ryanair (RYR) regained its position as the largest Low-Cost Carrier (LCC) in Europe as in 2003 it carried 21.4 Million passengers compared with the 21.1 Million passengers carried by easyJet (EZY).
In May, Newcastle - Palma de Mallorca (daily). Newcastle - Nice (daily). Paris Orly - Berlin Schoenefeld (2/day). Paris Orly - Naples (daily). Brings total routes operated throughout Europe to 128, including 8 of them from Paris.
737-73V (32423, G-EZKB), delivery.
February 2004: In May, to expand to +2 German airports: Dortmund (8 routes with 3 airplanes starting may 2004 to Paris (CDG) & (LUT) (2/day), & daily to Nice, Palma, Alicante, & Rome Ciampino), and Cologne/Bonn. easyJet (EZY) will launch routes to 6 countries from a new base at Berlin Schoenefeld, where it will base 6 airplanes (to Basel (2/day) & to Budapest (daily) in June.
+7 new routes, including 3 to Hungary, the Czech Republic, & Slovenia, for total 135 routes. Following are all daily: London Stansted (STN) - Basel & Ljubljana; London Luton (LUT) - Budapest; London Gatwick (LGW) - Naples, Ibiza, Faro, & Prague (now 30 routes from (LGW). +20% (ASK) capacity by September.
Founder, Stelios Haji-Ioannou reduced his shareholding by -1% to 16.57% to raise capital for other ventures.
This summer, +5 737-700's & 15 A319's for total 90 airplane fleet. 2 737-73V's (32424, G-EZKC; 32425, G-EZKD) & A319-111 (2119, G-EZEA) deliveries.
March 2004: Liverpool - Basel (daily). Will increase its overall network to 150 routes with the launch of new services in June, Liverpool - Cologne/Bonn (daily), and in September, London Gatwick (LGW) - Cologne/Bonn (daily). Dortmund - Budapest, Prague (daily). Belfast to Alicante, Malaga, Nice, and Paris.
SR Technics (SWS) has a 12-month maintenance accord to provide easyJet (EZY) with comprehensive technical support for its expanding Airbus (EDS) fleet. The maintenance program, accompanying materials, logistics and overall technical responsibility will be managed by SR Technics (SWS)'s Zurich office. Since (EZY) will be operating the new airplanes from various destinations throughout its Europe-wide network, the actual maintenance work will be performed at a number of airports by easyTech, the easyJet (EZY)/FLS Aerospace (ATD) technical services joint venture.
737-3M8 (24024, G-OGVA), returned to GECAS (GEF). 737-73V (32426, G-EZKE) delivery. 4 A319's (2176, G-EZEF) deliveries.
April 2004: In June, Nottingham/East Midlands to Cologne and Rome.
737-73V (32427, G-EZKF) delivery. 4 A319-111's (2181, G-EZEG; 2170, G-EZED; 2184, GH-EZEH; 2196, G-EZEI), deliveries.
May 2004: Last 6 months = -19.7 Million Pounds/-$35.3 Million (-46.9 Million P): +15.9% passengers; +1.1 LF load factor.
New base at Berlin Schoenfeld to Basel, Bristol, and Palma de Mallorca, with further 3 to Barcelona, Budapest, and Naples within the next few weeks.
737-3L9 (25125) returned to Pembroke (PEB) leased to Deutsche BA (DBA). 737-3YO (24678) returned to Orix (OXA). 737-73V (32428, G-EZKG) delivery. 3 A319-111's (2214, G-EZEJ; 2224, G-EZEK; 2230, G-EZEM), deliveries.
June 2004: +40% increase at London Gatwick (LGW), including September to Budapest; & to Cologne/Bonn; in November to Rome; & to Venice; & February 2005 - Murcia.
Ray Webster, CEO stated "Once these new services commence, easyJet (EZY) will fly to more destinations from London Gatwick (LGW) than from any other base on the (EZY) network - - including Stansted & Luton. The fact that (EZY) can start 5 new routes and add only a single new point to the network, underlines why (EZY) puts so much emphasis on network density and the joining-of-the-dots element of (EZY)'s growth strategy."
Will add a 7th airplane to its Berlin (SXF) base in November, and +2 in February.
2 A319-111's (2245, G-EZEN; 2249, G-EZEO) deliveries.
July 2004: Stelios Haji-Ioannou, easyJet (EZY) Founder is considering taking EasyJet (EZY) private.
In September, Geneva - Madrid. In October, Berlin - Geneva/ - Krakow/ - Ljubljana/ - Madrid (A319). Bristol, Newcastle - Rome (CIA). In November, Berlin (Schoenefeld) - Geneva, Ljubljana. In December, Bristol, Newcastle - Geneva.
Last 12 months = 22.9 Million passengers (+21%); 84% LF load factor (stable). 2003 = +$57.62 Million (+$78.62 Million): 16.41 Billion (RPK) traffic (+114.7%); 80.4% LF load factor; 18.15 Million passengers (+96.6%).
A319-111 (2251, G-EZEP), delivery.
August 2004: Dortmund to Alicante & Nice (daily). In October, London Luton (LTN) - Turin (daily), Bristol - Madrid (daily); London (LGW) - Rome (CIA), Venice; in November, London Stansted (STN) - Valencia (daily), (STN) - Almeria (daily); Berlin Schoenefeld - Bratislava (2/day), & in December, (LTN) - Bratislava (daily). This will bring the total of 173 routes among 48 cities this winter.
After operating to Zurich airport for 6 years, will move its operations to Basel in November. Although its London - Zurich flight previously was profitable, it had been impacted by +132% increase in passenger fees in the last 2 years and too many "onerous" operating restrictions. Ray Webster, (EZY) CEO, stated "No airline likes to remove services from its network - - but our focus on enhancing margins and reducing costs is relentless. Airports and their ground handling costs account for 32% of our total cost base - - higher than most airlines. This is a ripoff, particularly as our customers do not value the airport experience - - they simply use them to get from A to B."
A319-111 (2271, G-EZET) delivery.
September 2004: London Gatwick - Cologne. Next month, Berlin (SXF) - Tallinn. In November, London (STN) - Tallinn. Bristol - Valencia. Berlin (SXF) - Riga. In January, London Gatwick to Cork, Knock, & Shannon. London Stansted to Grenoble (daily). In March, London Gatwick - Almeria, Valencia.
A319-111 (2289, G-EZEV) delivery. A319-111 (2196, HB-JZG) transferred to EasyJet Switzerland (TEB).
October 2004: Icelandair (ICE) has taken a 8.4% shareholding in easyJet (EZY). Later, (ICE) purchased an additional 1.7% for total 10.1% stake. Stelios Haji-Oiannou is still the dominant shareholder with his 17% stake, while his brother and sister each have 12%. (EZY)'s articles of association currently limit foreign (non-UK) ownership to 40%.
Dortmund - Krakow, Warsaw (daily); London Luton - Krakow (daily), Warsaw (2/day); Bristol, Newcastle - Budapest (daily); Geneva - Alicante, Budapest, Madrid (daily). Geneva - Rome (CIA) (2/day); Paris Orlu - Madrid (daily). By the end of March, (EZY) will operate 189 routes across 55 cities. In April, Berlin - Olbia, Pisa; London Luton - Cagliari. In May, London Gatwick - Olbia.
3 A319-111's (2265, G-EZES; 2283, G-EZEU; 2300, G-EZEW) deliveries. A319-111 (2265, HB-JZJ), transferred to (TEB).
November 2004: Fiscal Year (FY) 2003 = +41.1 Million Pounds/+$76.9 Million (+26.9%) (+32.4 Million P): 24.3 Million passengers (+19.7%); 84.5% LF load factor (+.4).
737-76Q (30283) returned to Boullioun (BOU) leased. A319-111 (2319, G-EZEX) delivery.
December 2004: Jeff Carr, Finance Director, 43, replaced Chris Walton, who resigned.
In March, Berlin Schonefeld - Valencoa. Resume Paris (Orly) - Pisa, Turin. In July, Belfast International - Geneva (4/week), Inverness (daily), Palma de Mallorca (4/week).
A319-111 (2360, G-EZEZ) delivery.
January 2005: Selected EuroAirport Basel-Mulhouse-Freiburg as its next base and will locate +3 A319's here, including hiring of local flight crews (FC)/cabin attendants (CA).
Selects Rockwell Collins Electronic Flight Bag (EFB) and support software solution for 54 737's using eFlight info management system.
4th Quarter = 6 Billion (RPK) traffic (+34%); +33% (ASK) capacity; 83% LF load factor (+.6); 6.7 Million passengers (PAX) (+26%).
4 A319-111's (2370; 2380; 2385; 2398) deliveries. 737-33V (29331) withdrawn from use (WFU), in storage.
February 2005: A319-111 (2387), delivery.
March 2005: In September, will expand service at Berlin Schoenefeld with double daily flights to both London Gatwick & Rome Ciampino, and one daily flight to Milan Linate. This will make it the largest base outside the UK with the delivery of its 100th airplane, and account for 10% of its total operations, with 27 routes from this airport. In 2005, expects to carry >3 Million passengers in its 70 daily flights from Berlin.
Selects MissionMode Solutions for rapid communications and incident management.
737-33V (29333) sold to Shandong Airlines (SHG). 4 A319-111's (2412, G-EJAR; 2420, G-EZIA; 2427, G-EZIB; 2402, G-EZNM) deliveries.
April 2005: Will establish a new base at EuroAirport Basel-Mulhouse-Freiburg in summer and launch 5 routes. It will be the 2nd in Switzerland and 15th in Europe. 3 A391's will be based there and in June will operate to Alicante, Barcelona, Nice, Palma, & Rome (all daily, except Nice (2/day). Already operates from this EuroAirport to Berlin, Liverpool, & Luton.
Will add another airplane to its Bristol base for a total of 8 and introduce 3 routes to Inverness, Murcia,, & Pisa in July. Bristol has had 9 new routes in the last year and is the largest UK base outside London.
100th airplane delivery, an A319-111's (2436, G-EZIC; 2446, G-EZIE; 2450, G-EZIF; 2463, G-EZIH; 2471, G-EZII).
May 2005: 3,226 employees.
Ray Webster, CEO will retire and Stelios Haji-Ioannou will rejoin easyJet (EZY)'s board.
In the last 6 months ending March 2005, after-tax = -22.3 Million Pounds/-$40.7 Million (-19.7 Million P): 13.5 Million passengers (+25%); +50.8% fuel costs.
In August, increases capacity with 4 airplanes at EuroAirport Basel-Mulhouse-Freiburg to Madrid, Hamburg, & Malaga (daily).
3 737-33V's (29332, HA-LKR; 29334, HA-LHS; 29335, HA-LKT; 29336, HA-LKU), sold to SkyEurope (SKP). 737-36Q (29327), returned to Boullioun (BOU), leased to ThomsonFly (TFY). 5 A319-111's (2450, G-EZIF; 2477, G-EZIJ; 2481, G-EZIK; 2492, G-EZIL; 2495, G-EXIM), deliveries.
June 2005: 2 A319-111 (2319, HB-JZK), 2353, HB-JZL) deliveries & transferred to EasyJet Switzerland (TEB). A319-111 (2503, G-EZIN) delivery.
July 2005: Seven of its 13 bases: Basel, Berlin, Dortmund,London Gatwick, Geneva, Paros Orly, & London Stansted are all-Airbus (EDS) operations. Nottingham East Midlands & Bristol will be converted later this year. Will add 6 new routes to its network, increasing the total to 216 and the number of key airports served to 64.
In September, daily services, London Gatwick - Murcia, in December - Grenole, in October, Dortmund - Barcelona & - Milan Malpensa, & Geneva - Lisbon, in November, Geneva - Malaga.
In last 12 months = 28.3 Million passengers (+23.7%); 85.1% LF load factor (+1.1).
3 A319-111's (2512, G-EZIO; 2514, G-EZIP; 2527, G-EZIR) deliveries (including 2512 as (EZY)'s 50th). By the end of 2007, expects fleet to be 32 737-700's and 114 A319-111's.
August 2005: 3,656 employees (+13.3%).
A319-111 (2528, G-EZIS; 2538, G-EZIT), deliveries.
September 2005: EasyJet (EZY) reached outside the airline industry to tap Andrew Harrison as Chief Executive Officer (CEO) to succeed Ray Webster, who announced in May that he is retiring. Harrison, 48, will take up his new post in December. He was (CEO) of the (RAC), the UK motoring services group, prior to its acquisition by British insurer Aviva last March. He joined the (RAC) predecessor company Lex Service as (CEO) in 1996 and led its transformation from a seller of high-end automobiles through a network of 30 dealerships into consumer services such as roadside assistance, insurance, legal services and financing.
"We had a number of criteria that our new (CEO) had to meet; in particular, he or she needed to have had senior management experience in a large and well-recognized consumer-facing plc," easyJet (EZY) Chairman, Colin Chandler said. "In addition, Andrew has delivered strong top- and bottom-line growth, improved cash generation, introduced cost efficiencies and inspired employees in a service industry."
According to Chandler, "The successful integration of Lex and the (RAC) resulted in a strong rise in profits and a tripling of the share price during Andrew's tenure as (CEO)."
Webster joined (EZY) shortly after it was launched by Stelios Haji-Ioannou in 1995 with two leased airplanes. He and his family currently own around 41% of (EZY), while FL Group holds a 13% stake.
(EZY) carried 2.9 million passengers in August, up +18% on the year-ago period. Load factor slipped -0.2 point to 88.4% LF. For the rolling 12 months ended August 31, passengers reached 29.17 million, an increase of +22.2%, while load factor gained +0.8 point to 85.2% LF.
A319-111 (2548, G-EZIU) delivery.
October 2005: EasyJet (EZY) is seeing further management changes in the wake of the appointment of Andrew Harrison to succeed Ray Webster as (CEO) effective December 1. Webster announced in May that he would be retiring. Joining the exodus of senior managers is (COO), Ed Winter, who stepped down September 30 and is being replaced by Mike Szucs, who came to (EZY) from British Airways (BAB) in 2003. Winter joined (EZY) in August 2002, when it acquired (BAB)'s Go Fly (GFL) low-fare subsidiary, where he held the (COO) position.
People Director, Stephen Connock also left at the end of September after three years with the company. His job is being taken over by Mike Campbell, who joined from Wedgwood.
(EZY) carried 2.74 million passengers in September, up +16.5% compared to September 2004. Load factor dipped half a point to 86.4% LF. For the rolling 12 months ended Sept 30, the airline carried 29.56 million passengers, up +21.4% over the year-ago period, and load factor improved a slight +0.7% to 85.2% LF. Revenue increased +23% to £1.34 billion/$2.38 billion. (EZY) reiterated its August guidance that it expects its profit for the just-ended fiscal year "to be broadly in line with last year."
(EZY) will set up a base at Milan Malpensa (MXP), its sixth in continental Europe and first in Italy. (EZY) will base 2 A319s at (MXP) from March 27th increasing to 3 in the summer, providing the capacity to operate more routes. With a total of seven routes available, (EZY) expects to carry around 1.2 million passengers through the base in the first 12 months. (EZY) has already announced the 5 new routes it will operate from (MXP) to: Athens = 1x a day from MarCH 28th; London Gatwick = 2x a day from December 1st; Madrid = 1x a day from March 27th; Malaga = 1x a day from March 27th;
Paris = 1x a day from March 27th. These routes are in addition to the current Berlin service and the daily flight to Dortmund which commences on October 30. (EZY) appears close to signing a deal for service to Malta. If approved, the airline could be flying to Malta in April.
(CEO), Ray Webster commented "EasyJet (EZY) believes Italy has excellent opportunities for growth, as air travel is still dominated by inefficient state-run airlines who do not act in the interest of the consumer." (EZY) already operates from nine Italian airports - - Cagliari, Milan Malpensa, Milan Linate, Naples, Olbia, Pisa, Rome, Turin, and Venice - - offering 29 routes and 68 daily flights. (EZY) expects to have carried a total of 2.5 million passengers to and from Italy by year end.
European low-cost seat capacity rose by +29% ASK in 2004, accounting for 22% of intra-European capacity - - up from 11% in 2002 - - and "in excess of +30% (ASK) capacity of all passengers traveling on intra-European routes," according to Route Development Company's recently released Low-Cost Monitor 2005. Traditional carriers, meanwhile, "remained almost static in 2003 and increased seat capacity by only +2% (ASK) in 2004, according to the study, which was supplied by the UK-based company. It reveals that 35 airports within Europe rely on Low Cost Carrier (LCC)s for more than >95% of annual departures offered and that 233 airports have some level of low-cost presence. London Stansted remains the largest low-cost hub in Europe, offering 12 million departing (LCC) seats in 2004. Ryanair (RYR) and (EZY) dominate the market segment, with nearly 50% of low-cost seats on offer. But the rest of the sector is highly fragmented: 33 carriers tracked by the Monitor provide the remaining 50%, with No 3 Air Berlin (BER) having just 7.4%. The report notes that (RYR) and (EZY) "now offer more intra-European seats than a number of European majors including (KLM), Swiss (CSR) and Alitalia (ALI), and of those larger network airlines, only Lufthansa (DLH) offered growth in capacity in both 2003 and 2004." The UK and Germany dominate in terms of low-cost capacity available, accounting for "just under the half of the total." (LCC)s operated in 472 international city-pair markets touching Germany and 96 domestic German markets. For the UK, the numbers were 464 and 90 respectively. Spain was third, "but this predominantly is driven by the inbound capacity offered by non-Spanish carriers," according to the Monitor.
(EZY) formally introduced a 'fast' check-in for luggage-less travellers at Luton airport following a two-month trial.
FL Group, parent of Icelandair (ICE) and Sterling (STR) raised its stake in (EZY) from 13.99% to 16.18%.
3 737-36N's (28557; 28570; 28872), sold to bmi baby (BMI). 2 A319-111's (2565, G-EZIV; 2578, G-EZIW), deliveries.
November 2005: EasyJet (EZY) launched service from London Luton to Bremen.
Amsterdam Schiphol's new low-cost carrier (LCC) pier opened November 1 with (EZY), Thomsonfly.com (TFY), bmibaby (BMI), Jet2 (JT2) and SkyEurope (SKP) as tenants. Initially, 20 - 30 daily flights will operate from Pier H, which has seven gates but no airbridges. As the airport's seventh pier, it can accommodate a maximum of 64 daily inbound and outbound flights and was designed to handle around 8 million passengers annually. It was constructed in just nine months, Schiphol said.
Mike Szucs, (COO).
(EZY), Europe's second-largest (LCC), reported a second-half profit of +£64.9 million/+$111.5 million), a +6.7% rise from the +£60.8 million recorded in the year-ago semester and an increase over forecasted numbers.
End of fiscal year numbers released by (EZY) showed a 12-month retained profit of +£42.6 million, about level with the +£41.1 million in net earnings recorded for the year ended September 30, 2004. Pre-tax profit rose +9.1% to +£67.9 million.
(EZY) said second-half growth was fueled in part by its reliance on the A319 over the 737, a new maintenance contract with SR Technics (SWS) and a concerted effort to lower airport costs and other expenses. "We've made sound progress in the year with good growth in passenger numbers and revenue," outgoing (CEO), Ray Webster said. "I'm pleased also with the expansion of our network, and with 72 new routes added we are in good shape for future growth."
According to year-end figures released by (EZY), revenue grew +23% from £1.09 billion to £1.34 billion and operating profit dropped -3.6% from +£50.5 million to +£48.7 million as fuel costs jumped +77.1% to £260.2 million. Capacity (ASKs) climbed +26.3% to 32.14 billion against a +27.3% rise in RPKs (passenger traffic) to 27.45 billion. Load factor remained steady, up just +0.7 point to 85.2% LF. (EZY)'s network expanded considerably and featured increases in the number of airports served from 44 to 64 and in the number of routes from 153 to 212. (RASK) dipped -2.7% to 4.17 pence and (CASK) fell -1.1% to 3.91 pence. (EZY) cited a +41.3% gain in ancillary revenue to £87.2 million as key to its performance.
Webster said he expects (EZY) to boost capacity by +15% (ASK) this fiscal year and to achieve a 3% - 5% reduction in cost per seat excluding fuel. "Overall, we therefore expect to achieve mid to high single-digit percentage profit growth," he said.
(EZY) intends to cut -10% of its approximately 500-member management and administrative staff. The layoffs were announced in an internal memo circulated by departing (CEO), Ray Webster and confirmed by an (EZY) spokesperson, according to the "London Times." Members of the airline's sales and marketing staff, Information Technology (IT) and call center employees will be affected. The move came days after (EZY) announced a half-year profit of +£64.9 million/+$111.2 million. Those profits, however, were "not enough to make us successful in the long run," Webster wrote. He said (EZY)'s fiscal year profit of +£1.70 per seat compared unfavorably to (RYR)'s +£5.80 per seat. "Between now and the end of December we will be creating some new roles, combining some roles and removing others. This includes a reduction in our reliance on temporary and consultancy labor," he wrote. "I regret to say that we anticipate that a number of roles will be at risk of redundancy over this period. We will be endeavoring to find suitable alternatives for employees who are affected, but if none can be found, some people will leave the company."
A319-111 (2605, G-EZIX), delivery.
December 2005: Easyjet (EZY) inaugurated nonstop service from London Gatwick to Milan Malpensa. (EZY) now operates 12 flights a week on this route.
British Airports Authority (BAA) announced plans for a £2.7 billion/$4.69 billion development project that would add a new runway at London Stansted and expand the terminal. The airport is the fourth-busiest in the UK, with 30 airlines serving some 21 million passengers and 150 destinations. Stansted-based, (EZY) criticized the plan, saying the costs would be passed on to passengers. "(BAA) seems to have forgotten that Stansted was an unloved white elephant until the charges were dropped to attract the likes of (EZY), and in the last few years it has been one of the great success stories of European aviation. But now (BAA) seems determined to kill the goose that lays the golden eggs," (CEO) Andrew Harrison said.
(EZY) and Airbus (AFIS) announced yesterday that (EZY) will exercise 20 A319 options that were part of a three-year-old deal for 120 firm orders and 120 options. (EZY) will pay approximately $900 million for the 156-seat airplanes, to be powered by (CFM56-5)s. They will be delivered in 2008 and 2009. (EZY) already operates 59 A319s. The remaining 61 included in the original order are expected between now and 2008. (EZY) said that "the terms of payment are substantially the same as those for the purchase of the first 120 airplanes."
A319-111 (2636, G-EZIY) delivery and 2 A319-111's (2387, HB-JZN; 2398, HB-JZO), to easyJet Switzerland (TEB).
January 2006: EasyJet (EZY) will add 14 new routes across its European network this spring as it takes delivery of nine A319s. It also will convert its bases in Liverpool, Edinburgh and Glasgow to all-Airbus (EDS) operations, replacing its current fleet of 737s, in a move signifying its "commitment to future investment and expansion." It will operate 116 A319s by this summer.
The new routes are Geneva - Palma Mallorca (thrice-weekly from April 25), Lisbon - London Luton (daily from March 1), Lisbon - Milan Malpensa (daily from April 21), Lisbon - Paris (CDG) (daily from March 1), Liverpool - Faro (daily from April 11), Liverpool - Krakow (four-times-weekly from April 10), Liverpool - Mahon Menorca (twice-weekly from July 22), Liverpool - Marseille (thrice-weekly from April 11), Malaga - Berlin Schoenefeld (daily from March 26), Malaga - Dortmund (thrice-weekly from April 1), Malpensa - Naples (twice-daily from March 27), Malpensa - Palermo (twice-daily from April 21), Malpensa - Olbia (four-times-weekly from May 19) and Malpensa - Ibiza (four-times-weekly from May 19). More new routes and destinations are planned for later in the year, (EZY) said.
(EZY) said it flew 2.4 million passengers in December, a +11.1% increase over the year-ago month. Load factor dipped -0.2 point to 80.5% LF. For the year, the carrier reported +17.8% passenger growth to 30.3 million and a +0.3-point rise in load factor to 84.9% LF. It also said unaudited annual revenue jumped +20.5% to £1.38 billion/$2.44 billion from £1.15 billion.
(EZY)'s net profit for the fiscal year ended September 30 increased +38.5% to +£59 million/$103.82 million based on International Financial Reporting Standards (IFRS), according to its annual report. In November, (EZY) reported a year-end profit of +£42.6 million according to UK (GAAP) standards. Turnover remained static at £1.34 billion. (IFRS) operating profit climbed +35.9% over the (GAAP) number to + £66.2 million. Group Finance Director, Jeff Carr called the changes "relatively minor in the current fiscal year and going forward."
2005 = 24.94 billion (RPK) passenger traffic (+22.5%); +15.7% (ASK) capacity; 81.4% LF (+4.5); 26.1 million passengers (+27.5%) (rated as #3 Low Cost Carrier (LCC)).
(EZY) announced that Group Finance Director, Jeff Carr was appointed Company Secretary, replacing Deborah Abrehart, who resigned. (EZY) appointed David Michels of Hilton Group to the board as a Nonexecutive Director and Chairman of the remuneration committee effective March 6.
FL Group of Iceland (ICE) purchased 6% of Finnair (FIN), adding to airline holdings consisting of Sterling (STR), Maersk Air (MRS), and 16% of EasyJet (EZY), which has been the subject of recent takeover speculation.
Rockwell Collins' eFlight initiative made sales to two key airline players, giving the program a big boost after years of development. (EZY) plans to go live in April with a fleetwide Electronic Flight Bag (EFB) system for its 54 737s, according to Aircraft Operations Cost Manager, Taylor Bradbury. This will allow electronic posting of technical and journey logs via Panasonic CF-18 laptops linked by cellphone wireless during base airport turnarounds, while providing automated weight and balance computations. Speaking in Washington, Bradbury said (EZY)'s next step is to include, in what will be a Class 2 (EFB), all flight documentation and added that (EZY) is about to start talks with Collins about that upgrade. At the same press conference, K K Goh, acting VP Flight Operations Technical at Singapore Airlines (SIA), said his airline was unable to find a single vendor to put as many as 12 flight and airline management processes into an information management context but selected Collins "to supply a critical component we need to optimize performance," starting with implementing Class 1 (EFB)s on 747s and, working with Boeing (TBC), providing applications for the Class 3 (EFB)s on 777s under construction. Rockwell Collins also will install the eFlight ground system to move information between (SIA)'s fleet and back office. More than >33 airlines now have bought the ground system, Collins officials said. Mark Harris, VP eFlight, noted, "aviation is one of the last frontiers to connect operations with the back office," holding down the industry's ability to automate, cut costs and boost efficiencies. The key reason: "A lot of the industry's infrastructures are behind the times, relying on paper." He said that the benefit/cost ratio for going to a complete information management solution from cabin to cockpit to maintenance to back office is "between 2:1 and 5:1" depending on the operator over a 5 - 10 year period.
6 737-33V's (29337; 29338; 29339; 29340; 29341; 29342); sold to Virgin Nigeria (VNA). 737-3L9 (27337), sold to Norwegian (NWG). A319-111 (2646, G-EZIZ), delivery.
February 2006: EasyJet (EZY) introduced "all night check-in" on flights from London Gatwick. Passengers with scheduled departure times prior to 8:30 am can check both themselves and their luggage from 10 pm the previous evening using the normal easyJet (EZY) check-in areas in the South Terminal's Zone A.
(EZY) reported 2.3 million earned seats flown in January, up +11.2% from the same month a year earlier. Load factor dropped -2.3 points to 74.2% LF. "Our total revenue performance this month was in line with our expectations, and our guidance for the year to September 2006 remains unchanged," (CEO) Andrew Harrison said in a statement.
Increased revenues, including double-digit growth in ancillary revenue, and strong performance at its newer bases in Berlin, Dortmund and Basel left (EZY) on course "to achieve mid to high single-digit percentage profit growth" in the fiscal year ending September 30 despite rising fuel prices, Chairman, Colin Chandler said. (EZY) released a few statistics from its first fiscal quarter ended December 31. It said total revenue climbed +14% over the year-ago period to £318.8 million/$555.9 million. Passenger traffic rose +14% to 6.8 billion (RPK)s and revenue per available seat increased +1.8% to £35.38. Capacity was up +15% to 8.3 billion (ASK)s and unit cost rose +3%, but decreased -5% excluding fuel. Load factor dropped -0.8 point to 82.2% LF.
Chandler said (EZY) expects to boost capacity a further +15% through September and lower unit cost another -3% to -5% excluding fuel. Continued ancillary revenue growth is expected to offset a "slight reduction" in unit revenue. However, he warned that a sharp +50% increase in unit fuel cost, equal to a charge of £55 million, plus this year's Easter travel season falling in April rather than March, will result in a pre-tax deficit of -£45 million for the fiscal semester. "This result is in line with our full-year guidance and compares to a pre-tax loss . . . of -£22 million for the first half of last year," he said.
(EZY) will discontinue service from Berlin to Ljubljana on March 26th. (EZY) will launch daily, A319-100 service from Paris
Orly to Rome Ciampino on April 3. (EZY) is adding four direct routes from Glasgow, bringing the number of destinations served from its Scottish base to nine and increasing capacity by +19% (ASK). A daily flight to Berlin Schoenefeld (SXF) commences May 3, daylies to Alicante and Malaga start July 7, and a weekly (Saturday) service to Palma begins May 20. The route to Berlin is a result of investment from the Scottish Executive in the form of a route development fund. (EZY) also will benefit from funding and marketing support from VisitScotland and the Glasgow City Marketing Bureau. (EZY) said it expects to carry nearly 300,000 passengers on the new routes in the next 12 months.
(EZY) introduced Internet check-in for UK passengers following a trial period earlier this month. It implemented the service at London Gatwick, Stansted and Edinburgh. It will be available to 90% of (EZY)'s UK passengers by April and eventually to customers across Europe. (EZY) said passengers with preprinted boarding passes can arrive at the gate 15 minutes prior to departure time.
4 A319-111's (2677, G-EZAA; 2681, G-EZAB; 2691, G-EZAC; 2702, G-EZAD), deliveries.
March 2006: Easyjet (EZY) inaugurated nonstop service from London's Luton Airport to Lisbon. The airline now operates a daily service on this route. (EZY) will launch four-times-weekly service between Basel-Mulhouse and Istanbul from May 24, departing Basel on Mondays, Thuursdays, Fridays, & Sundays and Istanbul on Mondays, Tuesdays, Fridays, & /Saturdays, daily nonstops London Luton - Istanbul flights from June 29, four-times-weekly Luton - Rijeka service from June 30 on Mondays, Wednesdays, Fridays, & Saturdays and daily nonstop, London Gatwick - Marrakech service beginning July 4.
(EZY) announced the addition of 10 new routes and five new destinations: London Gatwick - Split four-times-weekly from May 2, London Luton - Bordeaux daily from June 29, Luton - Rimini four-times-weekly from June 29, Edinburgh - Alicante weekly from May 20, Bristol - Toulouse daily from July 21, Bristol - Krakow four-times-weekly from July 21, Bristol - La Rochelle four-times-weekly from July 21, Bristol - Marseille thrice-weekly from July 22, Bristol - Rijeka thrice-weekly from July 22 and Paris Orly - Ajaccio daily from July 14. Split, Ajaccio, Bordeaux, La Rochelle and Rimini are new easyJet (EZY) markets. It will introduce a ninth A319 at its Bristol base to support the expansion, which will increase its throughput there by nearly +10% to almost 3 million passengers in the coming year. The Bristol operation now accounts for almost 10% of its total network, making it (EZY)'s largest UK base outside London with close to 70 departures and 8,500 passengers each day.
(EZY) opened its 16th base at Milan Malpensa and said it expects to handle more than >1.2 million passengers there in the next 12 months flying three domestic and nine international routes. Three A319s will be based permanently at the airport, creating +100 pilot (FC) and cabin crew (CA) jobs and an additional +1,200 jobs in the Milan area, (EZY) said. (EZY) already flies to Berlin, London Gatwick and Dortmund from Malpensa and also operates from Milan Linate serving Gatwick and Paris Orly. Italy is one of its fastest-growing markets and now accounts for 5% of its total network. In 2005, 2.5 million passengers flew (EZY) to/in Italy, a +80% increase over 2004. This year, it expects to carry more than >3.5 million. Launch of the Malpensa base will result in a +48% increase in its Italian capacity. New services are daily flights to Paris (CDG), Athens and Malaga. On March 27, it will start a daily to Madrid and a twice-daily to Naples and on April 21, it launches a four-times-weekly service to Olbia, a twice-daily to Palermo and a daily to Lisbon. A four-times-weekly flight to Ibiza will begin May 20.
(EZY) announced service on 10 new routes as follows:
Bristol - Toulouse = July 21st, Daily;
Bristol - Krakow = July 21st, Mondays, Wednesdays, Fridays; & Sundays;
Bristol - La Rochelle = July 21st, Mondays, Wednedays, Fridays & Sundays;
Bristol - Marseille = July 22nd, Tuesdays, Thursdays, & Saturdays;
Bristol - Rijeka = July 22nd, Tuesdays, Thursdays, & Saturdays;
Edinburgh - Alicante = May 20th, Saturdays;
London (LGW) - Split = May 2nd, Tuesdays, Wednesdays, Thursdays, & Saturdays;
London (LTN) - Bordeaux = June 29th, Daily;
London (LTN) - Rimini = June 29th, Tuesdays, Thursdays, Saturdays, & Sundays;
Paris (ORY) - Ajaccio = July 14th, Daily.
(EZY) will launch daily A319-100 service from Paris Orly to Rome Ciampino on April 3.
(EZY) will discontinue service from Paris Orly to Turin on April 3rd.
(EZY) said it was "forced" to cancel plans to operate daily, Paris Orly - Ajaccio service from July, after being informed that French authorities "had granted a monopoly to Air France (AFA)/(CCM) under a Public Service Obligation (PSO)," according to (EZY). Most (PSO) routes are operated by only one carrier, but (EZY) claims the route can support two airlines. "There is a huge demand for flights from Paris to Corsica, as we have seen over the past few weeks, and there is no justification for a monopoly. Not only are other airlines banned from this route, but also is tax-payers' money being handed over to Air France (AFA)," (EZY) Director General - France, Francois Bacchetta commented, saying the ban also hurts Corsicans because tourists "have to pay ripoff prices." The Ajaccio flight was part of a French expansion that comprised five new routes and three new markets (Ajaccio, Bordeaux and La Rochelle). (EZY) is France's second-largest airline.
(EZY) said it flew 2.37 million earned seats in February, a +9.4% increase on the year-ago period. Load factor fell -2.2 points to 83.7% LF.
4 A319-111's (2709, G-EZAE; 2715, G-EZAF; 2727, G-EZAG; 2729, G-EZAH), deliveries.
April 2006: FL Group (ICE) announced the sale of its 16.9% stake in easyJet (EZY) for approximately €325 million/$395.9 million, earning Icelandair (ICE)'s parent company, some €140 million in profit from its initial investment and representing an annual return of 70%, "far surpassing" the 20% target. FL Group (ICE) said the proceeds will be "channeled into new investments during 2006." It now has liquid assets of about €600 million. FL (ICE) said (EZY) has "great prospects" and made clear that the sale was "primarily due to other investment opportunities."
(EZY) is on the warpath again over Public Service Obligation (PSO) routes, this time in Italy. (EZY) confirmed that it lodged a formal appeal with the regional administrative court in Rome against the Italian Transport Ministry and Civil Aviation Authority over the right to operate service on the Milan Malpensa - Olbia, Sardinia, route. (EZY) said it also filed a complaint with the European Commission (EC) citing anticompetitive behavior, as it maintains that as an (EU)-registered airline, it has the right to offer scheduled flights between any two airports within the (EU). The Malpensa - Olbia route is part of (EZY)'s service from its first Italian base, launched last month, which includes flights to Naples, Palermo and Olbia. However, "(ENAC) took the unprecedented step of writing to (EZY) to request that (EZY) stop selling seats on the route" so it could impose (PSO) status, (EZY) said. It already has sold 10,000 seats, which "underlines that there is more than sufficient demand to sustain normal competition."
(EZY) called (ENAC)'s policy "absurd" and said that "it goes against every single (PSO) principle and is a clear breach of European law." General Manager, Commercial-Southern Europe, Arnaldo Muno said, "(PSO) routes have no place in a free market and such back-door protection should be consigned to the dustbin of history."
Last month, (EZY) was "forced" to cancel plans to operate daily, Paris Orly - Ajaccio service from July after being told that French authorities "had granted a monopoly to Air France (AFA)/(CCM) under a Public Service Obligation (PSO)."
4 A319-111's (2735, G-EZAI; 2742, G-EZAJ; 2744, G-EZAK; 2754, G-EZAL), deliveries.
May 2006: EasyJet (EZY) posted a net loss of -£28.9 million/-$52.9 million for the six months ended March 31, widened from the -£15.4 million deficit in the year-ago period, yet a figure that "encouraged" CEO, Andy Harrison, who said "successful cost reduction and revenue improvements, especially in ancillaries, have largely offset the considerable hike in fuel prices and the effect of Easter moving from the first half in 2005 to the second half in 2006. "Revenues grew +13.8% to £629.5 million but were outpaced by a +15.9% jump in expenses to £602.2 million. Pre-tax loss increased to -£40.3 million from -£21.6 million. Passenger revenue rose +11.2% to £571 million, which the airline said was driven by a +12.8% lift in seats flown to 18.2 million. Fuel costs were up +68.2% to £165.9 million, or +49% per seat.
(EZY) operates frequent daily scheduled services for both leisure and business passengers, now serving more than >250 routes between 68 key European cities.
(IATA) Code: U2. (ICAO) Code: EZY (Callsign - EASY).
Parent organization/shareholders: Stelios Haji-Ioannou (27.6%); Polys Haji-Ioannou (15.5%); & Celia Haji-Ioannou.
Owns: EasyJet Switzerland (TEB) (49%).
Main Base: London Luton airport (LUT).
Hubs: Basle airport (BSL); Nottingham East Midlands airport (EMA); Liverpool John Lennon Airport (LPL); London Gatwick airport (LGW); London Stansted airport (STN); Milan Malpensa airport (MXP); Amsterdam Schiphol airport (AMS); Geneva International airport (GVA); Bristol International airport (BRS); Newcastle International airport (NCL); Berlin Schonefeld airport (SXF); Dortmund airport (DTM); Belfast International airport (BFS); & Paris Orly airport (ORY).
Domestic, Scheduled Destinations: Aberdeen; Belfast; Bristol; Edinburgh; Glasgow; Inverness; Liverpool; London; Newcastle; & Nottingham.
International, Scheduled Destinations: Alicante; Almeria; Amsterdam; Asturias; Athens; Barcelona; Basel/Mulhouse; Berlin; Bilbao; Bratislava; Bremen; Budapest; Cagliari; Cologne; Copenhagen; Cork; Dortmund; Faro; Geneva; Hamburg; Knock; Krakow; Lisbon; Ljubljana; Lyons; Maastricht; Madrid; Malaga; Marseilles; Milan; Munich; Murcia; Naples; Nice; Olbia; Palma de Mallorca; Paris; Pisa; Prague; Riga; Rome; Shannon; Tallinn; Toulouse; Turin; Valencia; Venice; & Warsaw.
"We are conscious that we have a big summer ahead, that the price of oil remains a risk, and we continue to operate in a highly competitive environment," Harrison said. "Notwithstanding these uncertainties, we now anticipate full-year passenger revenue per seat to be broadly in line with 2005, and expect ancillary revenue to grow at around +20% per seat for the full year." (EZY) expects annual pre-tax profit to increase +10% to +15% compared with 2005.
(EZY) launched two new services, daily, Glasgow - Berlin Schoenefeld and four-times-weekly, London Gatwick - Split.
(EZY) cabin crew (CA) and ground staff (MT) represented by the Transport & General Workers Union (T&G) will vote on whether to call a strike in a long-running pay dispute, the union announced. (T&G) said it has been negotiating a two-year deal since last October and warned the strike could begin in six weeks. About 1,500 cabin crew (CA) and ground staff will be balloted.
In an effort to bypass the union, (EZY) said it wrote to its 2,000 cabin crew (CA) employees outlining the terms of a "substantial pay increase that would result in a settlement at twice the rate of inflation." The offer includes a pay raise of +3.5% and an additional guaranteed bonus of +2% for the current financial year to September, and a raise of a further +3% and another bonus opportunity of +2% the following year. "We are particularly disappointed that the Transport & General Workers Union has chosen to stir up unnecessary and damaging speculation on industrial action," (EZY) CEO, Andy Harrison said, claiming the union had "not even yet taken the trouble to consult with their members on this offer." (T&G) said the offer was inferior to a recent package offered to pilots (FC).
Ryanair (RYR) said it will appeal the decision of the regional administrative court of Lazio banning (RYR) and its competitor (EZY) from operating flights from the Italian mainland to Sardinia. The case went before the court, after the Italian Transport Ministry and Civil Aviation Authority placed the route under (PSO) protection. (RYR) operated Rome - Alghero service, while (EZY) flew between Milan Malpensa and Olbia. Air One (ADH) and Meridiana (ALS) also operate to Sardinia. "We have instructed our lawyers to appeal this decision to the European courts to ensure that low fares and competition are allowed in Italy. It is astonishing that while (RYR) has been blocked from offering low fares between mainland Italy and Sardinia, Alitalia (ALI) is being allowed to sell its high fares on (PSO) routes that it did not even apply for," (RYR) Head of Communications, Peter Sherrard said.
(EZY) said it will cancel all Olbia service for the rest of the year, and the capacity will be switched to Naples and Ibiza. It said the (EC) is investigating the ruling and that it should "soon end this abuse of these subsidized monopolies in Italy."
4 A319-111's (2765, G-EZAN; 2769, G-EZAO; 2777, G-EZAP; 2779, G-EZAS), deliveries.
June 2006: EasyJet (EZY) said it is "targeting British Airways (BAB)'s business passengers (C)" with an expansion at London Gatwick (LGW), adding thrice-daily flights to Glasgow (it already flies there from Stansted and Luton) from October 2 and increasing frequencies to Amsterdam to five-times-daily, Berlin Schoenefeld to twice-daily, Athens to 11-times-weekly, Madrid to four-times-daily, Milan to five-times-daily and Cologne/Bonn to thrice-daily. (EZY) will fly up to 500,000 passengers per month on 33 routes from (LGW) by this summer, accounting for 18% of the airport's capacity. It claims that (BAB)'s share has declined -9 points to 38% in the past four years and that (BAB) recently canceled services to Budapest, Murcia, Almeria, Munich and Valencia and reduced capacity on another six routes operated by (EZY).
European low-cost carriers (LCC)s operated 16.3% of all flights in May, according to a market analysis issued by Eurocontrol. In the past 12 months, (LCC)s added +2.4 points to their market share through re-branding and organic growth. The number of flights operated by (LCC)s in the first five months of 2006 increased +23% year-over-year to more than 3,700 per day and there are now 15 (LCC)s with more than >50 daily flights compared to 13 a year ago. Overall, Europe now has 50 (LCC)s, down by -2 since last year, with (LCC)s operating out of 22 countries.
The UK still is the largest low-cost market, with 32% of its flights operated by (LCC)s. This compares with a 21% share in Poland and Spain. Finland, Poland, Denmark and Latvia have seen the low-cost market share jump by more than +5% but others, including Hungary, Slovenia and Greece, have lost market share. A +2% increase per year is the average, which is the same rate of market share growth seen in previous years.
The Eurocontrol analysis also shows that there is no apparent shifting of low-cost flights from larger airports to smaller ones. London Stansted remains the airport with the largest number of budget flights, followed by Gatwick, Dublin, Luton and Cologne/Bonn. Ten of the top 25 low-cost country-pair flows involve the UK and account for 42% of all low-cost flights.
Slovakia is the national market, where individual flows are most dominated by (LCC)s. However, the biggest markets remain dominated by traditional carriers: Out of the top 10 total country-pair flows in Europe, (LCC)s have the highest share in only one, between Spain and the UK.
(EZY) selected Tim Newing as Information Technology (IT) Director, effective August 21.
(EZY) inaugurated nonstop service from London Luton to Bordeaux and now operates a daily flight. (EZY) also inaugurated nonstop service from Luton to Rimini with 4 flights a week and Rijeka (Croatia) service from Luton started with 4 flights a week.
3 A319-111's (2782, G-EZAR; 2795, G-EZAU; 2803, G-EZAV), deliveries.
July 2006: easyJet (EZY) announced the launch of a thrice-weekly, London Luton - Istanbul Sabiha Gokcen service from August 1, increasing to daily on September 4. It already serves the airport from Basel.
Stelios Haji-Ioannou, the self-styled "serial entreprenuer," better known in this industry as the founder of (EZY), has an even broader smile than ever following the announcement in the Queen's birthday honors list that he is to receive a knighthood. Check out Wikipedia, the online encylopedia, for a detailed description of what being a knight might mean for the Greek tycoon, but it does offer Stelios at the very least an opportunity for a funky photocall fully clad in the appropriate garb. Stelios, like fellow knight Sir Richard Branson of Virgin Atlantic Airways (VAA), is never afraid of a bit of self-publicity. Stelios was himself a little surprised to receive his gong, which has come because of his still short entreprenuerial rein. "It came as a surprise to me, and I am not sure at this stage that I deserve an honour for services to entrepreneurship which is usually reserved for those with a lifetime of business achievement. I only started (EZY) some 11 years ago!" Never one to miss a chance to take a broadsword slash at their rivals, Ryanair (RYR) has given Stelios their own knighthood treatment. With a "fly by knight" headline, (RYR) continues its reputation of delivering some of the weird and wackiest press missives, this time swiping at (EZY) for being - in its view - something less of a low-fares airline than itself.
The European Parliament (EP) gave its resounding approval to new fuel taxes, the ending of airlines' Value Added Tax (VAT) exemption and a closed emissions trading scheme, urging the European Union (EU) to "take a leadership position in global aviation in order to reduce the climate change impact of aviation." By a vote of 439 to 74 with 102 abstentions, members called on the European Commission (EC) to introduce a fuel tax on nearly all domestic and intra-(EU) flights that, according to press reports, would double the cost of many flights offered by low-fare carriers. It also voted to end aviation's (VAT) exemption, which would "further level the playing field and bring fiscal as well as environmental benefits."
The (EP) said that an effective emissions trading scheme (ETS) requires "broad geographical scope, a rigorous cap, full auctioning of initial allocation" and would have to be separate from other industries. "Due to the lack of binding commitments for international aviation emissions under the United Nations Framework Convention on Climate Change and the Kyoto Protocol, the aviation sector would be unable to actually sell into the (ETS)," it said, adding that even if aviation eventually is to be incorporated into a wider (ETS), a separate pilot phase should run from 2008 through 2012. Even then, there would be restrictions. Parliament's plan would force airlines to buy emissions permits and include a hard cap.
In December, (EU) environmental ministers advocated incorporating aviation into the (EU)'s (ETS). (EZY) was quick to respond to the vote, which is nonbinding. "Instead of addressing obvious but politically contentious issues such as inefficient air traffic management and state aid for ailing national airlines, members of the european parliament (MEP)s went for a headline-grabbing bashing of one of Europe's most successful industries," CEO, Andy Harrison said. (EZY) said that according to (EC) estimates, aviation accounts for 3% of the (EU)'s carbon dioxide emissions and would reach 5% by 2030 at current growth rates. In contrast, power generation contributes 34% and road transport 20%.
(RYR), (EZY) and other carriers comprising the Stansted Airlines Consultative Committee said the British Airport Authority (BAA)'s planned expansion of London Stansted (STN) is based on "wildly inflated" forecasts of future traffic levels and called on Ferrovial Group, the new (BAA) owner, to reject current proposals for upgrades. The airline committee said plans to spend £4.5 billion/$8.3 billion to expand facilities and lay down a second runway are "excessive" and will create a "costly, gold-plated" airport that will impose high user fees on carriers. It also called on UK authorities "to force (BAA) to properly consult with [Stansted] users and provide cost-effective and efficient facilities that meet the needs of airlines and consumers."
The UK Office of Fair Trading (OFT) confirmed that it is initiating a study into whether or not the UK airports market in its current form works well for consumers. The (OFT) announced in late May, that it was considering a market study of UK airports. Since then, it has consulted the Civil Aviation Authority and held meetings with relevant parts of the government, including the Department for Transport. Although the study is not targeting (BAA) specifically, (OFT) recognizes that "nearly two-thirds of UK air passengers begin or end their journey at (BAA) airports. Within the London area, this rises to nine out of 10 passengers, and in Scotland over eight out of 10 air passengers fly from a (BAA) airport." Last month, a consortium led by Spanish construction group Ferrovial won a bid battle to buy (BAA), which owns and operates Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton airports. "Greater competition between airlines over the past decade has led to wider choice for air travelers and lower fares." (RYR) welcomed the decision, saying it has "long called for the breakup of the (BAA) monopoly, which has dominated the London market since its privatization, wasting money and gouging passengers along the way," according to Head of Regulatory Affairs, Jim Callaghan. (EZY) also gave a thumbs-up, wondering, "Why did it take so long?" It added: "Does the current regulatory regime, which guarantees a 7.75% return for (BAA) on all capital expenditure, lead to the overspecification, or 'gold-plating,' of airport facilities?"
4 A319-111'sd (2812, G-EZAW; 2818, G-EZAX; 2827, G-EZAY; 2829, G-EZAZ), deliveries.
August 2006: EasyJet (EZY) will start double-daily, Basel - Munich flights October 30 (operated by easyJet Switzerland (TEB)), and will compete against Lufthansa (DLH) for the first time. It also will begin daily Bristol - Paris Charles de Gaulle (CDG) service the same day and Geneva - Hamburg service by December 1. (EZY) launched thrice-weekly, London Luton - Istanbul Sabhia Gokcen flights, that will increase to daily on September 4.
The European Commission (EC) is formally investigating the restrictions placed on flights between Sardinia and mainland Italy by the Italian Transport Ministry and Civil Aviation Authority, which have designated the routes (PSO) protected and therefore unavailable to non-Italian carriers. Airlines such as (RYR) and (EZY) have complained about the restrictions, which they claim violate (EU) rules that grant (EU)-based carriers liberal route access. In launching the investigation, the (EC) said it has "serious doubts" as to whether the restrictions imposed by Italy conform with regulations. "The (EC) must ensure that public services are not used to close a profitable market from competition," (EC) VP Transport, Jacques Barrot said.
(EZY) said it was contacted by Saudi Arabian startup National Air Services (NTJ) and Abraaj Capital of Dubai, about using the (EZY) brand for the private domestic and regional airline that the Middle Eastern companies are looking to establish, according to press reports. The UK carrier said it would not invest any equity or cash in the new carrier and it likely will not make a decision about franchising its brand before next year.
(EZY) issued a statement encouraging travelers to limit themselves to one piece of checked luggage in order to "speed up the handling of baggage at airports and minimize inconvenience to passengers." A second piece of checked luggage will cost £5/$9.50 online and £10 at the airport effective with bookings made from September 1. Total weight must not exceed 20 kg. Passengers will continue to be charged £5 per kg above the limit.
(EZY) is launching a base at Madrid Barajas (MAD), its 17th, and said operations will start February 16 with several new routes, details of which will be announced next month, and will include domestic services. "Spain has been a key market for easyJet (EZY) for the past 10 years and the new base will take our commitment to a completely new level. While Madrid (MAD) is one of Europe's largest and most important capital cities, it is still underserved by low-fares airlines," (CEO), Andy Harrison said.
(EZY) began operating from (MAD) in 1998 and currently serves nine international routes from the airport. It offers a total of 72 routes to 11 Spanish destinations. In 2005, it carried 7.5 million passengers to and from Spain, including 900,000 to and from Madrid, twice as many as in 2004. Spain is its second-largest market behind the UK.
(RYR) and (EZY) responded to proposals for low-fare services from the Maltese government. (RYR) proposed flights to the island nation from London Luton (LTN), Dublin and Pisa, while (EZY) offered flights from (LTN) and Basel-Mulhouse, according to press reports.
British Airways (BAB), (RYR) and (EZY) called on the UK Office of Fair Trading (OFT) to refer its study on the UK airports market to the Competition Commission, citing monopolistic conditions in the market and calling for the breakup of the airports operator (BAA). The (OFT) in June launched a consultation to determine whether the current market structure benefitted consumers after research showed that about two-thirds of UK air travelers - - and nine out of 10 London passengers - - fly through a (BAA) airport. Interestingly, the UK House of Commons Transport Committee called for the breakup of (BAA) as far back as 1996, stating that Heathrow (LHR), Gatwick (LGW) and Stansted (STN) should not be run by the same company.
British Airways (BAB) said in its submission to the (OFT) that the Competition Commission should consider breaking up (BAA). "Separate ownership of (LHR) and (STN) would make infrastructure developments at the airports more responsive to airlines' and their customers' needs and expansion at one airport would not be held back to suit the commercial needs of a monopoly owner," (BAB) (CEO), Willie Walsh said.
(EZY) believes that decisions on new runway construction in southeast England should not be concentrated in the hands of one company. In the event of a (BAA) breakup, (BAB) said there still will be a need for "strong" regulation to protect users against monopoly power, particularly at (LHR) and (LGW).
(RYR) also called for dissolution of the (BAA) monopoly. "The (CAA) as regulator of the London airports has failed to prevent (BAA) from developing gold-plated facilities that do not meet the requirements of the airlines and their passengers and have led to inflated airport charges for consumers," Head of Regulatory Affairs and Secretary, Jim Callaghan said. "[We] are calling on the (OFT) to recommend a breakup of this monopoly as the most effective means of introducing competition into this important market."
(EZY) said UK consumers must not pick up the bill for Ferrovial's acquisition of (BAA). "Consumers need better protection from the airport operators who behave like local monopolists, pushing up prices to hide their own inefficiencies. So, whilst (EZY) supports the breakup of (BAA), the primary focus must be on tougher regulation. The issue of ownership is secondary to providing the right regulatory regime," (CEO), Andy Harrison argued.
2 A319-111's (2854, G-EXBB; 2860, G-EZBA), deliveries.
September 2006: Easyjet (EZY) said it lost approximately £4 million/$7.6 million as the result of last month's security alert as it canceled 469 flights August 10 - 14. "In spite of this, (EZY) maintains its current guidance for pre-tax profit growth for the full year ending September 30 to be in the region of +40% - +50%," it said.
(EZY) CEO, Andrew Harrison threw down the gauntlet yesterday, challenging airports to begin their own low-cost revolution and warning that the growing power of the green movement in Europe threatens the growth and well-being of the low-fare airline sector.
Airports and potential environment-related taxes are "the two boundaries closing in on our industries," he declared.
In the keynote address to the World Low Cost Carriers (LCC) Airlines Congress in London, Harrison said the environmental lobby is targeting (LCC)s as a major contributor to pollution and global warming. (LCC)s face a "serious threat" from "daft green taxes" imposed by "knee-jerk politicians," he said. Anti-airline activists are "very well organized and very well funded. Unless we get our act together, we will not have a voice," he told delegates.
Harrison also had strong words of criticism for airports: "We need a revolution." Airlines "thrive on lower costs," but airports are incentivized to build "gold-plated cathedrals" because the rates they charge are based on the size of their investment. Furthermore, there has been "no real pressure for change" brought to bear on airports. He singled out the new Berlin-Brandenburg International Airport (BBI), arguing that rather than spurring traffic, the €1.8 billion/$2.28 billion project "will choke off growth of low-fare travel in Berlin."
Harrison's concerns were discussed later in the day by Berliner Flughafen VP Marketing & Corporate Communications, Burkhard Kieker. Acknowledging that 55% of Berlin airport traffic comes from low-fare airlines, a smiling Kieker said that (BBI) "will not be one of those gold-plated marble airports." The facility will feature two runways with two low-cost piers. (BBI) will "guarantee" 20-minute turns to (LCC)s, he said.
(EZY) announced it has picked Madrid as its 17th base. (EZY) already operates 9 routes out of Barajas Airport, but plans on expanding operations from February 16th and will announce a series of new routes shortly. (EZY) will discontinue service from London's Luton Airport to Bratislava on October 1st. (EZY) will inaugurate nonstop service from Belfast International Airport to Krakow on April 24th. (EZY) will announce further expansion at Belfast in the coming weeks.
2 A319-111's (2866, G-EZBC; 2873, G-EZBD), delivery.
October 2006: Although Ryanair (RYR) and other low-cost carriers (LCC)s generate large amounts of revenue from "nonticket sources," legacy airlines derive significantly more by selling frequent-flier miles to partners, typically via co-branded credit cards, says a recent study by IdeaWorks Co (ideaworkscompany.com).
According to the report, Europe's top four (LCC)s raised €470 million/$589.1 million in ancillary revenues last year, by charging for things such as seat assignments, checked baggage, credit card usage, onboard snacks and beverages, aswell as other items. IdeaWorks estimated that (RYR)'s "aggressive use of a la carte pricing" generated ancillary revenues of €7.76 per passenger in 2005, placing it well ahead of Aer Lingus (ARL) (€5.99), SkyEurope Airlines (SKP) (€4.38), easyJet (EZY) (€4.37), and Air Berlin (BER) (€2.51).
Yet these performances were eclipsed by United Airlines (UAL), which generated €9.40 per passenger from its Mileage Plus frequent-flier program, and Alaska Airlines (ASA), which generated €8.55 from its Mileage Plan credit card. In fact, the consultancy estimated that 70% "of the miles earned by Mileage Plan members are now generated by charge activity tied to" Alaska (ASA)'s co-branded card. In total, USA frequent-flier programs generated "an estimated €2.5 billion."
IdeaWorks said the figures suggest that "even greater ancillary revenues may reside in an activity traditionally scorned by (LCC)s . . . frequent-flier programs." The full report is available at IdeaWorksCompany.com.
November 2006: EasyJet (EZY) will reinstate its thrice-weekly, Bristol - Pisa service on January 18. The route originally was a summer-only service. Year-round service will become daily by the end of March. (EZY) will resume service from Bristol to Paris on January 18th. This route was a summer only service and will now become year-round. Initially (EZY) will operate 3 flights a week, on Mondays, Thursdays, & Saturdays, increasing to daily service at the end of March 2007.
Penauille Servisair signed a multiyear extension to its handling contract with (EZY) at Liverpool (LPL). (EZY) flies seven A319s on more than >170 weekly flights from (LPL).
(EZY) will fly Munich - Edinburgh daily, starting April 4.
(EZY) credited its profit growth for the year ended September 30 to a +34% rise in ancillary revenues per seat, improved yield and reduction of nonfuel costs. (EZY) did not provide results for the April - September semester but it was calculated that net profit for the second half was +£123 million, up from +£74.4 million last year.
Full-year revenue climbed +20.7% to £1.62 billion against an +18.2% increase in costs to £1.34 billion. (EZY) credited strong intra-European traffic driven by its German bases and successful launches at Basel and Milan Malpensa for rising passenger revenue. Operating profit nearly doubled to +£117.8 million from +£66.2 million in Fiscal Year (FY) 2005.
Year-end traffic was up +15.2% to 31.62 billion (RPK)s as capacity increased +15.4% to 37.09 billion (ASK)s, dropping load factor -0.4 point to 84.8% LF. (EZY) added 58 routes and 11 destinations during the year, and its fleet grew by +13 airplanes.
Yield rose +7.8% to 41.66 pence and unit costs were up +5.7% to 38.34 cents, while cost per seat excluding fuel fell -1.5% to 28.36 cents. The company said revenue per seat soared +11.2% in the second half, in part because Easter fell in April, but also owing to "buoyant market conditions and good revenue management across the network."
(EZY) is introducing a Speedy Boarding facility, that allows up to 20 passengers to book priority boarding and have the greatest choice of seats. Speedy Boarding is sold on a first-come, first-served basis, and the fee is based on length of flight and departure airport. Prices vary from £2.50/$4.84 to £7.50. "This latest innovation . . . reflects the development in the concept of having a flexible product, that can be adapted to the customer needs, but only paying for what you need," (CEO), Andy Harrison said.
(EZY) celebrated a +59.5% surge in fiscal year (FY) profit to +£94.1 million from +£59 million last year, with a massive airplane order encompassing 52 firmed options on A319s scheduled for delivery between 2008 and 2010 and 75 new options on A320 family airplanes.
If all options are exercised, the order will more than double the carrier's current fleet of 122 airplanes. It now has 104 airplanes on firm order worth more than $4 billion and holds purchase rights with Airbus (EDS) on an additional 123.
"Today's Airbus (EDS) order underpins our future growth and we expect to increase capacity in 2007 by +15%," (CEO), Andy Harrison said. "We remain focused on improving execution and delivery of results by revenue enhancement, network development and cost reduction. This year has seen an encouraging step toward improved return on equity. The board remains confident that the business will make good progress in the coming years."
3 A319-111's (2884, G-EZBE; 2923, G-EZBF; 2946, G-EZBG), deliveries.
December 2006: EasyJet (EZY) announced 3 new routes from the upcoming summer season as follows:
Bristol to Bordeaux, starting June, 3x a week;
Newcastle to Krakow, starting April 01, 4x a week;
Newcastle to Mahon, starting July 14, 2x a day.
Starting February 25th, Edinburgh - Madrid, 1/day, using A319s. Starting April 4th, Edinburgh - Amsterdam, increased to 2/day. Starting May 5th, Edinburgh - Palma, 1/week. Srting May 21st, Edinburgh - Milan (MXP), 1/day. Starting June 10th, Edinburgh - Palma, increased to 2/week.
The UK announced that taxes on airline passenger tickets will double to £10/$19.80 for most flights from February 1, with duties on long-haul business class tickets doubling to £80 per ticket, as part of an effort to reduce carbon emissions.
Finance Minister, Gordon Brown told the House of Commons that aviation accounts for a fifth of carbon emissions produced by transport and that the UK "must take action domestically" to increase pressure for a wider (EU) and/or international agreement on reducing aviation emissions. UK airlines roundly criticized the move, saying it would hurt carriers financially while producing little environmental benefit.
"Air passenger duty is an extremely blunt instrument that provides the treasury with extra funds for public spending without any benefit to the environment whatsoever," (BAB) said in a statement. "Further taxing hard-working families and British businesses is not the way to address climate change. This hike in air passenger duty is revenue-raising pure and simple and aviation is being treated as a cash cow."
(EZY) (CEO), Andy Harrison said the new charges are "the wrong tax for the economy and the wrong tax for the environment." He complained that the duty hike "penalizes all airlines and airplanes equally" even though there are environmental impact disparities between carriers and airplane types. He added that Brown is "penalizing the traveling public . . . they are unlikely to forgive him."
Flybe (BEE) CCO, Mike Ritter said Brown was "playing political football" with the airline industry and asserted that "cleaner fuel" and more efficient airplanes and better Air Traffic Control (ATC) management are the best ways to address environmental concerns.
The (UK) government reasserted the need for aviation capacity expansion in the crowded London market, including the building of a third runway at London Heathrow (LHR) airport and a second at London Stansted (STN), but cautioned that environmental concerns need to be a strong consideration in any expansion plans.
The (UK) issued a required review of its 2003 "The Future of Air Transport" White Paper, which called for adding capacity because of the "essential role that aviation plays in our economy and continued prosperity." Last week's update emphasized that "sustainable economic growth requires recognition of our environmental responsibilities."
The report said a third (LHR) runway, to be built between 2015 and 2020, is needed. But it added, "Further expansion on flights [at (LHR)] would not be allowed unless limits on noise and air quality could be met." The second (STN) runway is slated to built in 2011 or 2012.
The government said it is pushing for "the inclusion of aviation emissions in the (EU) Emissions Trading Scheme, as soon as practicable, and to do so for all flights departing from (EU) airports," adding that the (UK) must take "responsibility for the carbon that we emit" and take measures ahead of (EU) action if necessary.
Airlines responded cautiously. (EZY) applauded the call for expansion, but warned that "too much ill-informed hysteria" is driving the environmental debate. (EZY) called for a "measured, objective look at aviation's relatively minimal contribution to climate change," saying it is "still so angered" by the government's plan, announced earlier this month, to double duties on passenger tickets in order to reduce emissions.
A319-111 (2959, G-EZBH), delivery.
January 2007: Ryanair (RYR) said it filed a legal action in the Council of State, France's highest administrative court, against the government and a complaint to the European Commission (EC) challenging what (RYR) called "an unlawful labor decree" that forces foreign airlines to apply domestic labor laws when basing airplanes in France. (RYR) claims that the regulation, which came into force November 23, "is contrary to European laws on free movement of labor and services and the freedom of establishment and is also contrary to the liberalized air transport market."
Head of Regulatory Affairs & Company Secretary, Jim Callaghan said the rule is "clearly designed to discourage foreign airlines from establishing a base of operations in France in order to compete with the high fare monopoly by Air France (AFA)." (RYR) operates at 18 French airports, and last year opened its first French hub in Marseilles with routes to 14 destinations.
Last month, easyJet (EZY) lodged a similar suit, after French prosecutors opened a probe into the alleged employment of 130 (EZY) staff under British labor contracts at Paris Orly, where (EZY) has a base.
(RYR) represents "the irresponsible face of capitalism" and USA carriers' attitude toward carbon emissions is "a disgrace," according to UK Minister of State-Climate Change & the Environment, Ian Pearson, "The Guardian" reported.
(RYR) and the USA-based Air Transport Association (ATA) are among those who have protested the plan to bring airlines into the European Union (EU)'s Emissions Trading Scheme (ETS) starting in 2011.
Pearson said (RYR) CEO, Michael O'Leary "just seems to take pride in refusing to recognize that climate change is a genuine problem" and that British Airways (BAB) is "only just playing ball" and will support only a trading scheme confined to intra-(EU) flights. He also said "completely irresponsible" USA carriers "will take the (EU) to court, if transatlantic flights are included." The (ATA) said last month, that the (EU) plan clearly violates international laws and bilateral air service agreements.
O'Leary was quick to respond, saying Pearson "hasn't a clue what he's talking about." (RYR) said it is "Europe's greenest airline" and has spent more than >$10 billion in the past five years to acquire new 737s that offer a -45% reduction in fuel consumption and a -50% drop in noise and carbon dioxide emissions per seat. "At a time when aviation generates just 1.6% of greenhouse gasses, isn't it time that Minister Pearson and other equally foolish politicians actually tackled the real causes of climate change, which is road transport and power generation," O'Leary asked.
(EZY)'s Andy Harrison took the opportunity to distance himself from the outspoken O'Leary, saying (EZY) "congratulate[s] Mr Pearson for his clear words and for refraining from lumping all airlines together . . . The (EU) must discourage airlines from flying old, half-empty airplanes and must prevent non-(EU) airlines from getting a free ride. That is why (EZY) wants to see an [ETS] that includes all flights . . . and we want to see it as soon as possible." Harrison said the (ETS) is preferable to taxes imposed by national governments, such as the recently doubled tax on tickets in the UK.
(EZY) will launch weekly flights to Ibiza from Glasgow International starting June 16, from Belfast starting July 7, and from Bristol starting July 14. (EZY) cancelled most flights to and from Bristol recently and diverted the remainder to Cardiff because of concerns over the reliability of a newly resurfaced runway in wet weather conditions. British Airways (BAB) and XL Airways (SBE) also canceled or diverted some flights, according to press reports. "The safety of its passengers, crew and airplanes is easyJet (EZY)'s first priority, and this decision has been taken following extensive discussions with Bristol International Airport and the UK Civil Aviation Authority," (EZY) said. "AFX News" reported that the airline was concerned over "several recent incidents in which airplanes had slid on the runway or overshot it."
(EZY) will launch four-times-weekly Newcastle - Krakow service from April 1, a twice-daily Newcastle - Mahon service from July 14, and a thrice-weekly Bristol - Bordeaux flight (launch date not provided) that will become daily in June.
The British Airports Authority (BAA) unveiled revised development plans for London Stansted (STN), that "will cost much less than originally anticipated, with environmental impacts much reduced too."
The UK airports operator, controlled by Spain's Grupo Ferrovial, said opening cost in 2015 would be £1.4 billion/$2.74 billion and overall cost would be £2.27 billion by the time the phased expansion is complete in 2030. This compares to the original estimate of £4 billion. "Stansted Generation 2," as the plan is called, includes a second parallel runway of 3,048 m, a terminal extension and improved public transport access. It would raise annual passenger capacity by +10 million, when the new runway becomes operational in 2015, rising to 68 million by 2030. (STN) handled nearly 24 million passengers in 2006. (STN)'s main users, however, still oppose G2 despite the downsizing. "At a time when a low-cost efficient airport like Frankfurt Hahn can design and build a 15-million-passenger terminal for less than €100 million/$129.2 million, there is no justification for the (BAA) airport monopoly to waste £1.4 billion on a similar-sized terminal facility," (RYR) (CEO), Michael O'Leary said. (RYR), the airport's largest airline, with more than >60% of its traffic, called on the UK (CAA) to reject the plan.
"The scheme remains overengineered and too expensive," (EZY) (CEO), Andy Harrison said. "It may be good for (BAA)'s shareholders, but it is not the right way forward for UK aviation and the traveling public."
February 2007: EasyJet (EZY) said it expects a "slight [year-over-year] increase" in passenger revenue in the current quarter. Looking ahead, it said the second half of the fiscal year will feature "pressure" on yields "due to high comparatives, following a strong summer last year, and due to continued competition." For the full year, it expects pre-tax profit to climb 40% to 50% over the £129.2 million, earned in the fiscal year ended September 30, 2006, thanks to cost control and rising ancillary revenues. (EZY) earned a +£94.1 million net profit in the 2006 fiscal year.
(EZY) started new daily, Rome Ciampino (CIA) - Lyon. Starting March 31, new daily, Bristol - Bordeaux. Starting April 1st, new 4/week Newcastle - Krakow. Starting April 3rd, new daily London Gatwick (LGW) - Pisa. Starting April 4th, Edinburgh - Amsterdam increased to 2/day, and new daily Edinburgh - Munich. (EZY) will launch daily, Bristol (BRS) - Milan Malpensa service on April 23 and double its daily, (BRS) - Paris Charles de Gaulle service in October. Starting April 24th, new 3/week Belfast International - Krakow. Starting May 11th, new daily Berlin (SXF) - Lisbon, and - Venice. Starting May 21st, new daily Edinburgh - Milan (MXP). Starting May 30th, Edinburgh - Dortmund 4x weekly, & Dortmund - Thessaloniki 3x weekly. Starting June 10th, Edinburgh - Palma increased to 2/week. Starting June 16th, new 1/week, Glasgow - Ibiza. Starting June 18th, new daily (LGW) - Palermo. Starting June 29th, new daily Geneva - Bordeaux, - Cagliari, & - Oporto. Starting July 7th, new daily Belfast - Ibiza. (EZY) will launch daily Geneva - Brussels service June 29, becoming twice-daily on September 10. Starting July 14th, new 1/week, Bristol- Ibiza; (LGW) - La Rochelle; & 2/week, Newcastle - Mahon. Discontinues (LGW) - La Rochelle on September 9th.
(EZY) will launch the following new routes by late June: Weekly London Luton - Ibiza (becoming daily on May 25), daily London Gatwick (LGW) - Palermo on June 18, daily (LGW) - Pisa on April 3, daily Paris Orly - Athens on May 4, daily flights from Geneva to Bordeaux and Oporto on June 29.
(EZY) opened its 17th base at Madrid Barajas (MAD), where it will keep four new A319s that will operate three domestic, 13 European, and two North African routes. It expects to carry 2 million passengers through the airport this year. (EZY)'s Maintenance Repair & Overhaul (MRO) supplier, SR Technics (SWS), opened a line maintenance station at Barajas. New twice-daily services launched, were to La Coruna and Asturias. (EZY) started daily flights to Lyon and will begin daily services to Marrakech, Casablanca, Rome Ciampino, Edinburgh and Toulouse. Daily flights to Palma begin June 28. It already served nine destinations from (MAD).
March 2007: easyJet (EZY) starting April 23rd, Bristol - Milan, using A319s. Starting June 29th, Geneva - Brussels, using A319s. Starting September 18th, London Stansted (STN) - Zurich, using A319s. Starting October 5th, daily, London Gatwick - Krakow.
3 A319-111s (3053, G-EZBL; 3059, G-EZBM; 3061, G-EZBN), deliveries.
April 2007: EasyJet (EZY) transported 3.1 million passengers in March, up +12.3% from the year-ago month. Load factor fell -1.9 points to 84.4% LF.
(EZY) launched a daily Madrid - Palma de Mallorca flight and announced the following new services: Daily flights from Berlin Shoenefeld to Lisbon and Venice starting May 11, and daily seasonal flights from London Gatwick to La Rochelle (July 14 to September 9) and from Geneva to Cagliari (June 29 to September 7).
EasyJet (EZY) will commence six-times-weekly flights between Basel-Mulhouse and Olbia on June 29.
4 A319-111s (3082, G-EZBO; 3084, G-EZBP; 3088, G-EZBR; 3090, G-EZBT), deliveries.
May 2007: EasyJet (EZY) said unit revenues fell in April and it sees "pressure on yields in the summer against high comparatives from last year and due to continued competition." It maintained its projection of 40% to 50% in pre-tax profit for the fiscal year ending September 30. The Low Cost Carrier (LCC) transported 3.1 million passengers in April, up +10% from the year-ago month. Load factor dropped -3.3 points to 83.1% LF.
EasyJet (EZY) reported a narrowing of its pre-tax loss for the six months ended March 31 to -£17 million/-$33.9 million from -£40 million in the year-ago semester and confirmed it expects full-year pre-tax earnings to increase +40% to +50% over the previous year's +£94.1 million.
The (LCC) releases limited half-year results. It said revenue rose +14% to £719 million on a +11% increase in passenger numbers to 16.4 million, and a +18% lift in ancillary revenues. The latter was boosted by partner revenues from insurance and car rentals. Per-seat passenger revenue was up +0.8% to £31.70 against a -2.1% reduction in per-seat cost excluding fuel to £27.18. "We anticipate further progress on unit cost reductions, excluding fuel, in the second half and for the full year we anticipate unit fuel costs to be slightly down year-on-year," the airline said, adding that it expects +15% capacity growth for the year through September.
Starts Edinburgh - Dortmund, - Palma, - Milan (MXP), Dortmund - Thessaloniki, London Luton (LTN) - Ibiza, Berlin (SXF) - Lisbon, - Venice, using A319s. Starting June 16th, Glasgow - Ibiza. Starting June 18th, London Gatwick (LGW) - Palermo. Starting June 29th, Basel/Mulhouse - Olbia, Geneva - Bordeaux, - Brussels, - Cagliari, - Oporto. Starting July 7th, Belfast - Ibiza. Starting July 14th, Bristol - Ibiza, (LGW) - La Rochelle, Newcastle - Mahon. Starting September 18th, (LTN) - Zurich. Starting October 2nd, Bristol - Warsaw. Starting October 5th, (LGW) - Krakow. On September 7th, stops Geneva - Cagliari. On September 9th, stops (LGW) - La Rochelle.
2 A319-111s (3118, G-EZBU; 3122, G-EZBV), deliveries.
June 2007: EasyJet (EZY) transported 3.3 million passengers in May, up +13.8% from the year-ago month. Load factor slipped -0.3 point to 83.6% LF.
EasyJet (EZY) said it expects unit revenue to decline -5% to -10% in the second fiscal semester ending September 30, as it continues "to offer low fares throughout the summer to ensure great deals for our customers and high load factors." It is forecasting a -5% decline in nonfuel (CASK), allowing it to maintain its forecast of a +40% to +50% year-over-year increase in pre-tax profit. It transported 3.3 million passengers in May, up +13.8% from the year-ago month, as load factor dipped -0.3 point to 83.6% LF.
EasyJet (EZY) launched daily London Gatwick (LGW) - Palermo service aboard a new A319, which is the 20th airplane based at (LGW) and the 135th in the Low Cost Carrier (LCC)'s fleet. EasyJet (EZY) starts daily Madrid - Ibiza flights on June 21. EasyJet (EZY) announced the addition of flights to Austria and Romania, bringing its network to 22 countries. Daily London Luton - Vienna service will begin October 29 and daily Milan Malpensa - Bucharest Baneasa flights will launch sometime in September.
EasyJet (EZY) unveiled the "easyJet (EZY) ecoJet," which it said will be -25% quieter, emit -50% less CO2 and -75% less NOX than today's 737s and A320s. CEO, Andy Harrison said such an airplane is "realistic and it is achievable" by 2015. He claimed the airline "would order hundreds of them" if they are built; "What we're saying to Airbus (EDS) is, 'Make sure you're ahead in the battle for the small narrowbodied airplanes.'" The carrier currently operates 101 A319s and 30 737-300s. It has an order with Airbus (EDS) for an additional 91 A319s for delivery between 2007 and 2010, plus 123 A320 family options available through 2015.
As outlined, the ecoJet would incorporate rear-mounted open-rotor engines, its airframe would be made of advanced weight-reducing materials similar to those used in the 787, and it would have a lower design cruise speed to reduce drag and a shorter design range (2,000 nm) to reduce weight. "The lightweight structure and open-rotor engines are based on technologies that are being developed right now by the major manufacturers," Harrison noted.
2 A319-111s (3134, G-EZBW; 3137, G-EZBX), deliveries.
July 2007: EasyJet (EZY) transported 3.4 million passengers in June, up +15.1% from the year-ago month. Load factor fell -0.8 point to 86.8% LF.
EasyJet (EZY) will launch service from Birmingham International (BHX) with a daily flight to Geneva beginning December 14 and a twice-weekly Grenoble service from December 22. (BHX) is the 13th UK airport added to the Low Cost Carrier (LCC)'s operation and takes the total number of airports on its European network to 79. EasyJet (EZY) also will launch a winter service from Bournemouth to Grenoble on December 13.
France's Conseil d'Etat ruled that easyJet (EZY) and Ryanair (RYR) each must apply French labor laws for staff operating in the country. Both Low Cost Carrier (LCC)s had appealed against last year's decree that obliged foreign airlines to apply domestic labor laws to airplane crews based in France. Ryanair (RYR) argued that the decree contravened European laws on free movement of labor and services, freedom of establishment, and the liberalized air transport market. It said that it intends to take further legal action, Reuters reported.
GE Aviation (GEC) signed a 10-year OnPoint Solutions services agreement with easyJet (EZY) covering the (CFM56-5B) and (CFM56-7B) engines powering its fleet of 192 A319s and 32 737-700s respectively. The accord, which could cover as many as 340 shop visits, potentially is valued at $1 billion.
2 A319-111s (3176, G-EZBY; 3184, G-EZBZ), deliveries.
August 2007: EasyJet (EZY) said it is "on track" to post full-fiscal-year pre-tax profit growth of +40% to +50% as it unveiled certain third-quarter numbers. The Low Cost Carrier (LCC) reported a +5.7% year-over-year increase in revenue to £486.5 million/$990.9 million as passenger numbers rose +13% to 9.9 million. CEO, Andy Harrison said the results "provide further support to our maintained profit guidance for the full year." In the year ended September 30, 2006, easyJet (EZY) posted net earnings of +£94.1 million and a pre-tax profit of +£129.2 million.
In the recently completed quarter, the carrier flew 9.9 billion (RPK)s passenger traffic, up +15.6% on the year-ago quarter, against a +17.3% lift in (ASK)s capacity to 11.7 billion, that dropped load factor -1.5 points to 84.5% LF. The fleet grew to 126 airplanes from 110 and it added Austria, Belgium and Romania to its network.
EasyJet (EZY) blamed the impact of reduced "lead in" fares, increased promotional spend and doubling of the air passenger duty in the UK for a -8% year-over-year decline in revenue per seat to £41.46, but said unit cost, excluding fuel, plunged more than >10%. "The company expects to maintain high load factors for the summer, while 2nd-half guidance on revenue per seat remains unchanged, down -5% to -10%," it said. In July, the (LCC) transported 3.7 million passengers, up +17.5% year-over-year, as load factor dropped -1.8 points to 88.6% LF.
European low-cost carrier (LCC) seat capacity grew by +21% or 34 million seats in 2006 compared to 2005 and the sector accounted for around 30% of all intra-European seat capacity last year and 22% of departures, according to rdc's "Low Cost Monitor (LCM) 2007." Although the growth of (LCC) departing seats slowed compared to the +27% increase experienced in 2005, "the actual increase in volume of seats offered by low-cost carriers was greater in 2006 than 2005," according to the report. The number of airports served by (LCC)s rose to 280 from 270 in 2005. Also, the number of intra-Europe seats offered by conventional airlines actually declined, dropping -1% compared to 2005. This is the first year-to-year decrease since the (LCM) series began. The conventional airline share of departing seats is now below <70% versus 31% for (LCC)s.
Ryanair (RYR), easyJet (EZY) and Air Berlin (BER) accounted for 54% of low-cost capacity within Europe, down from 55% in 2005, while the top 10 (LCC)s accounted for 77%, down from 80%. Among other findings, the UK remained the largest (LCC) country with 56 million departing seats in 2006, but growth slowed dramatically to below <11% per year. Stansted (STN) was the largest low-cost hub with 14.1 million departing seats last year, while Wroclaw was the fastest-growing low-cost airport and Vueling (VUZ) the fastest-growing (LCC) in terms of departing seats. The analysis also shows that at current growth rates, more than half of all European point-to-point passengers will be carried by (LCC)s by 2011. (LCC)s will account for 43% of the estimated 1 billion intra-Europe seats on offer that year.
EasyJet (EZY) and Wizz Air (WZZ) announced that they will start charging for each piece of checked baggage. The UK-based Low Cost Carrier (LCC) said that in order to "reduce the number of passengers who travel with checked-in bags," it will be charging £2/$4.06 per piece of hold baggage per sector from October 1.
Previously, easyJet (EZJ) did not charge for the first bag, but levied £5 for each additional piece. Maximum weight per passenger remains at 20 kg. Wizz Air (WZZ) likewise was charging only for additional pieces, but said it now will charge €3/$4.10 per bag at the time of the initial booking or €6 per bag, if paid after the initial booking. The policy change is effective for travel from October 27, unless already booked. Wizz (WZZ) will continue to charge €8 for each kg over the 20-kg allowance. "We are pursuing our philosophy of charging the passengers, according to their needs, and we are using this change to keep our airfares down," it said.
EasyJet (EZY) announced the following new routes: Daily London Gatwick (LGW) - Gdansk, and daily Milan Malpensa (MXP) - Bari, starting October 1; daily (MXP) - Barcelona from October 8; flights from Bucharest Baneasa to (LGW) (daily), and Madrid (four-times-weekly) from October 29; thrice-weekly flights to Gdansk from Edinburgh and Bristol beginning October 30; daily Madrid - Paris Charles de Gaulle from November 1; daily Nice - Brussels from November 5; flights to Innsbruck from (LGW) (six-times-weekly) and Bristol (thrice-weekly) beginning December 14. Gdansk, Innsbruck and Bari are new destinations for the airline.
EasyJet (EZY) announced seven new routes, including its first service to Bulgaria: Thrice-weekly Geneva - Marrakech, Basel - Marrakech, and Basel - Porto from October 30; four-times-weekly Liverpool - Lisbon from November 2; thrice-weekly London Gatwick - Sofia, and Milan Malpensa - Marrakech from November 6; thrice-weekly Liverpool - Innsbruck from January 8.
The (LCC) said in a filing to the London Stock Exchange cited by Reuters, that Blackrock Investment Management acquired a 5.09% stake in the airline.
September 2007: EasyJet (EZY) transported 3.7 million passengers in August, up +17.8% from the year-ago month. Load factor fell -1.9 points to 87.4% LF.
(EZY) announced it will operate its Bucharest service from Otopeni rather than Baneasa through at least September 23, owing to the latter airport's inability to meet "operational requirements at this time." It also announced the launch of daily services from Madrid (MAD) to Lanzerote and Lisbon on November 1, thrice-weekly (MAD) - Fuerteventura on November 3, and twice-weekly, Geneva - Gran Canaria from October 31.
EasyJet (EZY) launched twice-daily London Luton - Zurich service and said it expects to carry more than >160,000 passengers on the route over the next 12 months.
EasyJet (EZY) will launch four-times-weekly East Midlands - Barcelona service from December 7. The Low Cost Carrier (LCC) expects to carry more than >70,000 passengers on the new route in the first 12 months of operation.
UK budget carrier easyJet (EZY) is calling on politicians to take a "more intelligent" approach when it comes to aviation's environmental impact. In a report entitled "Towards Greener Skies: The Surprising Truth About Flying And The Environment," easyJet (EZY) recommends that the UK eliminate the controversial Air Passenger Duty, which was doubled earlier this year ostensibly owing to aviation's impact on the environment, and replace it with a tax based on airplane types and distance traveled. "Taxing families but not private jets is a grotesque insult," CEO, Andy Harrison said. "The time has come to scrap Air Passenger Duty in its current form and replace it with a 'polluter tax' that has at its heart a very simple notion - - those that fly on airlines that pollute less, like easyJet (EZY), should pay less." To reach consumers "that have been mostly silent in the recent debate," the London Luton-based carrier is launching a national newspaper advertising campaign and plans to place environmental messages on the backs of airplane seats from early October.
EasyJet (EZY) argues that its passengers produce 95.7g of CO2 per km, "which is less than the average family car, less than Virgin's Voyager trains, less than the Toyota Prius."
October 2007: EasyJet (EZY) transported 3.4 million passengers in September, up +14.2% from the year-ago month, as load factor fell -1.3 points to 85.2% LF.
EasyJet (EZY) concluded its financial year on September 30 and said it now expects pre-tax profit for the 12 months to be "towards the top end" of its projected improvement of +40% to +50%, and that it will exceed that guidance if it includes a one-off benefit of +£11 million/+$22.4 million associated with the writeback of its investment in The Airline Group. The Low Cost Carrier (LCC) reported net earnings of +£94.1 million and a pre-tax profit of +£129.2 million in the year ended September 30, 2006. It plans to announce its 2006 to 2007 performance on November 20. "We are pleased with our performance over the last financial year, having achieved significant improvement in margins despite the doubling of the (APD) in the UK, and record fuel prices," CEO, Andy Harrison said. Second-semester yields are expected to fall -6.8% year-over-year, the airline warned, but said that was in line with projections and will be offset by "substantial improvement" in operating costs. Second-h
alf (CASK) excluding fuel, is expected to decline around -10%.
"We will continue to execute our stated strategy in the new financial year, adding +15% capacity, and further improving return on equity," the airline said, adding that winter yields, including ancillary revenue from baggage fees, will be "broadly in line" with last year. Growth will continue to focus on Southern Europe and France, it said.
EasyJet (EZY) will open two new bases in France next year, and invest €600 million/$849.5 million to 2011, to reinforce its position as the country's "only significant low-cost airline," and its second-largest carrier. "With a low-cost penetration of 17% at half the European average [33%], France's air transport market still suffers from a lack of affordable, direct air links and therefore offers huge opportunities for easyJet," the Low Cost Carrier (LCC) said. Three new A319s will be based at Paris Charles de Gaulle (CDG) from February, to launch routes to Biarritz, Porto, Venice, Marrakech, Hamburg and Krakow. EasyJet (EZY) already operates 11 routes from (CDG) to the UK, Switzerland, Spain and Portugal, as well as Nice. It also has a base at Paris Orly with six based airplanes operating on nine international and two domestic routes. The second new base will be launched at Lyon Saint-Exupery next April, with two A319s operating to Bordeaux, Toulouse, Casablanca, Marrakech, Venice, Porto and Lisbon. For the winter schedule, service will be added to London Stansted, Berlin Schoenefeld, Madrid, Barcelona and Rome Ciampino. EasyJet (EZY) said it plans to have 20 airplanes based in France, operating 80 routes and carrying 12 million passengers by 2011. It currently offers 50 routes in the country, and expects to carry more than >6 million passengers through French airports this year, and a further 2 million in 2008, due to the opening of the new bases.
EasyJet (EZY) is basing a sixth airplane at Belfast International (BFS) and launched service to Gdansk. It will begin flying from (BFS) to Prague and Venice November 1 and to Barcelona November 3, bringing to 23 the number of routes it operates from the airport. Also, (EZY) launched service from Bristol to Funchal, Gdansk and Lisbon, as well as Bournemouth - Krakow, Edinburgh - Gdansk, Edinburgh - Krakow, Glasgow International - Paris Charles de Gaulle, London Gatwick (LGW) - Bucharest, London Stansted - Funchal, and London Luton (LTN) - Vienna flights. Liverpool - Lisbon will start November 2, (LTN) - Hamburg begins November 5 and (LGW) - Sofia begins November 6. Bournemouth - Grenoble is slated for a December 13 launch.
The UK (CAA) published the Competition Commission (CC) report on price controls for London Heathrow (LHR) and Gatwick (LGW) airports for the next five-year period. The (CC) recommended that the maximum per-passenger charge at (LHR) rise to £10.96/$22.35 in 2008 to 2009, with charges subsequently increasing by no more than retail price index (RPI) inflation, plus +7.5% each year. For (LGW), it proposed that charges rise to a maximum £5.48 in 2008 to 2009, subsequently growing by no more than (RPI) inflation, minus -0.5% annually. This compares with projected charges for 2007 to 2008 of £9.28 per passenger at (LHR) and £4.91 at (LGW). In March, the (CAA) issued its own recommendations of maximum (LHR) charges of £10.29 in 2008 to 2009 and annual increases of (RPI), plus +5.8% thereafter, and maximum Gatwick (LGW) charges of £5.19 in 2008 to 2009, and annual increases of (RPI) plus +1% thereafter. The main reasons for the differences, it noted, "are the larger capital investment programs now in prospect at each airport, and the costs of delivering more stringent security processing and improving service quality in this area." The agency also noted that the (CC) found that both (LHR) and (LGW), "in failing to manage security queuing and queue times to avoid unacceptable delays to passengers, crew and flights, have acted against the public interest," and that the (CC) proposed that these problems can be remedied through a broadening and strengthening of existing service quality regulations. The (CAA) said it "cannot reject a public interest finding made by the Commission (CC)" and will be making proposals that remedy the adverse effects of the airports' conduct. With respect to price controls, the (CC)'s report is advisory rather than binding on the (CAA), which will issue for consultation its own firm price control proposals for the two airports by November 20, and make its final price control decisions in February/March.
Carriers were quick to complain. "At a time when competition between airlines has demanded that they drive down their costs and generate higher levels of efficiency to survive, we have had to endure inflation-busting increases for the last five years for indifferent levels of service. We are now facing even higher increases over the next five years with limited improvements until the opening of the new Heathrow (LHR) East terminal in 2012," bmi (BMA) Deputy CEO, Tim Bye said. EasyJet (EZY) said it failed "to understand why the British Airports Authority (BAA) continues to be allowed to increase its prices, despite serial failings in its service quality delivery. This would appear to be a reward for failure."
The British government is considering replacing the controversial air passenger duty (APD) with a tax based on flights, rather than passengers. "I propose that aviation makes a greater contribution in respect of its environmental impact and for this to be as environmentally effective as possible, from 2009, I intend to levy the duty not on individual passengers but on flights," Chancellor, Alistair Darling announced. He also stressed that it is "right" that airplane emissions should be part of the (EU) emissions trading scheme. (APD) levels will be frozen in the run-up to the change. EasyJet (EZY) said it welcomed the proposal. "It is right to tax emissions, not passengers. That means reflecting a combination of airplane type and distance flown," CEO, Andy Harrison said, while warning that "the reform should not be used as an excuse to further increase the burden of tax on passengers. EasyJet (EZY), for example, already covers its carbon costs more than four times over." British Airways (BAB) said, "Our share of (APD) revenue for the government is now £400 million/$815.6 million a year. With this money, the government could offset our entire CO2 emissions four times over." It added, "Once aviation is included in the (EU) scheme, we expect (APD) or any replacement tax to be ended." For Ryanair (RYR), the reformed (APD) would be "just another tax on ordinary passengers from government ministers swanning around on private airplanes. This Labour government lied when it proposed to spend the £1 billion raised from doubling (APD) on the environment. Not a penny has been spent on the environment, and they are back stealing more from ordinary passengers going on holidays."
EasyJet (EZY) propelled itself into the top spot among Europe's low-cost carriers and consolidated its presence at London Gatwick (LGW) through the purchase of GB Airways (GBA) from Bland Group for £103.5 million/$212.1 million in cash. The deal does not include (GBA)'s four London Heathrow (LHR) slots. This is easyJet (EZY)'s second major airline acquisition; it acquired British Airways (BAB)'s low-fare subsidiary Go Fly (GFL) in May 2002.
(GBA), formerly Gibraltar Airways, currently operates nine A320s and six A321s under a franchise agreement with British Airways (BAB), serving destinations across southern Europe and North Africa from (LGW) (where most of its operation is concentrated), as well as Manchester and (LHR). It will begin operating under the easyJet (EZY) brand on March 30, 2008, and will be fully consolidated by winter 2008 to 2009. "This is an acquisition which both strengthens our customer offering at [LGW] . . . and allows us to fully capitalize on the potential of the airport through a larger number of slots," CEO, Andy Harrison said. "We expect the acquisition to be earnings positive in our current financial year, and in the longer term, we will transition the GB Airways (GBA) operation to easyJet (EZY)'s cost base and operating margin levels."
(GBA) carried 2.8 million passengers in the fiscal year ended March 31, reporting a pre-tax profit of +£2.6 million on revenue of £250 million. EasyJet (EZY) said it expects (GBA)'s seat profitability to reach "a similar level to its own at Gatwick" during the first full fiscal year.
The purchase will give easyJet (EZY) a 24% share of slots at (LGW), up from 17% and nearly matching (BAB)'s 25% share, while its share of short-haul passengers will climb to 29% from 22%, it said. (LGW) is its largest base with 20 airplanes. It carried 6 million from the airport last year, or around 16% of its total uplift of 37.2 million. Addition of the (GBA) fleet will boost its capacity (ASK)s +14%, while the airline brings 19 destinations new to easyJet (EZY).
(BAB) plans to start services on some of the routes formerly operated under the franchise with (GBA). In a statement, (BAB) Chief Executive, Willie Walsh said, "UK franchises have outlived their purpose. EasyJet (EZY) has made an offer to buy GB Airways (GBA) and this has enabled us to end the franchise agreement early. We had an option to buy GB Airways (GBA), but we rejected it." (BAB) also said it will end its franchise agreement with Scottish regional Loganair and replace it with a codeshare arrangement.
November 2007: EasyJet (EZY) transported 3.3 million passengers in October, up +14% from the year-ago month. Load factor slipped -0.7 point to 82.5% LF.
EasyJet (EZY) reported net profit of +£152.3 million/+$312.5 million in the fiscal year ended September 30, up +61.8% from the +£94.1 million earned in the previous financial year. Revenue rose +11% to £1.79 billion, with passenger revenue up +9.2% to £1.63 billion, and ancillary revenues soaring +30.4% to £171.2 million, or from £0.47 to £3.85 per seat. The biggest contributor to this improvement was the introduction of a speedy boarding product, (EZY) said. Operating costs grew +11.8% to £1.5 billion. "This is yet another year of record profit at easyJet (EZY), which underlines the strength of our business model. Despite challenging conditions, revenue, profit and return on equity, have all shown strong improvements reflecting the success of our focus on low-cost with care and convenience," CEO, Andy Harrison said. "At the same time, as driving the financial performance of the business, our now well-established management has also expanded easyJet (EZY)'s network and fleet, which carried over >37 million passengers in the year, making the airline the fourth largest in Europe." Passenger numbers increased +13% to 37.2 million on a +14.4% lift in seats flown, to 44.5 million as the carrier added 20 new A319s. The majority of the growth was in continental Europe, where it boosted capacity +29.9%. Networkwide capacity (ASK)s climbed +17.3% to 43.5 billion, and passenger traffic (RPK)s rose +16% to 36.98 billion, resulting in a -1.1-point reduction in load factor to 83.7% LF. The airline added eight new destinations, launched 46 routes and discontinued 19 poorly performing routes, during the year, expanding its network to 289 routes through 77 airports in 21 countries. The number of airplanes in operation at the end of September was 137.
Revenue per seat fell -3% to £40.42, but total unit cost per seat improved +5.8% to £36.12 (unit cost excluding fuel improved +6.4% to £26.55), lifting profit margin +2.7 points to 10.7%.
Looking forward, easyJet (EZY) said it expects this winter's unit revenue to be broadly in line with last winter and ahead during the summer, owing to the effect of annualizing the UK air passenger duty, checked bag charges, and growing ancillary revenues. It added that the fuel environment "remains challenging" but, Harrison said, "we believe the easyJet (EZY) business model is resilient and well positioned for success." The board said that in the current financial year, it "anticipates an increase in underlying profit before tax of around +20%." The outlook excludes the proposed acquisition of GB Airways (GBA), which easyJet (EZY) expects to complete by January 31. Excluding one-off costs of around £12 million, it expects the acquisition to be "earnings enhancing" in the current year.
EasyJet (EZY) launched four-times-weekly, Liverpool - Lisbon flights. EasyJet (EZY) will launch daily flights from London Luton to Jersey (March 31) and Liverpool (April 21).
The UK Office of Fair Trading (OFT) is seeking comments on easyJet (EZY)'s acquisition of GB Airways (GBA). (EZY) announced last month that it agreed to acquire the British Airways (BAB) franchise partner, excluding its London Heathrow slots, from Bland Group for £103.5 million/$214.4 million in cash. The (OFT) also said it will consider whether the merger will result in a substantial lessening of competition within any market or markets in the UK that warrants referral to the Competition Commission for investigation and report, "Thomson Financial" reported.
EasyJet (EZY) will participate in Amadeus and Galileo, becoming the first major European low-fare carrier to sign deals with Global Distribution System (GDS) companies. The carrier said the move is designed to tap into the $90 billion corporate (C) travel market in Europe. EasyJet (EZY) said it will add a point-of-sale fee to fares booked through the (GDS)s, ensuring that its website "remains our primary distribution channel, and fares will always be cheapest when booking direct online." The fees will be €7.50/£5.25 for a single-sector booking; €12/£8.40 for bookings with two sectors, and €5/£3.50 per sector for bookings with three of more sectors. The fees will be displayed in the (GDS)s on a separate line below the fare line. EasyJet (EZY) also applies the fees to bookings made via its call centers and airport agents. The fares-plus-fees still will be "dramatically lower" than those offered by traditional carriers, EasyJet (EZY) said.
Amadeus is carrying out pilots in Germany, France, Spain and the UK. When they are ended later this month, Amadeus will make EasyJet (EZY) flights available to all eligible agencies worldwide. Galileo also is conducting pilots. The carrier's flights will become available through Galileo in the UK in December, and in the rest of Europe early next year. Amadeus and Galileo each developed direct-connect technology to incorporate EasyJet (EZY)'s fares and inventory into their core (GDS)s, enabling travel agencies to book the carrier in their usual channel and workflow. Flights and fares will be listed normally on green screen displays. In opting for (GDS) participation, EasyJet (EZY) is taking a page from its USA counterparts, Jet Blue Airways (JBL) and Southwest Airlines SWA). Within the last 18 months, both carriers have dropped their longstanding resistance to (GDS) participation in order to gain access to the higher-yield managed corporate travel business, that is dominated by travel agencies. JetBlue (JBL), the first to take the plunge, said fares sold through the (GDS)s are about $35 to $40 higher than those booked via direct channels. It now participates in all four (GDS)s. Southwest (SWA), which has participated in Sabre at a minimal level since the mid-1990s, will become available in Galileo this month and in Worldspan next year. Although EasyJet (EZY) said it will maintain its direct distribution strategy, it expects (GDS) participation to boost its share of business travelers, who currently represent about 20% of its traffic.
December 2007: EasyJet (EZY) transported 2.9 million passengers last month, up +13.2% from the year-ago month. Load factor rose +0.3 point to 80.8% LF.
EasyJet (EZY) started 12 routes last month, with the majority originating in Madrid. The airline also began three routes from Belfast, Northern Ireland, and services from London Luton airport to Hamburg, and London Gatwick to Sofia, Bulgaria.
EasyJet (EZY) announced six new routes: From Bristol to Biarritz (four-times-weekly, from April 23), Olbia (thrice-weekly, from April 26) and Split (twice-weekly, from April 26); daily, London Luton - Pisa, from March 30; thrice-weekly, Edinburgh - Nice, from April 24, and thrice-weekly, Glasgow International - Faro from April 22.
EasyJet (EZY) will establish a base at Manchester (MAN), building on the presence of new subsidiary, GB Airways (GBA), which currently has two airplanes based at (MAN) operating on six routes. (EZY) intends to add another three airplanes by 2010, although final plans will depend on the regulatory approval of its acquisition of (GBA), which it expects by the end of January. It also plans to develop its base at Liverpool (LPL) with an additional two airplanes by 2010. It operates eight airplanes from (LPL) on 20 routes at present, carrying around 2.5 million passengers a year. (EZY) said it anticipates carrying more than >4 million passengers through its two northwest England bases, on roughly 40 routes each year, and will employ directly and indirectly around 4,000 in the region.
easyJet (EZY) launched daily, Birmingham - Geneva, and thrice-weekly, Bristol - Innsbruck flights.
EasyJet (EZY) introduced "Speedy Boarding Plus (SBP)," a new facility that combines its existing Speedy Boarding product with a dedicated check-in service. (SBP) is sold per-flight to the first 30 customers who make an online booking. The fee is based on length of the flight and departure airport, and ranges from £5.50/$11.09 to £9.
For (EZY)/(GBA) plans - SEE ATTACHED "EZY-GBA-PLANS-2007-12."
January 2008: EasyJet (EZY) transported 2.9 million passengers last month, up +9.9% from December 2006. Load factor fell -2.2 points to 78.9% LF.
(EZY) launched thrice-weekly, Liverpool - Innsbruck service.
EasyJet (EZY) now is selling tickets on its website for 32 routes operated by GB Airways (GBA). (EZY)'s purchase of the London Gatwick-based carrier is expected to close this month. (GBA) will cease operating under the British Airways (BAB) banner on March 29.
February 2008: EasyJet (EZY) transported 2.8 million passengers in January, up +7.3% from the year-ago month. Load factor slipped -2.9 points to 72% LF.
EasyJet (EZY) reported revenue of £418 million/$820.1 million in the fiscal first quarter ended December 31, up +14.1% from the year-ago period, it said in a mid-semester management update as it maintained its full-year guidance of a +20% increase in pre-tax earnings. Revenue per seat rose +0.5% year-over-year to £36.98, driven by strong growth in non-UK originating passengers paying in euros and introduction of a checked-bag charge. Passenger revenue per seat, excluding ancillary revenue, declined -4% to £31.91 and continues to be impacted by the doubling of the UK Air Passenger Duty in February 2007, easyJet (EZY) said. Ancillary revenue per seat increased +42.6% to £5.06, largely as a result of the October introduction of the £2 checked-bag charge that rose during the quarter to £3.99. Total ancillary revenue grew +61.9% to £57 million.
Passenger revenue climbed +9% to £361 million on a +12.4% increase in passengers to 9.1 million, with the majority of growth coming from continental markets, particularly Italy, Spain and Switzerland.
The £103.5 million acquisition of GB Airways (GBA), which closed on January 31, will have a negative impact of -£7 million on pre-tax earnings for the fiscal first half, due in part to increased marketing, but easyJet (EZY) said the merger will result in a full-year gain of £12 million before integration costs. It also officially opened its Paris Charles de Gaulle (CDG) base, its 19th overall, and separately, launched thrice-weekly, Nottingham East Midlands - Palma flights. Three A319s will be based at (CDG) to start. (EZY) intends to double its business in France by 2011.
EasyJet (EZY) announced it will operate its Bucharest service from Otopeni rather than Baneasa, through at least September 23, owing to the latter airport's inability to meet "operational requirements at this time." It also announced the launch of daily services from Madrid (MAD) to Lanzerote and Lisbon on November 1, thrice-weekly, (MAD) - Fuerteventura on November 3, and twice-weekly, Geneva - Gran Canaria from October 31.
(EZY) transported 3.7 million passengers in August, up +17.8% from the year-ago month. Load factor fell -1.9 points to 87.4% LF.
2 A319-111s (3411, G-EZDB; 3413, G-EZDA), deliveries.
March 2008: EasyJet (EZY) transported 3 million passengers in February, up +14.8% from the year-ago month. Load factor rose +1.4 points to 84.3% LF. Adding the former GB Airways (GBA) from London Gatwick and Manchester to its network helped (EZY) to boost its passenger loads in February. It has reported a 90.5% load factor on these services, bringing the company-wide figure to 84.6%, a rise of +1.8 percentage points.
EasyJet (EZY) said rising fuel costs have forced it to reduce its full-fiscal-year forecast of a +20% year-over-year increase in pre-tax earnings. (EZY) said that at the time of its forecast, forward fuel price for summer 2008 was $840 per tonne, but now has risen to more than >$1,000 per tonne. It is hedged for 40% of its requirements at $750 per tonne but said it "is unlikely that such a large and immediate fuel increase could be mitigated in the short term by revenue improvements and cost actions." It did not say by how much it would lower its full-year guidance. Results for the fiscal semester ending March 31 should be "in line with expectations," it said, as February load factor rose +1.8 points to 84.8% LF.
EasyJet (EZY) launched "easyJet Plus," a "membership card" that offers passengers free access to its so-called "Speedy Boarding" or priority boarding without a reservation. At selected airports, the card also will allow access to priority check-in service. EasyJet (EZY) is expanding its "Speedy Boarding Plus" offering, a combination of priority boarding with a dedicated check-in desk, throughout its network. It currently is available at some 30 airports. EasyJet Plus " costs £75/$150.63 for one year if purchased before April 30 and £100 thereafter. The "Speedy Boarding" option costs a maximum £7.50 per segment.
The UK Civil Aviation Authority (CAA) is allowing the British Airports Authority (BAA) to raise charges at London Heathrow (LHR) and Gatwick (LGW) by more than >20% next year. In its final decision on price controls at (LHR) and (LGW) for the five-year period ending March 31, 2013, (CAA) is increasing the price cap at Heathrow by +£2.44/+$4.92, or +23.5% in real terms, to £12.80 per passenger for the year starting next month. Charges in the four subsequent years could rise by +7.5% per year above inflation. At Gatwick, the price cap is set at £6.79 per passenger in 2008 to 2009, a +21% increase in real terms from the current cap. Charges in the next four years are allowed to increase +2% above inflation annually. "The (CAA) recognizes that the resulting increases in airport charges are significant. However, these higher airport charges are essentially paying for the modernization of Heathrow and Gatwick in terms of both facilities and service, for the direct benefit of the passenger," the regulator reasoned. It added that its package of price caps and incentives "will enable and encourage the (BAA) to deliver genuine service quality improvements and to invest to raise the level of facilities and service that can be delivered to passengers and airlines. The outcome for passengers should be decently modern airports and consistently high service standards." But airlines operating at the London airports reacted furiously. British Airways (BAB), which will benefit from this month's opening of the £4.3 billion Terminal 5, said the increases demonstrate conclusively that the airport regulation system has failed to the detriment of customers. "We suffer from very poor regulation and the whole process needs a root and branch review," General Manager Airport Policy & Infrastructure, Paul Ellis said. "The objective of the regulator should be to ensure that the (BAA) provides the infrastructure and services that customers require, but in a cost-effective and efficient way, that does not overcompensate the airport operator financially." Bmi (BMA), easyJet (EZY), Ryanair (RYR) and Virgin Atlantic Airways (VAA) joined forces to call for a fundamental regulation overhaul. "The dramatic price rises at Heathrow and Gatwick clearly demonstrate that the system is broken and needs to be changed," the four said in a joint statement. "That these price increases are significantly less than those demanded by the (BAA ) is a cause for alarm, not celebration, as the (BAA) has demonstrated that it is expecting the traveling public to pick up the bill for Grupo Ferrovial's highly leveraged speculative acquisition." See UK airports increases protests in attached - - "EZY-UK-AIRPORTS-2008-03."
(IATA) (ITA) condemned the UK (CAA)'s decision to allow significant charge increases at London Heathrow (LHR) and Gatwick (LGW), saying that "failure is the only word to describe the (CAA)'s decision." (IATA) (ITA) claimed that the (BAA) generated an operating profit of +35% at (LHR), producing a net return on invested capital of 15.3% that was twice the level of the cost of capital set by the (CAA). (IATA) (ITA) Director General & CEO, Giovanni Bisignani argued that regulation should "not reward excessive monopoly profits and embarrassingly low service levels."
3 A319-111s (3426, G-EZDE; 3432, G-EZDF; 3442, G-EZDD), deliveries.
April 2008: In March, easyJet (EZY) transported 3.7 million passengers, up +20.5% from the year-ago month. Load factor rose +3 points to 87.4% LF.
EasyJet (EZY) said it successfully completed the operational integration of GB Airways (GBA), following the transition of 15 (GBA) airplanes into its new European Union (EU)-Ops, Air Operators Certificate (AOC). It is the first major airline to operate under the new European certificate.
Ryanair (RYR) and easyJet (EZY) are threatening to withhold a portion of the airport charges imposed by the British Airports Authority (BAA) at London Stansted (STN) and London Gatwick (LGW), respectively, while they challenge the fee increases in court. Last month, the UK (CAA) allowed (BAA) to raise charges at (LGW) by +21% to £6.79/$13.41 per passenger for the year starting April 1, as part of its price control decision for London Heathrow (LHR) and (LGW) for the five-year period ending March 31, 2013. It currently is undertaking a price control review for charges at (STN) from April 1, 2009. Under the current five-year price cap regime, the (BAA) is allowed to increase charges to £6.65 per passenger this year. "We are determined to address a regulatory decision which we consider to be unlawful and damaging for the airlines, our passengers and the industry as a whole," easyJet (EZY) CEO, Andy Harrison said in a letter to new (BAA) CEO, Colin Matthews. Harrison confirmed that easyJet (EZY) intends to withhold part of the price increase at (LGW), pending the outcome of a judicial review. "We will hold back a proportion (the amount is to be agreed) of the [£6.79] you have been permitted to charge for each passenger at Gatwick (LGW). We will keep the money in a separate account. To the extent that our challenge fails, we will hand over the money withheld to you along with any interest accrued. If our challenge succeeds, and a lower charge is then set, we will implement a mechanism to return what we have saved to our customers," Harrison wrote. EasyJet (EZY) gave (BAA) until the end of the following day to respond. "If we cannot reach agreement, easyJet (EZY) will need to consider what arrangements it may be able to put in place without the (BAA)'s consent." The (BAA) said only that it "will continue to charge in accordance with the (CAA)'s decision."
Ryanair (RYR) is considering a similar move over price hikes at (STN). (RYR) wrote a letter to the airport operator earlier this month objecting to the proposed +7% increase in passenger charges, which it called "completely unjustified, coming as they do on the back of a +100% increase in passenger charges" imposed by the (BAA) in April 2007. "If (BAA) Stansted continues to abuse its monopoly power by imposing these maximum allowed price increases, then Ryanair (RYR) will launch judicial review proceedings and it will withhold these latest increases (putting them in an escrow account) until the outcome of its judicial review proceedings at [STN]," it said.
For details regarding easyJet (EZY) France operations, see attached - - "EZY-FRANCE-OPS-APR08."
easyJet (EZY) opened its Lyon (LYS) base with two new A319s and launched service to Bordeaux (twice-daily), Lisbon (five-times-weekly), and Venice (daily). Thrice-weekly, to Porto began Saturday, and it soon will fly to Toulouse (twice-daily from May 2), Casablanca (five-times-weekly from May 2), Marrakech (thrice-weekly from May 3), and Biarritz (daily from June 7, seasonal). It invested €80 million ($125.9 million) in its (LYS) operation and plans to increase its overall French fleet from six airplanes to 20 and double passengers to 12 million in 2011. It claimed it currently is France's second-largest airline with a 6% market share.
EasyJet (EZY) will launch four-times-weekly, Manchester - Alicante on September 29.
A319-111 (3466, G-EZDH), delivery.
May 2008: EasyJet (EZY) transported 3.6 million passengers in April, up +13.4% from the year-ago month. Load factor fell -3 points to 80.1% LF.
EasyJet (EZY) more than trebled its net loss for the six months ended March 31 to -£43.3 million/-$85.4 million from -£12.7 million in the year-ago period, owing largely to higher fuel costs and the integration of GB Airways (GBA). (GBA)'s trading loss in the first half was -£7 million and the underlying easyJet (EZY) loss was -£41.4 million, compared to a loss of -£17.1 million in the previous fiscal semester. Total revenue rose +24% to £892.2 million. Headline passenger revenue grew +17% to £751 million on a +14.7% increase in passengers carried to 18.9 million, whereas ancillary revenue soared +82.9% to £141.2 million, or £6.07 per seat. Fuel costs jumped +42% to £78.1 million. EasyJet (EZY) said 40% of its fuel needs for the rest of the financial year are hedged at around $75 per barrel. "Oil remains the biggest challenge and uncertainty," CEO, Andy Harrison said, noting that it is unclear how much of the recent price increase is driven by short-term speculation. "What is certain is that if these fuel increases are maintained, many of our weaker competitors will disappear or downsize and easyJet (EZY) will emerge even stronger , reflecting the combination of our business model, our cost advantage, our new fuel efficient fleet, and the strength of our network."
The number of airplanes operated at the end of the reporting period was 157 against 127 one year earlier. EasyJet (EZY) intends to accelerate the phasing out of its 30 older, less fuel-efficient 737s and will proceed with "the rationalization of the expensive GB Airways (GBA) subfleet." It has put up for sale, eight A321s that were part of the £104 million purchase of GB Airways (GBA). Harrison also revealed that the carrier will enter into discussions with Airbus (EDS) to convert some of its A319 orders to A320s.
Capacity climbed +17.7% to 23.2 million seats flown, while load factor remained stable at 81.2% LF. Unit revenue rose +1.1% to 3.81 pence, and (CASK) increased +4.2% to 4.01 pence, or +0.2% to 2.89 pence without fuel. During the past six months, boosted by the acquisition of (GBA), easyJet (EZY)'s network grew by +21 destinations and a ninth base was launched at Paris Charles de Gaulle three months ago.
Harrison said the company's underlying business remains "strong with forward bookings for the summer slightly ahead of last year." Revenues will continue to benefit from a strong euro and integration of longer GB Airways (GBA) routes, though pressure on costs will continue, "not least from the unjustifiable" increase in airport charges at London Gatwick. "EasyJet (EZY) will continue to work tirelessly to deliver flat underlying costs excluding fuel in the second half, in line with the first half," he said.
SEE ATTACHED MERGER DETAILS - - "EZY-GBA-2008-05-A/B/C."
A319-111 (3537, G-EZDI), delivery.
June 2008: EasyJet (EZY) transported 3.9 million passengers in May, up +15.9% year-over-year. Load factor fell -0.4 point to 83.2% LF.
Andy Harrison, CEO, pens the airlines's 20th base at Lyon Saint-Exupery airport in France. The new base is part of a four-year euro 600 million investment that will strengthen (EZY)'s position as the largest low-fares airline in France. It will enable an increase in fleet size in the country from from six based airplanes to 20 and double the number of passengers from six million in 2007 to 12 million in 2011.
Lufthansa (DLH) Systems announced that easyJet (EZY) will begin using the Lido Operations Center dispatch solution in October.
EasyJet (EZY) launched a six-times-weekly, Brussels - Milan Malpensa service.
EasyJet (EZY) expanded its Milan Malpensa (MXP) operation with an 11th based airplane and announced it will base two additional airplanes at (MXP) by the beginning of the winter schedule. The airplanes will fly on new routes to Copenhagen, Stockholm Arlanda, Sofia, Brindisi, and Lamezia Terme. In addition, it will increase frequencies to Barcelona, Naples, Amsterdam, and Paris Charles de Gaulle in October. It opened its (MXP) base in March 2006 and last year carried 2.2 million passengers through the airport. It expects 3.5 million this year and by January 2009 plans to base 15 airplanes in Milan. It claims its 19% share at (MXP) makes it the airport's largest airline, ahead of Alitalia (ALI)'s 14%.
easyJet (EZY) introduced an online facility allowing passengers to purchase an extra weight allowance for hold baggage in advance of their flight. Extra weight will be available at a rate of £15/$29.63 per 3 kg. At check-in, it will cost £18 per 3 kg.
July 2008: EasyJet (EZY) transported 4.1 million passengers in June, up +19.5% year-over-year, while load factor rose +0.1 point to 86.9% LF.
(EZY) enjoyed a +32% year-over-year increase in revenue to +£641 million/+$1.28 billion in the fiscal third quarter ended June 30, and said it has offset more than >50% of the expected full-year fuel cost increase with new revenue and cost-cutting initiatives. However, the new fiscal year will dawn with a winter that "will be challenging for the whole airline sector," and (EZY) said it will cut capacity growth to +4% to +6%, "with flexibility to scale back further."
The carrier transported 11.5 million passengers during the quarter, up +16% year-over-year. It flew 12.6 billion (RPK)s traffic, up +27%, against a +26% increase in capacity (ASK)s to 14.8 billion, but said load factor fell -1 point to 83.5% LF, without further explanation. Revenue per seat grew +12% to £46.36, and ancillary revenue per seat soared +93% to £7.45, thanks to the checked-bag charge implemented last fall, that increased to £5 per bag in March. It operated an average of 154.1 airplanes during the quarter.
(EZY) expects a full-fiscal-year pre-tax profit excluding "one-off costs" of +£110 to +£120 million. It has 28% of its 2009 fuel hedged at an average of $1,265 per tonne.
Regarding the winter capacity cut, it said it will reallocate capacity from "weaker-performing bases" to "higher-value opportunities" at London Gatwick (LGW), plus in France and Italy. Winter capacity at London Stansted will fall -12% year-over-year.
The winter schedule will include new flights from (LGW) to Lyon (starting October 3) and Helsinki (November 3), and the return of flights from London Luton to Turin (December 12) and Grenoble (December 13).
August 2008: July passenger total was up +20%.
EasyJet (EZY) will close its second-largest German base, Dortmund (DTM), an airline spokesperson told the "dpa" news agency. More information on the fate of the 116 employees at (DTM) will be available next month, the spokesperson said. Berlin Schoenefeld is easyJet (EZY)'s largest German base.
September 2008: EasyJet (EZY) transported 4.6 million passengers in August, up +23.7% from the year-ago month, while load factor rose +4 points to 91.3% LF.
47% of easyJet (EZY) passengers originate outside the UK.
EasyJet (EZY) will launch daily, London Gatwick - Istanbul Sabiha Gokcen on December 12.
According to the world's foremost Low-Cost Carrier (LCC) survey run by Skytrax Research of London, easyJet (EZY) is the best (LCC) in Europe. The results of the survey for 2007/2008 represent the opinion of more than >90 nationalities world-wide. The result of this prestigious survey is based on airline traveller opinions and experiences. It is one of the most objective methods of how to assess and compare the airline‘s services.
Best low-cost airline – Europe final standings:
1. easyJet (EZY).
2. AirBerlin (BER).
3. SkyEurope Airlines (SKP).
October 2008: 2 A319-111s (3675, G-EZDP; 3683, G-EZDR), deliveries, ex-(D-AVYX; & D-AVYZ).
November 2008: 13th anniversary!
EasyJet (EZY) transported 4 million passengers in October, up +18.4% from the year-ago month. Load factor rose +1.4 points to 83.9% LF.
EasyGroup Holdings, the company of easyJet (EZY) founder, Stelios Haji-Ioannou, appears to be heading toward a confrontation with the airline's current board and management, as easyGroup increased its shareholding and voting rights in (EZY) to 26.9% from 15.6%, and requested the prompt appointment of two directors. Haji-Ioannou, who launched the airline in 1995, also reserved his right to appoint himself as Chairman, in the event the two directors, who are easyGroup employees, are not appointed. "In all the circumstances, I would like to make it clear up front that the other nonexecutive directors and I fully support the executive management of the company," easyJet (EZY) Chairman, Colin Chandler said, conceding there has been a "far-reaching debate" with Haji-Ioannou over strategic direction. "Despite the board's already cautious approach, Sir Stelios has indicated that he wishes the company further to restrict future airplane orders, to make future dividend payments in conjunction with a cessation or slowing of growth," Chandler said.
EasyJet (EZY) has not paid a dividend since its November 2000 Initial Public Offering (IPO). "I am merely applying my rights . . . to protect my investment in easyJet (EZY)," Haji-Ioannou noted in a statement.
According to a Citi Investment Research report, Haji-Ioannou and easyJet (EZY) are locked in a dispute over the definition and extent, under the airline's brand license (written in 2000), of the noncore ancillary revenue initiatives that it legally can pursue. The case is expected to be settled by a High Court judge within the next 18 months.
EasyJet (EZY) will soon be reporting results for its fiscal year ended September 30. It said its pre-tax profit "is expected to be in line with market consensus." In July, it forecast a pre-tax profit excluding "one-off costs" of +£110 to +£120 million.
EasyJet (EZY)'s profit for the fiscal year ended September 30 dropped -45% to +£83.2 million/+$123.4 million from +£152.3 million the year before amid an escalating dispute between founder, Stelios Haji-Iannou and the (EZY) board. Haji-Iannou refused to approve the airline's annual accounts. In a statement to the London Stock Exchange, he said he was concerned about a number of valuation issues surrounding easyJet (EZY)'s acquisition of GB Airways (GBA), including the value of airplanes and London Gatwick (LGW) slots that are "at odds with current commercial realities and the macroeconomic climate." Haji-Iannou, who represents easyGroup, the carrier's largest shareholder with 26.9%, also reiterated that the "dividend policy of the company should be changed" and asked the board to pass a resolution planning to pay a dividend "by, say, 2011 if the markets and the liquidity of the company allow." On a less confrontational note, he added that easyGroup "continue[s] to consider Sir Colin Chandler to be a suitable chairman." (EZY)'s other board members "were unanimous in their approval" of the accounts.
Full-year revenue rose +31.5% to £2.36 billion, including a +22.7% increase in passenger revenue to £1.99 billion driven by the January acquisition of (GBA) and the strengthening euro. Ancillary revenue surged +114.5%, to £367.1 million thanks largely to the new checked bag charge that delivered £144.1 million. Operating costs climbed +40% £2.24 billion, as fuel expense jumped +66.6% to £708.7 million. Operating profit fell -47.1% to +£91 million from +£172 million in 2006 through 2007.
Passenger numbers lifted +17.3% to 43.7 million, and seats flown increased +16.8% to 51.9 million. Load factor gained +0.4 point to 84.1% LF, and the fleet grew to 165 airplanes from 137 the previous year, with (GBA) contributing 16. Unit revenue inched up +2.7% to 4.24 pence, while (CASK) rose +8.9% to 4.02 pence, or +1.3% to 2.75 pence excluding fuel.
CEO, Andy Harrison said the carrier "delivered a good trading performance" and that it is "planning accordingly" for a continuing slowdown, "which means focusing on offering customers great value, driving down controllable costs and preserving cash. Unlike many of our competitors, our Airbus (EDS) contract provides us with a flexible approach to fleet growth, which we intend to make full use of in such uncertain economic conditions."
EasyJet (EZY) can defer delivery of half of its firm orders for up to two years with 18 months notice. In September, it deferred four scheduled to arrive in 2010. It has 109 A320 family airplanes due for delivery through 2012, including 36 in the current fiscal year. It is planning to withdraw 12 737-700s, seven A321s and five A319s and said the sale of the Airbus airplanes "continues to progress, albeit in the current market potential purchasers are finding financing more difficult to arrange." It expects to be profitable in 2008 through 2009 at current fuel and foreign exchange rates.
EasyJet (EZY) will launch daily, London Gatwick - Copenhagen on January 15.
EasyJet will launch daily London Gatwick-Copenhagen on January 15. The UK Competition Commission concluded that airports operator, the British Airports Authority (BAA) should be allowed to increase charges at London Stansted (STN) in the five-year period, starting next April 1, albeit at a lower rate than it proposed. In its report to the (CAA), the Commission recommended an increase in the maximum level of charges at (STN) to £6.56/$10.57 per passenger in 2009 to 2010, +3.5% higher than projected 2008 to 2009 charges of £6.34. The charges then would increase by no more than the retail price index inflation plus +1.75% each year, reaching a maximum of £7.05 per passenger in 2013 to 2014.
However, the Commission did not agree with Ryanair (RYR)'s accusation of excessive pricing and said that the (BAA)'s conduct regarding airport charges in 2008 through 2009, was not contrary to the public's interest. It did say that (STN) "pursued a course of conduct which has operated against the public interest in three respects in the period February 2002 to April 2008" by failing to consult adequately with airlines on the development of the airport and its capital expenditure plans, by failing to manage as effectively as possible the security queuing process, and by failing to offer appropriate landing charges for larger cargo airplanes.
It therefore recommended that the (CAA) require the (BAA) to improve the consultation process, introduce a service quality rebate scheme similar to those at London Heathrow (LHR) and London Gatwick (LGW) and offer off-peak discounts on landing charges for the largest cargo airplanes. The (CAA) said it will consider the recommendations before carrying out a further round of consultation and announcing its final decision in March.
EasyJet (EZY) said that the UK High Court approved its application for judicial review of the regulatory process that allowed the (BAA) to impose what the carrier called "an exorbitant increase" in passenger charges at London Gatwick (LGW). The UK (CAA) authorized the (BAA) to raise charges by +21% to £6.79 per passenger this year, and by +2% above inflation annually for the subsequent four years. The decision marks the first time the (CAA) will be subject to judicial review of a regulatory price policy.
(EZY) denied that it was in talks with Virgin Atlantic Airways (VAA) about a joint bid for (LGW). "At the most, we were considering offering an as-yet-unidentified bidder some sort of long-term commitment on capacity at the airport to enable them to evaluate their bid," an easyJet (EZY) spokesperson said.
(EZY) now has a 165 airplane fleet, supporting a network of 380 routes and 100 airports.
December 2008: EasyJet (EZY) transported 3 million passengers in November, up +3.4% year-over-year. Load factor rose +3.1 points to 83.9% LF.
(EZY) will launch flights from London Gatwick to Larnaca (four-times-weekly from March 31), Naples (daily from May 1), Dubrovnik (four-times-weekly from May 1), and Santorini (thrice-weekly from May 3).
The UK Competition Commission (CC) "confirmed" that it will require British Airports Authority (BAA) to sell both London Gatwick (LGW) and London Stansted (STN), setting the stage for a breakup of the airport operator's control of London's airports for which UK airlines long have pushed. The ruling, which follows earlier (CC) provisional reports that pointed toward the breakup, is subject to "final consultation," but is almost certain to be issued formally in late February/early March. It also calls for (BAA) to sell Edinburgh. The airport operator, a subsidiary of Grupo Ferrovial, will be allowed to retain London Heathrow (LHR) and three other UK airports. It already has put (LGW) up for sale in anticipation of the (CC) ruling.
Christopher Clarke, the (CC)'s (BAA) inquiry Chairman, said, "The most effective way to introduce competition . . . is to require the three London airports and the two principal Scottish airports to be separately owned . . . Under separate ownership, the airport operators, including (BAA), will have a much greater incentive to be far more responsive to their customers, both airlines and passengers."
He added that the (CC) also will make recommendations to the UK Department for Transport "on a more effective, and ultimately more flexible, system of airport regulation." These will include a call to "adopt a license-based regime of economic regulation for airport owners to give the regulator more ability to intervene flexibly when necessary on issues such as performance and adequate financing. The license should impose a set of duties on the operator of (LHR)." (BAA) CEO, Colin Matthews questioned the finding, saying, "We do not believe that [the (CC)] has set out compelling evidence to support its view that [separate ownership] will increase competition, and we remain concerned that its proposed remedies may actually delay the introduction of new runway capacity." Airlines welcomed the finding. "The (CC) recognizes the unacceptable levels of service that passengers and airline customers have had to put up with for years," Virgin Atlantic Airways (VAA) stated.
EasyJet (EZY) CEO, Andy Harrison warned, however, that the breakup and proposed regulatory changes "can only address part of the problem," adding, "The simple fact is that airports like (LGW) are a monopoly and simply changing the ownership will not change that fact . . . Any new owner of (LGW) will have to pay a full price and will have every incentive to exploit the weaknesses of UK airport regulation with air passengers having to pick up the bill."
3 A319-111s (3735, G-EZDU; 3742, G-EXDW; 3746, G-3ZDW), deliveries.
January 2009: EasyJet (EZY) transported 3.1 million passengers in December, up +7.3% from the year-ago month. Load factor rose +3.3 points to 82.3% LF.
(EZY) reported a +31.5% year-over-year increase in fiscal first-quarter revenue to £550 million, which it said reflected a "flight to value" environment in which an increase in business and long-haul leisure travelers "is more than compensating" for a softening in demand. Revenue per seat during the three months ended December 31 jumped +23% to £45.57, encompassing a +71.4% increase in ancillary revenue (including (EZY)'s checked bag charge) to £8.68 per seat and a +15.6% rise in passenger revenue to £36.90 per seat. Total revenue per passenger climbed +19.4% to £54.99.
Passenger numbers were up +10.1% to 10.1 million. (EZY) added seven A319s during the quarter, bringing its fleet to 170 as of December 31, including seven ex-GB Airways (GBA) A321s and five older A319s that are up for sale. Traffic rose +18.2% to 10.8 billion (RPK)s against a +16.4% lift in (ASK)s to 13 billion, boosting load factor +2.6 points to 83.4% LF.
Looking forward, (EZY) said first-semester revenue "will be ahead of previous guidance" despite an "uncertain" outlook for the summer. Capacity for both the first and second semesters is expected to rise "by low single-digit percent" year-over-year. (EZY) continues to expect be profitable at the end of the fiscal year. (EZY) has 73% of its full-year fuel requirement hedged at $1,094 per tonne and 27% of its 2009 to 2010 fuel hedged at $926 per tonne.
(EZY) will base an additional airplane at both Liverpool (LPL) (from June 1) and Manchester (MAN) (from August 4) and announced the launch of the following new routes this year: From (LPL) to Naples (four-times-weekly from June 1), Dubrovnik (DBV) and Bordeaux (each thrice-weekly from June 2); from (MAN) to Corfu (twice-weekly from May 4), Athens (twice-weekly from August 1) and Bastia (weekly from August 9); from Bristol to Corfu (twice-weekly from May 22) and Bastia (weekly from May 24), and twice-weekly Newcastle - Malta from April 2, twice-weekly, Geneva - (DBV) from July 6, thrice-weekly Berlin Schoenefeld - (DBV) from July 12, twice-weekly, Basel - Bordeaux from June 20, daily, Paris Charles de Gaulle - Ajaccio from July 11 and five-times-weekly, Bilbao - Ibiza from June 22.
(EZY) announced the cancellation of 12 flights to/from Athens and 16 flights to/from Paris Charles de Gaulle and Orly because of scheduled strikes.
JSR Technics (SWS) reached a deal with easyJet (EZY) to provide 157 intermediate layover checks on the carrier's A319 fleet. Work will take place in Zurich via a dual (HMV) line allowing for two simultaneous checks. Each check will take 14 days and all are scheduled between mid-March 2009 and summer 2015.
INCDT: (EZY) 737-73V (1064-30246, /02 G-EZJK) was involved in an incident over the North Sea during a test flight ahead of the airplane's return to its lessor. The USA National Transport Safety Board (NTSB) says the airplane suffered a "violent pitch down during its test flight."
2 737-73Vs (30241; 30245), sold to CIT Group (TCI) and leased to Sun Country (SCA). 3 A319-111s (3754, G-EXDX; 3763, G-EXDY; 3774, G-EZDZ), deliveries.
February 2009: 4 A319-111s (3788, G-EZFA; 3799, G-EZFB; 3808, G-EZFC; 3810, G-EZFD), and A320-214 (3805, G-EZTA), deliveries.
March 2009: EasyJet (EZY)/TEB) is seeing strong demand for weekend ski trips; Geneva, Innsbruck, Grenoble big ski markets.
(EZY) broke ranks with its European legacy counterparts and strongly condemned the move toward a temporary suspension of the European Union (EU)'s so-called "use it or lose it" slot rule, which dictates that carriers must use their slots at an 80% rate or return them to the pool. The European Commission (EC) reportedly is preparing a proposal to suspend existing rules on slot allocation following extensive lobbying by the Association of European Airlines (AEA), of which (EZY) is not a member. The (AEA) included the slot initiative in its recent "blueprint for navigating the current downturn."
(EZY), which operates 171 airplanes on 416 routes to 110 airports in 27 countries, wrote a letter to all 27 European commissioners urging them "to avoid narrow-minded protectionism by a few legacy airlines appealing for state aid through the back door." Suspending the rule "is not about protecting the industry. It's about propping up a few poorly run, inefficient network airlines with outdated business models that cannot adapt to the demands of modern consumers," (EZY) CEO, Andy Harrison said. "A slot freeze helps inefficient, legacy airlines to hoard scarce resources from European airlines that are ready and willing to use them. Implementing such a measure would lead to fewer flights and higher fares, thereby exacerbating the economic situation, not helping it. We must resist this lurch back to the stone age of protectionism."
The UK Department for Transport (DfT) outlined its airport regulation reform proposals, which it claimed are designed to improve the passenger experience and call for the Civil Aviation Authority (CAA) to promote the interests of passengers as a primary responsibility and to ensure that airports meet environmental obligations. "I want to put passengers at the heart of how our airports are run. This will help ensure that we get the most efficient and competitive aviation sector possible," Secretary for Transport, Geoff Hoon said. "The (CAA) has told us that their current duties lack clarity. They ask them to further the interests of both airlines and passengers, without saying who comes first. Today I am removing that lack of clarity. The passenger must come first."
Other proposed measures include a switch to a new licensing regime for "larger airports" similar to the one already in force in other regulated industries such as power and water. The licensing policy can be used as "a proportionate and effective means" to implement certain provisions of the (EU) Airport Charges Directive due to enter force in 2011, the (DfT) noted. The new UK proposals foresee three tiers of licenses, with each tier placing varying levels of control on airports depending on their size and market power. Tier one (London Heathrow, Gatwick and Stansted) are those with substantial market power or dominance, requiring some form of price and/or service quality control.
The (CAA) welcomed the proposals, which it said "will help give greater focus to the (CAA)'s role as airport regulator." Ryanair (RYR) also was receptive, saying it "recommended that the best way to [put passengers first] would be to sack the useless (CAA) regulators, who have for many years put monopoly airport profits first and ignored passengers and airport users." EasyJet (EZY) CEO, Andy Harrison said, "Whilst we understand the government's desire to make the (CAA) responsible for economic regulation of UK airports, the (CAA) currently lacks the resources, expertise and, above all, credibility to be an effective regulator."
The British Airports Authority (BAA) said, "Given the importance of long-term, stable investment frameworks, we are pleased that the (DfT) has indicated that investors are important stakeholders in the consultation and will be invited to engage in the process. We expect to set out our views in due course." (DfT)'s proposals will be subject to a 12-week public consultation.
The UK (CAA) announced its final decision on price caps at London Stansted (STN) for the next five years and confirmed that it will toughen performance targets, noting that under the new incentive scheme, the (BAA) could be forced to return up to £10 million/$13.8 million per year if it delivers "poor" service to passengers and airlines. Under the incentive regime, up to 7% of the charges from passenger flights at (STN) could be put at risk if standards of service at security queues, baggage systems, terminal facilities or those delivered directly to airlines are found lacking. A similar scheme at London Heathrow (LHR) and London Gatwick (LGW) has forced the (BAA) to pay out nearly £9 million in rebates to airlines so far in fiscal 2008 to 2009, the (CAA) said.
Conforming with its December proposal, the (CAA) set the price cap for passenger flights from April 2009 until March 2014 at £6.53 per passenger for the first two years. The following three, the airport operator is allowed to increase the maximum revenue it can levy through airport charges to £6.63, £6.74, and finally £6.85 in 2013 to 2014. "(STN)'s price control is about ensuring that this airport, and those with the potential to compete with it, develop in a way that meets the needs of users," (CAA) Director Economic Regulation, Harry Bush said. "This is why we have brought in an incentive scheme to improve services for passengers and airlines." He added, "Going forward we will now be working on developing our approach to economic regulation to meet the challenges of a developing airport market and to ensure that the benefits of increased competition from the forthcoming sale of (LGW), and from the potential sale of (STN), are delivered to passengers and airlines."
EasyJet (EZY) described the new price caps as "the best of a bad bunch, but it is still wrong," while Ryanair (RYR) said the proposal to fine poorly performing airports "is too little, too late after it has presided over years of abysmal service at (STN) and its history of rubber-stamping cost increases for airports."
The (BAA) said the (CAA) failed to recognize a large element of its investment at (STN) in the price control ruling. "We are disappointed that a large element of the full cost of developing new capacity has been retrospectively disallowed," the operator said. "Looking to the long term, the regulator should not discourage future important investment which it accepts is necessary."
3 A319-111s (3824, G-EZFE; 3844, G-EZFF; 3845, G-EZFG), deliveries.
April 2009: EasyJet (EZY) transported 3.5 million passengers in March, down -6.3% year-over-year. Load factor fell -2.8 points to 84.7% LF.
(EZY) Chairman, Colin Chandler will resign effective July 1 and be replaced on an interim basis by Senior Independent Director, David Michels. Chandler has held the post since 2002. British Telecom Chairman, Michael Rake was named deputy chairman and will join the (EZY) board prior to Chandler's departure. The outgoing Chairman said, "As time moves on, it is very important that I now create more time to enjoy my family life." No mention was made of the controversy that emerged last fall during a dispute over the carrier's direction between founder and Director, Stelios Haji-Ioannou and other board members. Haji-Ioannou thanked Chandler "for his leadership of the board and excellent years of service."
(EZY) launched London Gatwick - Vienna service on April 2.
Low-cost carriers (LCC)s represented 35% of all intra-European capacity last year, virtually unchanged from 2007, according to the 2009 edition of "RDC Aviation's Low Cost Monitor." Growth across all sectors "slowed sharply toward the end of 2008," with aggregate annual capacity growing just +2.2% (ASK), the smallest increase this decade. Within this overall figure, however, the low-fare sector increased available seat capacity by +11% year-over-year while capacity in the non-low-cost sector dropped -2%. Significantly, the report noted that Ryanair (RYR) assumed the No 1 position for intra-European capacity (if Air France (AFA) and (KLM) are counted separately) by "overtaking Lufthansa (DLH) thanks to a +16.5% rise in seats available." EasyJet (EZY) is the fourth-largest intra-European carrier while Air Berlin (BER) moved up two places to the No 7 position in 2008 through the integration of (LTU). (RYR), (EZY) and (BER) accounted for just under 150 million seats in 2008, or 17.7% of total capacity within Europe. Seven of the top ten intra-Europe carriers are network airlines, but their combined capacity fell -4% last year. Interestingly, although the three largest (LCC)s fly 1,675 routes, competition among them remains small. "(RYR) and (EZY) go head-to-head on 28 routes while (BER) competes with (RYR) on two and (EZY) on five, according to the "Monitor." These three accounted for 54% of intra-European low-cost capacity last year, up from 51% in 2007. For more information about the Low Cost Monitor, contact firstname.lastname@example.org.
A319-111 (3854, G-EZFH), and 2 A320-214s (3843, G-EZTB; 3871, G-EZTC), deliveries.
May 2009: EasyJet (EZY) transported 3.8 million passengers in April, up +6.3% year-over-year, while load factor rose +4.2 points to 84.2% LF.
(EZY) nearly doubled its fiscal first-half net loss to -£85.9 million/-$129.3 million from the £43.3 million posted in the six months ended March 31, 2008, citing high fuel costs linked to poor hedging and the later Easter holiday. It expects to rebound, however. "While we remain cautious about the consumer economy, at current fuel prices and exchange rates, (EZY) expects to be profitable for the full year," CEO, Andy Harrison said. "In this difficult trading environment, (EZY)'s network remains well-positioned against the competition and is clearly benefiting as a flight to value by business passengers is offsetting some of the weakness in discretionary leisure travel."
First-semester revenue rose +15.8% year-over-year to £1.03 billion on a +2.9% increase in passenger numbers to 19.4 million. Underlying operating costs, excluding a +£13.3 million gain on the February sale of two A321s and £9.1 million in GB Airways (GBA) integration costs in 2008, ballooned +25.5% to £1.19 billion owing to a +35% jump in fuel costs to £356.5 million. Revenue per seat climbed +14.9% to £44.12 but the underlying loss per seat was £5.54 compared to £2.08 in the year-ago period.
(EZY) said it made good progress during the reporting period toward its goal of becoming a truly pan-European short-haul airline, with 19 bases. For the first time, more than half its passengers originated outside the UK, with +21.8% growth in passenger numbers on Europe-based routes.
Capacity measured in seats flown grew +0.8% during the semester, with an increase of +18% in mainland Europe. Capacity at London Gatwick rose +17% driven by the (GBA) acquisition, whereas capacity at Stansted and Luton was reduced. Load factor improved +1.7 points to 82.9% LF.
(EZY) ended the reporting period with 173 airplanes. It took delivery of 17 A319s and one A320, with a further 68 deliveries planned over the next three years. (EZY) plans to remove 47 airplanes from the fleet in the same time frame and operate 194 in September 2011.
In the second half, (EZY) will grow capacity by around +2% as previously indicated.
(EZY) announced that Group Finance Director, Jeff Carr will leave the company and Mandala Airlines (MND) CEO, Warwick Brady will join (EZY) as Procurement Director this month.
A319-111 (3888, G-EZFI), and 2 A320-214s (3909, G-EZTD; 3913, G-EZTE), deliveries.
June 2009: EasyJet (EZY) transported 3.9 million passengers in May, up +1.8% year-over-year. Load factor rose +0.3 point to 83.5% LF.
(EZY) added a ninth airplane, a new A320, to its Liverpool base supporting new service to Dubrovnik, Naples, and Bordeaux.
3 A320-214s (3922, G-EZTF; 3946, G-EZTG; 3953, G-EZTH), deliveries.
July 2009: EasyJet (EZY) will launch six-times-weekly, London Luton - Tel Aviv flights on November 2, twice-weekly, London Gatwick - Agadir on November 4 and six-times-weekly, Brussels - Lyon on December 17.
While warning that it is too early to assess the potential financial impact of the swine flu outbreak, easyJet (EZY) maintained its former guidance and said it expects to post an underlying pre-tax profit of +£25 to +£50 million/+$41.2 to +$82.4 million in the fiscal year ending September 30 compared to a +£123 million pre-tax profit in the year ended September 30, 2008.
Revenue in the fiscal third quarter ended June 30 rose +12.4% to £721 million. Passenger numbers grew +2.8% to 11.9 million, with a +12% rise in non-UK originating passengers. More than half of (EZY)'s passengers now originate outside the country. Seat capacity increased +1.2% to 14 million during the quarter, while (ASK)s rose +2% to 15.6 billion. (RPK)s were up +2.8% to 13.4 billion and load factor gained +1.2 points to 84.7% LF due to the movement of Easter. Revenue per seat improved +10.9% to £51.42.
"This has been a resilient third quarter and our position has continued to strengthen as we made market share gains across Europe. EasyJet (EZY) is continuing to perform relatively well in tough trading conditions and we expect to be one of the few airlines to make a profit this year," CEO, Andy Harrison said.
In addition, (EZY) apparently concluded its row with founder and majority shareholder, Stelios Haji-Ioannou over the rate of its expansion and said the board agreed on a fleet plan that will enable (EZY) "to deliver prudent growth and take advantage of the substantial opportunities to take market share in European short-haul aviation whilst maximizing margins and delivering positive cash generation beyond the Boeing (TBC) replacement program."
Its average annual growth rate over the medium term measured in seats flown will be around +7.5% per annum, equating to lifting its fleet from 181 airplanes this September 30 to 187 on September 30, 2010, 196 in 2011, and 207 in 2012.
The Netherlands Competition Authority rejected a complaint by (EZY) that the difference in tariffs at Amsterdam Schiphol (AMS) between origin/destination and transfer passengers is discriminatory and puts (EZY) at a competitive disadvantage. "After an extensive investigation under the Dutch Aviation Act, no evidence has been found to support the assertion that Amsterdam Airport Schiphol discriminates by charging higher tariffs for passengers that start their journey at Schiphol than for passengers that transfer at the airport," (NMa) stated, noting that the Act allows for different tariffs for different passenger types as long as competition is not impeded. The authority pointed out that (EZY) has chosen to focus solely on (O&D) traffic at (AMS) and other airports. "Having such a business model has its advantages as well as its disadvantages. Schiphol cannot be held accountable for easyJet's own choice," it said. It also dismissed (EZY)'s complaint that the system lacks transparency because the airport operator does not offer airlines insight into the underlying costs of each tariff. "Under the Aviation Act, Schiphol is not required to disclose the makeup of every single tariff," (NMa) said. (EZY) simultaneously filed a second, separate complaint under the Competition Act asserting that Schiphol abuses its dominant position. "Taking into account the results of the investigation under the Aviation Act, the (NMa) is currently contemplating how it will handle this second complaint," the authority said.
3 A320-214s (3975, G-EZTI; 3979, G-EZTJ; 3991, G-EZTK), deliveries.
August 2009: 3 A320-214s ((4006, G-EZTN; 4012, G-EZTL; 4014, G-EZTM), deliveries.
September 2009: EasyJet (EZY) transported 4.8 million passengers in August, up +4.7% year-over-year, while load factor rose +0.5 point to 91.3% LF.
(EZY) announced a proposal to close its Nottingham East Midlands (EMA) base and reduce flying at London Luton (LTN) by -20% as it shifts capacity "to more profitable airports" in continental Europe. (EZY) said the decision to reduce its presence at where it bases 16 airplanes and employs 530 pilots (FC) and cabin staff (CA), was "a function of the airports' failure to recognize the commercial realities of the recession" and (EZY)'s interest in shifting capacity "as weaker competitors retrench in today's tough climate." It claimed costs at (LTN) have risen +25% in the past three years and that negotiations with airport operator "Abertis" and local government officials concerning relief "have broken down."
Its (EMA) base, meanwhile, "has remained stagnant with three airplanes for many years" and it said it is time to "focus its assets on higher priority markets." (EZY) employs 120 at the airport. No schedule changes will occur before year end.
CEO, Andy Harrison said, "(EZY) is a pan-European airline . . . We are one of only a few airlines expecting to make a profit this year. A critical part of our success has been optimizing the allocation of our airplanes across our 19 European bases. This means responding to airports with uncompetitive costs, as well as moving swiftly to seize opportunities as competitors retreat."
The UK's air passenger duty also is a factor, Harrison said, as the tax "hits regional airports [that lack transfer traffic] the hardest and increases the pressure to move airplanes to mainland Europe."
(EZY) said it has opened 90-day consultations with its staff at both airports and that it has not altered its medium-term plans to grow its network at a +7.5% annual rate. However, it said it also is considering flight crew (FC) reductions (but not airplane reductions) at Belfast International (also operated by Abertis), Bristol, Newcastle, and London Stansted affecting up to 40 positions. It said it intends to "redeploy" as many affected employees as possible.
(EZY) appointed former AOL Europe CEO, Dana Dunne as Chief Commercial Officer, replacing Saad Hammad, who is leaving (EZY) to join private equity firm Gores Group as Managing Director.
A319-111 (4040, G-EZFJ) and A320-214 (4034, G-EZFJ) deliveries.
October 2009: EasyJet (EZY) transported 4.4 million passengers in September, up +5.3% year-over-year, while load factor rose +1.2 points to 88.1% LF.
(EZY) will commence operations at Belfast City (BHD) with a twice-daily service to/from London Luton (LTN) on January 7 as part of its plan "to assess if (EZY) passengers find a benefit in flying to an airport closer to the City of Belfast when travelling on shorter routes." If successful, it will increase (LTN) - (BHD) frequencies and consider other destinations, although it stressed that the bulk of its Northern Ireland operation will remain at Belfast International, where it bases five airplanes and flies to 19 destinations.
(EZY) starts London Luton - Tel Aviv flights and London Gatwick - Agadir flights.
(EZY) is currently not recruiting pilots (FC).
The British Airports Authority (BAA) concluded an agreement to sell its 100% interest in London Gatwick (LGW) to a group controlled by Global Infrastructure Partners (GIP) for £1.51 billion/$2.48 billion, of which £55 million is conditional on future traffic performance and the buyer's future capital structure. (GIP), which was founded jointly by Credit Suisse and (GE), already owns 75% of London City. "Today's announcement marks a new beginning for both (LGW) and (BAA). We wish (LGW) well for the future and are confident that the airport will flourish under new ownership," (BAA) CEO, Colin Matthews said, adding, "(BAA) will focus on improving London Heathrow (LHR) and our other airports."
(BAA) was ordered by the UK Competition Commission (CC) to sell (LGW), London Stansted and either Glasgow International or Edinburgh, but is appealing the decision. It said it initiated plans to sell (LGW) in September 2008, before the end of the (CC)'s investigation. Proceeds will be used primarily for debt repayment.
(LGW) opened in 1958 and is the busiest single-runway airport in the world, handling 32.2 million passengers in the year to September 30. The sale is subject to, among other things, European Union (EU) clearance. Completion of the sale is expected in December.
EasyJet (EZY), (LGW)'s largest carrier with 9.6 million annual passengers and a 28% market share, said it welcomed the change in ownership but argued that "regardless of who owns (LGW), it is still a monopoly. Therefore it is vital that (LGW) is properly regulated to protect airline passengers from the new owners exploiting their market power." Flybe (BEE), (LGW)'s biggest domestic airline and third-biggest slot-holder, gave a "cautious" welcome to the news and said it "represents a real opportunity for the new owners to strengthen (LGW)'s position as the champion of short-haul and European flying. (GIP) would be making a fatal mistake if they try and chase trophy airlines promising glamorous long-haul destinations," CCO, Mike Rutter stated.
3 A319-111s (4048, G-EZFK; 4056, G-EZFL; 4069, G-EZFM), deliveries.
November 2009: EasyJet (EZY) transported 4.2 million passengers in October, a +6.6% increase year-over-year, while load factor rose +3 points to 86.8% LF.
(EZY) reported a -64.5% decline in underlying profits for the full year ending September 30 2009, despite a +12.9% increase in revenues. (EZY) posted a pre-tax profit of +43.7 million pounds down from +123.1 million pounds with revenues up from 2,363 million pounds to 2,667 million pounds. Passenger numbers were up +3.4% to 45.2 million with +10.9% revenue per seat.
(EZY) reported net income of +£71.2 million/+$119.2 million, down -14.4% from +£83.2 million for the prior fiscal year, a performance that CEO, Andy Harrison called "extremely resilient" given that the year encompassed "12 recessionary months." In a statement, (EZY) added, "We have strengthened the fundamentals of the business with improvements in network quality, lower cost deals with key suppliers and enhancements to easyJet.com, giving (EZY) a great platform for profitable growth."
(EZY) noted that during the fiscal year, 28 "under-performing routes" were eliminated, while +70 new routes were launched. Despite the route additions, (EZY)'s number of seats flown rose just +1.8% during the year as it cut capacity on weak routes, "optimizing" its network.
(EZY) also got a boost from ancillary revenue, which lifted +38% to £9.77 per seat for Fiscal Year (FY) 2008 to 2009, compared to the previous year. It earned £1.73 extra per seat on bag check charges as well.
Harrison warned that "we see a tough winter ahead" but predicted that (EZY) will "make substantial profit improvement" in (FY) 2009 to 2010 if fuel prices and exchange rates remain constant. Fiscal-year revenue increased +13.1% to £2.67 billion, while costs heightened +17% to £2.62 billion, producing an operating profit of +£60.1 million, down -34% from £91 million in the prior year. Traffic grew +6% to 50.57 billion (RPK)s, as capacity lifted +4.4% to 58.17 billion (ASK)s, producing a load factor of 85.5% LF, up +1.4 points. (RASK) rose +8.1% to 4.58 pence, while (CASK) decreased -12.1% to 4.51 pence. (CASK) excluding fuel lowered -13.6% to 3.12 pence.
(EZY) may see “a tough winter ahead,” but its plan for success is clear. For starters, it’s growing while others are shrinking, scheduling +10% more seat capacity this winter than last. But the U K, it’s largest market, will shrink by -2%, excluding London Gatwick, where it’s growing by +14%. But the real growth is happening in continental Europe, namely markets like Italy, where capacity is up +36% — nothing, it seems, is easier than beating up on Alitalia (ALI). Spain is also up (+23%), as is France (+18%), while cities like Copenhagen, Rome, Dusseldorf, Munich, and Hamburg are also seeing new flights. Tel Aviv, meanwhile, was added this winter for the first time. All the while, (EZY)’s direct competition will see its capacity down in the low single digits, in some cases helping it win new slots at congested airports where yields tend to be higher and more stable. During its past fiscal year, in fact, (EZY) managed to increase its capacity at slot-controlled airports by +10% as rivals retreated. It’s this greater presence at slot-controlled airports, that explains (EZY)’s greater use of 180-seat A320s rather than the smaller A319s that have long formed the core of its fleet. At the end of September, (EZY) had 140 A319s and 20 A320s.
(EZY) will launch 25 new routes this winter: Manchester to Marrakech (October 29), Copenhagen (CPH) and Munich (both November 6); Basel - Dusseldorf (November 2); Liverpool to Fuerteventura (November 2), and Lanzarote (November 3); Lyon to Nantes (November 2) and Brussels (December 17); Rome Fiumicino to Lamezia, Amsterdam (AMS), Lisbon (all November 2), and Dusseldorf (February 1); Madrid - (AMS) (November 2); London Gatwick to Porto (November 2), Agadir (November 4), Dusseldorf and Hamburg (both February 2); London Luton to Tel Aviv (November 2), Sharm El Sheikh (November 3) and Paphos (November 4); London Stansted - Fuerteventura (November 4); Geneva to (CPH) (December 12), Sharm El Sheikh and Toulouse (December 15); Edinburgh - Lyon (December 17).
(EZY) announced the following new services: Paris Charles de Gaulle to Helsinki Vantaa (HEL) (daily on February 8), Catania (thrice-weekly on February 9), Agadir (four-times-weekly on February 9); Milan Malpensa to Casablanca (six-times-weekly on February 11), Agadir (thrice-weekly on February 11), Porto (five-times-weekly on February 12) and Malta (MLA) (thrice-weekly on March 30); daily London Stansted - Cagliari on March 28, four-times-weekly Manchester - (HEL) on March 30 and twice-weekly Liverpool - (MLA) on June 13.
(EZY) said it plans to take delivery of six A319s next year, increasing its fleet to 185 airplanes.
SR Technics (SWS) and easyJet (EZY) signed an 11-year, $1.6 billion renewal and extension of their maintenance agreement at the Dubai Air Show. (EZY) expects to save almost -$200 million over the life of the deal. The deal secures (EZY) as a cornerstone customer for (SWS) and (EZY) will be the first base load customer at a new (SWS) facility to be built in Malta. That facility will be a four-bay narrow body station and is scheduled to be completed by mid-2012. In the interim, an existing two-bay facility will be used to overhaul airplanes from the third quarter of 2010. (SWS) has joined with Malta Enterprise Corporation and Malta Industrial Parks to build the facility. (EZY) Operations Director, Cor Vrieswijk said (EZY) expects an "annual -17% reduction in maintenance costs by the 11th year through improved processes and economy of scale."
3 A319-111s (4076, G-EZFN; 4080, G-EZFO; 4087, G-EZFP), deliveries.
December 2009: EasyJet (EZY) transported 3.4 million passengers in November, up +12.2% from the year-ago month. Load factor rose +0.9 point to 84.8% LF.
(EZY) CEO, Andy Harrison will step down at the end of June 2010 in order "to seek new challenges," (EZY) announced, adding that Michael Rake will take over from David Michels as the group's Chairman effective January 1, at which point Michels will resume the role of senior independent director. Rake, who also is Chairman of telecommunications company BT Group, joined (EZY)'s board in June as Deputy Chairman and senior independent director.
Harrison joined (EZY) from motoring group RAC in December 2005. Last May, (EZY) secured a retention agreement to keep him as CEO "through to at least" the 2010 first quarter following disagreements with founder and majority shareholder, Stelios Haji-Ioannou. A reshuffling of the board and changes in senior management that included the resignation of CFO, Jeff Carr took place after Haji-Ioannou refused to approve the annual accounts. (EZY) still is searching for Carr's successor. (EZY) said Harrison's contract was amended to include a retention arrangement through June 30.
(EZY) will launch service at Doncaster Sheffield (DSA) in April and will base a fifth airplane in Manchester (MAN) in the spring. (EZY) plans to cease operating at Nottingham East Midlands on January 5. (EZY) announced the following new routes: Bristol to Paphos (four-times-weekly from April 14) and Tenerife (thrice-weekly from March 30); (DSA) to Amsterdam (AMS) (daily from April 19), Barcelona, Faro (each four-times-weekly from April 19), Palma de Mallorca (PMI) and Prague (each thrice-weekly from April 20); thrice-weekly Edinburgh - Lisbon from May 4; daily London Gatwick - Bordeaux from March 28; twice-weekly Liverpool - Rhodes from June 12; (MAN) to Zurich (six-times-weekly from April 30), Sharm El Sheik (thrice-weekly from April 30) and Mahon (thrice-weekly from May 1); thrice-weekly, (AMS) - Split from July 10; Basel to Nantes (thrice-weekly from June 25), Thessaloniki (thrice-weekly from May 30), Split and Ajaccio (each twice weekly from June 26); twice-weekly (PMI) - Dortmund from April 3; Rome Fiumicino to Dubrovnik, Mykonos, (PMI) (each four-times-weekly from July 11), Heraklion, Split (each thrice-weekly from July 10) and Ibiza (daily from July 10); Ibiza to Naples (four-times-weekly from July 11) and Venice (thrice-weekly from July 10); Milan Malpensa to Bordeaux (four-times-weekly from April 30), Corfu (thrice-weekly from July 10), Thessaloniki (four-times-weekly from March 28) and Santorini (thrice-weekly from July 11); Paris Orly to Mykonos (thrice-weekly from July 10), Olbia (twice-weekly from July 10) and Palermo (four-times-weekly from July 11); Berlin Schoenefeld to Corfu and Split (each thrice-weekly from July 3). - - SEE ATTACHED "AIRLINER WORLD" ARTICLE - - "EZY-2009-12 DSA ROBIN HOOD."
3 A319-111 (4125, G-EZFR; 4129, G-EZFS; 4132, G-EZFT), deliveries.
January 2010: EasyJet (EZY) said it remains "on track to deliver substantial profit improvement" during its fiscal year ending September 30 as it reported a solid +10.5% year-over-year increase in revenue to £607.5 million/$990.3 million in the fiscal first quarter ended December 31.
Revenue per seat increased 4.2% to £47.50, comprising a +1.9% rise in ticket revenue to £37.60 and a 14% hike in ancillary revenue to £9.90. Operating cost per seat excluding fuel rose +10.3%.
"(EZY) has continued to deliver a superior performance into the first quarter of our new financial year. The strength of customer demand has allowed us to grow passengers flown by nearly 10% with virtually no yield deterioration, slightly ahead of our initial expectations," outgoing CEO, Andy Harrison said in a trading statement.
(EZY) said it incurred £8 million in costs due to an "unprecedented level of weather-related disruption" at European airports in December and warned that a similar amount will be reported in the current quarter owing to inclement weather this month.
First-quarter passenger numbers grew +9.1% to 11 million, including a +20% increase in passengers originating outside the UK. Traffic (RPK)s rose +10.1% to 12.1 billion on a +6.8% gain in capacity to 13.8 billion (ASK)s, lifting load factor +2.3 points to 85.8% LF. December passenger traffic rose +9.3% year-over-year to 3.4 million and load factor climbed +3.1 points to 85.4% LF. It expects capacity to expand +10% in the first half and full year.
More than >65% of winter seats have been sold, it said, adding that forward bookings are "slightly ahead" of the prior year. (EZY) expects a first-half pre-tax loss of -£80 to -£95 million, an improvement from the -£129.8 million underlying pre-tax loss reported in the year-ago semester.
(EZY) announced the launch of new service from London Gatwick (LGW) to Antalya (thrice-weekly on May 21), Chania (thrice-weekly on May 23), Kos (four-times-weekly on May 22) and Zakynthos (four-times-weekly on May 21). By spring, it will base 41 airplanes at (LGW) and operate 83 routes.
Continuing this year's new routes, (EZY) announced the following: London Stansted to Bodrum, Dubrovnik (each thrice-weekly from May 15), Split and Dalaman (each four-times-weekly from May 14); Paris Charles de Gaulle to Palma (five-times-weekly from July 10), Split (thrice-weekly from July 10), Prague (daily from March 28), Malaga (daily from May 14) and Toulouse (twice-daily from March 28); Geneva to Faro, Brindisi (each twice-weekly from April 3) and Heraklion (twice-weekly from June 19); Bristol to Dalaman (thrice-weekly from July 16), Bodrum (thrice-weekly from July 17) and Heraklion (twice-weekly from July 17); Rome Fiumicino to Malta (daily from March 12) and Nice (six-times-weekly from March 12); twice-weekly, Liverpool - Bodrum from June 11; daily, Amsterdam - Prague from May 14; twice-daily, Paris Orly - Venice from March 28; and thrice-weekly, Milan Malpensa - Mahon (launch date unspecified).
A320-214 (4157, G-EZTP), delivery.
February 2010: EasyJet (EZY) transported 3.1 million passengers in January, up +10.7% year-over-year. Load factor rose +3.6 points to 79.3% LF.
(EZY) Chairman, Michael Rake said at the company's annual general meeting (AGM) that a cost-reduction program designed to save -£190 million/-$296.6 million per year is expected to deliver net savings after inflation of £1 per seat by the conclusion of the fiscal year ending September 30, 2012. He also said that the board agreed to increase seat capacity by +7.5% per year over the next five years, which it expects to boost its share of the European short-haul market from the current 7% to 10%.
(EZY) opened a Milan Malpensa (MXP) - Porto service that was (EZY)'s 500th route. Launched in 1995, it now operates 182 airplanes from 19 bases across 28 countries. It began flying from (MXP) to Casablanca and Agadir, and also launched service this month from Paris Charles de Gaulle to Helsinki Vantaa and Agadir, from London Gatwick to Hamburg and Dusseldorf (DUS), and from Rome Fiumicino to (DUS).
easyJet (EZY) will temporarily suspend its London Luton - Ljubljana route between April 7 and April 20 when Ljubljana airport will be closed for runway renovation works.
(EZY) appointed EMI Music executive, Chris Kennedy as its new Finance Director, ending (EZY)'s lengthy search to fill the role following Jeff Carr's May resignation.
EasyJet (EZY) signed a multiyear contract with the UK's Met Office, the country's national weather service, to use its new online ClearFlight solution, designed to help the carrier "anticipate weather-related delays at departure and destination airports around Europe." ClearFlight forms part of the Met Office's new Aviation Briefing Service.
March 2010: EasyJet (EZY) transported 3.4 million passengers in February, up +12.3% from the year-ago month. Load factor declined -1.7 points to 85.3% LF.
(EZY) CEO, Andy Harrison, who will leave the airline at the end of June was named CEO of Whitbread effective September 1. Whitbread owns hotel and restaurant brands in the UK.
EasyJet (EZY) tapped media executive, Carolyn McCall, who ran the UK's Guardian Media Group, as its new CEO, succeeding the departing Andy Harrison. (EZY) said McCall "has a proven track record of successful operational delivery in a fast-changing online consumer facing business combined with extensive plc board and government and lobbying experience."
(EZY) said McCall's start date "will be confirmed in due course."
McCall said, "My priority will be to build on (EZY)'s strengths: A strong consumer proposition, leadership positions in many of Europe's key airports, and an operating model built around simplicity and low cost." She joined Guardian in 1986 and was CEO of its "Guardian News" and Media arm from 2000 to 2006, when she was elevated to group CEO.
3 A320-214s (4219, G-EZTT; 4233, G-EZTU; 4234, G-EZTV), deliveries.
April 2010: 2 A320-214s (4250, G-EZTW; 4286, G-EZTX), deliveries.
May 2010: EasyJet (EZY) transported 3.49 million passengers in April, down -7.6% from the year-ago month. Load factor rose +1.1 points to 85.2% LF. Before the Icelandic volcanic ash cloud that disrupted air transport in Europe April 15 to 21, (EZY) said it had expected a +14% year-over-year increase to 4.3 million passengers and a load factor of 86.2% LF.
The UK's new coalition government indicated it will cancel plans for a third runway at London Heathrow (LHR) and refuse additional runways at Gatwick and Stansted, stating that it is committed "to implement a full program of measures to fulfill our joint ambitions for a low carbon and eco-friendly economy."
The resolution was listed in the document setting out the accord between Conservatives and Liberal Democrats on a number of issues. The joint policy agreement also said the new government will replace the current and controversial Air Passenger Duty with a per-flight duty. EasyJet (EZY) said it "welcomed" the coalition government's pledge to reform the "daft Air Passenger Duty, which taxes full planes but not empty ones."
Responding to the plan to scrap (LHR)'s third runway, airport operator British Airports Authority (BAA) commented that it "will work with the new government to ensure that airports policy provides the strong international trading connections on which the UK's jobs and future competitiveness depend."
British Airways (BAB) told "Dow Jones" that it "remains of the view that a third runway at our national hub airport, (LHR), would have very substantial economic benefits for the whole of the United Kingdom. The incoming government is well aware of our view but has taken a different position."
A319-111 (4313, G-EZFU), delivery.
June 2010: EasyJet (EZY) transported 4.26 million passengers in May, up +7.9% from the year-ago month. Load factor rose +2.3 points to 85.8% LF.
EasyJet (EZY) will start trialing a new technology called Airborne Volcanic Object Identifier and Detector (AVOID) that it hopes will minimize future disruptions from volcanic activity.
The system is "essentially a weather radar for ash" and uses infrared devices fitted on the airplane's tail fin to provide images of ash clouds up to 100 km ahead at altitudes of 5,000 to 50,000 ft. The images are sent to both the pilot (FC) and the airline's flight control center and will allow for adjustments to the airplane's flight path to avoid any volcanic ash.
The system was developed by Norwegian Institute for Air Research Senior Scientist, Fred Prata, who asserts that "(AVOID) enhances the theory around volcanic ash clouds with live data."
Outgoing easyJet (EZY) CEO, Andy Harrison said that the "pioneering technology is the silver bullet that will make large-scale ash disruption history." EasyJet (EZY) will be the first airline to trial (AVOID) and will do so in cooperation with Airbus (EDS).
The manufacturer (EDS) will carry out a test flight with an A340 equipped with (AVOID) on behalf of (EZY) within two months, easyJet (EZY) said. The airline added that it expects to spend around £1 million this year on the development phase and initial installation of the technology. "We will then see how much it will cost to roll it out but we do not expect the cost to be material," it stated.
UK (CAA) Chief Executive, Andrew Haines said, "It is essential that the aviation community works together to develop solutions to minimize disruption should ash return. The (CAA) welcomes the fact that airlines are considering innovations such as this and we will do all we can to facilitate them."
(EZY)'S first 757 airplane, 757-2Q8ER (26269, OH-AFJ), Air Finland (AFZ) wet-leased, 757-23A (24292, G-OJIB), Astraeus (AUA) leased, ex-(G-OOOG), 757-256 (29309, G-ZAPX), Titan Airways (TIU) leased, ex-(EC-HIS), and A319-111 (4327, G-EZFV), ex-(D-AVXE), deliveries.
July 2010: EasyJet (EZY) transported 4.5 million passengers in June, up +9.4% from the year-ago month. Load factor rose +0.9 point to 87.2% LF.
(EZY) posted a +5.3% rise in revenue to £759.2 million/$1.2 billion) on a +3.5% increase in passengers carried to 12.3 million for its fiscal third quarter ended June 30.
New CEO, Carolyn McCall described the revenue increase as a “good commercial performance” in view of the volcanic ash disruptions in April “and, more recently, the combination of air traffic control (ATC) industrial action and crewing issues in some parts of our network.” McCall replaced Andy Harrison as easyJet's CEO on July 1.
Recent data from the UK (CAA) revealed that easyJet (EZY)'s punctuality performance—especially at London Gatwick, where it is the largest carrier, has deteriorated from the year-ago period, adding yet another element of discontent to the already tense relationship between (EZY) and its founder and largest shareholder, Stelios Haji-Ioannou, who stepped down from the board in May.
Haji-Ioannou, who initiated litigation with (EZY) over the interpretation of the brand license agreement with easyGroup, last month warned he could terminate the license to the brand, if it does not bring its on-time performance “in line with the highest standards in the industry” within 90 days.
McCall said the company “put a mitigation plan in place in response to these recent issues to minimize the future impact to our passengers and staff.” This includes wet-leasing an additional airplane during the busy summer period at a cost of £15 million.
In an interim third-quarter statement, (EZY) said total revenue per seat increased from the year-ago period by +3.5% to £53.23 with passenger revenue per seat up +4.5% to £43.27 and ancillary revenue including checked baggage down -0.4% to £9.95.
Seats flown grew by +1.7%. Load factor increased by +1.4 points to 86.1% LF. It put the total profit impact of the volcano ash disruptions at -£65 million, of which -£28 million is in customer compensation relating to (EU) passenger rights regulations. It stated that losses would have been “restricted to -£20 million, if more appropriate ash-related flight restrictions had been in place.”
Forward bookings are in line with the prior year, it said, and “with 64% of the fourth-quarter seats now sold, (EZY) expects to make a pre-tax profit for the year of between +£100 million and +£150 million at current exchange rates and fuel prices.”
(EZY) will operate seasonal winter service from Manchester to Amsterdam (starting November 1), Gothenburg (December 10) and Hamburg (November 26).
August 2010: EasyJet (EZY) transported 5.02 million passengers in July, up +7.7% from the year-ago month. Load factor rose +0.5 point to 90.9% LF.
easyJet (EZY) has announced a wide range of new routes being launched this and early next year:
Amsterdam - Barcelona: daily, A319-100 service starting on November 1;
Basle/Mulhouse - Copenhagen: daily, A319-100 service starting on November 1 (operated by easyJet Switzerland (TEB);
Basle/Mulhouse - Dresden: 3x weekly, A319-100 service starting on December 3 (operated by easyJet Switzerland (TEB));
Basle/Mulhouse - Edinburgh: 4x weekly, A319-100 service starting on December 3 (operated by easyJet Switzerland (TEB));
Basle/Mulhouse - Las Palmas: 2x weekly, A319-100 service starting on December 4 (operated by easyJet Switzerland (TEB));
Basle/Mulhouse - Pristina: 2x weekly, A319-100 service has started on June 26 (operated by easyJet Switzerland (TEB));
Basle/Mulhouse - Tel Aviv Ben Gurion: 3x weekly, A320-200 service starting on December 5 (operated by easyJet Switzerland (TEB));
Basle/Mulhouse - Venice Marco Polo: 3x weekly, A319-100 service starting on October 31 (operated by easyJet Switzerland (TEB));
Belfast - Malta: 2x weekly A319-100 service starting on February 15, 2011;
Berlin Schönefeld - Amsterdam: 2x daily, A319-100 service starting on October 31;
Berlin Schönefeld - Gothenburg Landvetter: 3x weekly, A319-100 service starting on November 2;
Edinburgh - Cologne/Bonn: 4x weekly, A319-100 service starting on November 26;
Edinburgh - Paphos: 2x weekly, A319-100 service starting on November 3;
Geneva - Hurghada: 2x weekly, A320-200 service starting on November 3 (operated by easyJet Switzerland (TEB));
Geneva - Pristina: 2x weekly, A319-100 service has started on June 19 (operated by easyJet Switzerland (TEB));
Geneva - Tel Aviv Ben Gurion: 3x weekly, A319-100 service starting on August 30 (operated by easyJet Switzerland (TEB));
Lisbon - Barcelona: daily, A319-100 service starting on October 31;
Liverpool - Isle of Man: 6x weekly, A319-100 service started on May 21;
London Gatwick - Gothenburg Landvetter: daily, A319-100 service starting on September 6;
London Gatwick - Luxor: 2x weekly, A320-200 service starting on November 3;
London Gatwick - Zagreb: 5x weekly, A319-100 service starting on February 11, 2011;
Lyon - Agadir: 2x weekly, A319-100 service starting on November 2;
Lyon - Berlin Schönefeld: 3x weekly, A319-100 service starting on December 10;
Lyon - Brest: 4x weekly, A319-100 service starting on November 5;
Lyon - Bristol: 2x weekly seasonal, A319-100 service starting on December 18;
Lyon - Liverpool: 2x weekly seasonal, A319-100 service starting on December 18;
Lyon - Milan Malpensa: 4x weekly, A319-100 service starting on November 5;
Lyon - Nice: 4x weekly, A319-100 service starting on November 4;
Lyon - Prague: 3x weekly, A319-100 service starting on December 9;
Manchester - Amsterdam: 2x daily, A319-100 service starting on November 1;
Manchester - Gothenburg Landvetter: 4x weekly, A319-100 service starting on December 10;
Manchester - Hamburg Fuhlsbüttel: daily, A319-100 service starting on November 26;
Milan Malpensa - Ljubljana: 3x weekly, A319-100 service starting on December 9;
Milan Malpensa - Toulouse: 3x weekly, A319-100 service starting on November 2;
Paris (CDG) - Brest: daily, A319-100 service starting on September 10;
Paris (CDG) - Copenhagen: daily, A319-100 service starting on September 10;
Paris (CDG) - Ljubljana: 3x weekly, A319-100 service starting on December 2;
Paris (CDG) - Zagreb: 4x weekly, A319-100 service starting on November 1;
Paris Orly - Naples: daily, A319-100 service (already launched);
Paris Orly - Pisa: 2x daily, A319-100 service (already launched);
Rome Fiumicino - Toulouse: 3x weekly, A319-100 service starting on September 11;
Toulouse - Lisbon: 4x weekly, A319-100 service starting on September 10;
In a surprise move, easyJet (EZY) has wet-leased a 767-36NER (30847, G-POWD) from Titan Airways (TIU) and four 757-200s from Air Finland (AFZ), Astraeus (AUA) and Titan Airways (TIU) for the summer season for routes with high demand from Liverpool and London Gatwick to the Mediterranean. One of the main reasons for the short term leases is that easyJet (EZY) is planning to retire its remaining four A321-200s in September.
easyJet (EZY) founder, Stelios Haji-Ioannou has threatened to terminate the license agreement between his easyGroup and easyJet (EZY) for the name of the "easyJet" brand because of a variety of differences of opinion between Stelios and the current management and board of directors.
(EZY) will drop its Milan Malpensa - Sofia, Newcastle - Murcia, and Newcastle - Rome Ciampino routes by October 31 and no longer resume its seasonal, London Luton - Turin route this winter season.
3 A319-111s (4418, G-EZFY; 4425, G-EZFZ; 4427, G-EZGA), ex-(D-AVXJ; D-AVXL; D-AVXM), deliveries.
September 2010: 3 A319-111s (4437, G-EZGB; 444, G-EZGC; 4451, G-EZGD), deliveries.
October 2010: EasyJet (EZY) transported 4.77 million passengers in September, up +8% from the year-ago month. Load factor rose +1.2 points to 89.3% LF.
(EZY) will open a base at Lisbon (LIS) in the 2011 - 2012 winter season with up to seven A319 airplanes. It will add some 10 new destinations to its 15 existing routes. (EZY) said the €300 million/$418.6 million expansion at (LIS) should increase its throughput at the airport by an additional 1 million passengers annually and grow its passenger numbers to/from Portugal from 1.5 million to up to 2.5 million per year. The base at (LIS) will be (EZY)’s 20th in Europe.
EasyJet (EZY) appointed Trevor Didcock as Chief Information Officer (CIO).
November 2010: EasyJet (EZY), which celebrated its 15th birthday recently, reported a +£121.3 million/+$195 million net profit for its fiscal year ended September 30, a +70.4% increase on the +£71.2 million it earned in the prior year. (EZY) indicated it might pay its first ever dividend in 2012 based on current fiscal year results.
In a statement, (EZY) said it is “highly cash generative and well financed,” noting it now feels the time is right to “set in place a formula to trigger a dividend payment” in years when (EZY) is profitable, while at the same time ensuring it “retains a conservative capital structure.” Return on equity grew by +3.1% points to 8.6%.
Revenue rose +11.5% to £2.97 billion on a +7.9% rise in passengers carried to 48.8 million, a +6% hike in seats flown to 56 million. (EZY)’s new CEO, Carolyn McCall described the performance as good against a "difficult backdrop and strong comparators driven by the strength of (EZY)’s network, good route management and growth in ancillary revenues.” Passenger revenue per seat rose +5.3% to £42.87 and ancillary revenue per seat including checked bag fees rose +4.4% to £10.20.
Total costs climbed +6.1% to £2.78 billion, despite a -9.1% decrease in fuel costs to £733 million. Costs arising from “the high levels of disruption from snow, volcanic ash, Air Traffic Control (ATC) strike action and (EZY)’s own operational difficulties,” in contrast, were markedly higher on the prior year and totaled £97.9 million, including £27.3 million additional cost owing to the volcanic ash crisis. On a per-seat basis, total costs increased by +£0.07 to £49.71. Excluding fuel costs, the increase was +£2.26 or +6.6% to £36.62 per seat.
As of September 30, (EZY)’s fleet numbered 196 airplanes, a net increase of +15. (EZY) returned nine 737-700s and three A320s to their lessor and took delivery of eight A320s and 19 A319s during the year. It operated on a network spanning 509 routes (28 under-performing routes were closed, and 115 new routes were launched) connecting 125 airports at the end of the reporting year, compared to 422 routes and 114 airport a year earlier. Its expansion was focused on mainland Europe, and 53% of its passengers now originate outside the UK.
Looking forward, (EZY) said that over >45% of the available first-half seats are sold and forward bookings are “in line” with the prior year.
(EZY) Procurement Director, ex-CEO of Mandala Airlines (MND), has replaced Cor Vrieswijk, as Director Operations.
December 2010: EasyJet (EZY) is to launch thrice-weekly service from London Gatwick to Amman in Jordan, effective 27 March 2011. Alaa Batayneh, Jordan's minister of transport, says: "Jordan has made significant progress in liberalizing its air transport policy over the last several years, including negotiation of the comprehensive "open skies" agreement with the European Commission, further improving the Kingdom's competitive position in the region."
Curtis Grad, CEO, Airport International group, says: "With our new terminal coming online in 2012, we will be well positioned to serve the new demand stimulated by EasyJet (EZY), further sustaining this strong growth trend." The launch coincides with the open skies agreement that Jordan and the European Union (EU) have signed, says (EZY).
January 2011: EasyJet (EZY) carried 50 million passengers in 2010 (+8%).
(EZY) has seen phenomenal growth since it began operating in 1995, increasing in size from just two airplanes with two routes and carrying 424,000 passengers in its first year. Today easyJet (EZY) is one of the largest airlines in Europe operating 196 airplanes on 552 routes, across 30 countries. Increasingly both business (C) and leisure travellers are choosing (EZY), because of its low-fares, convenient airports, and friendly on-board service.
To mark the milestone Laura Tabourin, who lives in London and regularly uses (EZY) to visit her family in France, became (EZY)’s 50 millionth passenger this year. She was travelling to Bordeaux from London Luton Airport and was presented with a bottle of champagne, and given a flight voucher for two people to travel anywhere on our network.
(EZY)’s CEO, Carolyn McCall, said: “To carry 50 million passengers each year is a great achievement and is testament to the great service our people deliver on-board. (EZY) has a strong position delivering low-fares, flying people to where they want to go to, at convenient times with friendly service. We aim to provide an easier travel experience for all our passengers, and look forward to our continued growth over the coming years.”
Quickly taking advantage of a new European Union (EU) - Jordan "open skies" agreement, easyJet (EZY) will start low-fare service to Amman in March. It’s part of a big buildup at London Gatwick, where (EZY) is basing four additional airplanes (bringing its total to 46). Other new destinations from Gatwick this summer include Izmir, Verona, Bologna, Seville, and Aberdeen. Overall, (EZY)’s summer 2011 seat capacity will be +13% greater this year than last. As for Amman, until now not a consideration for Europe’s Low Cost Carrier (LCC)s, its air traffic is up +40% in the past three years.
The British Airline Pilots’ Association (BALPA) scored a victory by winning a vote to represent pilots (FC) at Jet2.com (JT2). (BALPA) now represents pilots (FC) at all major UK-based airlines, including British Airways (BAB), Virgin Atlantic (VAA), easyJet (EZY), FlyBe (BEE), Monarch Airlines (MON), and TUI (TUG)’s Thomson Airways (ATZ)/(TFY).
EasyJet (EZY) confirmed it reached an agreement with Airbus (EDS) to exercise options covering 15 A320 airplanes valued at $1.1 billion at list prices for delivery between 2012 and 2014 and to convert an existing order for 20 A319s into the larger A320 model. In addition, (EZY) upgraded purchase rights for a further 33 A320s into options, bringing the total number of options held to 42 airplanes. (EZY) has the right to exercise the additional 33 options up to March 2013.
EasyJet (EZY)’s fleet will grow to 220 airplanes by September 30, 2013 from 196 at the same point in 2010, with the proportion of A320s increasing steadily to 26% from 12%.
3 A320-214s (4554, G-EZTY; 4556, G-EZTZ; 4588, G-EZUA), deliveries. A320-214 (2157, G-TTOJ), last service (WFU).
February 2011: easyJet (EZY) would like to attract more business (C) travelers. So it’s adding more routes that business travelers (C) find useful, like Liverpool - Brussels. It’s (EZY)'s first UK route to the (EU) capital, which it otherwise connects to Berlin, Geneva, Lyon, Nice, and Milan.
(EZY) is currently recruiting pilots (FC) through crew leasing companies like Parc Aviation.
March 2011: EasyJet (EZY) said it will end its routes to Helsinki Vantaa (HEL), citing a lack in demand. (EZY) flights from Manchester to (HEL) will stop June 13, flights to/from London Gatwick June 22 and to/from Paris Charles de Gaulle July 7.
May 2011: EasyJet (EZY) nearly doubled its net loss for the six months ended March 31 to -£114 million/-$186.6 million from a -£59 million deficit in the year-ago period, owing to sharply rising fuel costs, cautious consumers and passenger taxes.
CEO, Carolyn McCall pointed out that despite the difficult environment, (EZY) made “strong progress” in implementing the strategy outlined following its business review last year and insisted that the operation is “now robust and we are well placed to successfully deliver our summer flying program.”
(EZY) last year struggled with poor on-time performance (OTP), specifically at its largest base at London Gatwick, and crew rostering issues, but (OTP) is now “back in line with competitors” with a 73% on-time arrival rate in the first half of its fiscal year started October 1, 2010. On-time arrival rate was 83% in March.
Fiscal first-half revenue rose +8% year-over-year to £1.27 billion and passengers carried increased +11.6% to 23.9 million on a +11.1% increase in seats flown to 28.1 million and a +10.8% hike in capacity (ASK)s to 29.99 billion.
Total revenue per seat fell -2.7% to £45.11, comprising a -3.3% fall in fare revenue to £34.91 and a marginal -0.3% increase in ancillary revenue per seat, including checked bag fees, to £10.20. (EZY) said the fall in fare revenue is partly due to the rise in passenger taxes.
(EZY) ended its fiscal first half with 199 airplanes, a net increase of 10, of which 62% is owned and 38% is leased. (EZY) operated a network spanning 533 routes, a net increase of +19% on a year earlier, connecting 127 airports. Its expansion continued to be focused on mainland Europe, where capacity increased +21%.
(EZY) plans to increase capacity +8% year-over-year on its summer schedule and will implement a “conservative approach to capacity growth” from October, it said. “Given the current high cost of fuel, we will seek to hold the fleet size for winter 2011 and winter 2012 at around 204 airplanes and we will have a conservative approach to capacity growth throughout the subsequent fiscal year, focusing on key market,” (EZY) stated.
(EZY) flights from/to its Berlin Schoenefeld (SXF) base were disrupted on a Saturday, owing to a wildcat “warning” strike by flight crew (FC) — represented by the trade union ver.di — in a pay dispute. (EZY) employs around 110 pilots (FC) and 240 cabin crew (CA) at (SXF).
The union said it called the industrial action because talks with (EZY) management over the last months had broken down, without an acceptable offer by (EZY). “That's why we have to up the pressure,” ver.di negotiator, Holger Roessler told German media. The union said some 60 employees, both pilots (FC) and cabin attendants (CA), participated in the work stoppage.
“EasyJet (EZY) is disappointed that despite a revised pay deal being offered, an agreement has not yet been reached with the ver.di union, which represents (EZY)'s crew based in Berlin, and has resulted in a crew strike,” (EZY) said on its website. (EZY) had offered its pilots a +4% pay increase, a +5% increase in flight pay and other compensation and crew scheduling changes. In addition, more temporary pilots (FC) were to be offered permanent contracts, and an independent body would be established to examine pilot (FC) work patterns, making recommendations, where appropriate. About 10 flights to/from (SXF) were canceled and others experienced “significant” delays. This strike followed earlier action in April.
June 2011: EasyJet (EZY) will set up a base at London Southend (SEN) airport from April 2012 with three A319s operating some 70 flights per week to about 10 European destinations including Barcelona, Faro, and Ibiza. (EZY) signed a 10-year partnership agreement with (SEN) owner, the Stobart Group, which is building a new passenger terminal due to be opened in the fall. (EZY) also invested in a new control tower and a runway extension.
(EZY) said it expects to fly around 800,000 passengers to/from (SEN) in the first year of operations. Aer Arann Regional commenced daily services from Galway and Waterford to (SEN) in March, the airport’s first scheduled international passenger flights since the early 1990s.
SEE ATTACHED - - "EZY-2011-06-LONDON SOUTHEND BASE."
August 2011: EasyJet (EZY) Deputy Chairman, David Michels stepped down as (EZY) moved to avoid yet another lengthy dispute with Stelios Haji-Ioannou, (EZY)’s founder and largest shareholder.
The EasyGroup, Haji-Ioannou’s private investment vehicle, earlier this month called for a shareholder meeting to vote on the removal of Michels, citing 11 reasons for the request, including (EZY)'s share price performance and the failure to launch a competitive tender for an airplane order placed with Airbus (EDS). Haji-Ioannou and his family hold around 38% of the Low Cost Carrier (LCC).
"In order to avoid the unnecessary costs and distraction of the (EGM) requested by easyGroup Holdings, Sir David Michels, who gave notice in May that he would leave the board at the end of the year, has stepped down from the board with immediate effect. As this removes the sole purpose of the easyGroup Holdings request, no (EGM) will be called, allowing the board and management to remain wholly focussed on running the business through the summer peak," (EZY) said.
(EZY) promoted Charles Gurassa to Deputy Chairman and senior independent director with immediate effect. It also announced that Compass Group Finance Director, Andy Martin and former (KPMG) Europe CFO, Adele Anderson will join the board of (EZY) as non-executive directors on September 1. Sven Boinet will step down from the board on September 30.
September 2011: EasyJet (EZY) raised its earnings guidance for its fiscal year ending September 30 and said it now expects to post a profit before tax of between +£240 million/+$376 million and £250 million, citing a “robust” commercial performance across its network and cost-control measures. It had previously forecast a full-year, pre-tax profit of between +£200 million and +£230 million.
(EZY) also announced it would return around £190 million to shareholders as it attempts to appease its founder and largest shareholder, Stelios Haji-Ioannou, who has repeatedly criticized (EZY) for failing to create shareholder return and over-investing in airplanes with new Airbus (EDS) orders.
“EasyJet’ (EZY)'s strong operational and record financial performance this year reflects the successful implementation of our strategy,” CEO, Carolyn McCall said. “Despite an increasingly difficult environment for airlines, the strength of (EZY)’s performance means that it is able to return approximately £190 million to shareholders, demonstrating the resilience of the model, and that it is well-positioned to continue its success across Europe.”
The £190 million dividend comprises a maiden dividend of £40 million, the first since its stock-market listing 11 years ago, and a one-off dividend of £150 million. (EZY) said the ordinary and special dividend will, “in the absence of unforeseen circumstances,” be declared in the full-year results in November and paid in early 2012.
(EZY) said second-half total revenue per seat is expected to be +6% higher than the year-ago period and around +3% higher for the full year, following strong sales on the network with “particular strength on city routes used by business and short-break leisure travelers.” It added that cost-control initiatives for the year had “delivered in line with expectations with good performance in ground handling, airplane maintenance and disruption-related costs as a result of improved operational robustness.
It, however, warned about what McCall described as “cost headwinds for 2012” and estimated that its fuel bill will increase by approximately £220 million compared to the prior year. Additionally, the inclusion of aviation in the European Union (EU)’s Emissions Trading Scheme (ETS) and higher costs at regulated airports in Spain, Italy and the UK are also expected to negatively impact cost performance in the next fiscal year.
On the revenue side for fiscal year 2011 - 2012, it said one-third of the seats in the first quarter are now booked at a similar level to the prior year, and total revenue per seat continues to show improvement versus the prior year, albeit at a lower rate of growth than the “strong” fourth quarter of the current fiscal year.
A new row has erupted between the easyJet board and (EZY)’s founder and largest shareholder, after Stelios Haji-Ioannou revealed plans to launch a new airline. Haji-Ioannou and his family own 37% of easyJet (EZY) through the private investment vehicle easyGroup.
The two parties seemed earlier this month to have settled their differences on the strategy and expansion of the carrier after the easyJet board decided to return a dividend.
However, (EZY) said it had received notice from Stelios Haji-Ioannou that he intends to set up an airline branded "Fastjet" and that a website, http://www.fastjet.com, had already been established.
EasyGroup registered a second website, http://www.e-jet.com, and both have a deep red background and the message “By Stelios. Coming soon!”
EasyJet (EZY) threatened it would “take necessary action to protect the rights of (EZY) and the interests of its shareholders.” (EZY) and EasyGroup in the past have been entangled in a lawsuit on the use of the “easy” name and reached agreement (in October 2010). As part of the amended brand license, Haji-Ioannou agreed not to acquire an interest in any other airline licensed in any (EEA) country nor Switzerland for a period of two years (unless the interest is less than <10% and he is not involved in an executive capacity). He also agreed to not use his own name or a derivation of it to brand any other airline that flies to or from any country in Europe for five years.
But Haji-Ioannou said that (EZY) breached the terms of the binding comfort letter and therefore the letter is no longer in force. “Sir Stelios strongly believes that the directors of (EZY), via a smear campaign conducted by off-the-record briefings to journalists, have repeatedly breached the clause, so he has terminated the effect of the letter for repudiatory breach and has rejected all payments offered under this letter since May 2011.”
Haji-Ioannou received a fee of £300,000/$464,778 per annum (net) for a period for five years for the commitments.
(EZY) said it “emphatically rejects” these claims and continues to seek “constructive dialogue” with easyGroup and Haji-Ioannou.
(EZY) will launch 3X-weekly, Bristol - Naples service on May 12.
October 2011: EasyJet (EZY) will open two new bases in France during the 2012 summer season, with two A319s in each base. The new bases in Nice (NCE) and Toulouse (TLS)) will bring to five the number of bases in the hexagon with a total fleet of 24 airplanes.
(EZY) will launch 10 routes from the new bases, increasing its French network to 37 regional and European routes, and 215 weekly flights. Five additional routes will be added from (TLS), including Basel-Mulhouse-Freiburg airport and Brussels, and a further five destinations from (NCE), including Bordeaux and Nantes. (EZY) flies to 11 destinations from (TLS) and 16 from (NCE).
“France is a strategic market for (EZY) (where (EZY) is already the country’s second largest carrier) and clearly has room to grow. Low-cost penetration is only 24% (half the European average). This strategic investment will allow us to strengthen our position in one of Europe’s key markets,” (EZY) Customer & Revenue Director, Catherine Lynn said. (EZY) flew 12 million passengers to/from France in 2011.
(EZY) opened its first French base at Paris Orly in 2003 and added bases at Paris Charles de Gaulle and Lyon in 2008. It has flown 12 million passengers to/from France this year. (EZY) hopes to gain the advantage over AirFrance (AFA) as it battles with the flag carrier for the French regions.
(EZY) will launch a weekly, Luton - Heraklion (Crete) service on April 21.
November 2011: EasyJet (EZY) nearly doubled its net profit for the fiscal year ended September 30 to +£225 million/+$353.4 million from +£121 million in net income earned in the prior year and decided to return £195 million to shareholders, the company’s first dividend since its Initial Public Offering (IPO) in November 2000.
(EZY) indicated in September it would pay an ordinary and a one-off special dividend to appease Stelios Haji-Ioannou, its largest shareholder and founder, who criticized management for failing to create shareholder value and buying too many Airbus (EDS) airplanes.
CEO, Carolyn McCall attributed the strong performance to (EZY)’s focus on customers, robust operational performance and the strength of (EZY)’s network, combined with cost control and capital discipline. She said (EZY) is “well placed to succeed despite the headwinds of higher fuel costs and a weak and uncertain economic outlook.”
Full-year revenue rose +16.1% year-over-year to £3.45 billion/$5.42 billion and passengers carried increased +11.8% to 54.5 million on a +11.5% increase in seats flown to 62.5 million and a +10.1% hike in (ASK)s to 69.32 billion. (RPK)s rose +9.3% to 61.35 billion and load factor inched up +0.3 points to 87.3% LF. Passengers originating outside of the UK now account for 56% of (RPK)s, an increase of +3 points compared to the prior year.
(EZY) said it is taking a “cautious” approach to capacity deployment as weak consumer confidence across Europe slows the rate at which higher fuel prices and increased taxation can be passed onto passengers. It plans to keep capacity flat year-on-year in the first half and grow with around +4% for the full year.
(EZY) said its new base at Lisbon airport (LIS) will officially open April 19 with two permanently based A319s and five new services to Amsterdam, Bordeaux, Copenhagen, Venice, and Asturias. These services will expand (EZY)’s network from (LIS) to 21 routes over 150 flights per week during the peak season.
(LIS) will be (EZY)’s 23rd base. (EZY) Director Customer & Revenue, Catherine Lynn said the new base is expected to result in an additional +225,000 additional passengers in the first year and “will boost visitors to Lisbon — with over >2 million passengers traveling to and from Lisbon, and 4 million in and out of Portugal in the first year, all traveling with easyJet (EZY).”
easyJet (EZY) has launched four-times weekly flights between its bases in Manchester (MAN) and Madrid (MAD). The service operates on Monday, Wednesday, Friday and Sunday using a Manchester-based A319. Competition is provided by Iberia (IBE) (daily flights with CRJ1000s) and Ryanair (RYR) (four weekly flights with a 189-seat 737-800, which launched in April 2011).
December 2011: EasyJet (EZY) will launch 4X-weekly, Toulouse - Brussels service on March 26.
January 2012: easyJet (EZY) will open new bases in Lisbon, Toulouse, Nice, and Southend near London (in time for the summer Olympics).
(EZY) has announced a wide range of new routes including details of its first services from its new bases at London Southend and in Lisbon, Nice, and Toulouse:
Basle/Mulhouse - Faro: 2x weekly seasonal A319-100 service between June 27 and September 1 (operated by easyJet Switzerland (TEB))
Basle/Mulhouse - Ibiza: 2x weekly seasonal A319-100 service between June 23 and September 1 (operated by easyJet Switzerland (TEB));
Berlin - Mykonos: 2x weekly seasonal A319-100 service between June 24 and September 23;
Berlin - Rhodes: 2x weekly seasonal A319-100 service between June 23 and August 25;
Bristol - Naples: 3x weekly A319-100/A320-200 service starting on May 12;
Edinburgh - Dalaman: 2x weekly seasonal A320-200 service starting on April 17;
Edinburgh - Naples: 2x weekly A319-100 service starting on April 18;
Geneva - Athens: 3x weekly seasonal A319-100 service between April 19 and September 30 (operated by easyJet Switzerland (TEB));
Geneva - Catania: 2x weekly A319-100 service starting on April 18 (operated by easyJet Switzerland (TEB));
Geneva - Venice Marco Polo: 3x weekly A319-100 service starting on March 28 (operated by easyJet Switzerland (TEB));
Lisbon - Amsterdam: 4x weekly A319-100 service starting on April 20;
Lisbon - Asturias: 4x weekly A319-100 service starting on April 20;
Lisbon - Bordeaux: 4x weekly A319-100 service starting on April 20;
Lisbon - Copenhagen Kastrup: 3x weekly A319-100 service starting on April 19;
Lisbon - Venice Marco Polo: 3x weekly A319-100 service starting on April 19;
London Gatwick - Bari: 3x weekly A319-100 service starting on June 12;
London Gatwick - Fuerteventura: 2x weekly A320-200 service starting on March 28;
London Gatwick - Kefalonia: 2x weekly seasonal A319-100 service starting on April 28;
London Luton - Heraklion: 2x weekly seasonal A319-100 service starting on April 21;
London Luton - Kerkyra: 2x weekly seasonal A320-200 service starting on March 31;
London Luton - Reykjavik Keflavik: 3x weekly A319-100 service starting on March 27;
London Southend - Alicante: daily A319-100 service starting on April 5;
London Southend - Amsterdam: 2x daily A319-100 service starting on April 2;
London Southend - Barcelona: daily A319-100 service starting on April 2;
London Southend - Belfast International: 2x daily A319-100 service starting on April 2;
London Southend - Faro: daily A319-100 service starting on April 5;
London Southend - Ibiza: 3x weekly seasonal A319-100 service starting on April 28;
London Southend - Jersey: 5x weekly seasonal A319-100 service starting on May 2;
London Southend - Malaga: daily A319-100 service starting on May 1;
London Southend - Palma de Mallorca: 4x weekly A319-100 service starting on May 1;
Lyon - Ajaccio: 2x weekly A319-100 service starting on April 7;
Lyon - Palermo: 2x weekly seasonal A319-100 service between July 8 and September 2;
Madrid - Dubrovnik: 3x weekly seasonal A319-100 service between June 23 and September 1;
Madrid - Olbia: 3x weekly seasonal A319-100 service between June 26 and September 1;
Milan Malpensa - Kefalonia: 2x weekly seasonal A319-100 service between June 30 and September 1;
Naples - Palma de Mallorca: 3x weekly seasonal A319-100 service between June 30 and September 1;
Nice - Barcelona: 4x weekly A319-100 service starting on March 30;
Nice - Bordeaux: 4x weekly A319-100 service starting on March 30;
Nice - Lille: 4x weekly A319-100 service starting on March 30;
Nice - Nantes: 5x weekly A319-100 service starting on March 30;
Nice - Naples: 3x weekly A319-100 service starting on March 31;
Nice - Venice Marco Polo: 3x weekly A319-100 service starting on March 31;
Paris Orly - Cagliari: 2x weekly seasonal A320-200 service between July 4 and September 1;
Paris Orly - Rhodes: 2x weekly seasonal A320-200 service between July 17 and September 1;
Rome Fiumicino - Kerkyra: 3x weekly seasonal A319-100 service between June 30 and September 1;
Toulouse - Basle/Mulhouse: 3x weekly A319-100 service starting on March 27;
Toulouse - Brussels National: 4x weekly A319-100 service starting on March 26;
Toulouse - Lille: 4x weekly A319-100 service starting on March 26;
Toulouse - Nice: daily A319-100 service starting on March 26;
Toulouse - Porto: 3x weekly A319-100 service starting on March 31;
Toulouse - Venice Marco Polo: 3x weekly A319-100 service starting on March 27;
easyJet (EZY) has retired its last two 737-700s and has given up its route from Milan Malpensa to Bucharest Otopeni on October 29 and will terminate its routes from Edinburgh to Cologne/Bonn, as well as from London Gatwick and Manchester to Gothenburg Landvetter on January 9. Its Paris (CDG) - Ljubljana and Paris (CDG) - Zagreb services will be terminated on March 24, respectively.
(EZY) recruits Flight Crew (FC) through various crew leasing companies like Parc Aviation. View the company web site for the flight crew leasing firms to apply with and for additional details.
See FltOps.com and FAPA.aero.
February 2012: easyJet (EZY) launched its second route to Verona (VRN) in northern Italy on 9 February. In time for Valentine’s Day, (EZY) connected the city with the main airport of another romantic city; Paris Charles de Gaulle (CDG). The flights to the gateway to the Italian Alps operate three times weekly with 156Y-seat A319s and complement (EZY)’s London Gatwick flights. Competition on the new route comes from AirFrance (AFA)’s 20 flights a week.
UK airports operator (BAA) lost its appeal this month of a 2009 ruling by the UK Competition Commission (CC) that had the effect of directing it to sell London Stansted (STN) Airport. After years of legal challenges, the UK Competition Appeal Tribunal decided to uphold the (CC)’s decision to require (BAA) to sell (STN). A (BAA) spokesperson said the company will “now carefully consider before making any further statements.”
(STN) handled 18.3 million passengers in 2011, down -2.8% from 2010. It was the only (UK) airport in (BAA)’s portfolio to register a decline in passenger traffic, according to (BAA) data. Airplane movements decreased -4.5% year-over-year to 136,911. It handles mostly short–and medium-haul point-to-point flights and serves as a base for Ryanair (RYR) and easyJet (EZY).
March 2012: EasyJet (EZY) is upping the tempo in its turf war with AirFrance (AFA) with the opening of two additional French bases, as it seeks to expand its business in continental Europe. (EZY) is formally opening its new bases in Toulouse and Nice, bringing its number of French bases to five, the others being in Paris Orly, Paris Charles de Gaulle, and Lyon.
(EZY) (CEO), Carolyn McCall outlines how mainland Europe "offers (EZY) considerable future opportunity". Thirteen of (EZY)'s 24 bases are in continental Europe, and 56% of the 54.5 million passengers (EZY) carried last year were from outside the (UK).
McCall sees France as a prime market for (EZY) to exploit: "After the (UK), France has the most number of bases of all our markets," she says. "(EZY) is the country's only low-cost carrier (LCC) of any note, but we need to get more people over >35 appraising and reappraising us - that is an opportunity for us."
(AFA) is trying to win back market share from the likes of (EZY) using its regional base concept, with which it aims to operate flights at costs around -15% lower than its mainline flights. This is being achieved through a single airplane type fleet of A320s and using locally-based pilots (FC) and new working hours.
However, (AFA)'s plans suffered a blow in February when it emerged that it had dropped four of the proposed routes to be flown from its new regional bases in Nice and Toulouse.
For (EZY), success in mainland Europe is prompting it to fine-tune its "no-frills" image, says McCall: "In the (UK), you can be cheap and tacky, and fun, and get away with it because this is where low-cost was established. In other markets in Europe (in France, in Germany, in Italy) that does not work," she says. "In some markets in Europe 'low-cost' just means 'bad experience', 'you don't care, you'll strand me."
The (UK) government has confirmed the Air Passenger Duty (APD) will rise to 8% April 1 as previously announced, despite strong lobbying from airlines, airports and the tourist industry to cancel the tax. It is also keeping plans for a further “inflationary” increase in the (APD) from April 2013.
“At a time when the government talks about creating jobs and growth, its blinkered insistence on further increases in Air Passenger Duty (APD) achieves precisely the opposite,” (IAG)/(BAB) (CEO), Willie Walsh; easyJet (EZY) (CEO), Carolyn McCall; Ryanair (RYR) (CEO), Michael O'Leary; and Virgin Atlantic (VAA) (CEO), Steve Ridgway said in a joint statement.
The (UK) (APD) is one of the highest air travel taxes in the world. It is calculated on a four-band structure and varies from £13/$20.63 for an economy-class (Y) ticket in Europe, to £92 for a ticket to a "Band D" destination (over >6,000 miles). The amounts are doubled for a ticket in premium economy (PY), business (C) or first class (F).
“In every other leading country, aviation is an expanding industry that underpins and facilitates growth in other parts of the economy. In the (UK), rises of up to +360% in (APD) in the last seven years are squeezing the life out of the economy. The [(UK) Civil Aviation Authority] (CAA) has confirmed that (UK) passenger numbers last year were the same as in 2004,” the (CEO)s of the country’s four largest airlines added. They argue the “(APD) must be scrapped.”
Board of Airline Representatives in the UK (BAR UK) (CEO), Mike Carrivick described the decision to stick to the (APD) hike a “reckless brake” on the economy. “A policy of disproportionately high air travel taxation and a failed aviation policy provide two glaring examples of how the government’s aim for economic recovery is being damaged by its own doing,” he said.
The Airport Operators Association said it was “dismayed” at the (APD) decision. The (UK) government also confirmed it will proceed with plans to bring executive jets into (APD) from April 2013, as outlined in December.
On a more positive note, Chancellor, George Osborne said the country had to “confront the lack of capacity in the southeast of England.”
April 2012: EasyJet (EZY) will begin flights to Luxembourg and the Isle of Man as part of a number of new routes from its London Gatwick base. (EZY) will fly from Gatwick to the Isle of Man six times per week, starting 23 April. This will be followed by a new route to Luxembourg from the same airport, initially served four times weekly. (EZY) believes the Gatwick - Luxembourg routes provides a lucrative opportunity, given what it calls the current "British Airways (BAB) and Luxair (LUX) duopoly" between the two cities. (BAB) and (LUX) currently serve Luxembourg from London City and Heathrow airports.
(EZY) will at the end of October begin flights between Gatwick and the Estonian capital Tallinn four times a week.
The Italian city of Turin is to be linked with Gatwick on a twice-weekly basis from 15 December.
(EZY) will also add services from its new London Southend base to Venice next February. Venice will be served four times per week.
May 2012: EasyJet (EZY) has reduced pre-tax losses for the half year ended March 31 by -£41 million/-$66 million to -£112 million, despite a +£87 million increase in unit fuel costs. This represents an improvement of +26.8% from the -£153 million recorded for the same period last year.
(EZY) said that careful allocation of capacity, revenue initiatives and tight control of costs, combined with exceptionally low levels of weather-related disruption, had contributed to the improving trend.
(EZY) (CEO), Carolyn McCall said the economic environment “remains uncertain,” but low fares “aligned with tight cost management and strictly managed allocation of capital” facilitated a return of £196 million to shareholders.
Revenue was up almost +16% to £1.46 million from £1.26 million for the same period last year. Passenger numbers for the six-month period were up +5.4% to 25.2 million, seats flown increased by +3.5% and load factor was up +1.5% points to 86.9% LF. Total revenue per seat grew +11.9% to £50.47, driven by the full-year effect of fee changes implemented last year, improvements in revenue management and website enhancements.
Total cost per seat, excluding fuel, grew by +2.1% to £37.70 (+7.4% to £54.34 including fuel). Fuel cost per seat increased +22% to £16.64. The exceptionally mild winter across Europe meant the number of cancellations and overnight delays was down almost -90% year-on-year, saving -£15 million.
A “disciplined approach” to capacity kept the increase for the half-year to +3.5% compared to +11.1% last year. Capacity, measured in seats flown, for the second half is expected to increase +7%, resulting in a full-year increase of around +5% over 2011.
(EZY) founder and largest shareholder, Stelios Haji-Ioannou said: “My immediate reaction is to welcome this winter’s reduced losses. However, to keep things into perspective, a loss of -£112m for the last six months is still no reason to pop champagne corks — particularly as improved revenue has been driven by higher fares rather than by cost control.”
He voiced concerns that the company “could be trading sideways,” and particularly highlighted “the excessive size of the fleet and the order book.”
easyJet (EZY) has declared its interest in slots for the Rome Fiumicino Leonardo da Vinci International airport (FCO) - Milan Linate airport (LIN) route where Alitalia (ALI) needs to make slots available to interested carriers from next October.
On 12 May, easyJet (EZY) commenced thrice-weekly services from Bristol (BRS) in southwest England, to Naples (NAP) in southern Italy. The capital of the Italian region of Campania becomes the third Italian destination offered by (EZY) from Bristol after Rome Fiumicino and Pisa. (EZY) faces competition from the twice-weekly flights offered by Thomson Airways (ATZ)/(TFY).
(EZY) started new services from London Gatwick to Kefalonia and from London Southend to Ibiza.
FL Technics has signed a three-year agreement with easyJet (EZY), covering line maintenance for nine A319s at Manchester Airport and Newcastle International airport.
June 2012: EasyJet (EZY) has introduced yet another route from its biggest base at London Gatwick (LGW). On 12 June, it began serving Bari (BRI) in the ‘heel’ of Italy with three weekly flights. It will compete head-on with British Airways (BAB) that also operates the route with three weekly flights. This is (EZY)’s second route to Bari. It began flights there from its Italian base at Milan Malpensa in October 2007. It also served Bari briefly from Rome Fiumicino between December 2008 and February 2010. Last year, Bari was Italy’s 12th busiest airport with 3.72 million passengers (up +9.6% on 2010). (EZY) now offers non-stop flights to some 90 destinations from London Gatwick, of which 12 are in Italy. (EZY) also serves Bologna, Catania, Milan Linate, Milan Malpensa, Naples, Olbia, Palermo, Pisa, Rome Fiumicino, Venice, and Verona.
(EZY) will close it Madrid Airport (MAD) base this winter, citing below expected returns.
(EZY)e said its (MAD) operation was delivering returns “below all of (EZY)’s other bases.” It cited a combination of factors (including overcapacity in the Spanish airline market resulting in low revenue per passenger, and airport charges that have “more than doubled in the last two years”) for the decision.
(EZY) stressed it remained committed to Spain, including (MAD), but would move its eight (MAD)-based airplanes and 310 crew to other (ezy) bases around Europe and operate to Spain out of those bases. This “will deliver higher returns for (EZY).”
(EZY) also plans to reduce capacity to/from (MAD) by around -20% in the next financial year, with the overall reduction to/from Spain close to -7%. After the proposed changes, (MAD) expects to carry more than >12 million passengers to/from Spain next year.
(EZY) said all of its (MAD)-based pilots (FC) and cabin crew (CA) would be offered jobs at other bases and it “hopes to retain as many as possible.” (EZY) said it would “discuss the proposal with the (EZY) European Works Council and the local employee representatives as appropriate.”
Any restructuring costs arising out of this proposal will be accounted for in the current financial year. Assuming fuel prices remain depressed for the remainder of the year, (EZY) believes the benefit from lower fuel prices should fully offset any restructuring costs resulting from the proposed changes.
July 2012: Easyjet (EZY) has reported that its total revenue increased +10.5% to £1.03 billion/$1.59 billion for the quarter ended June 30 compared to the year-ago period. On a constant currency basis, cost per seat excluding fuel increased +1%.
(EZY), which does not break down its profit figures on a quarterly basis, said a combination of good operational and financial performance — and a decline in fuel costs—means that pre-tax profit for the year ending September 30 is anticipated to be in the £280 - £300 million range. Pre-tax profit in 2011 was +£248 million.
Traffic rose +10.2% to 17.8 billion (RPK)s on a +5.9% increase in capacity to 19.7 billion (ASK)s, producing a load factor of 89.1% LF, up +2.8%. The number of passengers carried rose +10.9% to 16 million, although revenue per passenger dipped fractionally (0.4%) to £64.65.
Capacity growth focused on France (up 13%), Switzerland (up 13%) and Italy (up 6%), which are markets with the potential to generate higher yields. Additionally, an extended period of poor summer weather in northern Europe has seen strong demand on routes to beach destinations.
In April, (EZY) opened a base in the Portuguese capital of Lisbon and was well placed against “a weak legacy incumbent operator.”
(EZY) (CEO), Carolyn McCall said (EZY) continues to perform well despite a tough operating environment. (EZY) said its cost control program has yielded significant savings through renegotiating more than one-third of its ground handling contracts and is anticipated to deliver £90 million of benefits during the current financial year, offsetting some inflationary cost increases such as airport charges.
(EZY) announced in June it plans to cease basing crew (FC)/(CA) and airplanes at Madrid from winter 2012 - 2013 as the Spanish capital delivered the lowest returns across the network. It will continue to inject capacity into regional France and recently opened bases in Nice and Toulouse, which has experienced strong demand.
easyJet (EZY) has applied for traffic rights to be able to launch flights from its largest base at London Gatwick (LGW) to Moscow which would be its first destination in Russia. British Airways (BAB) and subsidiary, bmi British Midland (BMA) currently serve Moscow Domodedovo International (DME) from London Heathrow (LHR), while Aeroflot (ARO) (from Moscow Sheremetyevo International airport (SVO)) and Transaero Airlines (TRX) (from Domodedovo airport (DME)) are the Russian carriers serving Heathrow (LHR). Currently, the bilateral agreement allows for two UK carriers to operate between the two cities with one spot becoming available following the acquisition of (BMA) by British Airways (BAB). Virgin Atlantic (VAA) has also made its intention public earlier already to operate from Heathrow to Domodedovo with A330-300s.
SR Technics (SWS) announced it has redelivered the 50th heavy maintenance check on an A319 airplane for easyJet (EZY) out of its Malta facility. Its Malta team has also completed eight end-of-lease checks for (EZY).
A320-214 (5236, G-EZWC), ex-(D-AVVX) delivery.
August 2012: EasyJet (EZY)’s Chairman & Director, Michael Rake survived an attempt to have him removed at an extraordinary general meeting. Shareholders voted 46.7% in favor of the motion have him removed, but were defeated by 53.3% who voted against.
In a July 20 letter to fellow shareholders, (EZY) founder, Sir Stelios Haji-Ioannou highlighted a number of concerns about Rake’s position and urged shareholders to “join me by backing our motion for his removal at a general meeting.”
Haji-Ioannou, who still owns approximately 37% of (EZY) and is the single largest shareholder in (EZY), argued that Rake is tainted by his concurrent position as Deputy Chairman of Barclays, where he was incumbent throughout the recent Libor rate-fixing scandal. Haji-Ioannou also believes that Rake, who is also employed by BT Group and McGraw-Hill, has too many public company roles to devote enough time to easyJet (EZY).
Haji-Ioannou has in the past called for tougher guidelines on the number corporate directorships any one person can hold. “The current practice of collecting them like Boy Scout badges needs to end,” he has said. “Too many shareholders have been let down too often because their non-executive directors are just too busy to hold management to account in an increasingly complex corporate landscape.”
In a letter to shareholders, Haji-Ioannou also raised a number of other concerns about Rake’s suitability for his (EZY) roles and said he believed the only solution was “to have a new independent Chairman who does not see me as the enemy.”
Rake and Haji-Ioannou have been at odds for some months, with the (EZY) Founder particularly disgruntled by excessive levels of boardroom remuneration and concerned about conflicts of interest.
Despite this defeat at the hands of fellow shareholders, Haji-Ioannou said: “I still feel that, as the largest shareholder of easyJet (EZY), I benefited from this process. My objective is to hold these guys to account and not to replace them with myself or my own candidate.”
Following the vote, (EZY) Deputy Chairman & Senior Independent Director, Charles Gurassa said: “The board continues to seek a constructive relationship with all its shareholders and urges Sir Stelios and the easyGroup to engage with easyJet (EZY). I and other members of the board are available to meet with them at any time.”
easyJet (EZY) seems to plan to close its base at Dortmund Wickede airport (DTM) from the end of October. It currently has a single A319-100 based at the airport and offers flights from the airport to Barcelona El Prat International (BCN), Budapest Ferenc Liszt International (BUD), London Luton (LTN), Palma de Mallorca Son Sant Joan (PMI) and Thessaloniki Makedonia (SKG) airports. From the start of the (IATA) winter schedule at the end of October, it currently only has two daily A319-100 services from Luton scheduled, that will operate with Luton based airplanes. Last winter, it had operated to Barcelona, Budapest, Thessaloniki and Zagreb throughout the winter season.
(EZY) as well as Monarch Airlines (MON) and Ryanair (RYR) have been approached by the Lebanese tourism ministry planning to provide incentives for European low-cost carriers (LCC)s to launch services to Beirut Rafic Hariri International airport (BEY). (MON) and (RYR) do not currently serve any destinations in the region, but (EZY) currently serves Amman Queen Alia International (AMM) and Tel Aviv Ben Gurion (TLV) airports.
The owners of London Luton Airport (LTN) have signed a deal with the airport’s operators, extending their contract until 2031.
(LTN), north of London, is the home of low-cost carrier (LCC) (EZY) and handles mainly budget airlines and charters. It is owned by an offshoot of the local borough council and managed by London Luton Airport Operations Ltd (LLAOL), a subsidiary of Spanish transport & telecommunications conglomerate, Abertis.
(LLAOL) has operated (LTN) since 1998 and was halfway through the original 30-year management agreement.
(LTN) has an annual capacity of 11.5 million passengers, with passenger throughput of around 10 million.
In March, the airport’s owners and operators unveiled plans for a proposed phased expansion of capacity to 18 million passengers by the middle of next decade. Suggested ways of increasing capacity include building a new parallel taxiway, expanding the apron and number of jetways, constructing a new pier for the passenger terminal, and making improvements to the landside road system. Any expansion would take place within the existing airport boundary and would not add to (LTN)’s single runway.
Montreal, Canada-based (CAE) announced it has been selected as a preferred training supplier by easyJet (EZY), which has extended its long-term pilot (FC) training services agreement with (CAE) in a contract valued at more than >C$60 million.
The agreement is one of the first major pilot (FC) training services deals since (CAE) bought the Oxford Aviation Academy in May. (EZY) has been a customer of both companies.
“This expanded program will help us keep pace with the continued growth of (EZY)’s fleet and routes by providing a steady supply of high-quality pilots (FC)," easyJet (EZY) (COO), Warwick Brady said.
(CAE) Oxford Aviation Academy is also conducting a competency-based, multi-crew pilot license first officer program in the UK with easyJet (EZY). The first cadet class will graduate in early 2013.
(EZY) has reportedly also applied for traffic rights to operated from airports in Switzerland and the United Kingdom to St Petersburg Pulkovo (LED) according to the "(RBC) Daily" further confirming its ambitions to launch services to Russia after previously applying for traffic rights becoming available between London and Moscow, following the acquisition of bmi british midland (BMA) by British Airways (BAB).
After a successful trial, easyJet (EZY) has decided to offer assigned seating (for a fee) and will offer it network-wide starting in November.
(EZY) has reportedly signed a first contract with a tour operator to provide seat capacity on its regular scheduled flights from various UK airports to leisure destinations around the Mediterranean Sea, the Canary Islands and North Africa. According to the "Sunday Times," UK tour operator, Thomas Cook has agreed to use easyJet (EZY) for approximately 3% of its total capacity (approximately 80,000 seats) next summer season. Thomas Cook mainly uses its own carrier, Thomas Cook Airlines UK (GUE)/(JMA) as part of its vacation packages but also works with other charter carriers such as Thomson Airways (ATZ)/(TFY) and Monarch Airlines (MON) and foreign airlines.
September 2012: easyJet (EZY) foresees a large low-cost market for its proposed London - Moscow route if it succeeds in winning new slots for the sector.
(EZY) is bidding for some of the remedy slots at London Heathrow that British Airways (BAB) must relinquish on competition grounds following the acquisition of British Midland International (BMA) by its parent company, the International Airlines Group (IAG). (EZY) is competing with Virgin Atlantic (VAA) for the slots.
"Moscow is a big route," (EZY) Group Commercial Director, Cath Lynn said. "I think it would be interesting to the consumer if we could get a different type of carrier on that route." If the bid is successful, "I'm absolutely convinced our fares will be lower than legacy operators."
The Moscow airport is still under negotiation, "although we do have a preference," she said, declining to give details.
October 2012: EasyJet (EZY) has revised its profit forecast upward for the year ended September 30, and expects to post +£310 million/+$500.5 million to +£320 million pretax profit, compared to +£280 million to +£300 million forecast in July.
The earlier outlook, issued just prior to the Olympic Games in London, reflected concern about any potential disruption at the event, as well as possible industrial action in Europe, neither of which materialized. In addition, the July forecast reflected depressed bookings during the actual period of the games. However, (EZY) said that “demand from London increased towards the upper end of expectations” immediately after the games, with late bookings in particular boosting performance.
(EZY) said that, while capacity growth outlook for the six months to September 30 year-over-year remained unchanged at +7%, revenue per seat at constant currency was likely to increase between 5% and 5.5% compared to the July guidance of “low- to mid- single digits.”
(EZY) warned, however, that its unit fuel bill for Fiscal Year (FY) 2013 is likely to increase by £30 to £40 million, and exchange rate movements were likely to have a further £40 to £60 million negative impact in (FY) 2013. (EZY) also pointed out that above-inflation increases in charges at airports in Spain and Italy would add about +£80 million to its unit airport costs for the financial year, on top of which the near-term economic outlook for Europe remains uncertain.
(EZY) (CEO), Carolyn McCall said: “Strong post-Olympics trading and a benign operating environment (along with the continued strict allocation of capital and aircraft across our leading network, improvements in revenue management and marketing, and a tight control of costs) has meant that (EZY) will deliver higher returns and its highest ever pre-tax profit for the financial year ending September 30, despite absorbing an additional £230 million in fuel costs this year.”
EasyJet (EZY) (CEO), Carolyn McCall has lashed out at high airport charges and highlighted ground services as a hot spot for passenger complaints. Addressing the European Aviation Club in Brussels, McCall singled out Italy, the Netherlands and Spain as the worst offenders for high airport fees. She noted Spain has doubled its fees over the last two years and further increases are on the horizon as airports operator (AENA) prepares for privatization.
“Airports need to think long and hard, because this is an issue across the (EU),” McCall said. Airport fee increases have led to an extra +£80 million/+$128 million in costs for (EZY).
She also called for “true and fair” competition among ground handlers (an issue that is already under review as part of the European Commission (EC)’s Better Airports package, which covers European slots, ground handling and noise). “We must press ahead with this [Better Airports] reform so we can continue to mount a serious and credible threat to established carriers,” McCall said. “We have very good reason to ensure that ground handlers face as much competition as their customers, the airlines. Nine out of 10 of our complaints are about ground handling.”
If the ground handling proposal is passed by the European Parliament and Council, it will pave the way for more airport ground handling licenses to be awarded. “Three instead of two licenses is the difference between healthy competition and a duopoly,” McCall said.
The UK Civil Aviation Authority (CAA) has granted approval to British Airways (BAB) and easyJet (EZY) to operate service between London and Moscow Domodedovo under bilateral agreements with the Russian government.
(BAB) will continue to operate existing service from London Heathrow, while (EZY) will operate new service from London Gatwick. Applications to operate the service, previously granted to (BAB) and British Midland International (BMA), were received from (BAB), (EZY) and Virgin Atlantic (VAA).
“On balance, allocating scarce capacity to (BAB) and (EZY) is likely to deliver the greatest benefit to consumers,” (CAA) Director Regulatory Policy and Chair of the Scare Capacity Decision panel, Iain Osborne said. “(EZY)’s proposal will introduce an innovative product into the market and has the potential to deliver the greatest dynamic fare benefits for consumers.”
The capacity became available following (BAB) parent, the International Airlines Group (IAG)’s acquisition of (BMA). “We concluded that (EZY)’s proposal would introduce a distinctly different product into the market and would stimulate innovation on the route as a whole,” Osborne said, “as well as satisfying and stimulating consumer demand that is currently underserved, in particular: people who prefer or are content to use Gatwick.”
EasyJet (EZY) (CEO), Carolyn McCall is aiming for +3% to +5% organic growth over the next 3 to 5 years, as (EZY) continues to assess a possible airplane order. “We will continue to grow modestly, we are quite pragmatic about that, but it is growth,” said McCall, addressing the European Aviation Club in Brussels. “There is still a lot more low-fares airlines can do in the market. (EZY) can continue to grow in markets we are already in, which is much lower risk. We don’t need new markets to grow.”
McCall identifies France and Portugal as possible targets for this growth. “We see Portugal, despite its economic position, as an opportunity,” she said. Also, in France, low-cost carriers (LCC)s have just 24% penetration compared with 40% in other European counties, giving scope for expansion.
(EZY) carries 60 million passengers a year, more than AirFrance (AFA) - (KLM), and one of its growth areas is business (C) travelers which represent around a sixth of its 60 million passengers, growing to 40% on some routes.
McCall has improved the airline’s punctuality, reliability, network and frequencies. She has also brought in new products, such as assigned seating which will be available on all (EZY) flights from the end of November, but she insists the low-cost model will not be compromised. “We knew our passengers would really like allocated seating, but we would not jeopardize our turnarounds and asset utilization to deliver that customer experience. Actually, the key decision-maker was our Operations Director. He was one who had to sign it off, not the Commercial Director or Marketing Director or Head of Customers. All of those were no-brainers.”
(EZY) is negotiating a new airplane order. McCall said a technical and commercial evaluation is underway, with Airbus (EDS), Boeing (TBC) and Bombardier (BMB) in the running. Any potential order will need to be cleared by the (EZY) board, which includes founder Stelios Haji-Ioannou. “We have a large, vocal shareholder. That can be a challenge,” said McCall.
However, an order is not a given. Price will undoubtedly be a deciding factor and (EZY) still has a number of airplanes on option which it claims could support its growth plans. “We have options. It doesn’t necessarily mean we have to buy airplanes.”
easyJet (EZY) expanded its UK domestic network on 22 October when it launched a new domestic route from Belfast International (BFS) in Northern Ireland to Birmingham (BHX) in England’s Midlands region. This is (ezy)’s third route to Birmingham after its two seasonal ski routes from Geneva and Grenoble that have operated since 2007. The route is initially operated daily with 156-seat A319s, but frequencies are set to increase to 12 weekly already from the start of the winter scheduling season. Although (ezy) faces no direct competition, indirectly competing at Belfast City is Flybe (BEE), which operates 42 weekly flights on the route. Ali Gayward, (EZY)’s UK Commercial Manager, said: “This new route has been driven by customer demand and we are delighted to launch an easy and affordable option of travel from Belfast to the city of Birmingham. The move marks (EZY)’s commitment to strengthening its network across the UK with a particular focus on supporting business passengers.”
(EZY) added several new routes at the turn of the scheduling seasons. (EZY) launched three new destinations from Basel (BSL) at the Swiss/French/German borders. Of the routes to Brussels (BRU), Budapest (BUD) and Manchester (MAN), (EZY) only faces competition to the Belgian capital from Brussels Airlines (DAT)/(EBA)’s 11 weekly flights. Furthermore, (EZY) launched long-awaited low-cost operations to Luxembourg (LUX), breaking the full-service carrier monopoly. The new route from London Gatwick (LGW) faces indirect competition in the London area from AirFrance (AFA)/CityJet and Luxair (LUX) at London City, as well as British Airways (BAB) at London Heathrow, which all offer 61 weekly frequencies to Luxembourg combined. Gatwick also saw the move of (EZY)’s services to Estonia’s capital Tallinn (TLL), which it previously served from London Stansted.
(EZY) will launch twice weekly flights to Reykjavik from Manchester and Edinburgh airports next spring. (EZY) will start flying to the Icelandic capital from Edinburgh on 14 March 2013. Flights from Manchester will begin on 21 March 2013. (EZY) will be the sole operator on both new routes.
(EZY) has launched two routes from its UK bases, using 156Y-seat A319s. On 28 September, (EZY) relaunched the route between Bristol (BRS) in southwest England and Denmark’s capital Copenhagen (CPH), where (EZY) serves the low-cost pier (CPH) Go. The route, which (EZY) previously served until December 2004, is now operated four times weekly. On 1 October, (EZY) began operating from its largest base at London Gatwick (LGW) to the Isle of Man (IOM), the island in the Irish Sea that (EZY) already serves from Liverpool. (EZY) operates the route six times weekly, competing with Flybe (BEE)’s 26 flights a week.
Lufthansa Technik (DLH) (LTK) signed a 5-year agreement with EasyJet Airline (EZY) to provide Cyclean engine wash services for (EZY)’s (CFM56) engines powering its A319/A320 fleet.
November 2012: EasyJet (U2) has reported a record pre-tax profit of +£317 million/+$512.4 million for the year ended 30 September, up +27.9% over the previous financial year, despite the challenging economic climate and a +£182 million increase in unit fuel costs.
After a tax charge of £62 million, profit for the year was +£255 million, up from +£225 million the previous year.
Revenue was up +11.6% from £3.45 billion in the previous financial year to £3.85 billion this year. Total revenue per seat was up +5.9% (+7.5% at constant currency) to £58.51 — reflecting strong performances across the network (with the exception of Spain), particularly from London Gatwick, France and Switzerland — and seats flown grew by +5.5% to 65.9 million. Passenger numbers increased +7.1% to 58.4 million, and load factor increased by +1.4% points to 88.7% LF.
(ASK)s were up +4.1% to 72.2 billion with (RPK)s up +6.3% to 65.2 billion.
Total cost per seat increased by +4.7% to £53.70. However, excluding fuel, cost per seat was broadly flat at £36.25, and up by +1.8% at constant currency.
(EZY) paid its first ever dividends in March 2012, comprising an ordinary dividend of 10.5 pence per share. On the back of the latest results, (EZY) proposes to increase the dividend to 21.5 pence per share for the year ended September 30, 2012. (EZY) said it is also amending its dividend policy from this year to pay out one-third of profit after tax for each year, up from the one-fifth payout introduced last year.
(EZY) (CEO), Carolyn McCall said: “These results demonstrate that (EZY) is a structural winner in the European short-haul market against both legacy and low-cost competition. The strength of (EZY)'s business model and strategy, coupled with the hard work and dedication of the (EZY) team has delivered record profits as well as a significant increase in returns for shareholders during the year.”
(EZY) said the European macro-economic environment remained uncertain, but insisted there were opportunities for growth, particularly where weaker competitors had retrenched. (EZY) said it anticipated capacity growth in terms of seats flown to be around 3.5% in 2013.
Forward bookings for the first half of the 2013 financial year suggest total revenue per seat at constant currency is expected to be up by low to mid-single digits for the period. “Whilst there is always the potential for unexpected events to temporarily impact financial results the board of (EZY) is confident that its business model, strategy and people will consistently continue to generate superior returns and growth for shareholders,” McCall said.
(EZY) has been awarded rights to operate between Milan Linate (LIN) and Rome Fiumicino (FCO), bringing to an end, Alitalia (ALI)'s monopoly on this key Italian route.
(EZY) will begin operating five flights a day on the route, which it describes as “arguably the most important route for the Italian economy,” in early 2013 using A319 airplanes.
In April, Italy’s competition authority, Autorità Garante della Concorrenza e del Mercato (AGCM) ordered (ALI) to relinquish a number of slots at (LIN) to end the monopoly created in 2008 by the merger of (ALI) and Air One (ADH). At that time, an ad hoc legislative ruling suspended the antitrust (ATI) laws governing the route, in a bid to keep the ailing (ALI) afloat. In September, (ALI) agreed to release eight of its morning and evening slots at (LIN), and the (AGCM) specified these slots should have been re-allocated by October 28. (EZY), which describes itself as Italy’s third largest airline, said it welcomed the (AGCM)’s “landmark decision.”
(EZY) (CEO), Carolyn McCall said: "This represents the break-up of the last great monopoly route in Europe, linking as it does the political capital and the industrial center of Europe’s fourth largest economy. No other European flag carrier has control over a route of such importance. This is a historic decision and is a victory for Italian consumers.” (EZY) said that, as a result of the existing monopoly, fares for the hour-long journey between the two cities could be as high as €289 one way. The advent of competition on the route is widely expected to bring ticket prices down by as much as -30%.
(EZY) currently operates between Milan Malpensa and (FCO).
The Italian ruling follows the UK Civil Aviation Authority’s decision to award (EZY) the rights to operate between London and Moscow.
(EZY) anticipates flying a substantial proportion of business passengers on its new London Gatwick (LGW) - Moscow Domodedovo (DME) service. The route will launch in spring 2013. (EZY) anticipates flying more than >230,000 passengers on the sector in its first year of operation. It will operate 2X-daily flights.
Since the start of the global recession, (EZY) has seen increasing numbers of cost-cutting business travelers using its services. Currently, around 19% to 20% of its passengers fly on business, although this figure can rise as high as 40% to 45% on certain routes, such as those between London and Scottish airports.
(EZY) anticipates the (LGW) - (DME) route will attract a respectable percentage of business travelers: “Moscow is a key business center,” an (EZY) spokeswoman said.
(LGW) is a major business airport for (EZY), which estimates 2 million business travelers pass through each year to a series of major commercial and administrative centers such as Milan, Rome, and Luxembourg.
(EZY) added two routes to its network last month. On 31 October, (EZY) expanded offering from its Basel (BSL) base with twice-weekly flights to Santiago de Compostela (SCQ) in the north-western Spanish region of Galicia. On the following day, (EZY) launched also twice-weekly services from Manchester (MAN) to Tel Aviv (TLV), turning the northern English city into the fourth (after Basel, Geneva and London Luton) airport across its European network to have a direct link to the Israeli airport. Jet2.com (JT2)’s twice-weekly departures, launched in spring 2009, provide competition on the Manchester to Tel Aviv route.
(EZY) will begin 3X-weekly (LGW) - Santiago, Spain service on June 18, 2013, and will launch 2X-weekly, (LGW) - Kalamata, Greece on July 6, 2013.
(EZY) will launch 4X-weekly, Manchester - Moscow A320 service in March 2013, giving (EZY) 32 nonstop flights from Manchester by next summer. That number includes two other new routes that were announced, one to Prague and another to Thessaloniki in Greece. (EZY) said it would like to connect other bases to Moscow as well in the future.
December 2012: On 13 December, easyJet (EZY) commenced four weekly flights from its northern English base at Newcastle (NCL) airport to Amsterdam (AMS) in competition with (KLM)’s 28 weekly flights to its Dutch hub. On 14 December (EZY) further expanded its network from London Southend (SEN) airport by launching a thrice-weekly service to the popular ski and city destination Geneva (GVA) Switzerland and now offers 14 destinations in total from its newest London’s airport. On the following day, (EZY) launched another ski destination Turin (TRN) from its largest base at London Gatwick (LGW) airport. The twice-weekly service now competes with British Airways (BAB)’s 10 weekly departures; Thomas Cook provides additional capacity, as it serves the market from London Gatwick to Turin with a weekly frequency.
easyJet (EZY) will increase 12X-weekly, Belfast - Birmingham service to 13X-weekly on March 31. (EZY) announced its second route to Russia. On March 28, (EZY) will launch 4X-weekly, Manchester - Moscow service. (EZY) UK Director, Paul Simmons said the carrier expects strong demand on this route. (EZY) anticipates flying more than >60,000 passengers between the two cities in the first year.
Simmons said (EZY)’s further network growth to Russia, especially from other European countries, is nearly impossible because bilateral agreements only allow flights from their country of origin. “Russia is difficult because of the bilateral constraints. But we have certainly been looking to what we can add from our European bases over time,” he said.
In October, the UK Civil Aviation Authority granted approval to British Airways (BAB) and (EZY) to operate service between London and Moscow Domodedovo under bilateral agreements with the Russian government. The flights will begin March 18.
When not contesting Vueling (VUZ) in France, easyJet (EZY) is spending a more fruitful time in what is by far its largest market: home in the UK. And within the UK, its newest and fastest growing base is London Southend, from where it will start connecting to Newquay in southern England on June 20th.
(EZY) has begun allocating seat assignments on all its flights, a departure from its open seating strategy, following a trial in April. The trial, which involved nearly 2 million passengers and 12,500 flights, found that 71% of passengers felt allocated seating provided an improved boarding experience, while 60% stated they were more likely to fly with (EZY) in the future as a result.
"Today’s move offering allocated seating on all of our flights is the single, biggest change the airline (EZY) has undertaken in its history,” (EZY) UK Director, Paul Simmons said.
The seat allocations are free, though (EZY) will charge £3/$4.80 for passengers reserving a particular non-premium seat. Premium options include £12 for extra leg room and £8 for emergency exits or front-of-the-cabin seats.
January 2013: EasyJet (EZY) posted a first-quarter revenue of £833 million/$1.31 billion, up +9.2% year-over-year for the period ended December 31, 2012. (ASK)s grew +2.6% to 16.4 billion, while (RPK)s climbed +4.2% to 14.8 billion, with the number of passengers up +6.2% to 13.7 million, compared to a year previously. Load factor improved +1%, to 88.6% LF.
Cost per seat, excluding fuel, increased +0.5% on a reported basis and +2.9% on a constant currency basis.
This better-than-expected performance was driven by lower disruption costs as a result of exceptionally mild weather in the quarter and limited external industrial action.
Traditionally, the first six months of (EZY)’s financial year, which span the Northern hemisphere winter, are the weaker half of the year. However, with around 80% of first-half seats now booked, it expects to contain first-half pre-tax losses to between -£50 million and -£75 million compared to last year’s first-half loss of -£112 million.
“(EZY) has made a strong start to the year due to a combination of management action, competitor capacity reductions and the benign operating environment,” (CEO), Carolyn McCall said.
(EZY) cut capacity coming out of Spain and now focuses its growth on stronger markets such as Switzerland, France and Italy.
Despite the continuing challenging economic environment, (EZY) “remains confident in our outlook for the business,” she said.
McCall added that (EZY) continues to make progress in attracting more business (C) passengers. In November, (EZY) announced a new deal enabling Scottish public sector staff to travel on low-cost, flexible fares on business trips between Scotland and London.
Allocated seating was successfully rolled out across the network during the quarter, although, as expected, it resulted in a slight decline in on-time performance in the initial implementation period.
(EZY) will launch 3X-weekly, London Southend - Newquay service on June 20.
(EZY) Chairman, Michael Rake has announced plans to step down as easyJet (EZY) Non-Executive Director & Chairman this summer.
Rake, who has been Chairman since January 2010, survived an attempt by (EZY) Founder, Stelios Haji-Ioannou to have him removed by vote at an extraordinary general meeting in August 2012. Haji-Ioannou said Rake was tainted by his concurrent position as Deputy Chairman of Barclays, where he was incumbent throughout the Labor rate-fixing scandal. Haji-Ioannou also believed that Rake, who is also employed by the (BT) Group and McGraw-Hill, had too many public company roles to devote enough time to (EZY).
Despite his departure plans, Rake will still seek re-election at (EZY)’s Annual General Meeting (AGM) February 21 to ensure a smooth handover to his successor. (EZY) said the recruitment process is already underway and both internal and external candidates will be considered. “In advance of the forthcoming (AGM), I wanted to make my position clear,” Rake said. “(EZY) has by any definition enjoyed a period of success and profitable growth in the last three years. As this takes (EZY) to the threshold of entry to the (FTSE) 100 it is the right time for me to stand down. Carolyn McCall and her management team have developed and implemented the right strategy for (EZY), which is already bearing fruit with record profits, a healthy share price and strong dividends. (EZY) is now well positioned to continue to deliver profitable growth and returns for all its shareholders.”
Haji-Ioannou recently launched a fresh wave of criticism at easyJet’s management, selling part of his shareholding in a protest against fleet expansion.
(EZY) Founder, Stelios Haji-Ioannou has sold 600,000 (EZY) shares to warn management against further airplane purchases.
The (EZY) Founder, together with his brother and sister, now own less than 37% of the company, worth almost £1.3 billion/$2.06 billion. Conversely, in 2008 he bought shares to gain influence. “If the board places another order for airplanes, it will destroy shareholder value into the future. If they place such an order now, I will be looking to dispose of more of my stake before this happens,” Haji-Ioannou said. “Instead of ordering new airplanes, (EZY) should aim for a 10% profit margin, up from 1% four years ago and against the current level of 7%.”
Since 2008, the (EZY) Founder has vocally criticized the airline’s board, accusing them of an “expansion at any cost policy.” He claims the current fleet of 217 airplanes is “too big for the winter season” and added that another airplane order will jeopardize the airline’s financial success.
“I will be a loyal shareholder for the long term, provided management doesn’t squander any more of our cash on new airplanes for at least the next four to five years,” he said.
He warned unit costs have risen +24% since 2008, but yields have gone up +33%, enabling profits to keep pace.
Haji-Ioannou claims his campaign for profit margins over growth has “worked well for all (EZY) shareholders,” who now receive one-third of (EZJ)’s post-tax earnings in dividends. “A more healthy 50% distribution ratio is now not too far away,” he added.
Nevertheless, EasyJet (EZY) plans to firm up options on three A320s just days after (EZY)’s Founder warned against further fleet expansion.
(EZY) has confirmed that “commercial evaluation and discussions” for a next generation airplane order are “well underway,” with deliveries scheduled to begin after 2017.
However, in the interim, it is considering firming the three options. “To allow the time necessary to achieve the optimal commercial outcome, (EZY) may consider converting options for three A320 airplanes under the terms of its existing framework agreement with Airbus (EDS),” (EZY) said.
These optioned airplanes would arrive in time for the summer 2014 program. However, (EZY) added that its proposed fleet strategy for 2015 - 2017 and beyond have not been finalized because shareholders have not yet agreed to the plans.
(EZY) Founder and board member, Stelios Haji-Ioannou announced he had sold 200,000 shares to warn management against further airplane purchases, arguing such a move would destroy shareholder value. Haji-Ioannou has run a vocal campaign along these lines since 2008.
Apparently responding to these concerns, (EZY) (CEO), Carolyn McCall said a new, next generation airplane order would give (EZY) a cost advantage and help retain its leading position at Europe’s primary airports, replacing existing airplanes due for retirement.
She described planned capacity increases of +3% to +5% as “prudent” and in line with (EZY)’s policy of sustainable growth and returns. In the quarter ended December 31, 2012, (EZY) added +5% capacity, taking it to a total of 56 A320s and 157 A319s. First-half capacity will grow by +3.5%, slowing in the second half of the year.
In addition, (EZY) has finalized sale and leaseback deals on nine new A320s and 12 of its oldest A319s. Lease negotiations covering a further three new A320s are at an advanced stage and should be concluded within the next month.
February 2013: easyJet (EZY), which was heavily involved in London Southend’s (SEN) development last year, continues to explore new opportunities at the Essex airport. On 8 February, it launched four-weekly services on its first route to Italy from Southend, making Venice (VCE) the ninth destination it offers at the airport overall. All flights are operated using A319s. In June, (EZY) will also add new services to Berlin, Krakow and Newquay, as well as resuming seasonal services to Ibiza and Palma. London Southend handled almost 620,000 passengers in 2012, thanks primarily to easyJet (EZY), up from just 42,000 in 2011.
EasyJet (EZY) Chairman, Michael Rake was re-elected at (EZY)’s annual general meeting (AGM), with 55.6% of 330.4 million total votes in favor. Rake previously (last month) announced plans to leave (EZY) this summer, but sought re-election to ease the transition to a successor.
Directors Charles Gurassa, Carolyn McCall, Chris Kennedy, Adèle Anderson, David Bennett, John Browett, Rigas Doganis and Keith Hamill were also re-elected, each with 99.9% votes in favor.
Rake, who has faced heavy criticism from Founder, Stelios Haji-Ioannou, said he was confident in the direction (EZY) is taking.
“When I met with Sir Stelios in the spring of 2009 to discuss taking on the chairmanship of the company, I was clear that we needed to amend the shareholder agreement, introduce a new brand agreement, bring in new management and refresh the board, as well as, at the right moment, to commence dividend payments.
“I was also very clear that, given the economic uncertainty at that time, we should move to a moderate from high growth strategy— something with which Stelios and I both agreed, and both voted for in the board meeting in June 2009 after I had joined the board,” he said.
“This has created the basis for a spectacular return for the company’s shareholders,” he said, citing the management team’s job of moving toward A320 airplanes and the conversion of the 15 options in January 2011, “both of which have contributed to the strong performance of the company.”
He noted that actions have been taken to ensure further growth, including closing its base in Madrid and reallocating capacity from Liverpool to “more profitable opportunities” in France, Switzerland, the UK, and Italy.
“To remain competitive on cost and airplane performance over the longer term, we are well advanced in our technical and commercial evaluation of the next generation narrow body airplane and engine technology,” Rake said.
easyJet (EZY), the UK’s largest airline, this month announced +330 new permanent jobs in 2013 for pilots (FC) as part of a new career structure to provide cadet and First Officer (FC) opportunities for pilots (FC) looking for a career at (EZY). The new permanent First Officer (FC) positions will be offered across all 11 of (EZY)’s UK bases – Gatwick, Southend, Luton, Stansted, Glasgow, Edinburgh, Newcastle, Manchester, Liverpool, Bristol, and Belfast.
(EZY) has also reshaped and formalized its career structure. This will provide cadets with the opportunity to gain experience and flying hours followed by a new entrant contract for experienced First Officers (FC), which in turn leads to a long-term career at (EZY) and the opportunity to become a Captain (FC).
(EZY)’s financial performance demonstrates that (EZY) is well positioned to continue to profitably grow in the European short-haul market creating attractive long-term careers for pilots (FC) in the UK and across Europe. No other UK airline is recruiting on this scale this year.
Initially, when filling the 330 new roles, priority will be given to pilots (FC) employed by (EZY)’s aviation training partners, (CTC) Aviation & Parc, who are already gaining experience as pilots (FC) with (EZY). (EZY) expects to be creating new permanent roles in both 2013 and 2014 and will also consider applications from pilots (FC) with appropriate experience.
(EZY)’s Head of Flight Operations, Captain Brian Tyrrell, said:
“I’m really pleased that (EZY) is able to offer +330 new permanent positions for pilots (FC). They will be joining (EZY) at a good time and have the prospect of a long and successful career at (EZY). “Pilots (FC) joining (EZY) will be flying on a modern fleet of airplanes, with industry leading punctuality, high quality training and leading positions at 11 airports across the UK.
“We offer a clear career path for pilots (FC) with the potential to move from First Officer to Captain more quickly than at other airlines. The skills and professionalism of our pilots (FC) is one of (EZY)’s key strengths and we want to work with them and their representatives to ensure (EZY)’s continued success.”
For a pilot (FC), the first step towards joining (EZY) will usually be through (EZY)’s training partners, (CTC) Aviation & Parc. The pilots (FC) will gain experience of (EZY)’s operations and build up their flying hours with more work in the summer than the winter. This also provides (EZY) with a level of flexibility due to the seasonal nature of our industry.
Once they have flown for over >1,250 hours with (EZY) and completed two years, pilots (FC) then join (EZY) as permanent employees at First Officer rank. (EZY) has used (CTC) Aviation & Parc for several years but this is the first time for some time that (EZY) has been able to offer permanent roles at First Officer level.
After flying for a further two years, and reaching 2,500 hours with (EZY), pilots (FC) will then become a Senior First Officer.
From that stage, the aim is to achieve their Command and become Captains. With (EZY)’s continued planned growth, the time taken from First Officer to Captain is likely to be quicker than at other airlines.
Beyond that, there are further opportunities for pilots (FC) to develop their career, whether that is into a training or management role.
There are currently over >1,850 pilots (FC) permanently employed by easyJet (EZY) with an additional +450 contracted through (CTC) Aviation & Parc.
Going forward, the (EZY) pilot (FC) career structure and expected total reward package range will be:
A: Cadet Scheme#:
The pilots (FC) will gain experience of easyJet (EZY)’s operations and build up their flying hours.
Total Reward Package Range*: £40k – £50k
# Cadet scheme – those with higher flying hours will earn more.
B: First Officer
Pilots (FC) will become eligible for permanent employment as First Officer once they have 1,251 flying hours and two years’ service with easyJet (EZJ).
Total Reward Package Range*: £54k – £58k.
C: Senior First Officer
Once they have completed a further two years and have reached 2,500 hours, they will then become a Senior First Officer.
Total Reward Package Range*: £66k – £75k.
Pilots (FC) then gain further experience and after a few years, will be able to achieve their Command.
Total Reward Package Range*: £114k – £146k.
* The total reward package includes flexible rosters, basic pay, on target bonus and sector pay and other allowances, plus employment benefits such as pension. All these ranges are based on pilots (FC) working full time. There will also be part time (at 75%) and fixed rosters (paid at 90%) contracts available.
(EZY) is to trial (CTT) System’s Zonal Drying on four of its A320s in a bid to cut airplane weight and improve fuel consumption. The Zonal Drying system removes moisture from the air between the cabin and the airplane's outer skin, preventing water build-up on insulation blankets and condensation. The number of Zonal Drying units varies by airplane type, but each unit weighs less than <30 kg and consists of a fan, a heater and a rotor.
(EZY) will trial the equipment for a 12-month period and, if successful, will roll the system out across its entire fleet. Zonal Drying has the capacity to reduce weight-increasing moisture by up to 250 kg per flight. (EZY) is hoping this will help cut its £1.2 billion/$1.87 billion annual fuel bill. “Fuel is a key focus for (EZY) and this is one of a number of initiatives we are implementing in order to be as environmentally responsible as possible. There is the potential to save 4.5 million kg of fuel per year by using this Zonal Dryer technology and we’re confident that we’ll see significant and positive results on completion of the trial,” (EZY) Flight Operations Manager, Captain Chris Foster said.
(CTT) Systems VP Sales, Marketing & Customer Support, Peter Landquist said the contract followed a rigorous selection process. “We were really impressed with (EZY)’s thorough evaluation of our system. We are delighted that (EZY) is now going ahead with this trial and hope they will ultimately equip their entire fleet with the system after experiencing the weight benefits first-hand.”
March 2013: easyJet (EZY) added the southern Spanish city of Seville (SVQ) to its offering from Geneva (GVA) on 21 February. (EZY), which already serves the Andalucian destination with four-weekly flights from London Gatwick, now operates thrice-weekly frequencies from the Swiss city. This month sees the launch of (EZY) from Milan Malpensa to Luxembourg, (EZY)’s second route to the Grand Duchy, having launched London Gatwick flights last October. The London service will see a frequency increase to six weekly flights with the start of the summer season at the end of March. (EZY) now operates four-weekly services from the northern Italian airport to Luxembourg (LUX) using A319s.
As Europe’s trendiest city destination for the best part of the last decade, Barcelona is crammed with stunning architecture, sublime art, world-renowned gastronomy and nightlife, all finished off with miles of golden beaches stretching along the Mediterranean coast. Located only about two hours’ flying time from the British capital, it has long attracted Londoners craving the best of both worlds and, while Barcelona showed an overall passenger traffic growth of +2.2% in 2012 (compared to average decline of -5.5% at Spanish airports), the market from London produced an outstanding increase, not only recovering the all-time high of 2007, but improving on it by +16%.
Examination of (CAA) data shows that in the years preceding the recession, traffic in the market from London to Barcelona was growing at an average of +1.2% (2002 - 2007), reaching its peak of 1.8 million in 2007. Although the full-blown effects of the Spanish construction industry crisis and the financial misfortunes of the City of London were not fully felt in 2008, when traffic diminished by -2.5%, it did materialize in the following two years: traffic fell by -12.8% and -11.3%, respectively, to produce total passengers of 1.4 million – - a market size last observed in the 1990s. Notably, October 2009 saw the departure of Iberia (IBE), the Spanish flag carrier from the market. Disappearance of (IBE)’s four-weekly services to London Heathrow were partly offset by its (IAG) partner, British Airways (BAB), which stepped up its frequencies from four-weekly to daily.
2010 was the turning point for traffic recovery in the market, and in 2011, traffic figures showed an improvement of +22%, followed by +26% growth in 2012. A total of 2.1 million people travelled on the route connecting the British and Catalan capital last year.
Now, all six London airports have links to Barcelona, with London Heathrow and Gatwick almost equally sharing two thirds of the traffic. The latter has, however, experienced more dynamic traffic growth in the last two years (+37.7% and +43.7% respectively in 2011 and 2012, compared to +17.2% and +3.9% for Heathrow), a trend which is set to continue in 2013. The only airport to outdo Gatwick in terms of passenger growth last year, albeit starting from a considerably lower base, was London Stansted (+64%). Two other London airports, City and Luton, saw traffic decline respectively by -10.8% and -5.2%, while easyJet (EZY)’s launch of daily services from London’s latest airport last April, led Southend to account for 3% of the total traffic in the market in 2012.
Weekly average capacity data for the market in June 2013 shows some interesting capacity shifts within the London airport system. In summer 2012, two main airports to offer services to Barcelona, London Gatwick and Heathrow, commanded, respectively, 35.6% and 34.6% of the total seat capacity in the market. This proportion is no longer valid for summer 2013, as Gatwick will see an increase of almost +70%, while the capacity offered (entirely by British Airways (BAB)) from Heathrow, decreases by -3.3%. Gatwick’s growth is fuelled by the launch of thrice-daily flights by (BAB), which now serves Barcelona from three London airports, as well as by new entrants to the market: – Vueling (VUZ) (twice-daily, launching 23 March), and Norwegian (NWG) (thrice-weekly, launching 4 April). SEE ATTACHED - - "EZY-2013-03 LONDON-BARCELONA-A/B."
London Stansted will lose a third of its Barcelona capacity in summer 2013, as easyJet (EZY) withdraws its daily schedule. (EZY) will also reduce capacity to Barcelona from London Southend, down to six weekly from daily. No changes have been reported neither for London Luton, where easyJet (EZY) continues to provide twice-daily frequencies, nor for London City, which has a daily British Airways (BAB) service.
In summer 2013, 78% of weekly frequencies and 64% of weekly seats in the market from London to Barcelona will be offered by only two carriers: British Airways (BAB) and easyJet (EZY), which both serve the Mediterranean city from three London airports. (BAB) will offer +30% more frequencies and +21% more seats in the market in June 2013 compared to the same period a year before, while (EZY) reduces its offering respectively by -11% and -13%.
Once it launches its new route, Vueling (VUZ) will match Ryanair (RYR) in terms of frequency share, even though it will provide marginally less capacity in terms of weekly seats. At the same time, Monarch Airlines (MON) removes one of its 11 weekly frequencies from London Gatwick. Norwegian (NWG)’s entry to the market is set to have a limited impact as (NWG) will command less than <2% of weekly frequency and capacity.
Early January saw the opening of the missing high-speed rail (HSR) link between London and Barcelona, and the overland journey can now be completed with two stops (in Paris and Figueras) in around 10 hours. With prices from under <£200 for a return journey and the growing trend toward slow travel, the rail offering might attract some traffic away from airlines, especially during peak summer months, when one-way fares can exceed >£200. However, Barcelona’s appeal as a weekend break and business destination suggest that this enhanced rail offering should not have a major impact on air traffic, unlike in the case of the introduction of high-speed connections on shorter distances.
(EZY) launched 4x-weekly, Edinburgh - Hamburg A319 service March 21. Hamburg - Rome service began March 29. (EZY) expanded its presence in Edinburgh (EDI) on March 21, as it launched flights to five destinations Europe-wide, ranging from Reykjavik (KEF) to Prague (PRG). Four days later, on March 25, (EZY) also commenced the long-awaited services on the domestic Italian route from Milan Linate (LIN) to Rome Fiumicino (FCO). (EZY) gained access to this lucrative market, previously the exclusive domain of Alitalia (ALI), following a ruling by the Italian competition authorities in autumn last year.
(EZY) will increase 3X-daily, London Gatwick - Copenhagen service to 4X-daily on May 24. (EZY) will add its first flights to Norway when it begins services from London Gatwick to Bergen in May. (EZY) will began taking bookings for the new service, which will operate daily. (EZY) expects to carry more than >100,000 passengers annually, between Norway and the UK. Norway will be the 33rd country of operation for (EZY). (EZY) will compete with Norwegian (NWG) on the London Gatwick - Bergen route.
(EZY) will launch London Gatwick - Moscow Domodedovo flights March 18 after reaching an agreement with Russia’s Transaero Airline (TRX). (EZY) will also launch Manchester - Moscow flights from March 28. These routes were formally flown by British Midland International (bmi) (BMA), which it had to give up after British Airways (BAB) parent, the International Airlines Group (IAG) took over the carrier in April 2012. Details of the agreement have not been announced.
(EZY) UK Director, Paul Simmons said, “We are well advanced in securing all of the necessary permissions and agreements to operate between Moscow and London. (EZY) has been meeting with the Federal Air Transport Agency in Moscow and is working with them to finalize all the necessary arrangements.” Simmons earlier said (TRX)’s agreement with (BMA) was a code share, which is not possible between (EZY) and (TRX) as the airlines operate flights in different London airports ((TRX) flies to Heathrow and (EZY) operates from Gatwick).
In October 2012, the UK Civil Aviation Authority granted approval to (BAB) and (EZY) to operate service between London and Moscow Domodedovo under bilateral agreements with the Russian government.
On 09:00 Monday, March 18, easyJet (EZY) launched its historic route from London Gatwick to Moscow Domodedovo, operating a 180-seat A320.
(EZY) normally flies to wherever it wants in deregulated European markets, wheras services to Russia are highly regulated accordsing to very old-fashioned bilateral agreements which only allowed services by designated carriers.
(EZY)'s chance to serve the supposedly lucrative Moscow market is the direct consequence of last year’s decision by Lufthansa (DLH) to sell bmi British Midland (BMA) to the (IAG), the owners of British Airways (BAB). The current air service agreement allows for a maximum of two airlines to be designated by both the UK and Russia and, as (BAB) is already one of these, it had to give up (BMA)’s designation on London and Manchester services. So the UK (CAA) held a hearing last year at which both Virgin Atlantic (VAA) and easyJet (EZY) submitted cases for why they should be granted the traffic rights – and easyJet (EZY) won.
Since 1999, the London – Moscow market has seen passenger numbers grow from under <300,000 per annum, to almost 800,000 in 2012. Indeed, given the general sluggishness of travel demand to and from the UK in recent years, the Russian market ranks as a notable success.
The route’s seasonality profile is fairly typical with a peak in July and a big dip in February. The downward trend at the end of 2012 for traffic between Heathrow and Domodedovo reflects the fact that Transaero Airlines (TRX) moved one of its two daily flights to Vnukovo airport. The second daily flight will also move to Vnukovo at the start of the summer 2013 season. This change in airlines and airports served in the London - Moscow market is summarized in the following:
Route Flown: - - - - - - - - - - Designated Airline (weekly flights):
Gatwick - Domodedovo - - - - - - easyJet (EZY) (14)
Heathrow - Domodedovo - - - - - British Airways (BAB (21)
Heathrow - Sheremetyevo - - - - Aeroflot (ARO) (21)
Heathrow - Vnukovo - - - - - - - Transaero (TRX) (14)
As a result, all four carriers in the market now fly without direct competition on the mixed airport-pairs that they operate. easyJet (EZY)’s arrival also adds color to the very mixed service levels and airplane types by offering 180-seat A320s on the route – British Airways (BAB) uses a mix of 747s and 767s; Aeroflot (ARO) flies A320s, A321s and A330s; and Transaero (TRX) utilizes a mix of 737-700s and 737-800s. Although starting initially with just a single daily flight, easyJet (EZY) will increase frequencies from London to twice-daily from 15 April.
(EZY) launched services between Milan Linate and Rome Fiumicino, rivaling Alitalia (ALI) on one of its core trunk routes.
Alitalia (ALI) serves Milan - Rome up to 30 times daily.
From March 25 (EZY) initially operated twice-daily, A319 services on the route, increasing to five frequencies daily from April 8. It is expecting to carry 350,000 passengers annually on the service, joining its network of 14 domestic Italian routes.
In 2012 (EZY) carried over >12.5 million passengers on its Italian routes, up +9.4% year-on-year. It flies from 17 Italian airports and has 24 airplanes based in Italy, 18 at Milan Malpensa and six at Rome Fiumicino. (EZY) employs 870 people in Italy.
The (CEO)s of easyJet (EZY), the (IAG), Ryanair (RYR) and Virgin Atlantic (VAA) have jointly lambasted the UK’s aviation taxation policy after it ranked 139th out of 140 countries in a competitiveness study.
The World Economic Forum (WEF)’s Travel & Tourism Competitiveness Report 2013 ranked the country virtually at the bottom of an index for the competitiveness of its airport and aviation taxes, which triggered a further outcry over the UK taxes, particularly the contentious Air Passenger Duty (APD) levy.
The report has prompted a further joint call for action from (EZY) (CEO), Carolyn McCall, (RYR) (CEO), Michael O'Leary, (IAG) (CEO), Willie Walsh, and (VAA) (CEO), Craig Kreeger.
“The (WEF) report shows that Britain has the highest aviation taxes and charges in the world, ranked 139th out of 140, and rubbing shoulders with countries like Chad, Senegal and the Dominican Republic. It’s hard to find another comparable table on a key measure of international competitiveness which shows the UK to be trailing the rest of the world,” the (CEO)s said.
They described the level of (APD) as “unjustified” and “destructive” and have called on the UK chancellor to abandon (APD) in the forthcoming budget.
Citing a recent (PWC) report, they said such a move would boost the Gross Domestic Product (GDP) by “at least £16 billion/$24.2 billion in the first three years” and create nearly 60,000 new jobs, resulting in a net gain for the country.
EasyJet (EZY) has been promoted to the (FTSE) 100 index in the rebalance following the latest quarterly review to ensure the indices continue to portray an accurate reflection of the market they represent. The (FTSE) 100 is the index of the biggest firms listed on the London Stock Exchange.
(EZY) will be ranked 82 when the new listings take effect March 18. This will put it above sector contemporary TUI Travel (TUG), which joined the index as a result of the last review in December, and reflects a surge in the airline’s share price of close to 40%.
(EZY) announced a string of measures to improve fuel efficiency. It will install new lightweight Recaro seats on new airplane deliveries, 14 of which are scheduled from now until the end of next summer, use new lightweight trolleys on all its 214 airplanes, and install sharklets on all new airplanes deliveries from August 2013.
(EZY) said annual fuel savings resulting from installing Recaro SL3510 seats on 14 airplanes and sharklets on eight by the end of next summer, plus adding lightweight trolleys to all airplanes, will be -£2.7 million/-$4.08 million, roughly 0.23% of its annual fuel bill. Its maintenance program, which “routinely” washes the engine’s compressors, results in net fuel savings of around -£1.8 per year.
According to (EZY), the seats are -587 kg per airplane set lighter than the current seats, resulting in -£40,000 annual fuel savings per airplane. The lightweight trolleys are expected to results in -£5,000 annual fuel savings per airplane and the sharklets -£132,000 in annual fuel savings per airplane.”
(EZY) in February 2013 began a 12-month trial of the (CTT) Systems Zonal Dryer system on four A320s. The system reduces cabin moisture by up to -250 kg on each flight.
April 2013: SEE ATTACHED "AIRLINER WORLD" MAGAZINE UPDATE - - "EZY-2013-04 - UPDATE-A/B."
EasyJet (EZY) expects to report a pretax loss for the six-month period ended March 31 of between £60 million/$91.8 million and £65 million. The losses are widened from its previous guidance of between £50 million and £75 million, but halved from pretax losses of -£112 million in the year-ago period.
(EZY) (CEO), Carolyn McCall attributed the year-over-year improvement to disciplined capacity growth and a focus on cost management during the winter period. “We have also benefited from rival airlines taking winter capacity out of the market, the earlier timing of Easter compared to last year and the poor weather across the UK and northern Europe, which stimulated strong bookings in the last few weeks of the first half of the financial year,” McCall said.
Revenue per seat was up +8.5% year-over-year, driven in part by stronger than anticipated late bookings in the run up to the Easter holiday. Capacity rose +3.3%, slightly short of the 3.5% earlier forecast, due to bad weather causing a higher-than-expected number of cancellations.
(EZY) said the weakening of sterling against the euro, USA dollar and Swiss franc will have a £30 million to £35 million adverse impact on the six month-period and will take a £5 million hit from changes in the fuel price.
(EZY) will begin daily, London Gatwick - Bergen service on May 20.
(EZY) has received approval to operate services between Manchester and Saint Petersburg, the second largest city in Russia. An (EZY) spokesperson said (EZY) “does not have any plans to commence flights at present. We have started this process to enable us to fly there at some point, but this is a longer-term ambition.”
(EZY) launched flights from London and Manchester to Moscow in March following approval in October 2012 for flights between the countries’ capitals. (EZY) is the only airline connecting Manchester with points in Russia. (EZY) estimates it will carry more than >60,000 passengers between Moscow and Manchester in the first year.
(EZY) representatives have said they are interested in flying to Russia from (EZY)’s different European bases, but it is nearly impossible due to current bilateral agreements between Russia and other countries.
On 19 April, (EZY) started operations between Milan Malpensa (MXP) and Belgrade (BEG), the capital of Serbia, which has not been served by (EZY) before, and now offers thrice-weekly flights in competition with Jat Airways (JAT)’s existing four-weekly departures on the same route.
(EZY) commenced flights on the third Greek route it offers from its London Luton (LTN) base on 26 April. (EZY) now operates twice-weekly schedule on the 2,600 km route to Mykonos (JMK) island in the Cyclades, in addition to the existing thrice-weekly schedule to Corfu and twice-weekly to Heraklion (which was the last new route (EZY) launched from Luton, last April). On the launch day Ali Gayward, Commercial Manager for (EZY) said: “Demand for affordable holidays in Greece has grown dramatically over the last year, with (EZY) expecting to carry a staggering 150,000 passengers between Greece and the North West this summer.” Including a Santorini service starting the following week, (EZY) will serve a total of five routes to Greece from Manchester this summer.
In addition, on the following day, (EZY) launched twice-weekly flights on the 2,200 km route from Edinburgh (EDI) to Dubrovnik (DBV), which it already serves from two London airports (Gatwick and Stansted). Flights on both new routes are carried out using A319s.
(EZY) has selected John Barton as its new non-Executive Director & Chairman, replacing Mike Rake, effective May 1.
Barton, a chartered accountant, is currently Chairman of two companies (clothing and homewares chain Next and insurance underwriters Catlin Group). He is a former Chairman of insurance firm Jardine Lloyd Thompson and a former Director of Cable and Wireless, WH Smith and Brit Insurance Holdings. “John brings a wealth of plc board experience and valuable commercial expertise to easyJet (EZY),” said (EZY) nominations committee Chairman, David Bennett. “He has chaired major quoted companies for over >16 years, has sound financial expertise and great understanding of high profile, competitive consumer markets from his time at Next.”
Rake announced plans to step down January 28 after three years in the position. During that time, Rake survived several run-ins with (EZY) founder, Stelios Haji-Ioannou, including a vote to have him ousted, vocal public criticism over alleged conflict of interests and disagreement over the airline’s fleet strategy.
Haji-Ioannou’s spokesman said the (EZY) founder and Barton have not yet met. He declined to give any further comment on the appointment.
“My aim will be to ensure that the management team of (EZY) can continue to deliver profitable growth and market-leading returns,” Barton said.
May 2013: easyJet (EZY) has reported an interim net loss of -£47 million/-$71.8 million for the six months ended March 31, narrowed from a -£90 million net loss in the year-ago period. (EZY) said the results were boosted by an early Easter, stringent cost control, a -2.8% decline in competitor capacity, network adjustments and improvements to its revenue management system.
Flybe (BEE) has confirmed plans to sell its entire London Gatwick slot portfolio to easyJet (EZY) for £20 million/$30 million.
(EZY) expanded its domestic coverage from London Southend (SEN), as it commenced services on the 600 km route from the southern base to Edinburgh (EDI) on 2 May. A319s are deployed to operate the route. In addition, on 4 May, (EZY) increased its summer offering from Manchester (MAN) with the launch of services to Santorini (JTR). Twice-weekly flights are offered on the route and operated using A320s, in competition with Thomas Cook (JMA)/(GUE) and Thomson Airways (ATZ)/(TFY), which serve the market from Manchester to the Greek island with a single weekly frequency each.
(EZY) expanded its offering at London airports. On May 15th, (EZY) launched twice-weekly services from London Luton (LTN) to Olbia (OLB), which it already serves from six other airports. The 1,400 km route is operated using A319s. In addition, on May 20th, (EZY) inaugurated its first service to Norway and now offers daily flights connecting London Gatwick (LGW) and Bergen (BGO), which it operates using A320s in competition with Norwegian (NWG)’s 12 weekly flights.
EasyJet (EZY) is conducting a trail of mobile boarding passes; passengers can download bar-coded passes to their mobile devices.
(EZY) flew back a tonne of volcanic ash from Iceland as part of its contribution to an experiment planned in conjunction with Airbus (EDS) and Nicarnica, a spin-off company of the Norwegian Institute for Air Research, to test Airborne Volcanic Object Identifier & Detector (AVOID) volcanic ash detection technology this summer.
SEE ATTACHED "FLIGHT INTERNATIONAL" ARTICLE - - "EZY-2013-05 - VOLCANIC ASH DETECTOR."
June 2013: easyJet (EZY)'s May 2013 traffic statistics show that it has carried more than >60 million passengers in a 12 month period for the first time. In her first half 2013 results presentation, (CEO), Carolyn McCall identified the significant further growth opportunity she sees to take market share from traditional carriers on point-to-point routes at (EZY)’s existing airports.
(EZY)’s principal attraction versus these competitors is its low fares and this has been the main driver of demand. However, (EZY) is evolving its product in order to broaden the basis of competition.
(EZY) has initiated a number of digital developments, improved its Crew Resource Management (CRM) capabilities, built its brand strength, introduced allocated seating and is making its proposition more attractive to business travellers.
Easyjet (EZY) has entered a preliminary agreement with Airbus (EDS) to acquire up to 200 A320NEOs and 35 A320s. The deal is still subject to shareholder approval and is likely to hit some very public opposition from founder Stelios Haji-Ioannou, who has opposed further expansion of the airline. The agreement is a major blow for Bombardier (BMB), which had been pitching a 160-seat version of its CS 300 against Boeing (TBC) and Airbus (EDS) narrow bodies.
Once shareholders approve the agreement, (EZY) plans to place a firm order for 100 A320NEOs, plus 100 options. The 35 A320s are options that are converted from a previous deal. The current-generation airplanes are to be delivered between 2015 and 2017. (EZY) plans to take on the A320NEOs between 2017 and 2022. (EZY) has not yet made an engine selection.
(EZY) says it is planning for a fleet of 276 airplanes in 2022, but the availability of options and a flexible retirement schedule for the existing fleet opens up a range of fleet sizes from 165 to 298 airplanes. Currently, (EZY) plans to use 85 of the 135 proposed firm orders to replace ageing airplanes.
(EZY) says the A320NEOs offer an 11 - 12% cost-per-seat advantage over the existing A319s.
(EZY) (CEO), Carolyn McCall says the discounts on the list price are greater for the A320NEOs than they were for the last major Airbus A320 orders. Because of its revenue growth, (EZY) also plans to spend a smaller part of revenues on fleet renewal. (EZY)’s fleet investment was equivalent to 18% of revenues in the 2005 - 2012 period, but that will go down to 10 - 12% in 2018 - 2022.
The (EZY) order follows similarly sized deals for Norwegian (NWG) and Ryanair (RYR) and is likely to be followed by an expected (RYR) agreement for Boeing 737 MAX airplanes later this year. The massive commitments to further growth raise the question of whether overcapacity is building up in the European direct services market, and will likely lead to more competition between low cost carriers (LCC)s. The deals will probably result in more (LCC) traffic on trunk routes that have so far been the domain of legacy airlines.
(EZY) had considered the A320NEO, the Boeing 737 MAX and the CS 300. Bombardier (BMB) announced a 160-seat version of the CS 300 earlier this year, and has noted that it might a further stretch of the airplane some time in the future. (EZY) would have had to go for a split fleet if it had opted for the CS 300, because it would have also required a larger airplane. The commitment to the A320NEO raises the seat count for what will be the airline’s baseline airplane from 156 (A319) to 180 seats.
A320-214 (5638, G-EZWJ), ex-(D-AUBS).
July 2013: easyJet (EZY) has reported a +10.5% increase in revenue to £1.14 billion/$1.75 billion for its third-quarter ended June 30.
In its 3rd Quarter Fiscal Year (FY) 2013 (April - June) trading update, easyJet (EZY) has again beaten expectations, with revenue per seat up +6.7% versus previous guidance of around 4%. According to (CEO), Carolyn McCall, “easyJet (EZY) has delivered a strong performance in the third quarter in a benign capacity environment” as competitors continued to cut capacity on its routes.
Moreover, (EZY) sees better revenue performance continuing into 4th Quarter FY2013. Its newly announced FY2013 pre-tax profit target range of GBP450 million to GBP480 million, +40% to +50% higher than last year, is ahead of the GBP430 million consensus forecast.
The stock market has welcomed strong earnings growth and (EZY)'s plans to order new Airbus airplanes. (EZY)’s shares are up +165% over the past 12 months and have more than quadrupled over the past two years. Founder and leading shareholder, Sir Stelios Haji-Ioannou may not agree with management and the rest of the shareholders, but at least he can console himself that his family’s holding is now worth around GBP2 billion.
easyJet (EZY) added four new services, as two destinations were added to (EZY)'s offering from Liverpool (LPL) and one each from London Gatwick (LGW) and Lyon (LYS). All newly launched routes are operated using A319s. Dubrovnik (DBV) will be served by easyJet (EZY) from nine airports this summer, Nantes (NTE) from seven, Newquay (NQY) from two, while Kalamata (KLX) in Greece is a new destination for easyJet (EZY).
On July 4, Liverpool (LPL) to Newquay (NQY), 3x weekly; on July 5, (LPL) to Nantes (NTE), 2x weekly; on July 6, London Gatwick (LGW) to Kalamata (KLX), 2x weekly, vs Germania (GER), 1x weekly & Thomas Cook Airlines (JMA)/(GUE), 1x weekly; and on July 6, Lyon (LYS) to Dubrivnik (DBW). 2x weekly.
Following securing majority shareholder backing for its fleet plans, (EZY) has firmed up the purchase of 135 A320 family airplanes (100 A320neos and 35 A320ceos). The initial agreement was announced earlier in June.
The order by (EZY) sustains nearly 2,500 jobs as well as some 7,500 in the extended supply chain in the UK. (EZY) operates one of Europe’s most extensive route networks, and is the UK’s largest airline, carrying 55 million passenger a year. In addition, (EZY) is also the largest A320 Family customer and operator in Europe.
The A320 Family has over >9,500 ordered and over >5,600 delivered to over >380 customers and operators.
SR Technics (SWS) will provide line maintenance on easyJet Switzerland (TEB)’s 22 Swiss- registered A319s and A320s for three more years. Service includes standard line maintenance, routine inspections, troubleshooting, defect rectification and out-of-phase work packages as required.
2 A320-214s (5688, G-EZWK; 5702, G-EZWL), ex-(D-AVVF & D-AVVI) deliveries.
September 2013: EasyJet (EZY) will begin 3X-daily year-round, London Gatwick - Jersey service beginning March 30, 2014.
(EZY) plans to open its 23rd European base (20 bases for easyJet (EZY), plus Basel and Geneva for easyJet Switzerland (TEB), and its second in Germany* (after Berlin Schönefeld). This is (EZY)'s first base announcement since the opening of London Southend last April.
* Of course, (EZY) did have a base at Dortmund Airport between 2004 and 2008, peaking at four based units, but has since dwindled to become just a spoke destination, served only 13 times weekly from London Luton.
The Hamburg base will have three A319s serving 21 destinations in spring 2014. In addition, (EZY) said it will increase its fleet in Berlin by one airplane. (EZY) said it will more than double its network from Hamburg with 15 additional new business and leisure routes on the top of its existing portfolio of six routes offering almost 170 flights a week during summer 2014.
(EZY) (CEO), Carolyn McCall said launching the new base in Hamburg “will enable us to double the size of our operation. Hamburg and its region is one of the most dynamic economies in Europe with a significant and growing tourist industry.”
In Berlin, the additional airplanes will take the total based there to eight and will add more than >130,000 more passengers in the first year. During summer 2014, (EZY) will operate up to 635 flights per week.
When entering a new market, (LCC)s tend to go for routes which are the ‘low-hanging fruit’ (namely those where there is plenty of market to steal from existing operators). Looking at Hamburg’s top 12 routes in terms of weekly seats (which excludes long-haul services to Dubai), many of the ‘low-hanging fruit’ routes, including the top three, are domestic. These city pairs are dominated by airberlin (BER) and Lufthansa (DLH), and when consulting (EZY)’s 36-route network of services from its only other German base (Berlin Schönefeld) not one of them is domestic. (EZY) will therefore not enter the domestic market from Hamburg, ruling out five of the top 12 (Frankfurt, Munich, Düsseldorf, Stuttgart, and Cologne).
As (EZY) has four London bases already (Gatwick, Luton, Stansted, and Southend) it is unlikely that Heathrow will be started from a Hamburg base. (EZY) does serve Zurich and Vienna, but as they are airports #65 and #89 in terms of weekly seats (from 131 served airports), they are therefore unlikely to feature when there are more prominent opportunities (neither are served from Berlin Schönefeld). (EZY) currently does not fly to Istanbul Atatürk, but it does fly to Istanbul Sabiha Gökçen, so the former stays on list of potential routes, along with Palma de Mallorca, Paris (CDG) and Amsterdam, from Hamburg’s top 12 routes, as those being earmarked for the prospective (EZY) operation.
EasyJet (EZY) will fly to Reykjavik and Marrakech from its Bristol base from December. The routes will offer south west UK’s only connection to Iceland. Operated on 156Y-seater A319 airplanes, the services are expected to pull in more than >55,000 passengers during the first year. The Marrakech routes will start on December 14 and operate on Tuesdays and Saturdays; flights to Reykjavik will commence on December 12, operating on Thursdays and Sundays.
Ali Gayward, (EZY)’s Commercial Manager, enthused: “Reykjavik is fast becoming one of the most popular destinations for UK holidaymakers who are attracted to the fantastic scenery and natural beauty as well as the thriving bar and restaurant scene. “Marrakech boasts luxury hotels, rich history and culture and excellent shopping opportunities with a flight time of just over four hours.”
Robert Sinclair, Bristol Airport’s (CEO), said: “This announcement adds two more exciting destinations to (EZY)’s extensive route network from Bristol, which is the largest available at any UK airport outside London.” (EZY) has 11 airplanes permanently based in Bristol, alongside 420 staff and a network of 46 destinations. It flies more than >3 million passengers from Bristol a year.
(EZY) will introduce new service to Bordeaux and Jersey beginning summer 2014.
Transaero Airlines (TRX), and UK airline, easyJet (EZY), have signed a commercial agreement on flights between Moscow Domodedovo and London Gatwick. The agreement (signed by (TRX) (CEO), Olga Pleshakova, and (EZY) (CFO), Chris Kennedy: – means that (TRX) will distribute a proportion of seats on (EZY)t’s twice-daily flights on the Moscow - London route.
It applies to London flights UN7401/U28401 and UN7403/U28403 as well as Moscow flights UN7402/U28402 and UN7404/U28404, and will come into effect from October 27. Pleshakova commented: “In addition to our own services from Moscow Vnukovo airport to Heathrow airport, Transaero Airlines (TRX) will allow our passengers to get to London’s Gatwick airport from (TRX)’s base airport with an extensive route network: – Moscow Domodedovo.”
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According to FAPA.aero, easyJet (EZY) is recruiting pilots (FC) for permanent positions through various flight crew (FC) hiring firms.
October 2013: easyJet (EZY) has started its 19th route from its Rome Fiumicino (FCO) base, by offering a twice-weekly, A319-operated service to Tel Aviv (TLV). Initiated on September 24, (EZY) will face direct competition on the city pair from Alitalia (ALI) (23 weekly), El Al (ELA) (11 weekly), Israir Airlines (ISA) (five weekly) and Sun d’Or International Airlines (ERO) (twice-weekly). The link from the Italian capital becomes the airline’s fifth route into the Israeli capital, adding to its existing services from Basel, Geneva, London Luton, and Manchester.
easyJet (EZY) recommenced services to Bucharest, the Romanian capital on October 17th, this time to Bucharest Otopeni (OTP) from London Gatwick (LGW), having originally linked the London airport to Bucharest Baneasa (BBU) from October 2007, before switching to Otopeni and then ending the service on June 1st, 2008. The four times weekly service on the 2,086 km route is flown by a mix of A319s and A320s. There is no direct competition on this airport pair, however, British Airways (BAB) (double daily) and TAROM (TRM) (10 weekly) fly from London Heathrow to Otopeni, with Wizz Air (WZZ) (double daily) and Blue Air (four weekly) providing further competition from London Luton. The UK - Romania market has grown fourfold since Romania joined the (EU) in 2007, and this winter, seat capacity will be up +40% on last year, thanks to new routes from easyJet (EZY), TAROM (TRM) and Wizz Air (WZZ).
Joining the (EU) on January 1st, 2007 meant that Romania’s air transport market with the rest of the (EU) became liberalized, thus enabling new carriers to start services to and from Bucharest and other cities in the country with relative ease. In the UK - Romania market, Wizz Air (WZZ) was the first to grab the opportunity (on January 15) by starting flights between Bucharest Baneasa and London Luton, followed before the end of the year by both Blue Air and easyJet (EZY), who also operated flights from Bucharest’s second, ‘low-cost’ airport to London. (EZY) withdrew from the market on June 1st, 2008, but after a five-year hiatus, has just re-entered the market.
Since then, other routes have been launched, frequencies increased, and the market has shown solid year-on-year growth ever since, a rare achievement for any market from the UK during this period. Annual passenger numbers have grown almost fourfold, from a pre-(EU) level of around 200,000 to just under <800,000 in 2012. Much of that growth has come from new routes to airports in Romania other than Bucharest, though at the UK end, all services are still operating to and from London. In the first six months of 2013, passenger numbers were up once more, this time by just under <8%.
SEE ATTACHED - - "EZY-2013-10 - UK - ROMANIA LAST 12 YRS."
While British Airways (BAB) and TAROM (TRM) have long operated the main flights between London Heathrow and Bucharest Otopeni, since 2007, there have been several new services launched, not all of which have been successful.
* easyJet (EZY) stopped service between London Gatwick and Bucharest at the end of May 2008.
* Blue Air (BLD) service from Bucharest to London moved from Stansted to Luton at the start of the 2010 summer season. (BLD) also moved its Sibiu service from Stansted to Luton in March 2010, before discontinuing the route completely at the end of October 2010.
* All flights to Bucharest Baneasa (BBU) were transferred to Bucharest Otopeni (OTP) at the start of the 2012 summer season, when (BBU) was closed to commercial flights.
easyJet (EZY)’s decision to re-launch flights to Romania is an interesting move as it will compete indirectly with British Airways (BAB) and TAROM (TRM) (from Heathrow), as well as Blue Air (BLD) and Wizz Air (WZZ) (both from London Luton).
Apart from easyJet (EZY)’s return to the market, this winter sees some additional changes to the UK - Romania market. TAROM (TRM) is switching its twice-weekly Iasi flights from London Heathrow to London Luton, while Wizz Air (WZZ) is starting twice-weekly flights from Craiova on October 29th, its fifth Romanian route from London Luton. It is also increasing frequencies on its Bucharest route, presumably in response to easyJet (EZY)’s arrival. As a result, seat capacity between the UK and Romania is up a massive +40% in November 2013 when compared with November 2012. However, despite a small presence in Romania (two Italian routes from Constanta, and two routes from Targu Mures), Ryanair (RYR) has yet to enter the UK - Romania market.
(EZY) will begin 2x-weekly, Bristol - Reykjavik on December 12 and 2x-weekly Bristol - Marrakesh December 14 with A319s. (EZY) will introduce new service to Bordeaux and Jersey beginning summer 2014.
(EZY) launches summer 2014 services from Bordeaux: 4x-weekly to Brussels, 4x-weekly to Amsterdam, 3x-weekly to Marrakech, and once weekly to Belfast. New routes from other French cities in 2014: Paris (CDG) - London (LGW) (2x-daily) on March 30; Nice - Marrakech (3x-weekly) on April 1; Lyon - Palma de Mallorca (2x-weekly) on July 5; Montpelier - Basel (3x-weekly) on March 30; Brest - London (LGW) (3x-weekly) on July 12.
(EZY) will add 10 new domestic and international destinations from the UK as part of its 2014 summer schedule. (EZY) will open a new link from London Gatwick to Paris, operating a twice-daily service to Charles de Gaulle from March 30th. A six-times-weekly service will be added from Gatwick to Newcastle, competing with British Airways (BAB)'s service from London Heathrow. (EZY) will also fly from the London airport to Brittany and to Jersey, a route from which Flybe (BEE) will withdraw from from next March. (EZY) will also add new services from Belfast International airport, operating twice-weekly to Jersey and once per week to Bordeaux. From Scotland, new services will be operated from Edinburgh to Bodrum and Heraklion, and from Glasgow to Split and Kos.
November 2013: Happy birthday easyJet (ezy): 18 years, and 850 route launches!!! easyJet (EZY), Europe's third biggest airline in terms of passenger numbers, marks 18 years of operations. From inauspicious beginnings, it has become a major force in European air travel, and is arguably one of only two truly pan-European airlines.
Who remembers the early days of easyJet (EZY)? Based at unfashionable London Luton Airport (which had seen its fair share of airlines come and go in previous years), it had just two unairline-orange 737-200s and, as the internet was still a minority interest, it had a call center phone number written big on the side of the airplane claiming to offer air fares “for the price of a pair of jeans” (£29/$49). It was run by Stelios Haji-Ioannou, a cheerful, casually-dressed British-Greek-Cypriot who looked like an unemployed M Sc student. But while his independent family wealth at the time of the easyJet (EZY) start-up is in no doubt, not many would have laid bets on this entrepreneur succeeding where so many others have failed in taking on the combined might of over 20 European state-owned national carriers to create Europe’s third biggest airline, a mighty "(FTSE) 100" corporation, with a fleet of well over >200 modern Airbus airplanes.
With its first revenue flight departing Luton for Glasgow Airport on November 10th, 1995, (EZY) quickly attracted the full gaze of the media by embracing the new phenomenon of “reality TV,” allowing cameras to follow its operations for a regular, and highly popular television series. This showed a cheap airline for all it was (complete with denied boarding, delays, and irrelevant human-interest stories about check-in clerks who probably didn’t even work for easyJet (EZY)). The following is devoted to the key developments of the airline in terms of its network development in its first 18 years.
In its latest financial year (ending September 30, 2013) (EZY) reported passenger numbers of just over >60 million, another new record. As usual, the annual load factor was well in excess of 80% LF. Growth across (EZY)’s pan-European network has been maintained, even during the long recession, which is affecting most of the airline’s biggest markets. (EZY) reported double-digit growth every year until 2009, after which it has been less than <10%, with the exception of 2011. Along the way, easyJet (EZY) has also grown by acquiring three other airlines:
* In March 1998, (EZY) acquired a stake in a Swiss carrier (TEA) Basel (TEB). From the summer of 1999, (TEB) started operations on behalf of easyJet (EZY) from Geneva, followed in June 2005 by flights from Basel.
* In 2002, (EZY) bought Go (GFL), the low-cost carrier (LCC) originally set up by British Airways (BAB) based at London Stansted, but bought out by its management in 2001 with the assistance of venture capitalists 3i. A year later, 3i was made an offer by (EZY) that it couldn’t refuse, and so the second and third largest (LCC)s in Europe came together to become the biggest (at the time) (by the end of 2003, (EZY) had handled 20 million passengers, up from seven million just two years previously).
In 2007, (EZY) also agreed to acquire GB Airways (GBA), another UK airline, which had a significant slot presence at London Gatwick and Manchester airports. As a result, in the summer of 2008 (EZY) commenced operations from Manchester, from which this summer it has served over >30 destinations.
The UK is still easyJet (EZY)’s biggest market!
(EZY) currently has 22 bases spread across Europe, with half of them in the UK. A further five bases are in France (Lyon, Nice, Paris (CDG), Paris Orly, and Toulouse), two are in Italy (Milan Malpensa and Rome Fiumicino), two are in Switzerland (Basel and Geneva), with Berlin Schönefeld and Lisbon being the others. In 18 years, (EZY) has closed just three bases; those at East Midlands (which it inherited from Go), Dortmund, and Madrid. In 2014, Hamburg and Naples will become (EZY)’s next two bases.
Four of the UK bases are at airports which serve the London region. While back in 2005, the Gatwick, Luton and Stansted bases were all roughly the same size, eight years on, Gatwick now dominates, while operations at the other two airports have been cut back.
Analysis of (EZY)’s number of flights during the first week of August for the last 11 years, shows how (EZY) has become less UK-centric, with the share of departures from UK airports falling from almost 60% in 2003 to 35% in 2010. Since then, the UK share has stabilized and even grown again slightly in 2013.
Spain, which has been the airline’s second biggest country of operation for most of the last decade, has dramatically fallen behind both France and Italy in 2013, partly because of the closure of the Madrid base, and partly because of the Spanish recession (work out for yourself which came first). Conversely, Italy, another poorly performing Mediterranean economy, has seen its share of (EZY) flights rising from 2% in 2003, to over >13% in 2013. This is likely to rise further in 2014 with the opening of a new base in Naples.
In August this year, (EZY) was operating flights on just over >600 airport-pairs, up from over >570 the previous summer. The average weekly frequency on these routes is 7.6 (slightly more than daily), with London Gatwick to Barcelona being the highest frequency route in summer, with 42 weekly departures, an average of six flights per day. In addition, (EZY) serves a number of routes during the winter period only.
In total, (EZY) has launched around 850 routes in its first 18 years. As with many other (LCCs), not all the routes have been a long-term success and many have been withdrawn, in some cases after only a few months, and in other cases, after several years, reflecting the changing pattern of demand for certain destinations. easyJet (EZY) should be followed with great interest as it develops further bases in mainland Europe, and continues to be one of the leading airlines globally both for new air services, and for setting mould-breaking industry trends in delivery and service technique.
During the last 12 months, easyJet (EZY) has started flights to four new country markets: Luxembourg, Norway, Romania and, most adventurously, Russia. The Moscow service from London came about after bmi (BMA) was sold to British Airways (BAB, thus creating a ‘vacancy’ for a second UK designated carrier (in addition to (BAB)) to serve the regulated market, which was awarded to (EZY), much to Virgin Atlantic (VAA)’s frustration.
Comparison of (EZY)’s network in August 2013 with August 2012 by country, reveals, maybe surprisingly, that the UK saw the biggest increase in additional flights, with almost 150 extra weekly departures from UK airports. Switzerland (from just two airports), Italy and France were the next fastest-growing country markets in absolute terms. Five countries saw a very small decrease in weekly flights (between one and 10), but recessionary Spain saw its weekly departures cut by over >-200 from 1,242 to 1,033, a reduction of almost -17%. This now drops Spain to fourth place in (EZY)t’s network, behind both Italy and France.
At an airport level, London Gatwick has by far the biggest increase in weekly flights between August 2013 and August 2012, with the addition of some +11 additional daily departures. (EZY) now serves over >100 destinations from its biggest base, and operates more flights at London’s second busiest airport, than any other carrier. SEE ATTACHED - - "EZY-2013-11 - FASTEST GROWING AIRPORTS."
Switzerland has seen a +12% growth in the number of (EZY) flights, with both Basel and Geneva benefitting from the addition of roughly five daily departures. Geneva has seen the launch of new routes to Lille and Seville in 2013, while Basel’s catchment area has gained new services to Antalya, Brussels, Budapest, Catania, Manchester, and Santiago de Compostela.
The biggest decrease in the number of weekly flights is at Madrid (down by 107), Liverpool (down 31), London Stansted and Ibiza (both down by 28 weekly flights). Only one airport, A Coruña in Spain, is no longer served at all, while new airports in summer 2013 include: Belgrade, Bergen, Birmingham, Kalamata, Luxembourg, Moscow Domodedovo and Newquay. Since August, (EZY) has also added Bucharest to its network, making Romania (EZY)’s newest country market.
London Gatwick is now more than two-and-a-half times bigger than (EZY)’s next biggest base at Milan Malpensa. Of the top 15 airports for weekly departures this summer, 13 are designated bases with Amsterdam (12th) and Palma de Mallorca (15th) the airline’s busiest non-base airports. The airport’s base at London Southend (32nd) has now overtaken Newcastle (35th), leaving Newcastle as (EZY)’s smallest base in terms of weekly flights during the summer.
Analysis of schedule data for the first week of February 2014 and February 2013 shows that (EZY)’s seat capacity is up just under +<2%, although the figure for the ‘peak’ winter month of December is closer to 1%. This confirms the trend that airlines are focussing more on flying when they can make most money. (EZY)’s financial results for the first half of their financial year (October to March) always show a loss, but this is more than compensated for by the profits made during the second half of their financial year (April to September), which includes the key summer months.
Although seat capacity in February is up less than +2%, the number of routes operated is up by +6.7% from 433 to 462. Compared with the first week of February 2013, 49 new routes have been added, while 20 have been dropped, resulting in a net gain of 29.
easyJet (EZY) added three new services, one each from the EuroAirport in Basel (BSL), Liverpool (LPL) in the UK, and Toulouse (TLS) in France. All services are operated with low frequencies and (EZY) only faces competition in the market from Toulouse to Marrakech (RAK) in Morocco. As follows:
Basel (BSL) to Krakow (KRK), 3x weekly using A320s; Liverpool (LPL) to Larnaca (LCA) 2x weekly using A320s; and Toulouse (TLS) to Marrakech (RAK) 3x weekly using A319s vs AirFrance (AFA) 2x weekly, and Royal Air Maroc (RAM)weekly.
easyJet (EZY) initiated its fifth direct connection from the UK to Tenerife Sur (TFS) on November 6th. The service from Newcastle (NCL) is offered with twice-weekly frequencies (Wednesdays and Saturdays) using A320s with a capacity for 180Y passengers. The 3,230 km route to the busier of the two Tenerife airports will run throughout winter, terminating April 23rd, 2014. Direct competition to the popular Canary Island is provided by Jet2.com (JT2) (thrice-weekly), Thomas Cook Airlines (JMA)/(GUE) + (three) and Thomson Airways (ATZ)/(TFY) (four). Commenting on the launch, Ali Gayward, Commercial Manager for (EZY), said: “We are pleased to launch new services to Tenerife and believe it will be a popular addition to the range of destinations currently served from Newcastle International.”
(EZY) added one flight to Budapest - Basel for 5x-weekly, A319 service. (EZY) will begin Edinburgh - Heraklion on April 1st and Edinburgh - Bodrum on March 31.
Airbus (EDS), Dusseldorf University, easyJet (EZY) and sensing technologies specialist, Nicarnica Aviation have flown an Airbus A340 toward an artificial ash cloud to test their (AVOID) sensor concept.
The (AVOID) system, which was created by Fred Prata of Nicarnica Aviation, is like a weather radar for ash. Airplane-mounted infrared sensors detect ash concentrations from up to 100 km away, relaying images to the cockpit and airline operations department, so pilots (FC) can adjust their flight path to avoid the ash. “On the ground, information from airplanes with (AVOID) technology would be used to build an accurate image of the volcanic ash cloud using real-time data. This could open up large areas of airspace that would otherwise be closed during a volcanic eruption, which would benefit passengers by minimizing disruption,” the research partners said.
During the exercise, which marked the final stage of (AVOID) testing, an A400M released a tonne of fine volcanic ash into the atmosphere over the Bay of Biscay simulating conditions of the 2010 Eyjafjallajokull eruption. It was released at 9,000 - 11,000 ft, measuring 600 - 800 ft deep and 2.8 km in diameter.
An (AVOID) sensor-equipped A340-300 then flew toward the cloud to detect and estimate concentrations of volcanic ash in the atmosphere. The results were compared with measurements from within the cloud taken by a Diamond DA42 airplane. The partners said the (AVOID) sensors on the A340 identified and measured the ash concentration from distances of 60 km.
Airbus (EDS) Executive VP & Head of Engineering, Charles Champion said: “We are at the beginning of an invention which could become a useful solution for commercial aviation to prevent large-scale disruption from volcanic ash.” The ash used in the experiment was collected following the Eyjafjallajokull eruption, which closed large swathes of European airspace in April 2010. This caused the cancellation of 100,000 flights, costing the industry an estimated $2.6 billion.
Magnus Tumi Gudmundsson from the Institute of Earth Sciences warned that the risk of another Icelandic eruption remains high: “Considering the relatively long time since the last eruptions in two of Iceland‘s most active volcanoes, Hekla and Katla, both should be regarded as ready to erupt. It is not possible to predict when or where the next eruption will take place. What is certain is that it will happen.”
EasyJet (EZY), which flew the ash from Iceland to Toulouse, is planning to equip its fleet with the sensors. “This is a key step in the final journey of testing the technology and moving toward commercial certification. (EZY) will now work toward a non-integrated standalone system, which we aim to fit onto a number of our current fleet of airplanes by the end of 2014,” (EZY) Engineering Director, Ian Davies said.
December 2013: Easyjet is ramping up operations in Italy with a new route from Milan to Tel Aviv and and a +30% increase in its network from Rome Fiumicino. (EZY) already flies to Tel Aviv from London, Manchester, Basel, Geneva, Rome and Berlin. Milan will be operated four times a week starting in March.
Israel and the European Union (EU) recently sealed an "Open Skies" agreement and (EZY) has announced three new routes to the Middle Eastern state since then.
Meanwhile, new routes from Rome Fiumicino include Prague, Nantes, Menorca (Mahon) and Rhodes, while (EZY) will boost frequencies to a number of existing destinations.
(CEO), Carolyn McCall said: “Over >13.5 million passengers flew with us to, from and within Italy last year and today's news means that we will be providing more Italians with our friendly service, low fares and the best network of flights across Europe.” She added: "With the other announcements about Italy we have made in recent weeks, this means that we will continue to provide passengers with the best European network of any airline operating in Italy."
Existing services at the airport will also get a boost, with five additional flights to Gatwick, while Athens will be twice-daily in the summer. Extra flights will be added to Crete (Heraklion), Palma and Mykonos.
(EZY) currently has six based airplanes at Rome Fiumicino. Its expansion plans means it is aiming to carry four million passengers a year.
January 2014: Despite an increase in revenue, passenger numbers and capacity, as well as a slight improvement in load factor for the first quarter of the financial year ended December 30, 2013, easyJet (EZY) said it still expects to record a first-half loss.
Revenue for the first quarter was up +7.7% to £897 million/$1.48 billion from £833 million during the same period in the previous year, with £883 million of that attributable to seat revenue.
Passenger numbers in the first quarter were up +4.2% year-on-year to 14.3 million from 13.7 million, and capacity was up +4.1% to 16.1 million seats flown year-over-year. Load factor improved +0.1 point to 88.7% LF.
(EZY) said that revenue per seat grew +3.4% during the quarter, in line with expectations, despite a challenging competitive environment, the effect of strong post-Olympic demand on the previous year’s performance, and restrictions on travel to Egypt. EasyJet (EZY) said the growth in revenue per seat was driven by “careful management of capacity, combined with the performance of allocated seating and the management of fees and charges.” Revenue per seat also benefited from longer average sector lengths in the quarter.
Cost per seat, excluding fuel, increased +1.2% on a constant currency basis during the quarter, a figure that is expected to rise to +1.5% for the first half of the year and up to +2% for the full year.
Nevertheless, (EZY) said that, with first-half bookings in line with last year, it expects to report a first-half loss before tax of between -£70 million and -£90 million, assuming normal levels of disruption, compared to the -£61 million loss reported in the first half of last year. Last year, Easter fell on March 31, adding £25 million of revenue to the first-half 2013 figures. In the current financial year, Easter will fall in April.
EasyJet (EZY) (CEO), Carolyn McCall said: “EasyJet (EZY) has made a good start to the year. We have delivered revenue per seat growth in the quarter against a challenging competitive environment and the tough comparison with the prior year. The performance in the quarter demonstrates our continued focus on cost, progress against our strategic priorities and EasyJet (EZY)’s structural advantage in the European short-haul market against both the legacy and low-cost competition.”
EasyJet (EZY) announced the appointment of Anthony Drury to the newly created position of Director of Business. Drury joins (EZY) from American Express where he has held a number of senior leadership positions since 2002.
February 2014: easyJet (EZY) has started its sixth connection to Tel Aviv (TLV), this time from Berlin Schönefeld (SXF), joining existing services from London Luton, Manchester, Basel, Rome Fiumicino, and Geneva. Beginning on February 4th, the thrice-weekly, A320-operated service will face direct competition from El Al (ELA) (six times weekly) and Israir Airlines (ISA) (twice weekly). In addition, (EZY) will face five times weekly competition from airberlin (BER) at Berlin Tegel, as well as twice-weekly operations from Lufthansa (DLH).
March 2014: easyJet (EZY) has carried 239,000 passengers on UK - Russia destinations during its first year of flights between the two countries. The number of passengers between Moscow Domodedovo and London Gatwick reached 189,000, while between Moscow and Manchester, they were 50,000. Travelers from the UK accounted for 45.9%, while 54.1% of the passengers were from Russia. One out of 10 Russian passengers used easyJet (EZY) for business travel.
In October, 2012, the UK Civil Aviation Authority granted approval to British Airways (BAB) and easyJet (EZY) to operate services between London and Moscow Domodedovo under bilateral agreements with the Russian government. At the end of 2012, (EZY) also announced its Manchester - Moscow route.
In April, 2013, (EZY) became the designated carrier for Manchester - Saint Petersburg but (EZY) does not have immediate plans to launch that service.
easyJet (EZY) has introduced its seventh route to Tel Aviv (TLV) in Israel, with the launch on March 6th of thrice-weekly, A320 flights from its major base at Milan Malpensa (MXP). Competition on the 2,710 km route is provided by El Al (ELA) (currently with 10 weekly flights) and Meridiana (ALS)/(EUY) (twice-weekly flights). (EZY) already serves Tel Aviv from two UK airports (London Luton and Manchester), two Swiss airports (Basel and Geneva), Berlin and Rome. This summer, easyJet (EZY) will be operating over >460 weekly departures from Milan Malpensa to almost 50 destinations.
(EZY) begins new London (LGW) services March 30: - Paris (CDG) (2x-daily), - Brussels (12x-weekly), - Newcastle (11x-weekly), - Strasbourg (4x-weekly), - Inverness (2x-daily), and - Jersey (3x-daily).
A319-111 (3003, G-EZBI "Romeo Alpha Juliet" repainted in William Shakespeare-ispired markings and re-named - - - - SEE PHOTO - - "EZY-A319-ROMEO-2014-03."
April 2014: EasyJet (EZY) has signed seven- and 10-year deals with London’s Gatwick and Luton airports, respectively, enabling (EZY) to commit to growth at those locations.
(EZY) said the seven-year deal with Gatwick Airport would provide the framework for continued growth through increased slots and by deploying larger airplanes. EasyJet (ezy) will replace its 156Y-seat Airbus A319s with 180Y-seat A320s and, from 2017, A320neos. By the end of March 2015, it will increase capacity and passenger numbers by around 10% year-on-year.
(EZY) (CEO), Carolyn McCall said: “Gatwick is our largest base, so it is of strategic importance to secure this new agreement. [It] gives (EZY) certainty on passenger charges over the next seven years and a clear incentive to continue to grow. Our shared ambition is for Gatwick to be both our biggest and best airport.”
Gatwick (CEO), Stewart Wingate described the agreement as “landmark” for London Gatwick. He said: “Four years after the end of the (BAA) monopoly at the airport, this partnership highlights how far we have come to be able to operate within a new framework of commitments and contracts.”
(EZY) has 57 airplanes based at Gatwick, operating 108 routes.
The new 10-year deal with Luton Airport ((EZY)’s first base and the airline’s home) could see (EZY) more than double its passenger throughput from four to nine million a year. Luton is (EZY)’s second largest London base, and (EZY) is planning to increase capacity by around +20% over the next year, adding new business and leisure routes and increasing frequencies on some of its existing 39 routes. EasyJet (EZY) is the largest airline operating from Luton and has 15 airplanes based there.
McCall said: “This is a substantial, long-term deal, which will enable us to double our size at London Luton in the next decade and add an even greater range of business and leisure destinations. We are looking forward to working with the airport, and the new concession owners Ardian and (AENA). Their financial investment and long-term commitment to developing London Luton were a key factor in our agreeing to this new deal and will help us deliver our plans. The speed of (EZY)’s expansion at London Luton is in part reliant on the airport’s plans for much-needed improvements being approved.”
McCall said Luton could make “a real and immediate contribution to the need for more airport capacity in the South East.” It currently handles nearly 10 million passengers a year, which could increase to 18 million if expansion plans are given the go-ahead. “This demonstrates that our industry can make the best use of existing capacity in the South East of England before any new runway is built,” she said.
(EZY) has appointed Ruth Spratt as its new Head European sales. Ruth, previously (EZY)’s Head UK sales, will succeed Toby Joseph this month.
EasyJet (EZY) and airBaltic (BAU) have become the latest European carriers to allow passengers to use personal electronic devices (PEDs) throughout all phases of flight. The European Aviation Safety Agency (EASA) relaxed its rules on (PED) use on takeoff and landing last December, although implementation is being handled by national regulators.
EasyJet (EZY) implemented the change April 14, while Latvian carrier airBaltic (BAU) will adopt the new policy from April 18, provided the devices are put into flight mode. Most carriers, including airBaltic (BAU), have maintained restrictions on the use of bulkier items, but easyJet (EZY) said passengers can use their laptops during all flight phases. “All passengers onboard will be allowed to use their (PED)s such as laptops, (DVD) players, tablets and mobile phones onboard in flight mode throughout the whole flight including during takeoff and landing,” easyJet (EZY) said.
The USA was the first to lift its (PED) restrictions, followed by Europe; however, other regions are still working to implement the changes.
(EZY) commenced another European service from Lisbon (LIS) to Nice (NCE) on April 10th. The 1,471 km sector to the fifth most populous city in France will be served thrice-weekly, utilizing (EZY)’s 156Y-seat A319s. (EZY)’s 18th route from Lisbon will face competition from (TAP) Portugal’s 16 weekly flights.
May 2014: easyJet (EZY) recorded a slightly reduced loss for the first half of its financial year compared to the same period a year ago, buoyed by increasing numbers of business travelers.
The company made an after-tax loss of -£41 million/-$69 million compared to a -£47 million loss last time. The first half of easyJet (EZY)’s financial year, which runs from October to the end of March, is traditionally the weaker half of the year.
(EZY) reported revenue of £1.70 billion, up from £1.60 billion for the year-ago period.
(CEO), Carolyn McCall characterized the results as “a solid first-half performance.” Prospects for the rest of the year were good, she said: “There continues to be a number of attractive opportunities for easyJet (EZY) to grow profitably in Europe.”
The number of passengers carried rose +4%, to 27.6 million, +1 million more than for the same period last year. However, the number of business (C) passengers, who tend to pay higher fares due to last-minute bookings and desire for higher-yielding seats, grew +8%. In the year ended March 31, (EZY) carried more than >12 million business (C) passengers for the first time.
The continuing emphasis on attracting business (C) traffic has seen (EZY) partnering with Sabre to enhance its booking processes and renewing its distribution agreement with Travelport.
Revenue per seat grew +2.6% on a reported basis to £54.80.
Other factors behind (EZY)’s improved performance included the performance of allocated seating and management of baggage charges; closure of underperforming routes; and competitor capacity retrenchment resulting in a -1.3% (-900,000 seat) decline in competitor capacity on easyJet (EZY) routes over the six months.
It predicts growth in Europe’s short-haul market will continue for the second half of the year, due to more stable fuel prices, improved economic forecasts and growing consumer confidence. It will also reap the benefit of a batch of recently acquired slots at London Gatwick.
The airline business is a seasonal one and European airlines tend to lose money in the winter. EasyJet (EZY) is no exception in this respect, but it has again narrowed its winter loss in its first half (1HFY) 2014. With targeted capacity growth, it increased its revenue per seat faster than cost per seat.
Revenue per seat was also helped by a growing number of passengers flying for business purposes. On a rolling 12 month basis, (EZY) said that it carried 12 million business (C) travellers in the year to March 2014, around 20% of total passenger numbers. Since it started to target business (C) passengers in 2010, the number has grown by +44%, demonstrating what can be achieved without having a business (C) class cabin.
Competitor capacity growth is accelerating this summer and (EZY) will see its own growth accelerated by the inclusion of Gatwick (LGW) slots acquired from Flybe (BEE). This may lead to some downward pressure on yields, although the strength of its network and product features such as allocated seating may mitigate this. Certainly, narrower winter losses place it well for another year of healthy growth in profit.
easyJet ((IATA) Code: U2, based at London Luton) (EZY) has begun retrofitting its fleet of A320-200s with sharklets. So far, research shows that five airplanes (G-EZWG, G-EZWH, G-EZWI, G-EZWJ and G–EZWK) have already been upgraded and have been returned into service. (EZY) has a total of fifty-five A320s in service.
Airbus Industrie (EDS) launched its Sharklet retrofit program in late 2013 and claims the upgrade will lengthen the airplane’s service life, reduce fuel costs by up to -4% and increase mission range by up to +100 nautical miles.
June 2014: easyJet (EZY) launched a fourth route from Montpellier (MPL) in the south of France, this time to Rome Fiumicino (FCO). The new 705 km service will be operated three times weekly using the EZY)’s popular A319s, and will face competition from (ALI)’s twice weekly flights. (EZY) already serves Montpellier from its bases at Basel (since March 30th 2014), London Gatwick (May 2008) and London Luton (July 2009). While Ryanair (RYR) and Vueling (VUZ) embark on a battle at Rome’s biggest airport, it should be noted that (EZY) will, this summer, operate non-stop to 33 destinations from Italy’s busiest airport, increasing its peak summer seat capacity at the airport by almost +20%.
easyJet (EZY) will start six seasonal routes later in June, with all routes due to finish by the end of September. Only one of the routes faces any sort of competition, which is the Rome Fiumicino (FCO) to Menorca (MAH) sector, which will see (EZY) up against Vueling (VUZ) (four times weekly) and Meridiana (ALS)/(EUY) (weekly). The longest route is the 2,401 km sector from Faro (FAO) to Berlin Schönefeld (SXF), while the shortest is the 581 km hop from Basel (BSL) to Bastia (BIA).
July 2014: EasyJet (EZY) is forecasting up to +19% pre-tax profit growth for its 2013 - 2014 financial year, after releasing details of its third-quarter performance.
In a market update, (EZY) said it expects to deliver a net profit of +£545 - +£570 million/+$929 - +$972 million for the year to September 30, 2014, +14% to +19% up on its prior-year net profit of +£478 million. (ezy) added the forecast assumes “no further significant disruption,” but said the situations in Egypt, Israel, and Moscow are factored into it.
For the three months ended June 30, (EZY) carried 17.9 million passengers, up +9.4% on the prior-year quarter. Capacity was up +6.8%, primarily focused on London Gatwick (16%), Basel (16%), Geneva (7%), and Rome Fiumicino (7%). This pushed easyJet (EZY)’s average load factor up +2.2 points to 90.4% LF.
Revenues increased +8.6% to £1.2 billion, while revenue per seat rose +1.7% to £62.47, or by +2.7% at constant currency. EasyJet (EZY) (CEO), Carolyn McCall described the third quarter as “solid.” (EZY) added the revenue growth was driven by the timing of Easter, along with “continued digital, brand and revenue initiatives.”
Non-fuel costs were narrowed -1.3% during the quarter, driven by a reduction in ground-handling overheads, pre-emptive cancellations (minimizing disruption costs) and milder weather. However, airport charges (particularly in Italy) and maintenance costs increased.
Off the back of this strong cost performance, (EZY) narrowed its forecast for a +2% cost increase over the full year to just 0.5%. Despite the improvement, it is accelerating cost-savings initiatives.
“The recently announced choice of (CFM) International to supply engines for future deliveries of current and new generation airplanes planned for delivery between 2015 and 2022, will deliver significant cost savings. Fleet up-gauging, airport deals and Engineering & Maintenance contract updates will also add to (EZY)’s ability to improve its cost position relative to the competition.”
This summer, (EZY) is rolling out +15% growth at London Gatwick Airport, after acquiring all of UK regional Flybe (BEE)’s slots at the airport. From 2015, easyJet (EZY) plans to further optimize slots at the south London airport. It has also announced plans to open new bases at Amsterdam and Porto from spring 2015, positioning two airplanes at each airport.
Overall, (EZY) expects to grow capacity +6.4% during the second half; 77% of seats are already booked, which are expected to deliver a further +1% increase in revenue per seat.
In the first half of the next financial year, (EZY) is eyeing around +3.5% growth, with planned increases at Amsterdam, Basel, Geneva, Hamburg, London Gatwick, London Luton, Milan Malpensa, Naples, and Rome Fiumicino. As of June 30, easyJet (EZY)’s fleet comprised 222 airplanes (153 Airbus A319s and 69 A320s).
easyJet (EZY) is continuing to launch a plethora of seasonal services from its European bases, including three of them, namely those at Belfast International (BFS), Geneva (GVA) and Hamburg (HAM). Only two of the routes faces any sort of competition, both from Hamburg, which will see (EZY) up against airberlin (BER) (thrice-weekly) on Ibiza (IBZ) and germanwings (RFG) (twice-weekly) to Split (SPU). The longest of the five new routes is the 1,767 km sector from Hamburg to Ibiza, while the shortest is the 563 km hop from Geneva to La Rochelle (LRH).
(EZY) started a new route to France (a thrice-weekly operation to Brest (BES)). The seasonal service, which operates until September 6th, has become (EZY)’s 103rd destination from its biggest base at London Gatwick (LGW), and its 14th in France. Begun on July 12th, the 428 km sector will be operated by (EZY)'s fleet mainstay (its 156-seat A319s) and will encounter no direct competition.
easyJet (EZY) is close to announcing that Amsterdam will become its 26th base, as (EZY) continues to pursue those markets where it can attract high-yielding business passengers with high frequency services. (EZY) is expected to base three airplanes at the Dutch airport from next summer, and anticipates to double its existing annual passenger volumes to seven million.
Country - - - - easyJet routes served from Amsterdam (WF)
Croatia - - - - - - - - - - - -Split (3)
Czech Republic - - - - - - Prague (4)
France - - - - - - - - - - - -Bordeaux (4)
Germany - - - - - - - - Berlin Schönefeld (12)
Italy - - - - - - - - - Milan Malpensa (20), Rome Fiumicino (8)
Portugal - - - - - - - - - - - Lisbon (3)
Switzerland - - - - - - -Basel (7), Geneva (7)
UK - - - - - - - - - - Belfast International (9), Bristol (9),
- - - - - - - - - - - Edinburgh 9), Glasgow (4), London Gatwick (41),
- - - - - - - - - -Liverpool (13),London Luton (25), Manchester (13),
- - - - - - Newcastle (4), London Southend (14), London Stansted 20).
(EZY) currently offers 230 weekly flights and over >37,000 weekly seats from Amsterdam split across eight countries, yet despite this volume of flying, the airport is technically not a base. The UK market commands 70% of the airline’s weekly seats and flights into the Dutch gateway, and looks to be well covered in terms of geographical spread (on this basis it is perhaps unlikely that any potential new routes that may emanate from (EZY)'s new base are going into the UK. That said, fellow (FIGUS) countries (comprising of France, Italy, Germany, UK, and Spain) of Spain, France, and Germany would seem obvious choices for network growth from Amsterdam.
High frequency services targeting business (C) passengers wanting to travel between Amsterdam to Madrid and Barcelona may well be a target in Spain, along with some routes which will allow (EZY) to join the dots between its hubs in France (Paris (CDG), Paris Orly, Lyon, Toulouse, and Nice), Germany (Hamburg) and Italy (Naples). Outside of (FIGUS), (EZY)’s new Porto base may also be on the route shopping list.
The news on Amsterdam comes in the same week that (EZY) announced its intention to make Porto its second Portuguese base, and its 25th overall. With any new routes still to be confirmed, the two airplane base will open next spring. (EZY) has been flying to Portugal for over >15 years and has carried nearly four million passengers over the last 12 months. (EZY) currently serves Faro (112 weekly flights, 18,600 weekly seats to 12 destinations in four countries), Funchal (23 weekly flights, 3,700 weekly seats to three destinations in two countries), and Porto (65 weekly flights, 10,700 weekly seats to six destinations in three countries) airports and opened a base at Lisbon (132 weekly flights, 21,000 weekly seats to 19 destinations in nine countries) in 2012.
Over the last 12 months (EZY) has carried almost 800,000 passengers from Porto to its six destinations (Basel, Geneva, London Gatwick, Lyon, Paris (CDG), and Toulouse). Having started operations into Portugal’s second largest city in 2007, it currently holds 11% market share (weekly seats) behind Ryanair (33%) and TAP Portugal (27%).
Glasgow, Scotland recorded 7.4 million passengers in 2013. Having a population of around 600,000, the city of Glasgow is served by both Glasgow International and Glasgow Prestwick, with the former being the main gateway for the largest city in Scotland. In fact, the airport is classified as the eighth busiest gateway in the UK, below London Luton and Birmingham, according to 2013 traffic figures.
Glasgow’s summer program includes over >76 non-stop services operated to 22 countries within Europe, North America and the Middle East. Operated and owned by Heathrow Airport Holdings (formerly (BAA)), Glasgow serves as a base for Flybe (BEE), easyJet (EZY), Jet2.com (JT2), Thomas Cook Airlines (JMA)/(GUE) and Thomson (ATZ)/(TFY). Nonetheless, starting this October, Ryanair (RYR) is opening its 69th base at the Scottish airport, where it will base one 737-800, bringing an additional +850,000 passengers per year. Furthermore, (RYR) will commence thrice-daily flights to London Stansted and Dublin, with the latter having been switched from Prestwick. Overall, (RYR) will be operating a total of 55 weekly flights from Glasgow, including services on seven winter routes, namely Bydgoszcz, Derry, Riga, Warsaw Modlin, and Wroclaw.
The 2007 terrorist attack, along with the global financial crisis, had a major impact on passenger flows to and from Glasgow in the 2008 - 2010 timeframe, after traffic peaked in 2006 at 8.8 million. As a result, the airport’s traffic posted a significant decrease of -25% in 2010 when compared to 2007. Since then, Glasgow has been consolidating its annual passenger performance, reaching 7.4 million last year (representing an increase of +2.9% over 2012 figures). In the first five months of 2014, for which traffic data is already available, the airport noted an increase of +4.9% when compared to the corresponding period of 2013, with 2.7 million passengers achieved until the end of May. If the airport continues on this growth trajectory, it will achieve over >7.7 million passengers in 2014.
Monthly traffic figures indicate that demand follows a typical seasonal profile, with July being twice as busy as January, the month where the airport records the lowest traffic figure.
The top 12 airlines serving Glasgow account for over 95% of all weekly seats this August, while a total of 22 carriers operate from the Scottish gateway. Even though it reduced its weekly capacity by -5.5%, easyJet (EZY) is still the biggest operator - - SEE ATTACHED - - "EZY-2014-07-GLASGOW TOP 12 OPERATORS," as it controls 21% and 17% of weekly seats and flights, respectively. (EZY) operates a total 16 routes from Glasgow this summer, with Belfast and London Luton being the most frequently flown destinations with 20 weekly flights.
EasyJet (EZY) begins new London Luton services: 4x-weekly to Naples, on October 29; 4x-weekly to Munich, on November 3; 6x-weekly to Basel, on November 7th. It begins 3x-weekly, London Gatwick - Reykjavik on October 27; 2x-weekly, Belfast - Reykjavik on December 12; 2x-weekly Glasgow - Marrakech on October 29; weekly, Aberdeen - Geneva on December 13; 2x-weekly, Manchester - Madeira on February 14, 2015, and 2x-weekly, Edinburgh - Madeira on February 3rd.
(EZY) will open a base at Amsterdam Schiphol from Spring 2015. (EZY) has flown from Schiphol since 1996; this will become its 26th network base. Three Airbus A320s will be based at Schiphol and (EZY) expects to fly an additional 600,000 passengers next year from the Netherlands, a +16% increase. EasyJet (EZY) also begins London Luton - Rome (FCO) 4x-weekly service on October 26.
EasyJet (EZY) has welcomed a deal between Nicarnica Aviation and Elbit Systems to put the Airborne Volcanic Object Identifier and Detector (AVOID)-based ash detection technology into production.
The deal will see Nicarnica Aviation’s (AVOID) technology incorporated into Elbit Systems Enhanced Vision Systems (EVS) solution, with production scheduled to start next year.
(EZY) aims to fit the first unit onto one of its airplanes, becoming the first airline equipped with the volcanic ash avoidance system.
(EZY) Engineering Director, Ian Davies said: “This deal signifies a tangible and significant step forward in bringing this technology from conception into reality. (EZY) has supported the development of this innovative technology since the 2010 volcanic eruption, which brought aviation to a halt in Europe. We look forward to being the first airline to fit this technology on our airplanes.”
The (AVOID) system is like a weather radar for ash, using infrared technology fitted to airplanes to supply images to pilots (FC) of any ash cloud up to 100 km ahead of the airplane and at altitudes between 5,000 ft and 50,000 ft. Pilots (FC) will then be able to re-route their airplanes to avoid any ash cloud, and the images will also be transmitted to (EZY)’s Operations Control Center.
On the ground, information from airplanes equipped with (AVOID) technology can be used to build an accurate image of volcanic ash clouds using real time data, potentially opening up large areas of airspace that might otherwise be closed during a volcanic eruption, minimizing disruption.
The technology was tested by Airbus (EDS) last November through a unique experiment that involved the creation of an artificial ash cloud.
easyJet (EZY) has placed an order with (CFM) International for 270 engines, comprising 200 (LEAP-1A) engines to power its Airbus A320neo family airplanes and 70 (CFM56-5B) engines to power additional A320ceo airplanes. The order, valued at more than >$3.3 billion at current list prices, was announced at the Farnborough Airshow.
(EZY) also has purchase rights for an additional 100 A320neo airplanes. The 100 A320neo and 35 A320ceo orders were originally announced in July 2013.
EasyJet (EZY) (CEO), Carolyn McCall said the engines will “help (EZY) to maintain its (LCC) base and the new generation A320neo is expected to deliver a cost per seat saving of between -11% and -12% compared with the current generation A319. They will also provide important environmental benefits through a significant improvement in fuel efficiency and a reduction in noise.”
August 2014: UK air navigation services provider (NATS) has signed an agreement with London Luton Airport to extend the current contract for provision of tower and Engineering services at the airport for a further +2 years. (NATS) retained the contract following a competitive tendering process in 2012, and it will now run until November 2017.
(NATS) will also continue to provide approach services as part of its management of the London Terminal Maneuvering Area (TMA). (NATS) last month said it was “extremely disappointed” to have lost the contract for the provision of tower services at London Gatwick (LGW) Airport to German rival Deutsche Flugsicherung (DFS).
In 2013, London Luton Airport handled 9.7 million passengers with (NATS) controllers handling 97,615 flights, making it the fifth busiest passenger airport in the UK.
Lufthansa Systems (DLH) (LHS) announced that easyJet (EZY) is relying on its aeronautical solutions for Flight Operations. (EZY) has opted for the Lido/eRouteManual cockpit solutions as well as the Lido/iRouteManual and Lido/Enroute apps, thereby migrating from its old paper-based navigation charts to a digital solution. Since the end of May, easyJet (EZY) has been flying with entirely paperless cockpits.
September 2014: easyJet (EZY) started destination #47 from Milan Malpensa (MXP) and its seventh to Spain, adding to its existing flights to Barcelona, Ibiza, Madrid, Mahon, Malaga, and Palma de Mallorca, with the start of thrice-weekly operations to Tenerife South (TFS) on September 2. The 2,961 km sector, will be flown by (EZY)’s 180-seat A320 in direct competition with Meridiana (ALS), which operates the city pair on a weekly basis. This becomes (EZY)’s 12th route to the Canary Island airport, and second from Italy, as it already offers flights from Rome Fiumicino airport.
easyJet (EZY) has firmed up purchase rights on 27 A320ceos, for delivery between 2015 and 2018, to tap into “disciplined growth” opportunities.
All-Airbus operator, (EZY) already operates a fleet of 225 A320s and expects to grow to 304 airplanes by 2019, although this could be decreased to 204 or increased to 316 airplanes depending on market conditions. This growth will be supported by the 27 newly ordered airplanes, along with the 35 A320ceos and 100 A320neos it ordered in June last year.
(EZY) said it has secured the airplanes at “a very substantial price discount,” adding that these latest A320s will give it a 7% - 9% unit cost advantage over its current-generation A319s.
“We are bringing new airplanes into the fleet, as we continue to see a significant number of new profitable opportunities in our core markets in the near term and in order to maintain our cost advantage,” (EZY) (CEO) Carolyn McCall said.
With this order, (EZY) will have committed to a total of 415 A320 family airplanes, including 315 A320ceos, making it Airbus (EDS)’ largest narrow body customer in Europe. (EZY) also has purchase rights on a further 100 A320neos.
The move is likely to draw criticism from (EZY) Founder and shareholder, Stelios Haji-Ioannou, who has previously opposed further fleet growth and called for greater return to (EZY)’s investors. Haji-Ioannou also recently raised concerns over excessive pay levels at Fastjet (FSJ), another of his airline investments.
“The additional airplanes will augment easyJet (EZY)'s highly cash generative model and the board will continue to keep the balance sheet under review and intends to make further returns of capital to shareholders in the coming years,” (EZY) said.
Haji-Ioannou may be partially placated by (EZY)’s plans to increase its dividend payout from one-third of its profit after tax to 40% for the financial year ending September 30. (EZY) is expected to issue its next financial and operational performance update on October 3 and its full-year results on November 18.
EasyJet (EZY) has ordered 54 (CFM56-5B) engines from (CFM) International to power its 27 Airbus A320ceo airplanes scheduled for delivery between 2015 and 2018. (EZY) is exercising 27 existing purchase rights. (CFM) values the firm engine order at more than >$560 million at current list prices.
(EZY), which operates 226 (CFM56-5B)-powered A320-family airplanes, selected (CFM)’s (LEAP-1A) for its new fleet of A320neo airplanes.
All of (EZY)’s new engines will include the (CFM56-5B) Performance Improvement Package (PIP) configuration.
October 2014: News Item A-1: EasyJet (EZY) has increased its full-year pre-tax profit forecast to +£575 to +£580 million/+$930 to +$935 million, after receiving a boost from the knock-on effects of the Air France (AFA) pilots (FC)’s strike.
Previously, (EZY) was predicting a +£545 to +£570 million pre-tax profit for its financial year ending September 30, 2014, but the top end of this outlook has been increased by +£10 million.
“The impact of the Air France (AFA) pilots (FC)’s strike in September is expected to increase (EZY)’s revenue by around +£5 million as (AFA) passengers switched to (EZY). This, combined with the strong finish to the year, means the board’s expectation is for a pre-tax profit for the 12 months ended September 30, 2014 of between £575 million and £580 million,” (EZY) said in its pre-close statement.
Now that the year has ended, (EZY) has also tweaked its second-half guidance in several other areas. Over the final six months of the financial year, capacity was expected to rise by around +6.4%, but this slipped by -0.1 of a point to 6.3%. Driven by a strong end to the summer season, second-half revenue per seat is now forecast to rise +2%, rather than +1%, while cost per seat, ex-fuel will go up by about +0.7% instead of +0.5%.
“This strong performance was driven by the continued delivery of (EZY) lean initiatives offset by increases in regulated airport charges, navigation and the costs associated with the increased load factor in the period,” (EZY) said.
Two volatile cost areas (exchange rates and fuel) have both worked in (EZY)’s favor. Fuel costs were expected to be +£5 million higher than in the second half of 2013, but this forecast has swung to a +£2 million improvement against the comparable half-year period. (EZY)’s currency outlook (for £15 million favorable impact against second half (H2) 2013) has remained unchanged.
“We finished the year strongly. Our performance demonstrates our continued focus on cost and progress against all our strategic revenue priorities and further emphasizes (EZY)’s structural advantage against both legacy and low-cost competition,” EasyJet (EZY) (CEO), Carolyn McCall said, adding this has paved the way for a fourth consecutive year of record profits. (EZY) will release its full-year results on November 18.
Heading into 2015, easyJet (EZY) has already sold over a quarter of its seats for the first half, slightly up on the prior year. It is expecting fuel costs to be -£20 million lower than in the first half of 2014 and -£50 million lower overall for the full financial year to September 30, 2015. The first half is likely to see a +£10 million exchange rate gain, but this will swing to a £20 million adverse impact for the full year.
News Item A-2: EasyJet (EZY) has used the start of the Winter 2014/2015 season to add four routes to its network. Of the four, London Gatwick (LGW) to Reykjavik/Keflavik (KEF) is the most heavily competed, with (WOW) air (which recently announced its plans to fly to Boston and Baltimore/Washington next summer) and Icelandair (ICE) (which plans to add Portland and Orlando to its transatlantic portfolio for Summer 2015) already offering 21 weekly flights combined. Three out of four routes launched by (EZY) face direct competition. While the shortest sector length goes to the Rome Fiumicino (FCO) to Marseille (MRS) route at 604 km, it is the 2,649 km long, twice-weekly Geneva (GVA) to Reykjavik/Keflavik which is the longest of the foursome.
Rome Fiucimo (FCO) to London Luton (LTN) A319 4x vs Monarch Airlines (MON) 3x; to Marseille (MRS) A319 7x vs Alitalia (ALI) 7x, Vueling (VUZ) 6x.
Geneva (GVA) to Reykjavik/Keflavik (KEF) A320 2x.
London Gatwick (LGW) to (KEF) A320 3x vs (WOW) Air 14x, Icelandair (ICE) 7x.
(EZY) begins new Amsterdam services for summer 2015: Dubrovnik (2x-weekly), Nice (7x-weekly), Olbia (2x-weekly), Toulouse (3x-weekly), Venice (7x-weekly) and Hamburg (6x-weekly).
News Item A-2: EasyJet (EZY) launched a new passport scanning function on its mobile app, the first European airline to have such a feature. Passengers can now scan their passport using their camera phone, allowing customers to check in via mobile, up to two hours before their flight.
November 2014: News Item A-1: easyJet (EZY) reported a full-year net income of +£450 million/+$705 million, up +13% from a +£398 million profit in the year-ago period, marking its fourth year of record profits.
The results follow (EZY)’s continued focus on business travelers and its “Lean” cost management program. “This strategy has opened up clear blue skies between us and all our competitors, whether legacy or low-cost,” (EZY) (CEO) Carolyn McCall said.
For the year ended September 30, revenue rose +6.3% to £4.5 billion, off the back of increased revenues from voluntary ancillaries, such as seat allocation. This meant ticket prices remained stable, or slightly down, maintaining (EZY)’s low-cost appeal. “There are lots of ways we are driving revenue per seat, rather than from the ticket price,” McCall said.
Meanwhile, full-year expenses excluding fuel lowered -3.7% to £2.5 million, producing an operating profit of +£581 million, up +16.9% from a +£497 million operating profit in the prior year. (EZY)’s return on capital employed stood at 20.5%.
Traffic rose +7.9% to 72.9 billion (RPK)s on a +7.1% increase in capacity to 79.6 billion (ASK)s, producing a load factor of 90.6% LF, up +1.3 point. Revenue per passenger was down -0.3%, to £69.90, but up +0.5%, to £70.40, at constant currency. (RASK) lowered -0.8% to 5.69 pence, but it remained stable at 5.73 pence at constant currency. (CASK) fell -2.7% to 4.96 pence and (CASK) ex-fuel was 3.39 pence, down -3.1%.
(EZY) (CFO), Chris Kennedy said the cost savings were due to a milder winter, which caused lower de-icing costs, coupled with improved disruption management, a move toward larger airplanes and the ongoing results of (EZY)’s “Lean” cost-savings plan. “We’re not resigned to an increase in costs,” McCall said. We will fight it any way we can.”
(EZY) plans to achieve £30 to £40 million in annual “sustainable savings” over the next five years through long-term airport deals, reduced navigation fees and by renegotiating 95% of its maintenance contracts. “There are more cost savings opportunities to go after,” McCall said. (EZY) “Lean” savings of -£32 million in the year, including -£18 million in the second half.
This winter, (EZY) plans to add +3.5% capacity and 40% of this will be using the London Gatwick slots it acquired from Flybe (BEE). Elsewhere, it will pursue cautious capacity growth. “For me, it is about being very rational, disciplined and knowing how to win. It is important not to get carried away with winter capacity. Our success is all about knowing where to put capacity and why. Summer is more profitable, so we will be much less restrained,” McCall said. Over the full year, capacity is set to increase +5%.
First-half bookings for the financial year 2014 - 2015 are slightly ahead of the comparable period last year, with nearly half of all seats already sold, and revenue is expected to be flat or slightly up.
Costs per seat are set to increase +2.5% over the first-half due to increased crew costs at new bases, higher maintenance costs due to increased fleet age and increased navigation fees, but are only expected to rise +2% over the whole year.
(EZY) operates a fleet of 153 Airbus A319s and 73 A320s. In 2015, it has already detailed plans to open new bases in Porto and Amsterdam, which will be supplemented by a policy of “thickening” its network and “joining the dots.”
Over the next five years, McCall sees a number of profitable growth opportunities, which will be tapped through +5% to +8% capacity growth.
(EZY) achieved a full-year average load factor of 90.6% LF for the year ended September 30, but it plans to increase this still further in 2014 - 2015 by driving up passenger numbers on off-peak flights.
Over the 12-month period, (EZY) sold 90.6% of its seats, up +1.3 points from the 89.3% LF load factor it recorded in 2012 - 2013.
When asked whether the airline has now hit a ceiling on load factor growth, (EZY) (CFO), Chris Kennedy replied: “We will probably continue to see several small increases in our load factor. We manage all of our routes at [individual] flight level. Our peak loads are pretty constant, so the focus is on increasing the off-peak load factor. We expect to see a small increase next year.”
This granular approach, coupled with tight capacity management, is the driving force behind (EZY)’s strong load factor performance, Kennedy said.
News Item A-2: easyJet (EZY) has followed the recent launch of four new routes with the addition of nine further new airport pairs. Six of (EZY)’s designated bases receive additional services; Geneva (GVA), Glasgow (GLA), Hamburg (HAM), London Luton (LTN), Naples (NAP) and Rome Fiumicino (FCO). Weekly frequencies range between two and 11, while competition will be faced on four of the nine routes. The shortest of the new routes is between Hamburg and Amsterdam (AMS) at just 381 kms, while the longest sector is the 3,021 km route from Rome to Tenerife South (TFS):
Geneva (GVA) to Vienna (VIE) A319 3x weekly, vs Austrian Airlines (AUL) 26x;
Glasgow (GLA) to Marrakech (RAK) A320 2x;
Hamburg (HAM) to Amsterdam (AMS) A319 6x, vs (KLM) 35x & germanwings (RFG) 16x; to Salzburg (SZG) A319 4x vs airberlin (BER) 10x;
London Luton (LTN) to Copenhagen (CPH) A320 11x; to Lyon (LYS) A319 5x; to Munich (MUC) A319 4x, to Naples (NAP) A319 3x, vs Monarch Airlines (MON) 2x;
Rome Fiumicino (FCO) to Tenerife South (TFS) A320 2x.
(Source: anna.aero’s New Route Database. Innovata /Diio Mi for w/c November 4, 2014.)
easyJet (EZY) recently expanded operations from three of its bases – namely Basel (BSL), Hamburg (HAM) and Milan Malpensa (MXP). The four-route expansion (to Geneva (GVA), Krakow (KRK), Fuerteventura (FUE) and Lanzarote (ACE)) at the German airport followed the recent arrival of (EZY)’s third airplane this month. The route with the highest weekly frequency is the Milan Malpensa to Munich (MUC) service, which will be flown 12 times weekly against a robust 45 times weekly operation by the incumbent Lufthansa (DLH):
Hamburg (HAM) to Geneva (GVA) A320 3x weekly, vs germanwings (RFG) 7x;
to Krakow (KRK) A319 3x; to Fuerteventura (FUE) A320 2x, vs Condor (CDF) 3x, airberlin (BER) 1x; & TUIfly 1x; to Lanzarote (ACE) A320 2x, vs (CDF) 3x, (BER) 1x;
Basel (BSL) to London Luton (LTN) A319 4x;
Milan Malpensa (MUC) A319 12x; vs Lufthansa (DLH) 45x.
easyJet (EZY) added its 11th Spanish destination from its Basel (BSL) base. The 42nd destination from the Swiss airport’s biggest carrier was launched to Lanzarote (ACE). Starting on November 12th, the route is flown twice-weekly, but only on selected weeks. It continually operates on Saturdays throughout the Winter 2014/2015 season, with the Wednesday service operating briefly over Christmas, before resuming again in February. There is no competition on this A320-operated airport pair.
December 2014: News Item A-1: EasyJet (EZY) has been forced to proactively cancel a number of flights on December 26 due to a strike by French cabin crew. The strike over pay and conditions is being called by two French unions (Syndicat National du Personnel Navigant Commercial (SNPNC) and Union des Navigants de L’aviation Civile (UNAC)) on December 25 and 26.
As EasyJet (EZY) does not operate any flights on December 25, the strike will affect only French domestic flights on December 26, according to (EZY).
(EZY) said it would ensure a “minimum service on every route affected by cancellation,” and currently flights no flights to or from the UK have been canceled.
An (EZY) spokesperson said: “EasyJet (EZY) crews are in the vast majority employed under permanent contract and among the best remunerated crew in France. Every year, (EZY) conducts negotiations with its employees and their representatives and this strike has been called while the negotiations have just begun. (EZY) remains open and committed to finding a suitable resolution with the unions.”
Meanwhile, (DNATA) ground handlers at London’s Heathrow (LHR), Gatwick (LGW) and Manchester (MAN) airports have suspended plans for a two-day strike starting Tuesday after the company made an improved pay offer.
More than >460 members of the Unite union at the three airports had been due to strike in protest against a “divisive” pay deal that included a +4.5% increase for supervisors (double the +2.25% offered to other staff).
Following a breakthrough in talks at the Advisory, Conciliation & Arbitration Service (ACAS), the union members will instead be balloted on a revised pay offer.
Unite Regional Officer, Kevin Hall said: “All of this could have been avoided if the company hadn’t refused requests to negotiate and go to (ACAS) a number of weeks ago. We will now be putting the details of the revised pay offer to our members over the coming weeks.”
News Item A-2: EasyJet (EZY) has added 12x-weekly, Munich - Milan service.
easyJet (EZY) started its eighth direct flight to Reykjavik/Keflavik (KEF), when it commenced operations from Northern Ireland’s Belfast International (BFS) on December 12th. The twice-weekly (Mondays and Fridays) route was joined a day later by a new weekly (Saturdays) seasonal route from Geneva (GVA) to Aberdeen (ABZ) (the Scottish airport’s third route alongside existing services from London Gatwick and London Luton). Both sectors face no direct competition and are flown by (EZY)’s 156Y-seat A319s. Of the Northern Ireland to Iceland link, (EZY)’s UK Commercial Manager Ali Gayward, said: “We are really excited to have launched Ireland’s first direct connection to Iceland from Belfast International to Reykjavik. This new year-round service will bring the number of (EZY) flights to Iceland up to 26 a week and we will carry in excess of >200,000 passengers per year to and from Reykjavik across all of these flights. Over >30,000 of these are expected to originate from Belfast.”
January 2015: News Item A-1: EasyJet (EZY) anticipates a reduction in its first-half loss as a result of continued improvements in passenger figures and dropping fuel prices, the UK-based low-cost carrier (LCC) said.
An interim management statement for the period ended December 31, 2014, the first quarter in (EZY)’s financial year, saw revenue rise +3.8% to +£931 million/+$1.41 billion compared to the year-ago period.
Profit figures were not given.
Passenger numbers were up +4.1% at 14.9 million. (ASK)s rose +2.9% to 18 billion, while (RPK)s improved +4.4% to 16.4 billion. Load factor rose +1%, to 89.7% LF. EasyJet (EZY) expects to grow capacity, measured in seats flown, by around +3.5% in the first half of the year and by around +5% for the full year. It now expects first-half revenue per seat at constant currency to increase by around +2% compared to the previous guidance of flat to very slightly up on the prior year.
(EZY) expects its first-half pre-tax loss to be -£10 to -£30 million, compared to 2014’s first-half figure of -£53 million. The first-half is traditionally loss-making for easyJet (EZY), as it covers the winter period.
With only 15% of second-half seats sold so far, (EZY) said it was too early to give guidance on second-half profits.
If (EZY)’s predictions on fuel prices are proved accurate, it anticipates first-half fuel costs to ease by £30 to £35 million and by £90 to £130 million for the whole year.
Cost per seat including fuel decreased -2% on a reported basis and increased +1.6% on a constant currency basis. “We enjoyed a strong October across the network—particularly on UK leisure flights to beach destinations and on French domestic routes,” (CEO), Carolyn McCall said. The French result is likely to have been helped by the aftermath of the Air France (AFA) strike, which was concluded at the end of September.
News Item A-2: EasyJet (EZY) (CFO), Chris Kennedy has resigned from his position and the search for his successor has begun. Kennedy, who joined (EZY) on the same day as (CEO), Carolyn McCall, has been with (EZY) for nearly five years. He has resigned to take up the (CFO)’s role at technology firm, (ARM) Holdings. “The terms of his contract with easyJet (EZY) require that he serve a notice period of up to one year. In the meantime, Chris will continue with his existing responsibilities until a successor has been secured. The search for his successor will now commence,” (EZY) said.
McCall credited Kennedy’s role in (EZY)’s strong financial performance. “He has built a strong finance and procurement team and leaves (EZY) in excellent financial health. The airline's balance sheet is the strongest in European aviation,” she said.
News Item A-3: A320-214 (6416, G-EZOB), ex-(D-AXAO) delivery.
February 2015: EasyJet (EZY) will increase capacity on London Luton - Copenhagen by adding a third daily weekday flight. easyJet (EZY) has now taken its weekly rotations from its UK bases to Madeira up to 11 weekly flights, with the introduction of twice-weekly (Tuesdays and Saturdays) flights between Edinburgh (EDI) and Funchal (FNC) on February 3rd. These A319/A320-operated flights will join those currently flown from London Gatwick and Bristol to the Atlantic Ocean island by the airline. There is no direct competition on this airport pair.
Later, easyJet (EZY) took its weekly rotations from its UK bases to Madeira up to 13 weekly flights, with the introduction of twice-weekly (Mondays and Saturdays) flights between Manchester (MAN) and Funchal (FNC) on February 14th. These A320-operated flights will join those from Edinburgh, which started on February 3rd, as well as London Gatwick and Bristol, currently flown to the Atlantic Ocean island by the airline. Two incumbents will provide competition on the airport pair (with Jet2.com (JT2) and Thomson Airways (ATZ)/(TFY) both operating weekly services on this 2,570 km sector.
March 2015: News Item A-1: Favorable moves in currency exchange rates mean that UK-based low-cost carrier (LCC) easyJet (EZY) will turn in a better-than-predicted financial performance for the first half of 2015, (EZY) said.
In a financial update statement, (EZY) said its estimated first-half results would improve from a loss of between -£10 to -£30 million/-$15 to -$45 million predicted on January 27 to somewhere between a loss of -£5 million and profit of +£10 million.
(EZY) traditionally makes a loss in the first half of its financial year, which covers the winter period. (EZY) predicted the improvement in first-half figures is “primarily due to the movement of exchange rates in the second quarter,” mainly because of a weakening of the euro against sterling. However, that position is likely to reverse in the second half, which will result in an adverse impact of £20 million for the year ending September 30.
“EasyJet (EZY) has performed well in the first half of the year,” (CEO), Carolyn McCall said. “We continue to expect that lower fuel costs will be beneficial for our customers as fares adjust.”
(EZY)’s fuel bill for the six months to March 31 will improve by around +£35 million compared to the year-ago period. For the full year to September 30, its fuel costs are likely to show an improvement of £90 to £120 million compared to the previous year.
Revenue per seat at constant currency for the six months to March 31 is expected to be around +2.5% better than the year-ago period, while costs per seat for the same period increased by up to +3% year-over-year due to higher levels of de-icing and disruption costs in the second quarter. The latter figure does not include an additional navigation charge from Eurocontrol, which easyJet (EZY) is currently disputing.
Bookings for the second half of the year are in line with last year. However, further volatility around currency rates and the oil prices is likely to continue into the second half.
News Item A-2: EasyJet (EZY) signed with Lufthansa Systems (LHS) for its Lido/Flight Management System. This (FMS) database contains route information including altitude data, airways and airport data used for optimizing navigation and supporting autopilot information. Nav data is updated every 28 days. EasyJet (EZY) had migrated to a paperless cockpit with Lufthansa Systems (LHS) software in May.
News Item A-3: (AJW) Aviation has a multiyear easyJet (EZY) contract to provide A320 Family component repair & overhaul, plus supply consumables and manage (EZY)'s spares at 30 line stations in Europe.
April 2015: News Item A-1: An easyJet (EZY) flight from Geneva to Pristina in Kosovo had to make an emergency landing in Rome after a passenger reportedly punched a stewardess (CA) to the floor.
The drama erupted because the traveller had been "waiting too long for a sandwich." Eyewitnesses said the man shouted: "I've been waiting for hours. I'm hungry." He then assaulted the young cabin crew (CA) member.
A passenger seated near to the man said: "He shouted at the stewardess (CA), then he stood up and punched her, and when she fell to the floor, he carried on hitting her."
Fellow passengers then stepped in to restrain the man, while the pilot (FC) diverted the plane to Fumincino airport in the Italian capital of Rome, for "security reasons."
The stewardess (CA) spoke to "20 Minutes," a Swiss newspaper: "I was totally shocked. I can't understand how anyone could react so violently over a sandwich."
The man was arrested by Italian police as the stewardess (CA) received medical attention at the scene.
easyJet confirmed the attack and said its cabin crew member suffered injury and had her glasses had been broken during the assault.
The British budget airline said it transferred the plane's 180 passengers to Pristina on a separate flight later that afternoon.
News Item A-2: EasyJet (EZY) took delivery of its 250th Airbus A320 family airplane. To celebrate the 250th delivery, (EZY) unveiled its newest A320 with a unique livery featuring 250 miniature airplanes - See photo - - "EZY-A320 - 250TH A320 FAMILY AIRPLANE.jpg). As with other recent deliveries to easyJet (EZY), the A320 is equipped with the latest technology and fuel-saving Sharklets.
May 2015: News Item A-1: easyJet (EZY) announced its best-ever first-half figures. For the 6 months ended March 31, it reported a net profit of +£5 million/+$7.8 million, in contrast to an after-tax loss of -£41 million a year ago. The 1st half of (EZY)’s financial year, spanning the northern hemisphere winter, is the traditionally weaker part of the year.
The result was achieved on revenue of £1.76 billion, up +3.8% on last time’s £1.7 billion. Total revenue per seat was up +0.2% year-over-year on a reported basis, to £54.91. This was driven, in part, by disciplined allocation of capacity of 3.6%, an improvement in load factor from 89% LF to 89.7% LF, the timing of Easter, and performance of allocated seating for which passengers pay a premium.
Cost per seat (excluding fuel) grew +2.9% on a constant currency basis and decreased -1.4% on a reported basis to £38.66.
“The profit in the half reflects the delivery of our customer-focused revenue initiatives and a strong finish to the ski season, as well as the benefit we received from the lower fuel price and favorable foreign exchange movements,” (CEO) Carolyn McCall said. “As we enter the important summer season, forward bookings are in line with last year and, as we predicted, passengers are benefitting as fares fall to reflect a more competitive operating environment and lower fuel costs.”
(EZY), she added, “continues to be well positioned to grow revenue and profit this year, delivering sustainable returns to shareholders.”
Over the summer, (EZY) plans to increase capacity +6.2%.
(EZY) estimates that at current exchange rates, and with jet fuel remaining within a $550 - $750 metric tonne trading range, its unit fuel bill for the 2nd half of the financial year is likely to decrease -£60 to -£85 million compared to the year-ago period.
The second half will, however, bear the burden of disruption costs from April’s French air traffic control (ATC) strike, which easyJet (EZY) warned would have an adverse effect on its full-year pre-tax profits of +£25 million. Most of April’s 600 cancellations were attributable to the dispute.
In addition, exchange rate movements are likely to have an adverse impact of around £20 million year-over-year.
Following the trend of using new-generation seats to increase passenger numbers per airplane, (EZY) said that, from May 2016 all future deliveries of Airbus A320s would have 186Y seats instead of the current 180Y. Existing 180Y-seat A320s are expected to be retrofitted from winter 2016. This move is anticipated to deliver a -2% cost-per-seat savings.
News Item A-2: On May 20, easyJet (EZY) expanded its European network from Belfast International (BFS), with new seasonal flights to Split (SPU). The 2,034 km sector will be flown weekly (Wednesdays) until September 30, using (EZY)’s A319s, and faces no direct competition. With the start of this new service, (EZY) now flies to 26 destinations from its Belfast International base. On May 24, (EZY) also launched its latest route from Porto (OPO) to Manchester (MAN). The 1,427 km route will operate 3x-weekly with A319s, facing no direct competition.
3 A320-214 (6587, G-EZOM, 6605, G-EZON; 6606, G-EZOO) and A320-233 (2791, G-POWI) deliveries.
June 2015: News Item A-1: easyJet (EZY) commenced 13 new routes in June, operating 30 new weekly flights from 9 airports to 12 other airports across Europe. Bases in Germany, Italy, Netherlands, Swizerland, and the UK saw the start of flights to airports in Croatia, France, Greece, Italy, and Spain. Of the 13 routes, 10 were begun with a minimal 2x-weekly frequency, and 7 city pairs will see (EZY) face direct competition, the most significant being the 4 airlines already operating on the Hamburg (HAM) to Heraklion (HER) sector.
Routes as follows:
Amsterdam (AMS) to Palermo (PMO), A320 2x-weekly, vs transAvia.com (TAV) 1x-weekly;
Geneva (GVA) to Menorca (MAH), A319 2x-;
Glasgow (GLA) to Bordeaux (BOD), A320 2x-,
Hamburg (HAM) to Heraklion (HER), A320 2x-, vs Condor 4x-; germanwings (RFG) 2x-; TUIfly (HAP)/(HLX) 2x-; airberlin (BER) 1x-;
(HAM) to Thessaloniki (SKG), A319 2x-, vs (BER) 3x-, RFG) 2x-;
London Gatwick (LGW) to Pula (PUY), A319 2x-, vs Thomson Airways (ATZ)/(TFY) 2x-, Norwegian (NWG) 1x-;
London Southend (SEN) to (MAH), A319 2x-;
Manchester (MAN) to Marseille (MRS), A319 2x-; to Pisa (PSA), A320 2x-;
Naples (NAP) to Olbia (OLB), A319 4x-, vs Meridiana (ALS) 8x-; & Volotea (VOL) 3x-; to Split (SPU), A319 2x-;
Rome Fiumicino (FCO) to Kos (KGS), A319 3x-, vs Vueling (VUZ), 2x-; to Zakinthos (ZTH), A319 3x-, vs (VUZ) 2x-.
News Item A-2: "EasyJet (EZY) Seeks to Help Stranded Passengers with New app" by Alan Dron, June 5, 2015.
easyJet (EZY) plans to introduce a new service to assist passengers stranded by an evening flight cancellation that leaves them with no way to get to their destination that night.
From the end of July, (EZY)’s version of the popular Flight Tracker app will allow passengers signed up for the service to press a button marked “Do you need a bed for the night?”
If the passenger presses it, the app will find a hotel room in the locality that will be pre-paid by easyJet (EZY), together with information such as directions to the hotel, whether there is a shuttle bus from the airport and what time dinner is served.
The app is designed to gets stranded passengers out of the airport much more quickly than if they have to line up at a customer service desk for assistance.
“Customer research tells us that it’s not the delay that’s a problem, it’s not having enough information, not feeling in control and knowing what the options available to them are,” said (EZY)’s Disruption Manager, Gill Lucas.
Flight Tracker is (EZY)’s primary tool for keeping passengers informed in the event of flight delays and is updated by staff in (EZY)’s Operations Center, when they know of problems.
“Nine out of 10 of our passengers use online booking, so most are fairly tech-savvy,” said Lucas, speaking at (EZY)’s "Innovation Day" session at Milan’s Malpensa airport.
News Item A-3: easyJet (EZY) hopes to have a hovering drone in service “in 12 - 18 months” to conduct airplane inspections, (EZY) revealed at its "Innovation Day" meeting at Milan-Malpensa Airport.
Inspections are required to check for damage, for example, following a lightning strike. Currently, these have to be carried out using specialist vehicles such as cherry pickers and can take several hours, potentially throwing schedules into disarray.
(EZY) has been carrying out trials of “Riser,” a small, quad rotor drone, which it says can carry out the same inspection in a fraction of the time. “Last week, we had 6 lightning strikes in 30 minutes around London Gatwick,” (EZY) Head Engineering & Maintenance, Ian Davies said, which tied up manpower for a whole day [checking them]. Using a drone would have considerably eased that problem, he said.
Riser can be programmed to fly over every part of an airplane, eliminating the possibility of a human missing damage in a manual inspection. It uses a laser radar to map its surroundings (the interior of a hangar, for example) in 3 dimensions so it knows the confines within which it must operate, then uses a high-definition camera to carry out the inspection.
The vehicle can beam images from the camera direct to an operator in real time, or store them for later study.
It is programmed not to come within one meter of an object; if a maintenance person (MT) strays into its path, it will immediately back off to avoid a collision.
Dr Yoge Patel (CEO) of drone developer Blue Bear Systems Research, said it is currently talking to UK aviation regulator, Civil Aviation Authority to certificate Riser.
Davies said (EZY) is in discussions with several airports over using the drone. Using it in confined spaces, such as hangars, could potentially be used outside in areas such as those designated for engine runs, with an electronic “geo-fence” programmed into the drone to prevent it straying from the designated area.
He was enthusiastic at the prospect of being able to use the drone: “The amount of money you spend on this [device] compared to having an airplane out of service for 8 hours, is a drop in the ocean.”
News Item A-4: easyJet (EZY) would be interested in operating from London Heathrow (LHR) Airport if the UK government decides (LHR) should be the site of a long-awaited new runway for southeast England.
Answering questions at (EZY)’s annual "Innovation Day" at Milan-Malpensa Airport, (CEO) Carolyn McCall said it is unlikely (EZY) would operate from London’s main airport, as it currently stood.
(LHR)’s infrastructure was set up to act as a hub for legacy airlines and the chronic shortage of available slots, also meant that “We can’t do what we do at scale. We wouldn’t want to go in and dabble.” However, she said, “If it gets another runway, we would seriously look at operating from (LHR). We’re very serious about that.”
EasyJet (EZY) is currently the biggest single operator at London Gatwick Airport. While Gatwick had served (EZY) well and the airport was very good at what it did, said McCall, she would prefer to see the planned new runway at (LHR), given the greater economic effect it would generate there.
Successive UK governments have put off a decision on new runway capacity in SE England for >40 years, due to fears of popular reaction against increased noise and the difficulty of finding enough space; the site of a proposed new runway at (LHR), for example, would mean demolishing a village just beyond (LHR)’s current northern perimeter.
The previous coalition Conservative-Liberal Democrat government blocked such a plan on coming to power in 2010 and set up the Davies Commission to set out definitive recommendations for the site of a new runway. This has so far drawn up a shortlist of 3 options at either (LHR) or Gatwick and its final decision is expected within weeks.
However, the government (formed by the Conservatives alone following last month’s general election) is not legally bound to accept its recommendation.
July 2015: News Item A-1: "EasyJet Eyes $965 million - $1.03 Billion Full-year Profit, by (ATW) Victoria Moores, July 22, 2015.
UK budget carrier, easyJet (EZY) is expecting a full-year pre-tax profit +£620 - +£660 million/+$965 million - +$1.03 billion, despite taking a 3rd-quarter hit from French air traffic controller (ATC) strikes and the Rome Fiumicino fire.
EasyJet (EZY)’s (3Q) revenue per seat fell -5.4% to £59.08, driven by exceptional events and the timing of Easter. The Fiumicino fire caused 773 cancellations and the strikes added another 591 to the total, jointly representing 1,364 of 1,463 flight cancellations in the quarter, compared to 648 in the prior-year period.
“April’s disruption adversely impacted pre-tax profit by £25 million and was largely driven by the French (ATC) strike. The strike was particularly disruptive for easyJet (EZY) due to its extended nature, (EZY)’s strong presence on French domestic routes and because around two-thirds of (EZY)’s network flies through French airspace which is more than other carriers,” (EZY) said in its (3Q) trading update.
However, the performance ultimately exceeded (EZY)’s May guidance. Its cost per seat fell -3.3% (or -2.1%, ex-fuel) and the disruptions were offset by revenue management initiatives, as well as strong UK and leisure demand.
The (EZY) lean program delivered £7 million of sustainable savings in the quarter, taking total year-to-date savings to -£28 million, stemming primarily from airport and ground handling initiatives. “(EZY) remains confident of delivering sustainable savings for the full year at the top end of the £30 million to £40 million range,” it said.
During the quarter, (EZY) added +4.7% more seats in key markets such as Amsterdam, Basel, Geneva, Hamburg, and Porto, pushing passenger numbers up +6.2% to 19.1 million. This increased its average load factor up +1.3 points to 91.7% LF, but total revenue fell -1.0% to £1.2 billion.
“With 77% of 2nd half seats now booked, (EZY) expects to grow profit before tax from £581 million for the year to September 30 2014 to a range of £620 million to £660 million for the year to September 30 2015,” (EZY) (CEO) Carolyn McCall said.
This full-year pre-tax profit forecast marks a significant increase from its +£581 million prior-year figure. This outlook includes an £8 million payment to Eurocontrol for disputed navigation charges, which will be booked in (4Q).
(EZY)t is 88% fuel hedged for the remainder of its financial year at an average of $922 per metric tonne and 80% hedged at $844 per metric tonne for the year to September 2016. (EZY) is expecting to slash £100 - £115 million from its fuel bill, compared with the year to September 2014, although it is also anticipating a £35 million exchange rate hit.
News Item A-2: An easyJet (EZY) flight carrying British holidaymakers to Spain was forced to make an unscheduled landing over concerns the plane was running short on water.
The Airbus A319 was flying from Newcastle to Alicante, when it diverted to Charles de Gaulle Airport on the outskirts of Paris. The plane had a limited water supply and the flight crew (FC) decided to land at Europe's 2nd busiest airport to fill up its tanks, causing a 2-hour delay for passengers heading to Spain's Mediterranean coast.
(EZY) said flight EZY6417 landed as a precaution, and the water that was running low is used in boilers which make hot drinks, and lavatories. Data from flight tracking website Flightradar24.com shows the plane flew south-west of Paris before turning around north of the city of Lois and landing just outside the French capital.
The A319 took off again after taking on more water and landed in Alicante about two hours behind schedule yesterday. An (EZY) spokesperson told MailOnline Travel: "easyJet (EZY) can confirm that EZY6417 from Newcastle to Alicante diverted to Paris Charles de Gaulle as a result of a limited water supply on board."
"The captain (FC) took the decision as a precaution only and in line with procedures."
"The safety and welfare of its passengers and crew is easyJet (EZY)'s highest priority and (EZY) operates its fleet of aircraft in strict compliance with all manufacturers' guidelines."
"(EZY) would like to thank passengers for their patience and apologises for the inconvenience caused by this diversion and resultant delay."
August 2015: EasyJet (EZY) cabin crew (CA) have accepted a combined pay and holiday proposal, averting the threat of any industrial action.
The deal included the recent two-year pay award of +4.1% for cabin crew (CA) and +5.1% for cabin (CA) managers backdated to January 2015, and an increase in the holiday pay allowance for all cabin crew (CA). Unite recommended the deal to its 2,000 easyJet (EZY) cabin crew (CA) members, 52% of whom voted to accept the improved offer.
(EZY) said it was “pleased to have reached a positive conclusion” with cabin crew (CA) so that passengers’ “travel plans will not be disrupted this summer.”
But Unite regional officer, Kevin Hall cautioned: “While we are pleased that the dispute is settled and there will be no disruption for those jetting away on their summer holidays, this dispute is a wake-up call to the management. The company needs to start smelling the coffee about the pay and conditions of its staff that emerged during this dispute when it comes to future pay claims. This highly profitable company got away with a settlement by the skin of its teeth.”
September 2015: News Item A-1: UK budget carrier easyJet (EZY) is now expecting to deliver a +£675 to +700 million/+$1.03 to +1.07 billion pre-tax profit for 2015, up from +£620 to +660 million.
The new guidance for the year ending September 30 is based on summer trading, record load factors and a “stronger than expected” revenue performance for August and September.
“The load factor for August 2015 was 94.4% LF, a new record at easyJet (EZY) for any month. Passenger numbers for the month were 7.06 million, which is also a record for the group and is the second successive month of >7 million passengers,” (EZY) said in a September 3 trading update.
(EZY) attributed the strong performance to its digital and revenue initiatives and +6% capacity growth, which allowed it to tap late summer demand.
“This strong revenue performance has more than offset the significant cost headwinds that the business has faced this year,” (EZY) said.
These headwinds included network disruption in April, 2 fires at Rome Fiumicino Airport, a 1-off £8 million settlement with Eurocontrol and costs associated with higher load factors.
News Item A-2: The Lufthansa Group’s low-cost carrier (LCC) subsidiary, Eurowings and UK (LCC) easyJet (EZY) reportedly could become partners, Lufthansa Group Chairman & (CEO) Carsten Spohr told German magazine "Der Spiegel."
“We can cooperate with other airlines very actively. EasyJet (EZY) had also shown interest in the past, to cooperate with the Lufthansa Group,” Spohr had been quoted as saying.
It is understood Eurowings (EWG) is able to offer new partnership possibilities for the group, even with non-Star (SAL) Alliance members. However, Lufthansa (DLH) ruled out the possibility of feeder services to its hubs from a carrier like easyJet (EZY).
“We also need consolidation in the European low-cost carrier (LCC) market and Eurowings (EWG) should become an important part of that,” Spohr said.
Spohr said in June that (DLH) will remain a driving force for consolidation within Europe. “The big 5 airlines in Europe have a 43% market share,” he said. “The big 5 carriers in the USA have 90%. I definitely think there are too many airlines in Europe.”
However, Spohr sees Lufthansa (DLH) at a turning point. For the 1st time in (DLH)’s history, it has not shown growth for several years. With its current cost structure, it has become nearly impossible to find a new cost-efficient route for (DLH), he said.
“Good pay [for employees], good working conditions and good career perspectives. All these don’t fit together anymore [with (DLH)’s current cost-structure],” he said.
Spohr said that airlines must offer several different platforms (ranging from premium segments to low-cost carriers (LCC)s.
Eurowings (EWG) operated its maiden flight February 1 from Hamburg to Prague, with its 1st 162-seat Airbus A320.
(DLH) has also established Eurowings Europe GmbH, which was established in Austria on August 10. The company will serve as the starting point for further growth, which will create several more operating bases throughout Europe.
News Item A-3: easyJet (EZY) will stop flights from London Gatwick to Moscow Domodedovo from March 21, 2016 due to reduced demand.
“The decision has been taken in response to the significant and sustained reduction in demand for travel between Moscow and London in recent months, which has been driven by a number of factors, including the weakness of the Russian economy, together with the tightening of the visa approval process. (EZY) will keep the potential reintroduction of the route under review.”
In 2012, the UK Civil Aviation Authority (CAA) chose (EZY) over Virgin Atlantic (VAA) for the Moscow service and launched flights March 18, 2013. (EZY) anticipated flying a substantial number of business passengers on the route.
The bilateral agreement between Russia and the UK allows each side to designate 2 carriers to operate flights between Moscow and London. After the (EZY) flight ceases, (BAB) will remain the 1 UK carrier on the route.
Russian authorities designated Aeroflot (ARO) and Transaero Airlines (TRX) on the route, but on September 1, (TRX) announced its integration into the Aeroflot Group.
Since the beginning of the year, several international carriers have terminated or decreased services to Russia. Cathay Pacific (CAT) stopped Hong Kong - Moscow service on June 1. Austrian’s FlyNiki (NKI) ceased Vienna - Moscow flights early in the year.
At the same time, Emirates (EAD) will increase capacity on the Dubai - Saint Petersburg route from October 25, 2015. (EAD) will change Airbus A330-200s to Boeing 777-300ERs on the route.
News Item A-4: "easyJet Considers Interlining with Longhaul Carriers, ch-aviation.com, September 2, 2015.
easyJet (EZY) Chief Executive Officer (CEO) Carolyn McCall said her airline has held discussions with various mainline longhaul operators over the possibility of interlining agreements.
"Many airlines have approached us about feeder flights," she told the "Frankfurter Allgemeinen Zeitung." "If it's workable and pragmatic, then we are absolutely ready to go ahead."
While McCall did not disclose their names, she described the talks as "very interesting and constructive."
The announcement echoes a similar disclosure made by Ryanair (RYR) (CEO), Michael O'Leary last month in which he confirmed (RYR) had held talks with a number of carriers to feed (RYR) shorthaul traffic into their European longhaul hubs.
Among the carriers approached by (RYR) include Aer Lingus (ARL) concerning feed into its Dublin International hub, (TAP) Portugal and its Lisbon hub, plus Norwegian (NWG) and Virgin Atlantic (VAA) concerning their London Gatwick base operations.
News Item A-5: London’s Gatwick Airport has introduced a new booking service that enables connecting flights between low-cost and full-service airlines to be booked in a single transaction.
The new service, "GatwickConnects," also means the airport will “look after customers if flights don’t operate as planned,” Gatwick said. “This is the 1st time an airport has taken the lead to book and safeguard connections.”
Announcing the new service, Gatwick Airport (CEO) Stewart Wingate said: “We are uniquely placed to offer a service like GatwickConnects due to the breadth of our route network and our diverse short- and long-haul airline mix.”
Gatwick’s route network covers 11 UK regional and 190 international destinations, with around 1 million travelers a year connecting from low-cost carriers (LCC)s to other low-cost or full-service airlines. Until now, the transactions have had to be made separately, meaning there is no protection, if a flight is rescheduled or delayed.
Gatwick already offers a GatwickConnects airside check-in service for connecting customers of participating airlines, where travelers can drop their bags, and is adding a range of services and hospitality benefits.
“This new service will provide genuine savings, and we will offer travelers a range of hassle-free check-in, baggage handling and hospitality benefits while they are with us,” Wingate said.
Passengers traveling with easyJet (EZY), Norwegian (NWG) and (WOW) air are able to use GatwickConnects when booking through Skyscanner and Dohop.
News Item A-6: easyJet (EZY) currently operates 230 aircraft, to 34 countries, to 137 destinations, on 724 routes and 1,503 daily flights.
October 2015: News Item A-1: Happy 20th Birthday to EasyJet (EZY) -
From latest Flight International, Straight & Level:
"When the Future was Orange."
Such is EasyJet's place in Europe's aviation firmament, that it's easy to forget the one-time upstart from Luton is just 20 years old. The budget airline has come a long way from the days of hand-me-down 737s and cabin crew (CA) in trainers and shapeless orange fleeces.
Back then, its tuppence ha'penny marketing strategy was based on a larger than life Stelios (remember him?) popping up everywhere and (as an advance on the original giant phone number emblazoned on its aircraft) a slogan that gently mocked British Airways (BAB)'s boast about being "the world's favorite airline." In the fledgling days of the internet, Squeezy was "the web's favorite airline."
As a disruptor, the "orange squash" was ahead of even Michael O'Leary's RyanAir (RYR) and has managed (arguably more smoothly than its Irish rival) that awkward brand transition from cheap and cheerful (never cheap and nasty) to hybrid carrier appealing to both business and leisure travelers across Europe.
So, to a genuine innovator in the aviation industry, we say: Happy birthday.
News Item A-2: EasyJet (EZY) will recruit +1,140 more crew ((FC) & (CA)) over the coming year as (EZY), the UK low-cost carrier (LCC) expands. The London Luton-based airline will recruit around +830 cabin crew (CA) and +310 pilots (FC), with job opportunities for pilots (FC) and cabin crew (CA) at all (EZY)’s 11 UK bases.
(CEO) Carolyn McCall made the announcements as she opened (EZY)’s new EasyJet Gatwick Academy at the London airport on October 14. The £2.7 million/$4.2 million investment includes classrooms, a cabin simulator, evacuation slide and fire training rig. It will train easyJet (EZY) pilots (FC) and cabin crew (CA) from bases across Europe.
As well as training new pilots (FC) and cabin crew (CA), (EZY) said around 7,000 of its current crew complete annual recurrent training, with around 60% of this training now taking place at the new academy, with the remainder being delivered at its existing training facility in Luton.
EasyJet (EZY) has also launched a new initiative to double the proportion of new entrant female pilots (FC) from 6% to 12% over 2 years; in the 1st phase of a long-term strategy to recruit, retain and develop many more female pilots (FC).
Just >5% of easyJet (EZY)’s 2,500 pilots (FC) are female, in line with the industry as a whole.
News Item A-3: (AJW) Aviation has inked an easyJet (EZY) contract for A320 component support on a cost-per-flight-hour basis.
November 2015: News Item A-1: "EasyJet (EZY) Posts $833 million Full-year Net Profit" by (ATW) Victoria Moores, November 17, 2015.
EasyJet (EZY) has reported a full-year net income of +£548 million/+$833 million for the year to September 2015, +21.8% higher than its +£450 million profit for 2013 - 2014, following a “solid winter” and a “very strong” summer performance.
“We delivered another set of record results in 2015,” easyJet (EZY) (CEO) Carolyn McCall said, briefing analysts on the results on November 17. She added this was (EZY)’s 5th year of record pre-tax profits. “(EZY) has delivered an exceptional performance over the last 5 years, regardless of the economic environment,” she said.
Revenue rose +3.5% to £4.7 billion (+6.5% up at constant currency), while expenses increased +1.1% to £3.7 billion, producing an operating profit of +£688 million, up +18.4% from a +£581 million in the prior year.
Key drivers behind the cost increase were deicing fees, a one-off Eurocontrol settlement, higher than normal disruption, increased passenger compensation payouts and external cost increases, such as airport charges. These were mitigated by exchange rate fluctuations, lower fuel prices, and a new maintenance agreement.
Traffic rose +6.4% to 77.6 billion (RPK)s on a +5.4% increase in capacity to 83.8 billion (ASK)s, producing a load factor of 91.5% LF, up +0.9 point. Passenger numbers increased +6% to 68.6 million
Revenue per seat dipped -1.3% to £62.48 as (RASK) fell -1.8% to 5.59 pence and (CASK) decreased -3.9% to 4.77 pence. (CASK), ex-fuel was 3.34 pence, down -1.5%.
McCall said easyJet (EZY) still has “significant opportunities” for growth, pursuing a “low-risk” strategy of deepening and consolidating its “formidable” network and schedules. On the cost side, (EZY) Lean generated £46 million in cost savings in 2015 and is expected to deliver a further £50 million in 2016, via Information Technology (IT) and productivity improvements, coupled with increased scale.
More favorable economic trends mean (EZY)’s forward bookings are in line with expectations, creating “some confidence” for the year ahead. Over the next 5 years, (EZY) is expecting to increase its passenger numbers by +5% to +8%.
“We will see passenger growth of +7% a year, sustaining margins through rigorous cost control and the benefit of fleet up-gauging, resulting in positive profit momentum,” McCall said.
EasyJet (EZY)’s fuel bill for 2016 is expected to be £140 to £160 million lower, creating a “slight decline” in both cost and revenue per seat at constant currency, as the savings are passed on to passengers. Exchange rates are expected to have a -£15 million negative impact in the first half of the year.
News Item A-2: easyJet (EZY) launched 4 new city pairs. On October 27, (EZY) commenced services on the 830 km link between Amsterdam (AMS) and Milan Linate (LIN), while also introducing services on the 1,622 km sector between Lille (LIL) and Lisbon (LIS). Services on the former route will operate 6x-week with A320s, and in direct competition with (KLM) and Alitalia (ALI). The link between Lille and the Portuguese capital will be flown 3x-weekly using A319s, with no incumbent carriers. On October 29, (EZY) commenced services from Berlin Schönefeld (SXF) and Vienna (VIE). The 520 km link between the German and Austrian capitals will be flown 4x-times weekly facing no incumbent airlines. Finally on November 2, operations commenced between Edinburgh (EDI) and Stuttgart (STR). The 1,172 km city pair will be served 4x-weekly using A319s facing no direct competition. This brings to 4 the number of easyJet (EZY) routes at Stuttgart, with Milan Linate now also having 4 routes and Lille 5.
EasyJet (EZY) begins 3x-weekly, Budapest - Lyon Airbus A321 service on April 26, 2016.
News Item A-3: "EasyJet (EZY) (CEO): Lufthansa (DLH) Partnership Not a Top Priority" by (ATW) Victoria Moores, November 20, 2015.
EasyJet (EZY) (CEO) Carolyn McCall has acknowledged an approach from Lufthansa (DLH) about a potential partnership, which she believes will be 1 of many.
In September, Lufthansa Group Chairman & (CEO) Carsten Spohr said Eurowings (EWG) and easyJet (EZY) could potentially become partners, consolidating the European short-haul market.
However, speaking at the release of (EZY)’s full-year results, McCall did not place much emphasis on the discussions. “This is not top of our list at the moment, but I think you will see more conversations like this, because low-cost carriers (LCC)s are driving profitability here in Europe. Low fares will always win on short-haul European routes, so I expect legacy carriers to do more on their efficiency and that the legacy carriers will be talking to all the low-fare carriers (LCC)s,” she said.
News Item A-4: "Arabic Graffiti Found Daubed on easyjet (EZY) Planes' Fuel Tanks" by "The Telegraph", November 28, 2015.
Arabic graffiti was found daubed on panels covering fuel tanks of easyJet (EZY) planes at French airports. An investigation is being carried out into who made the inscriptions, which were written on four planes in France. The airports cannot be identified for security reasons.
Lisa King (EZY) Cabin Safety Manager alerted company employees to the graffiti with an email reading: "As of today we have had 4 aircraft in France with written inscriptions on the inside of the fuel panel, and toilet door in Arabic script." The matter was not considered to be a threat and no passengers had to be removed from the aircraft. She said: "easyJet (EZY) assessed this issue, each time working in full consultation with the authorities, and is entirely satisfied it is nothing more than graffiti. "(EZY) takes very seriously any security related issue and would not operate a flight unless we are entirely satisfied it is completely safe to do so. "(EZY) operates its fleet of aircraft in full compliance with all regulations. The safety and security of its passengers and crews is always (EZY)'s highest priority."
The graffiti was found <2 weeks after 130 people were killed in terror attacks in France's capital.
Philip Baum editor of Aviation Security International told "The Sun": "Graffiti in itself won't hurt anybody. But the ability of anyone to place a prohibited item near fuel tanks is a concern, of course." "We know there are people working in restricted areas of airports with extremist sympathies."
News Item A-5: EasyJet (EZY) has placed a follow-on order for 6 (CFM)-powered A320ceos and 30 A320neos, cementing its position as the world’s 4th largest A320 family operator.
The aircraft, which will primarily be used for growth and A319 replacements, will be delivered between 2018 and 2021. This latest deal takes easyJet (EZY)’s cumulative Airbus orders to 451 aircraft, comprising 321 A320ceo and 130 A320neo family aircraft.
(EZY) will power the 30 Airbus A320neos with (CFM) International (LEAP-1A) engines, and the 6 A320ceos with (CFM56-5B)s, firming up purchase rights from 2013 which (CFM) values at $975 million at list prices. The (LEAP-1A) engine is currently undergoing flight testing on the A320neo, paving the way for entry into service (EIS) in 2016.
Speaking at the release of easyJet (EZY)’s full-year results on November 17, McCall said that the upgauging from A319s to A320s will provide a “structural cost advantage” to (EZY).
She added that the 30 A320neos have been secured for “very advantageous terms” under (EZY)’s 2013 framework agreement with Airbus. This deal gives flexibility in the event of a downturn, but does not have as much “upside” scope if things progress better than expected, McCall said. “The most significant thing is the amount of flexibility we have in that deal. We don’t know what will happen in 5 or 6 years’ time,” she said. Around 30% of (EZY)’s fleet is leased, giving further scope to adjust its capacity as needed.
The aircraft will primarily be used to “deepen and consolidate” existing markets, taking advantage of “low-risk” opportunities, rather than branching out further into Eastern Europe, where (EZY)’s brand is less well penetrated, competition is more intense, and there is greater risk of overcapacity.
As well as targeting business (C) travelers, McCall said (EZY)’s leisure network has been “a little bit constrained” by fleet capacity; this is one of the reasons for the aircraft investment.
As part of its cost savings and productivity drive, (EZY) is increasing the density of its A320s from 180 to 186 seats, although its seat pitch will remain unchanged. The 1st new-build airplanes with this layout will be delivered in May, with retrofits beginning in October 2016 and the 1st 186-seat A320neo due for arrival in 2017.
(EZY) currently operates a fleet of 243 (CFM56-5B)-powered A319 and A320s across its network of >750 routes, spanning 31 countries.
Since (EZY) took delivery of its 1st A319 in September 2003, Airbus (EDS) has delivered an aircraft on average every 16 days to (EZY). “Not only is (EZY) one of the biggest airline customers for the A320ceo, but also the A320neo,” Airbus (COO) Customers John Leahy said.
December 2015: News Item A-1: easyJet (EZY) expanded its Scottish network on December 2 with the launch of a new route from Glasgow (GLA) to Milan Malpensa (MXP). The year-round service, which is expected to carry 26,000 passengers annually, is Glasgow’s 1st direct connection to Milan. Flights operate 2x-weekly on Wednesdays and Saturdays.
News Item A-2: easyJet (EZY) started 6 additional services at 3 of its bases: Amsterdam (AMS), Naples (NAP) and London Luton (LTN). The average sector length of these 6 routes is 1,264 km (up from 892 km previously) with the longest being the 3,220 km city pair between Amsterdam and Tenerife South (TFS) (before, it was the 1,273 km sector from Lyon to Belfast International), while the shortest was the 731 km link from Amsterdam to Lyon (7 days previously, the French airport featured again with the 724 km service to London Southend).
Routes as follows:
Amsterdam (AMS) to Tenerife South (TFS) A320 2x-weekly, vs TransAvia (TAV) 6x-;
Naples (NAP) to Lyon (LYS) A319 2x-;
(AMS) to Vienna (VIE) A320 4x-, vs (KLM) 20x-, & Austrian Airlines (AUL) 19x-, to (LYS) A320 4x-, vs (KLM) 19x-, to Salzburg (SZG) A320 3x, vs (TAV) 9x-;
London Luton (LTN) to Innsbruck (INN) A319 2x-.
January 2016: News Item A-1: INCDT: An easyJet (EZY) Airbus A319 landed on a Pisa Airport runway on December 30, that had been closed for takeoffs and landings due to maintenance work.
Italy’s Pisa Airport has 2 runways, 04L/22R and 04R/22L, but on December 23, 04R/22L was downgraded to temporary use as a taxiway because of maintenance. This left 04L/22R as the active runway until the estimated reopening of 04R/22L on January 31.
“EasyJet (EZY) can confirm that flight EZY1847 from Manchester to Pisa on December 30 landed on runway 04R instead of 04L, which was the operational runway at the time. The A321 landed safely and routinely and all works had been completed on runway 04R at this time,” (EZY) said.
“At no point was the safety of the passengers on board compromised,” (EZY) said. “An internal safety report was filed in accordance with (EZY)'s procedures and (EZY) also informed the relevant authorities.”
The closed runway, 04R/22L, is normally Pisa’s main landing strip.
News Item A-2: EasyJet (EZY) begins 2x-weekly, Tivat - Manchester (MAN) service on March 27.
February 2016: easyJet (EZY) has unveiled plans for a hydrogen fuel cell system that would remove the need for aircraft to use their engines for taxiing.
The airline said that trials of the concept, developed by the airline and students at the UK’s Cranfield University, which specializes in technology and management, would take place later this year.
(EZY) aims to reduce its passengers’ carbon footprint by -7% over the next 5 years, following on from a -28% reduction over the past 15 years.
(EZY) said that its short-haul, high-frequency operating philosophy means that around 4% of total fuel consumption is spent getting between the runway and terminal at the start and end of flights, a process that typically takes 20 minutes per sector.
The proposed system uses a hydrogen fuel cell and lightweight batteries in an aircraft’s underfloor hold. The system captures energy as the aircraft brakes on landing and uses this to charge the batteries.
That captured energy can then be used to power electric motors in the aircraft’s main undercarriage wheels, allowing the aircraft to taxi without using its engines.
The system would also reduce and perhaps remove the need for tugs to maneuver aircraft in and out of their stands, further cutting emissions and delivering more efficient turnaround times.
The only waste product from the fuel cell system would be water (which easyJet (EZY) suggests could be used to recharge the aircraft’s water system throughout flight).
(EZY) will now work with its industry partners and suppliers to apply the technology, with a trial taking place later this year. “The hybrid plane concept we are announcing today is both a vision of the future and a challenge to our partners and suppliers to continue to push the boundaries towards reducing our carbon emissions,” (EZY) Head of Engineering, Ian Davies said.
The airline and Cranfield signed a 3-year strategic partnership agreement in 2015 to share innovation and knowledge.
February 2016: News Item A-1: The easyGroup private investment company, owned by easyJet (EZY) Founder, Stelios Haji-Ioannou, is once again at odds with (EZY)’s management team.
Stelios has had long-running arguments over the way in which (EZY) is run, notably over its fleet expansion policy.
On February 9, easyGroup said it intended to vote a token 20 million shares (rather than its full 34% stake in the airline) against the re-election of (EZY)’s Chairman, John Barton.
It was not the easyGroup’s intention to remove Barton from his position. Indeed, it described his performance as “highly satisfactory.” Rather, it was making a statement against what it described as (EZY)’s “scattergun approach” to dividends, which it said had resulted in a “haphazard mixture of ordinary and special dividend payments that has left investors confused and uncertain as to the company’s intentions when rewarding shareholders.”
The EasyGroup wants the company’s dividend policy set at 50% of post-tax profits. Although the dividend pay-out ratio has actually averaged 53% over the past five years, the investment group wants a fixed 50% ratio, with any surplus above that level distributed via share buy-back programs.
The latter course would boost earnings per share and thus increase the share price, the easyGroup said.
It added that competitor Ryanair (RYR)’s policy of share buy-backs showed the validity of this approach, noting that over the past two years, (RYR)’s share price had jumped +87%, while that of easyJet (EZY) had fallen -12%.
“If the [EZY] board’s reluctance to even consider this proposal is down to concerns that Sir Stelios’ family shareholding would head back up towards 40%, then this would be a case of the directors opting for a quiet life rather than putting their shareholders’ interests front and center.
“Clearly, this is a question that needs to be put to shareholders at the earliest possible opportunity.”
News Item A-2: easyJet (EZY) launched services between Geneva (GVA) and Pisa (PSA) on February 1. The 441 km sector will be operated 3x-weekly (Mondays, Wednesdays and Fridays) with (EZY) scheduled to use its A319 fleet on the route. Currently, no incumbent carriers compete on the city pair. This new route appears to replace (EZY)’s service from Geneva to Bologna which ended on January 8. A second connection to Switzerland is expected to commence on March 28 by easyJet (EZY) from Pisa, with a planned launch of services to Basel.
News Item A-3: easyJet (EZY) added three routes to its network, with two services launched from Venice Marco Polo (VCE) to Edinburgh (EDI) and Prague (PRG), started on February 3 & 4, respectively. (EZY) will make a further addition to its Scottish network with services from Edinburgh to Vienna (VIE) commencing on February 6. The year-round service between Marco Polo and Edinburgh, is expected to carry up to 50,000 passengers in the 1st year of operation and will operate 4x-weekly. The year-round route from Edinburgh to Vienna, which is anticipated to carry 21,000 passengers in the first year of operation, will operate 2x-weekly (Tuesdays and Saturdays) before increasing to 3x-weekly from the summer of 2016. (ezy) already flies from London Gatwick, London Luton, London Southend and Manchester in the UK to Marco Polo, and from London Gatwick, London Luton, Manchester and Bristol in the UK, to Vienna. The 529 km city pair between Marco Polo and Prague will be flown 3x-weekly. All three services are flown by (EZY)’s 156Y-seat A319s and face no direct competition. On the new Scottish routes, Ali Gayward, easyJet (EZY)’s Head of Scotland, said: “(EZY) is Scotland’s largest airline and now has an unrivalled network of >50 routes served from Edinburgh, Glasgow, Aberdeen, and Inverness.”
March 2016: easyJet (EZY) entered into the congested London to Paris market on February 26, starting a 4x-weekly A319 operation between London Southend (SEN) and Paris CDG (CDG). (EZY) will join London - Paris incumbents offering 184 weekly rotations: Air France (AFA) (which flies London Heathrow (LHR) to Paris (CDG) 46 times weekly), British Airways (BAB) ((LHR) to (CDG) 53x-weekly and Paris Orly 27x-weekly) and CityJet (22x-weekly to Orly). easyJet (EZY) itself also operates from London Luton and London Gatwick to Paris (CDG) (both 18x-weekly). However, the 314 km sector from Southend to (CDG) will face no direct competition. The relatively unusual launch date for this new route can be explained by the fact that (EZY) recently ceased operations between London Southend and Berlin Schönefeld, thus freeing up aircraft time.
April 2016: UK low-cost carrier (LCC) EasyJet (EZY) will base its 10th Airbus A320 family aircraft at Berlin Schoenefeld Airport and plans to launch new routes to Bordeaux, Toulouse, Pristina, and Catania this spring.
Berlin became (EZY)’s 1st German base in 2004 and has the largest market share of all airlines at Schoenefeld. Since 2004, (EZY) has carried >46 million passengers to and from Germany, and >30 million to and from Berlin.
“The growth of EasyJet (EZY) has been a major reason Berlin Schoenefeld has become the largest (LCC) airport in Germany,” Schoenefeld operator, Flughafen Berlin Brandenburg GmbH (CEO), Karsten Mühlenfeld said.
In 2015, (EZY) transported 4.8 million passengers to and from Berlin, up +6.6% year-over-year. This summer, (EZY) is operating 87 routes from Germany, with 44 routes from Berlin.
(EZY) has 500 employees in Germany, with 400 of them at Berlin.
(EZY) said it transports 70 million passengers annually and operates 240 aircraft on 810 routes between 130 airports in 32 countries.
May 2016: easyJet (EZY) has further developed its European route network by adding four new services between May 4 and 8, starting on the former date with the inauguration of flights between Toulouse (TLS) and Faro (FAO). The remaining 3 routes launched by (EZY) all originate from Amsterdam (AMS), all facing direct competition from the same 3 incumbents. The average weekly frequency on the new services is 2.5.
June 2016: News Item A-1: Low-cost carrier (LCC) easyJet (EZY) has said it expects “economic and consumer uncertainty” in the wake of this month's UK voting to leave the European Union (EU).
In an update issued on June 27, Luton-headquartered easyJet (EZY) said the uncertainty around Brexit will likely impact its operations this summer, with revenue per seat at the constant currency, set to fall by at least a mid-single digit percentage compared to (H2) 2015.
(EZY) also said recent movements in fuel prices and exchange rates are now expected to add around +£25 million/+$33.3 million of additional cost in the year to that guided at the half year results.
News Item A-2: SR Technics (SWS) has been awarded a 5-year contract to provide heavy maintenance services on UK low-cost carrier (LCC) easyJet (EZY)’s fleet of A320 aircraft.
Under the terms of the agreement, (SWS) will carry out the work at its facility in Malta. The agreement, signed on June 22, expands on an existing relationship between the parties dating back to 2005.
Ian Davies, Head of Engineering & Maintenance at (EZY), said they chose to expand their cooperation with SR Technics Malta due to the quality of its work along with its safety, quality and efficiency standards.
July 2016: News Item A-1: "Teenager, 19, Becomes Britain's Youngest Professional Pilot" by Liz Hull, "The Daily Mail" July 01, 2016.
Lots of little boys dream about flying aeroplanes when they grow up. But only one can say he realized his ambition while still a teenager. At the tender age of 19, Luke Elsworth is already flying British holidaymakers around the world (after qualifying as the UK's youngest commercial airline pilot (FC).
The fresh-faced teenager was appointed a first officer (FC) with easyJet (EZY) in April and this month completed his final checks before taking over the controls.
His father, Paul Elsworth, 52, who is also a captain (FC) for (EZY), said becoming a pilot (FC) was "all Luke ever thought about" as a child. He joked: "I do think it's a bit mental that a 19-year-old is in charge of a 33 million pounds aircraft." "But as Luke would say: Marcus Rashford is only 19 and he plays for England (so if you're good enough, you're old enough and I agree)." "Luke has worked really hard. I have as much confidence in Luke flying as I have myself (and I've been doing this for 32 years)."
"He's very, very good. He also wants to prove to other young kids that you don't need to go to a red brick university to become an airline pilot (FC)." Asked whether he felt it was appropriate for someone his age to be flying passenger jets, Luke said: "I don't see why not. I really want to encourage more younger people to get into it." "If you're good enough to be there, you've done the training and you're suited towards it, then I don't think age really has an impact."
He insisted he has not noticed any worried looks from passengers when they see him enter the cockpit. "I've not had anything," he added. "If there was a train driver that was 18 and he'd been through all the training, I'd have complete trust in him. I wouldn't bat an eyelid." And when questioned about whether he would be able to cope with a mid-air emergency, Luke added: "I would hope I would . There's no reason why I shouldn't be. I'm comfortable flying the aircraft."
Mr Elsworth, of Appleton, near Warrington, Cheshire, said he remembers the exact moment his son decided he wanted to follow in his footsteps. "Luke must have been only about 3 or 4 at the time," he said. "We were at an air show, and he was stood underneath the wing of this great aircraft eating his sandwiches." "I looked at him and asked him what he wanted to be when he grew up and he said, 'I'm going to be a pilot (FC) like you dad." "Ever since that moment, all he has ever thought about is flying an aeroplane for a living."
Luke enjoyed playing with toy planes and had pictures of aircraft on his bedroom wall as a child. He joined the air cadets as soon as he could enrol on his 13th birthday, and took A-levels in maths and physics, achieving A-grades in both, because he knew they were needed for his dream job. Then, just 9 days after turning 18, he signed up for (EZY)'s pilot training program at (CTC) Aviation in Southampton, which is affiliated to a degree course at Middlesex University.
Luke completed the course (which included 6 months on simulators and a stint flying light aircraft in Arizona, USA (in 18 months). He holds a Multi-Crew Pilot Licence and is the youngest airline pilot (FC) in the UK, according to Civil Aviation Authority (CAA) records.
Mr Elsworth added: "I fly out of Manchester, and Luke is flying out of Gatwick at the moment, but we will undoubtedly fly together at some point." "The other day my plane pulled up alongside his and he gave me a thumbs up from the cockpit. I had a little chuckle to myself that there was an Elsworth in each plane. We're very proud of him."
Despite his father's job, Luke, who flies Airbus A319 and A320 planes, insisted he wasn't pressurized into becoming a pilot (FC). "I'd seen what it was like," he said. "It was obviously something that was very exciting. It was always my choice." He described his first flight (from Gatwick to Toulouse in the south of France) as "incredible," adding that he felt "relaxed and comfortable in the environment."
The teenager said he has no regrets about taking on such a responsible job at such a young age, adding that he got a buzz every time he stepped off a plane and saw the "massive piece of machinery" that he had landed. "Maybe I sacrificed going to university," he said. "On your days off, you might not be going to the pub and drinking loads, but you can still go out and have fun." "It's not as if you're constrained to being inside all day revising. You do get the opportunity to relax. I don't feel like I'm missing out."
Former British Airways (BAB) pilot (FC) Eric Moody agreed the age of a pilot (FC) "had very little to do with it." He said: "Best of luck to the young lad, I hope he has a long and successful career. It's all down to competence. If he's good, then it's okay."
SEE PHOTO - "EZY-2016-04 - Youngest Pilot.jpg."
News Item A-2: A fall in the value of the pound has added £40 million/$53 million to Easyjet (EZY)’s costs since the Brexit referendum on June 23. This is mainly because of (EZY)’s dollar-denominated fuel bill, though aircraft purchases and leases are also in USA currency.
In its quarterly result, (EZY) revealed that it has also suffered from terrorist activity at several of its European and North African destinations, which alongside air traffic control (ATC) strikes have forced it to lower fares to maintain demand. Despite rising passenger numbers, Easyjet (EZY) actually recorded a small drop in revenue for the recent quarter because of a -8% reduction in yields. (EZY)'s share price is down about -40% since the start of the year.
News item A-3: "EasyJet (EZY) Takes $53 million Hit After Brexit" by (ATW) Victoria Moores, July 21, 2016.
UK budget carrier, easyJet (EZY) has taken a £40 million/$52.5 million currency hit because of the devaluation of the pound since the UK voted to leave the European Union, or Brexit on June 23.
(EZY) warned the economic and operating environment is “difficult and uncertain” as it enters its final quarter. “The most tangible effect [of Brexit] has been the devaluation of the pound, both against the dollar and euro,” (EZY) (CEO) Carolyn McCall said, giving a trading update for the third quarter ended June 30. “The swing from June 23 against us on our unhedged [currency] is £40 million. That’s just since June (in the last 4 weeks) so that’s quite significant.”
(EZY) added that it is “mobilized and actively engaging with regulators” over European flying rights. If the UK does not remain in the deregulated European aviation market, (EZY)’s contingency plan to obtain an (EU) air operator’s certificate (AOC) is “well-developed.”
As well as Brexit, (EZY)’s figures have been dampened by air traffic control (ATC) strikes, runway closures at London Gatwick Airport, severe weather, the terror attacks in Brussels, Nice, and Turkey, and the EgyptAir (EGP) crash, (which have all taken a toll on consumer confidence). Over the 3-month period, these events caused 1,221 cancellations, compared with 726 in the 2015 (3Q). (EZY) described this as “exceptionally high levels of disruption,” which added £20 million in costs.
Passenger numbers were up +5.8% at 20.2 million, which absorbed +5.5% capacity growth and pushed its load factor up +0.3 of a point to 92% LF. But while passenger numbers were up, total revenue fell -2.6% to £1.2 billion, and revenue per seat fell -8.3% at constant currency, or -7.7% on a reported basis, to £54.54 per seat.
(EZY) shaved -3.8% off its cost per seat including fuel, driven by maintenance and navigation savings, while its ex-fuel costs remained stable. Looking ahead to the 4th quarter, (EZY) said revenue per seat has fallen around -7.5% at constant currency. How this will develop remains uncertain. “Capacity is expected to grow in the 4th quarter by +6%. Cost per seat, excluding fuel at constant currency, is expected to decrease by -1% for the full year.”
Over the remainder of the year, easyJet (EZY) is expecting its fuel bill to fall by -£75 to -£85 million compared with the 6 months to September 30, 2015, taking it to -£160 to -£170 million in savings across the full year. However, exchange rates are likely to have a -£45 million adverse impact, increasing to -£80 million for the whole 12-month period.
During the quarter, (EZY) took delivery of 6 Airbus A320s. As of June 30, (EZY)’s fleet comprised 253 aircraft: 109 A320s, including 4 186-seat variants, and 144 A319s.
Victoria Moores, Victoria.email@example.com"
"EasyJet (AOC) Announcement is About Calming Rattled Investors after Brexit" by Karen Walker in her (ATW) Editor's Blog, July 5, 2016.
easyJet (EZY) has announced it is seeking another air operator’s certificate (AOC) outside of the UK following the British vote to exit the European Union (EU).
(EZY) holds two (AOC)s, one in the UK (still part of the (EU)) and one for easyJet Switzerland (Switzerland is not in the (EU)). Seeking an (AOC) in another (EU) country could protect its business if and when the UK formalizes its divorce from the (EU).
While it may not be necessary (the terms of the UK’s exit from the (EU) are nowhere near clear and the split could be years off ((EZY)’s announcement is understandable and perhaps even essential given the political and economic turmoil of the past few days).
Investors have lost faith in UK businesses. Specifically in this industry, (EZY), British Airways (BAB) parent company, the (IAG), and Irish (LCC) Ryanair (RYR) all saw their shares hammered Monday, with (EZY) and (IAG) taking the hardest slaps at nearly 30% drops in share value each.
Even if this turns out to be a short-term, gut reaction hit, it’s difficult enough for any airline to convince investors of its worth even when the going is good (ask the USA majors that are now producing decent (ROIC)s, but are still struggling to convince the market that their companies will give solid, long-term returns). A seismic economic earthquake of Brexit’s proportions means that only the most golden of companies associated with the UK, will hold steady as the Brexit process unfolds.
Brexit affects (RYR), even though it is an Irish company and Ireland stays in the (EU) (only Northern Ireland is part of the UK and affected by the Brexit referendum), because a huge part of its business is with the UK. Ultimately, will (EU) companies, like (RYR), need cumbersome licenses and permits to operate its UK flights? The optimistic say no, a deal will be struck. The honest will say, we don’t yet know. Ryanair (RYR) Holdings (CEO) Michael O’Leary said after the referendum vote “don’t ask me for what this means, because we don’t know.”
That uncertainty falls much harder on a UK-based carrier, like (EZY), than an (EU)-based carrier, like (RYR).
The now boringly over-used British catchphrase “keep calm and carry on” is of little use if you are running a company that, at least in the investor’s eye, is at risk of encountering some significant administrative and cost operating disadvantages, albeit down the road.
(EZY)’s (AOC) announcement is aimed at addressing those investor jitters up front.
A320-214 (7340, G-EZPP), ex-(F-WWBK) delivery.
October 2016: News Item A-1: easyJet (EZY) is forecasting a +£490 to +£495 million/ +$624 to +$630 million full-year pre-tax profit, -29% down from +£686 million in the prior year, after being “disproportionately affected” by major external shock events and disruption.
In a trading update released October 6, (EZY) said the UK’s decision to exit the European Union (Brexit) is now expected to cause a -£90 million exchange rate hit to (EZY)’s results for the year ended September 30.
“EasyJet (EZY) has performed strongly in a difficult operating environment for all European airlines and in the 3-month period [to September] has been affected by major disruption, exchange rate fluctuations impacting holiday travel costs, the impact on demand from terrorist events and the low cost of fuel continuing to drive increased market capacity,” (EZY) said.
In the 3 months to September 30, (ezy) added +6.1% capacity and hit a record 22 million passengers at a 93.9% LF load factor, but revenue per seat at constant currency fell -8.7% against the same period in 2015.
However, (EZY) benefitted from lower fuel prices, which shaved -£75 to -£80 million off costs for the 2nd half of the year. This means (EZY)’s full-year cost per seat, at constant currency and including fuel, is expected to decrease -4.6%. Ex-fuel costs are expected to be down -1.1% year-on-year.
In the 2017 financial year, (EZY) is planning to add around 8% capacity. “Revenue per seat in the 1st quarter continues to be down year-on-year and is currently expected to be broadly in line with the reduction seen in the 4th quarter 2016,” (EZY) said.
Meanwhile, costs for the 2017 financial year are forecast to rise around +1%. “This excludes the impact of a number of aircraft sale and leaseback transactions, plus the one-off costs associated with the set-up of a European air operator’s certificate (AOC) and changes to the organizational structure, as well as the outcome of ongoing union negotiations,” (EZY) said.
(EZY) is expecting continued foreign exchange issues into 2017, as the UK pound suffers weakness against the USA dollar, pushing up fuel prices. “The total expected foreign exchange impact for the year to September 30 2017 is around £90 million,” (EZY) said.
News Item A-2: "EasyJet Continues Re-tendering Maintenance Contracts" by Lee Ann Shay, Inside Maintenance Repair & Overhaul (MRO), Aviation Week Newsletter, October 17, 2016.
easyJet (EZY) recently opened a maintenance hangar with unique operating arrangements and announced 5-year base maintenance contracts to SR Technics (SWS) and Lufthansa Technik (DLH) (LTK).
December 2016: Passengers at London’s Gatwick Airport (LGW) are being advised to check which terminal their flight departs from in January 2017 as 3 of the airport’s major carriers change locations.
(LGW), which says it is the world’s busiest single-runway airport with an estimated 43.5 million passengers in 2016, has 2 terminals: the original airport building, now known as the South Terminal, and the newer North Terminal.
As part of (LGW)’s ongoing modernization and upgrade program, British Airways (BAB) will move to the South Terminal, Virgin Atlantic (VAA) will cross to the North Terminal, while low-cost carrier easyJet (EZY), which currently operates out of both buildings, will consolidate its operation in the North Terminal.
The changes will see new facilities being brought into use for both (BAB) and (VAA), including new technology at check-in, security and immigration as well as new bag-drop zones and new (BAB) and (VAA) lounges. The moves will take place over a 72-hour period in late January 2017, with all 3 carriers operating a reduced flying program during that period.
From January 24, all easyJet (EZY) flights will depart from the North Terminal; from January 25, all (BAB) services will depart from South and all (VAA) flights will depart from North.
The only exceptions to these dates are (BAB)’s flight BA2273 to New York, which will depart from South beginning January 11 and BA2612 to Naples, which will make the switch to South from January 19. “We are ready to deliver this major step in (LGW)’s strategic transformation program,” (LGW) (COO) Chris Woodroofe said. Plans for the change have been under way for 2 years, he added. “Relocating the airlines allows greater efficiency and positions all 3 carriers for growth, which in turn drives (LGW)’s growth,” he said.
Approximately 50,000 passengers will be traveling with the 3 airlines on the 277 flights that will be relocating across the 72-hour switchover period. Around 10,000 (LGW)-based staff are also affected by the moves.
January 2017: UK low-cost carrier (LCC) easyJet (EZY) returned what it described as “a solid 1st quarter” in its financial year, but warned the trading outlook would remain difficult.
(EZY), the London Luton-based airline said revenue was up +7.2% at £997 million/$1.25 billion. It did not give profit figures for the period, but said revenue per seat decreased -1.2% on a reported basis to £51.64. However, revenue per seat trends improved slightly more than previous guidance, despite increased capacity from competitors, as well as the impact on European tourism markets by the pre-Christmas terrorist attack on a Berlin market.
Passenger numbers were up +8.2% at 17.4 million, but this was slightly outstripped by a +8.6% rise in capacity, which nudged load factors down -0.3% to 90% LF.
(CEO) Carolyn McCall said revenue, cost and passenger numbers were in line with expectations, “despite a tough pricing and operating environment.” Consumer demand remained buoyant, she said.
The continued weakness of sterling in the post-Brexit period, together with the impact of fuel costs, were -£35 million worse than anticipated, “but easyJet (EZY) has made good progress in reducing costs in those areas where we have more control, such as Engineering, Maintenance, non-regulated airports and overheads,” McCall said. “The underlying year-on-year revenue per seat trend continues to improve, supported by resilient demand across all our European markets. Forward bookings are ahead of last year.”
However, the prognosis did not impress the company’s Founder and largest shareholder, Stelios Haji-Ioannou, who noted the trading update had occasioned a drop in the company’s share price. Haji-Ioannou has frequently been at odds with easyJet (EZY)’s board in recent years. “Clearly other investors are extremely unimpressed by the decline in revenue per seat,” Haji-Ioannou said, who added he intended to make a symbolic protest by voting a token 3% of the company’s shares (he has control of around 33%) against (EZY)’s fleet plan at the annual meeting on February 9.
“In our view, the best way to increase the earnings per share and send the share price up again is to reduce the incremental aircraft in the fleet from 2018 onwards,” he said.
McCall noted the “pricing and operating environment remains tough,” with low fuel costs and continued strong capacity growth among competitors depressing yields.
Some observers noted the (1Q) report contained a statement that the company had secured increased flexibility with Airbus (EDS) in fleet delivery arrangements with a reduced 18-month notice period on aircraft deferrals, speculating this could be in preparation for postponing some deliveries.
February 2017: News Item A-1: easyJet (EZY) commenced 3 new routes, starting on February 4 with a connection between London Gatwick (LGW) and Granada (GRX). Currently not served by another carrier, (EZY) will operate the 1,576 km sector 3x-weekly (Tuesdays, Thursdays and Saturdays) on a mixture of its A319s and A320s. On the same day, (EZY) launched flights between Amsterdam (AMS) and Lanzarote (ACE). Already served by Transavia (TAV) (4x-weekly) and Corendon Dutch Airlines (weekly), (EZY) will link the 3,003 km sector between Amsterdam and Lanzarote 2x-weekly (Tuesdays and Saturdays) on its A320s. Finally on February 6, easyJet (EZY) commenced a connection between Amsterdam and Budapest (BUD).
The 1,167 km pairing of Amsterdam and Budapest is already flown by (KLM) with 20 weekly flights, while (EZY) will link the 2 cities with a 3x-weekly service (Mondays, Wednesdays and Fridays) on its A319s. Amsterdam becomes the 8th destination that (EZY) serves from Budapest. Along with Amsterdam, (EZY) serves Basel, Berlin Schönefeld, Geneva, London Gatwick, Lyon, Paris (CDG) and Venice Marco Polo.
News Item A-2: easyJet (EZY) has commenced 2 new services from its 3rd largest operation London Luton (LTN) (behind bigger bases at London Gatwick and Geneva), for week commencing February 9. Started on February 11, (EZY) started 3x-weekly services on the 1,376 km link to Valencia (VLC). The Spanish airport is already served by the airline from London Gatwick. 2 days later it began 4x-weekly operations to Marseille (MRS), an airport that (EZY) already serves from 7 other airports. Both routes are operated by (EZY)’s 156Y-seat A319 fleet and neither faces any direct competition. This summer (EZY) will serve some 57 destinations non-stop from Luton, where (EZY) still has its corporate headquarters.
News Item A-3: easyJet (EZY) expects to finalize plans for a European air operator’s certificate (AOC) over the coming weeks and could place a new (AOC) in either Portugal or Austria. “Talks with authorities [of both countries] have been held. Besides Austria, Portugal is on the agenda,” a source involved in establishing new (AOC)s in Austria said. “Portugal, for example, is very agile and cooperative to establish a new (AOC), most likely the easiest plan.
News Item A-4: Lobby group "Airlines for Europe" (A4E) has completed its 1st year of operations, bringing both successes and some ongoing frustrations. (A4E) was started by Europe’s 5 major airline players: Air France (AFA) - (KLM), UK-based easyJet (ESY), the International Airlines Group (IAG), Lufthansa (DLH), and Irish low-cost carrier (LCC) Ryanair (RYR) in January 2016 to focus on key policy areas, including airport charges, air traffic control (ATC) strikes and taxation.
News Item A-5: 5 A320-214 (7537, G-EZPV; 7549, G-EZPW; 7572, G-EZPX; 7580, G-EZPY; 7597, G-EZRA), ex-(D-AUBA, D-AUBE, D-AUBH; F-WWBU; & F-WWII) deliveries.
March 2017: easyJet (EZY), one of Europe's leading low cost carrier (LCC), has put Winter 2017 on sale meaning that flights across Europe are now on sale until February 4, 2018.
Over 111,700 flights are set to take place across (EZY)'s network between October 29, 2017 and February 4, 2018 providing >18.8 million seats. Of these, >10.7 million seats are now on sale to and from the UK on 64,000 flights. Customers can look forward to low fares by booking early at www.easyjet.com.
Sophie Dekkers, (EZY)'s UK Director, said:
"We're really pleased to be putting our flights for Winter 2017 on sale today. Passengers can look forward to even more low fares to Europe's best beach, city and ski destinations."
"For those who are looking for inspiration on where to go on their break, our "Inspire Me" app available on our website helps travelers to find flights tailored to their budget and travel dates."
easyJet (EZY) has bases across 11 UK airports and flies to >800 routes on its network across Europe, the Middle East and North Africa.
Customers can look forward to a number of routes to destinations such as:
* Belfast to London Gatwick from 24.49 pounds*
* Bristol to Reykjavik (Iceland) from 26.49 pounds*
* Edinburgh to Stuttgart from 34.49 pounds*
* Edinburgh to Paris Charles de Gaulle from 30.49 pounds*
* Glasgow to Berlin from 24.49 pounds*
* Manchester to Copenhagen from 26.49 pounds*
* Newcastle to Barcelona from 26.49 pounds*
* London Southend to Paris Charles de Gaulle from 24.49 pounds*
* London Gatwick to Venice from 34.49 pounds*
* Fares per person, 1 way, based on 2 people traveling on the same booking.
May 2017: News Item A-1: easyJet (EZY) reported a net loss of -£192 million/-$239.1 million in the 1st half of its financial year, widened from a net loss of -£15 million for the same period last year.
1st-half revenue was up +3.2% year-over-year (YOY) at £1.83 billion.
“The 1st-half loss is in line with market expectations and reflects the movement of Easter into the 2nd half as well as currency effects, which together had an estimated impact of circa £127 million on the bottom line,” (EZY) (CEO) Carolyn McCall said. “EZY) delivered a resilient performance during the winter months with strong cost control, improving operational performance and within guidance for revenue.”
Capacity increased +8.4% (YOY), but was outstripped by +9% growth in (1H) passenger numbers to a record 33.8 million, up from 31 million a year ago. The (1H) load factor was also a record at 90.2% LF, compared to 89.7% LF in the (1H) of the previous financial year.
(EZY) said forward bookings were ahead of last year, at 77% for (3Q) and 55% for (2H). “Looking ahead, we are seeing improving revenue per seat trend as well as the continued reduction of competitor capacity growth,” McCall said. “Cost performance for the full year will continue to be strong. (EZY) is delivering on its strategy of purposeful investment in securing and building strong positions at Europe’s leading airports, which is driving competitive advantage with sustainable returns. As a result, our expectations for the full year are in line with current consensus market expectations,” she added.
Following the UK’s decision to leave the European Union (EU), (EZY) said it remains on track to achieve a European air operator’s certificate (AOC) by the summer, which would secure future operations within the (EU).
News Item A-2: easyJet (EZY) has reached an agreement with Airbus (EDS) to convert 30 of the Airbus A320neos that it has on order to A321neos, with the 1st delivery scheduled for summer 2018.
Announcing the change to the 2013 agreement at the release of its interim results on May 16, (EZY) said it had negotiated a “very substantial discount” from the A321neo’s $127 million list price.
(EZY) plans to power A321neos with (CFM) International (LEAP-1A) engines and configure the aircraft with 235 seats. “These new aircraft will help us deliver our strategy of securing and growing our number one positions at Europe’s leading airports, which are generally slot constrained, while reducing our cost per seat,” easyJet (CEO) Carolyn McCall said.
A319s still account for 54% of easyJet (EZY)’s fleet, with A320s making up the remainder. McCall said the larger aircraft (which have +50% more seats than the A319 and +30% more than the A320) will deliver “substantial unit cost savings,” estimated at a +8 to +9% improvement on the A320neo and around +21% better than the A319. She added that the change will help keep fares low.
The additional seats will also help minimize easyJet (EZY)’s environmental impact, in terms of noise and carbon emissions.
At March 31, 2017, (EZY) had a fleet of 266 aircraft, including 144 156-seat A319s and 122 A320s (61 with 180 seats and 61 with 186 seats). (EZY) started to roll out denser seating on its A320s from May 2016, increasing cabin capacity from 180 to 186-seats. The additional 6 seats on the A320 cut per-seat costs by -7 to -8%, compared with the smaller 156-seat A319s that they are replacing.
Over the next 5 years (EZY) said it will continue to cut unit costs and emissions by improving its fleet mix and ownership structure. (EZY) has 27 186-seat A320s on order, plus 100 A320neos and 30 A321neos. (EZY) also holds purchase rights on another 100 A320neos.
(EZY)’s 1st A320neo will be delivered in in June, followed by its initial A321neos in summer 2018.
June 2017: News Item A-1: "EasyJet Confirms Interest in Alitalia" by
Victoria Moores firstname.lastname@example.org, June 15, 2017.
easyJet (EZY) has confirmed it is among the parties that have expressed an interest in troubled Italian flag carrier Alitalia (ALI), which is separately facing strike disruption June 17.
Abu Dhabi-based Etihad Airways (EHD)'s equity partner Alitalia (ALI) went into "special administration" in May after employees voted against a labor agreement, which was critical to (ALI)’s turnaround plan. Special commissioners called for parties to declare their interest by June 5, which attracted 32 expressions of interest, including Irish (LCC) Ryanair (RYR) that is interested in a connecting flight partnership.
“We can confirm we are interested,” (CEO) Carolyn McCall said in Toulouse on June 14. She added: “We are not allowed to comment on the process, whatsoever. We have been asked by the government not to make any comments on (ALI).”
In general, McCall described Italy as a core market for easyJet (EZY) and said she sees further opportunities there. When asked whether (ALI)’s troubles had benefited (EZY), she said: “Everyone in Italy has benefited from the uncertainty surrounding Alitalia (ALI), but I don’t think it is a significant material benefit.”
(ALI) previously said it would open up its data to qualifying potential partners June 15 - 20, but the identity of interested parties was confidential.
Separately, (ALI)’s operations will be disrupted by a general transport sector strike scheduled for June 16. “The company was forced to cancel several domestic and international flights scheduled for June 16, as well as some flights in the early morning of June 17. Flights departing from Italy will operate as usual between 07:00 and 10:00 and between 18:00 to 21:00 Rome time on June 16,” (ALI) said.
(ALI) added that extra staff will be available at Rome Fiumicino and Milan Linate airports to handle the disruption, and larger aircraft will be deployed on several domestic and international routes to carry as many passengers as possible.
News Item A-2: easyJet (EZY) has received its 1st A320neo, kicking off deliveries from an order for 130 of the re-engined twinjets. With the June 14 handover, (EZY) became the 25th A320neo operator. The 186Y-seat London Luton-based aircraft entered commercial service June 15 and mixes in with the rest of (EZY)’s newly reconfigured 186-seat A320 fleet, which tends to serve primary airports, but does not operate any specific routes. (EZY) also operates 180-seat A320s and 156-seat A319s.
“[This aircraft] opens a new chapter in easyJet (EZY)’s history, it marks a milestone of our 300th [Airbus] aircraft and will significantly reduce our cost per seat that allows us to offer low fares,” (EZY) (CEO) Carolyn McCall said.
The A320neo’s CFM International (LEAP 1A) engines deliver +15% better fuel efficiency and McCall was quick to stress the significance of this efficiency gain, which she said is “relevant at any fuel price.”
“When we were talking about the A320neo to begin with, fuel was higher [priced] than it is today, but fuel is still the largest single cost for an airline and therefore that fuel efficiency is incredibly important for an airline, regardless of the fuel price,” she said.
The gains of the A320neo primarily stem from the type’s engines. “7 years ago, we committed to bringing to market an engine with +15% better efficiency than the current generation of engines. 7 years later, we did it. We have sold 12,500 (LEAP) engines. It would not have been a success had we not been selected by (EZY),” (CFM) International (CEO) Gaël Méheust said in Toulouse.
Alongside the efficiency gains, the (LEAP)-powered A320neo has a better environmental footprint. Since 2000, (EZY) said it has cut its emissions by a 3rd from 116g to <80g per passenger km and the A320neo delivery means it is now setting a new goal. “With the addition of the A320neo and A321neo, we’ve further planned improvements,” McCall said. “(EZY) is now setting an even tougher carbon emissions target of 72g by 2022. That’s a -10% reduction from today and a -38% improvement from 2000. That target is incredibly important to (EZY) and that is what we intend to achieve.”
As of March 31, (EZY) operated a fleet of 266 Airbus aircraft, comprising 144 A319s and 122 A320s. (EZY) has another 27 A320ceos on order, plus 100 A320neos and 30 that it recently converted to 235Y-seat A321neos for delivery from July 2018.
Over the last 8 years, (EZY) has switched its focus from the A319 to the A320. (EZY) acquired 2 A321s when it bought (GB) Airways, but these were the wrong seat density, so they were phased out.
EasyJet (EZY)then increased its A320 density by retrofitting its existing fleet and line fitting them on new arrivals, before opting for the A321neo. “The upgauge is a real advantage for us. We waited on the A321 [order] until the A321neo,” she said, adding that most of (EZY)’s direct rivals have already followed this path and therefore have limited gains to make.
McCall said the conversion to larger A321neos is linked with (EZY)’s primary airport strategy, to maximize capacity and minimize noise at slot-congested hubs. The A321neos will have similar range to (EZY)’s existing fleet, she said.
(EZY) has unexercised purchase rights on 100 A320neos, which can be converted to A321neos. “We are able to take more A321neos in the future under the 2013 framework agreement we have with Airbus (EDS), but we have not committed to more,” McCall said, adding the fleet plan is reviewed on a regular basis and a further update will be given at (EZY)’s 3rd-quarter results.
Speaking at the ceremony, Airbus (CEO) Tom Enders said the A321neo is a “little delayed,” but the test flights and certification work is ongoing. To date, Airbus has delivered a total of 117 A320neos.
2 A320-214 (7750, G-EZRI; 7762, G-EZRJ), ex-(D-AXAX and D-AXAR) deliveries.
July 2017: News Item A-1: UK low-cost carrier (LCC) easyJet (EZY) is staying silent on its application for a European Union (EU) air operator’s certificate (AOC) and discussions over connecting flights until they are finalized. “We won’t make a big deal of things until we sign a firm agreement. Our view is that this approach is better than saying something and then nothing happening for a couple of years. We’d rather say something and then do it,” (EZY) (CEO) Carolyn McCall said, speaking at a recent media event at London’s Luton Airport and making a veiled reference to Irish (LCC) Ryanair. She said this applied to any feeder agreements and the (EU) (AOC).
EasyJet (EZY)'s network depends heavily on (EU) route rights. An (EU) (AOC) would safeguard (EZY)’s network, should the UK and the (EU) fail to agree on a new air transport accord before the UK exits the (EU) (Brexit).
“What will secure our strategic future is a European (AOC). We are well on track towards doing that. It depends on ownership and control. If [the outcome of the Brexit talks] is like what we have today, nothing changes. If it is not like today, we will have to be an (EU) airline and will have to change some elements of our ownership. Currently, (EZY) is 48% (EU) owned, so there is not a big gap to fill,” McCall said.
(EZY) is still on track to secure the (AOC) this summer, but McCall said: “We have taken the view that we will not announce it until we have the license. We have to expect to have something sorted [in place] by next year.”
Certain sources had previously indicated the new (AOC) could be sourced from either Portugal or Austria, although Ireland and Cyprus are also understood to be in contention.
McCall added that a Brexit transition agreement for aviation could become “very relevant” to (EZY). “This is not about the next 18 months; it’s about the next 5 to 10 years.”
However, the (EZY) (CEO) was reluctant to speculate on the impact of Brexit and declined to discuss the topic during a video interview.
“There is a lot of talk in the newspapers about hard and soft Brexit, but I don’t think anyone knows what that means. There is an awful lot to do (just in aviation), never mind the other industries. It is extremely complex. Before and after the [Brexit] vote, everyone in aviation wants to do the same thing, to keep deregulation and liberalization as much as we can keep it, because it works well for consumers and you can’t stop them from traveling.
“We will proceed with how we are operating today. We need to focus on selling seats and stabilizing, not freaking people out. Who does that help? This is in the hands of the politicians on both sides and it is up to them to deliver.”
News Item A-2: "EasyJet (CEO) Carolyn McCall to Step Down" by (ATW)
Victoria Moores email@example.com, July 17, 2017.
UK low-cost carrier easyJet (EZY) has announced that Carolyn McCall will step down as (CEO) around the end of 2017 to lead UK television company (ITV).
“This was a really difficult decision for me to make,” McCall said. “After 7 years, the opportunity from (ITV) felt like the right one to take.”
(EZY) said McCall will continue with her existing responsibilities; the search for her successor is already underway.
“Carolyn built and led the management team that has transformed (EZY)’s performance in every respect since 2010,” (EZY) Chairman John Barton said.
He said McCall has built a solid operational performance and redefined the (EZY) customer experience, boosting passenger numbers and loyalty.
“This has led to sustained and continuing financial success which has been shared with shareholders with a more than trebling of (EZY)'s share price and the payment of £1.2 billion/$1.6 billion in dividends,” Barton said.
(EWY)’s 3rd-quarter trading update will be issued on July 20. This is expected to include improved revenue-per-seat, strong load factors and full-year cost-per-seat in line with guidance.
News Item A-3: easyJet (EZY) commenced 12 new routes to destinations in Bulgaria, Croatia, France, Italy, Montenegro and Spain. The average sector length of the new city pairs is 924 km, with the shortest airport pair being the 463 km service from Geneva (GVA) to Calvi (CLY), while the longest is the 1,757 km operation from Hamburg (HAM) to Valencia (VLC). The average weekly frequency of the 12 new routes is 2.2. Just 4 of the 12 new routes will see any direct competition for (EZY), all from a single incumbent. Regarding (EZY)’s 3 new routes from Berlin Schönefleld, “(EZY) is continuing its expansion in Berlin. This clearly acknowledges the importance of this location. In the last 14 months, (EZY) has stationed 3 new aircraft at Schönefeld, as well as adding 11 new destinations to its Berlin flight plan. With a total of 48 destinations, there is hardly a region in Europe that cannot be reached by flying (EZY) from Berlin.”
Berlin Schönefeld (SXF) to Pula (PUY), A319, 3x- and to Varna (VAR), A319. 2x;
London Luton (LTN) to Biarritz (BIQ), A320, 2x-;
Milan Malpensa (MXP) to Zadar (ZAD), A320, 3x;
Venice Marco Polo (VCE) to Palma de Mallorca (PMI), A319, 3x, vs Volotea, 3x-;
Basel (BSL) to Biarritz (BIQ), A320, 2x; to Dubrovnik (DBV), A319 2x;
Berlin Schönefeld (SXF) to Varna (VAR);
Geneva (GVA) to Calvi (CLY), A320 2x; vs SWISS (CSR) 1x;
Geneva (GVA) to Tivat (TIV), A320 1x;
Hamburg (HAM) to Valencia (VLC), A319 2x; vs Ryanair (RYR) 3x-;
Venice Marco Polo (VCE) to Alghero (AHO), A320 2x, vs Volotea 2x-;
Toulouse (TLS) to Valencia (VLC), A319 2x.
News Item A-4: easyJet (EZY) has applied for an air operator’s certificate (AOC) in Austria as the low cost carrier (LCC) faces uncertainty about being able to continue flying in the European Union (EU) after Brexit. The new airline, "easyJet Europe," would be headquartered in Vienna.
Currently, (EZY)’s network depends heavily on (EU) route rights. An (EU) (AOC) would safeguard (EZY)’s network, should the UK and (EU) fail to agree on a new air transport accord before the UK exits the (EU).
EasyJet (EZY) said that with the new company structure, (EZY) should become a pan-European airline group with 3 subsidiaries, which will be registered in Austria (easyJet Europe), and include existing easyJet Switzerland (TEB) and easyJet UK.
The application process is far advanced and (EZY) hopes the certification will be granted in the near future. “There is no doubt that this (AOC) will be granted by Austrian authorities.”
(EZY) said the decision to choose Austria has been based on the fact that Austro Control follows a strict course of implementing safety directives, which are fully in line with the path set by the European Aviation Safety Agency (EASA) toward more performance-oriented security.
This (EU) (AOC) is essential for (EZY) as half of 75 million passengers annually come from the (EU)-27 member states. (EZY) has based 100 Airbus A320 aircraft and 4,000 employees in 6 (EU) member states. Once easyJet Europe is certified, up to 110 aircraft deployed for (EU) operations will be registered with an (OE) Austrian code.
EasyJet (EZY) has also based 25 aircraft and 950 employees in Switzerland, and 140 aircraft and 6,000 employees in the UK.
The aircraft re-registration process should be completed over 2 winter seasons to secure flight operations. EasyJet (EZY) said this process must be completed before Brexit takes effect. When this happens, (EZY) will become Austria’s largest carrier in terms of aircraft.
“All the aircraft that are based, for example, in places such as France and Germany will get an Austrian registration. However, that does not mean the aircraft will be based in Austria.”
(EZY) said it will establish several new jobs in Austria, but will not transfer any positions from the UK to Austria.
September 2017: News Item A-1: Low Cost Carriers (LCC)s Norwegian (NWG) and Ryanair (RYR) have abandoned plans to form a connecting flight partnership, after (NWG) decided to enter into a similar tie-up with UK (LCC) easyJet (EZY).
(RYR) (CEO) Michael O’Leary had previously said a connecting deal had been agreed with (NWG) and (RYR)/(NWG) were just working on technical implementation, whereas (NWG) remained far quieter on the talks. “(RYR) is the 1 that has pretty much talked about this all the way,” (NWG) (CFO) Tore Ostby said.
September 2017: News Item A-1: The Lufthansa Group and UK-based (LCC) easyJet (EZY) have been selected as preferred bidders for the main assets of the insolvent airberlin (BER). Lufthansa (DLH) also submitted a bid for (BER)’s Austria-based subsidiary NIKI (NKI), which could be integrated into its (LCC) arm Eurowings (EWG). (BER) Administrator Lucas Flöther had planned to keep these decisions confidential until September 25, after Germany’s September 24 general elections.
October 2017: News Item A-1: "EasyJet Set to Launch German Routes if airberlin deal is Finalized" by (ATW) Kurt Hofmann firstname.lastname@example.org October 6, 2017.
easyJet (EZY) plans to launch German domestic flights from Berlin to Stuttgart, Dusseldorf and Munich if a bid to acquire parts of the insolvent airberlin (BER)’s short-haul business is finalized.
An (EZY) supervisory board member said: “It is well known that we submitted an offer for up to 30 (BER) Airbus A320s, which all would be operating mainly from Berlin. If the deal is finalized as planned, (EZY) will get a market share in Berlin of 60%,” the source said.
Meanwhile, (BER) negotiations with the short list of bidders (which include the Lufthansa Group and (EZY) (for parts of (BER), the insolvent carrier, will continue through October 12.
Lufthansa (DLH)’s bid for (BER) assets is focused on securing the 38 Airbus A319/320s it currently wet leases from (BER) the bankrupt airline. The German Lufthansa group is also interested in (BER) subsidiaries (LGW), Austria-based NIKI (NKI) and 13 airberlin (BER) Airbus A320s.
(BER) filed for insolvency on August 15 after 29.2% shareholder Etihad Airways (EHD) withdrew financial support.
Over the recent weeks, several other parties submitted proposals for (BER): — Niki Lauda, who was partnering with UK-based Thomas Cook Group and its German leisure airline subsidiary Condor (CDF) to bid for NIKI (NKI) and other parts of (BER); investor groups and entrepreneurs Hans Rudolf Wöhrl and Utz Claassen; and German-based leisure carrier TUIfly (HAP)/(HLX), among others.
A member of (BER) management said the sale of (BER) would end up between Lufthansa (DLH) and easyJet (EZY) as “so many people from (DLH) are involved and working on this project, which is well advanced now.”
However, the European Union (EU) Commission (EC) must review the deals for compliance with internal market regulations, the source said.
News Item A-2: easyJet ((IATA) Code: U2, based at London Luton) has confirmed that +4 more European carriers have signed up to its ‘Worldwide by easyJet’ hub distribution service.
Among the carriers are Italian leisure specialist, Neos (NO, Milan Malpensa), the Channel Islands-based Aurigny Air Services (GR, Guernsey), and French carriers La Compagnie (B0, Paris CDG), which specializes in all-premium transatlantic flights, and Corsair International (SS, Paris Orly), a (TUI) Group unit which offers leisure flights.
November 2017: "EasyJet Picks (TUI) Group Executive as Next (CEO)"
by (ATW) Victoria Moore email@example.com November 10, 2017.
easyJet (EZY) has selected (TUI) Group Deputy (CEO) Johan Lundgren as its next (CEO), succeeding Carolyn McCall who will hand over leadership of (EZY) on November 30.
Lundgren has >30 years’ travel sector experience, including 12 years with the (TUI) Group as Group Deputy (CEO) and (CEO) for mainstream markets.
“Johan has proven experience in European travel as (CEO) and in broader group roles. He is strategic, yet operationally focused and has proved himself to be a customer-centric, charismatic and successful leader,” (EZY) Chairman John Barton said.
According to Lundgren’s profile on (TUI)’s website, the Swedish executive became a board member in 2007 and was appointed as (TUI) Group Deputy (CEO) in October 2011. He has previously been (CEO) of (TUI) Nordic and Managing Director of (TUI) Travel’s northern region.
McCall has led (EZY) for 7 years, since 2010. Her departure was announced in July, after she accepted the (CEO) position at UK television company (ITV).
EasyJet (EZY) had indicated that McCall will step down at the end of 2017. With Lundgren’s appointment, (EZY) has now firmed up the timelines for the transition.
“Johan will be joining the board of (EZY) as a director and (CEO) on December 1 and Carolyn will step down as (CEO) and from the board on November 30. She will remain with (EZY) until December 31 to assist with the transition,” (EZY) said on November 10.
(EZY) disclosed that Lundgren will receive a £740,000/$971,342 annual salary, plus bonuses of up to 200% of that figure, although a 3rd of that bonus must be taken as shares. Lundgren will also benefit from a long-term incentive plan, totaling 250% of salary, based on (EZY)’s 3-year performance.
“The (CEO) will also be expected to build and maintain a shareholding equivalent of at least 200% of salary over a 5-year period following appointment,” (EZY) said.
December 2017: News Item A-1: "EasyJet's New (CEO) Aims to Follow McCall With Boost in Passengers" By Benjamin D Katz, Bloomberg News, December 27, 2017.
Carolyn McCall is set to join the ranks of British broadcaster (ITV) after formally stepping down from (EZY) at the end of 2017.
EasyJet (EZY) Chief Executive Officer (CEO) Johan Lundgren laid out plans to serve +13% more passengers, widen links with other airlines and help pioneer testing of a hybrid-power plane in his 1st year of leading (EZY), the discount carrier. Lundgren, who succeeded Carolyn McCall as (CEO) on December 1, said (EZY) will carry about 90 million travelers in 2018, helped by its purchase of Air Berlin (BER)'s operations at the German capital's Tegel airport, (EZY), the Luton, England-based airline said. (EZY)'s transfer program with long-haul carriers will expand to cover about half of its routes during the year. "My ambition is to help (EZY) go from strength to strength next year," Lundgren said. "Reaching these milestones will be a result of the successful delivery of our strategy of purposeful and disciplined growth." The strategy builds on McCall's efforts to turn (EZY) into a serious competitor to the likes of Dublin-based Ryanair (RYR) and Europe's biggest flag carriers.
Lundgren, 51, joins EasyJet after a career in the tourism industry, primarily at German-British leisure operator (TUI) AG (TUG).
(EZY)'s fleet of single-aisle Airbus planes will surpass 300 airliners by spring with the purchase of assets in Air Berlin (BER)'s liquidation. The 1st flights from its new base at Tegel will start January 5. (EZY) already operates a base at Berlin Schoenefeld airport.
(EZY) is working with USA manufacturer, Wright Electric to introduce a 9-seat aircraft that can fly on both standard jet fuel and battery power in 2018, (EZY) said. The partners outlined plans in September to produce an all-electric passenger jet within a decade.
News Item A-2: "EasyJet Outlines Air Berlin Fleet-integration Plan Former German carrier's A320s will be leased" by Sean Broderick, December 01, 2017.
EasyJet (EZY)'s plans to integrate its Air Berlin (BER) assets and new Berlin-Tegel Airport base into its operation include transitioning up to 25 Airbus A320s from wet leases to dry leases throughout most of 2018, with the pace driven by how quickly it can reconfigure aircraft and train flight crews (FC), (EZY) (CFO) Andrew Findlay said.
"We will launch the flying program using wet leases," Findlay said. "We'll simultaneously recruit and train crew and prepare dry leased aircraft for a phased introduction throughout the year. By winter 2018, we'll be fully operable in a dry-lease operation with our own crew." (EZY) on October 27 announced a deal to acquire part of insolvent Air Berlin (BER)'s assets at Tegel. The deal included leases for up to 25 A320s, adding (BER)'s 1,000 pilots (FC) and cabin crew (CA), and acquiring slots. It is expected to close by year end.
(EZY)'s tentative plans for its Tegel base call for flights to start in early January. There will be steady ramp-up of (EZY)-operated aircraft through July, then a pause during the peak months of August to October, when (EZY) will operate a "full summer schedule." By November, the Tegel base is expected to have all (EZY)-operated aircraft. "The pace of the swap from the wet leases to dry leases is driven by the rate of conversion and training of crew onto easyJet's operating procedures," Findlay said. "Clearly, as you would expect, safety of our operation is our number one priority, and we are ensuring this process is robust and thorough."
As part of the transition, the leased aircraft will be converted to easyJet (EZY)'s brand, including new livery. (EZY) expects to spend about £100 million/$135 million in one-time costs to train the new crew and update the aircraft.
(EZY) has not said how many aircraft it intends to base at Tegel, Berlin's main airport, but the figure will be affected by its existing operation at Berlin's Schoenfeld airport.
"We've got 9 aircraft at Schönefeld. We're looking to lease up to 25 for the overall [Berlin] operation," Findlay said. "We haven't made a call in exactly how we'll allocate those assets across those 2 [airports] right now."
(EZY)'s decision to lease the ex-Air Berlin (BER) aircraft aligns with its strategy to maintain capacity flexibility. As of September 30, the end of its 2017 fiscal year, 26% of its 279-aircraft fleet were on dry, or operating, leases. In 5 years, it plans to have 348 aircraft, but has the flexibility to fly as many as 363 or as few as 271, factoring in lease and new-aircraft order and deferral options.
Findlay said (EZY) recently exercised some of its new-order flexibility by moving some A321neo deliveries into fiscal year 2018. (EZY) now plans to take its 1st 6 A321neos by October 2018.
The A321neos are part of a 30-aircraft commitment that started out as A320neo orders. (EZY) is upgauging its fleet to help boost profitability by adding seats to existing operations. (EZY) started 2017 with a fleet made up of 44% A320s, and the rest A319s. At September 30, the percentage of A320s was up to 49%, and its average seats per aircraft was 168, up from 166 a year earlier.
News Item A-3: The European Commission (EC) has allowed easyJet (EZY) to take over airberlin (BER)’s Berlin Tegel Airport base, but there are increasing concerns that airberlin (BER) subsidiary (NIKI) (NKI) may collapse if the (EC) blocks its takeover by Lufthansa (DLH).
News Item A-4: easyJet (EZY) has transferred 28 aircraft to its new mainland Europe-based airline, easyJet Europe, as part of its contingency plans for the UK’s exit from the (EU) (Brexit).
(EZY) is transferring the aircraft to an Austrian air operator’s certificate (AOC) to preserve its European traffic rights after the UK leaves the bloc in 2019. “EasyJet Europe launched with just 1 aircraft in July 2017 and since then it has grown strongly. EasyJet Europe is predicted to continue this growth with a tripling of its fleet to 79 aircraft by April 2018,” (EZY) said December 21.
The aircraft are being transferred from the UK (LCC)’s main easyJet fleet, although some will come from airberlin (BER)’s former fleet after (EZY) finalized a deal to acquire parts of the German carrier.
News Item A-5: "London Luton Plans Major Growth" by (ATW) Alan Dron firstname.lastname@example.org December 12, 2017.
A 30-year growth plan for London Luton Airport has been announced by the airport’s owner London Luton Airport Ltd (LLAL). Luton Council, which is the local authority for the area and the town with which the airport shares its name, is (LLAL)’s sole shareholder.
London Luton lies some 35 miles north of the UK capital and is largely used by low cost carrier (LCC) and charter services. It is the home base of (LCC) easyJet (EZY). The airport has frequently been criticized by consumer groups in recent years for poor facilities, charges and ground infrastructure.
Construction is scheduled to start next year on the £225 million/($300 million passenger transfer service Luton DART (Direct Air to Rail Transit), which aims to cut journey times from railway station to the terminal to 3 minutes.
The airport’s proposal is (LLAL)’s response to the UK government’s recent call for all the country’s airports to make best use of their existing runways.
Nationally, demand for aviation is showing a projected shortfall in UK airport capacity of 60 million passengers per annum (mppa) by 2050, according to (LALL).
Under the airport’s Vision for Sustainable Growth 2020 to 2050, passenger capacity would grow from 18 million to 36 to 38 mppa, and the airport would accommodate 240,000 annual air traffic movements.
Growth at the airport would be achieved by making the best use possible of its existing, single runway.
“London Luton Airport is a huge success story,” councillor Andy Malcolm, Chairman of (LLAL) said. “On the back of 44 consecutive months of passenger growth, it is the 5th-largest and fastest-growing major airport in the UK.
“The airport’s growth has been so fast, in fact, that at its current rate it is due to reach the current permitted capacity of 18 mppa in 2021.”
News Item A-6: News Item A-6: "(IAG) in Exclusive Takeover Talks for Niki (Source Close to Process)" by "Reuters, December 29, 2017.
British International Air Group (IAG) is in exclusive talks to buy Niki (NKI), Air Berlin (BER)'s insolvent Austrian airline, a source close to the process said, after (NKI)'s administrator said that 1 bidder out of 4 remained. Besides (IAG), the owner of British Airways and low-cost carrier Vueling (VUZ), bidders for holiday airline (NKI) included tour operators (TUI) (TUG), Thomas Cook (GUE)/(JMA) and former Formula One world champion Niki Lauda.
"(IAG) is the last remaining bidder and is still negotiating now," the source said, adding that the company had put in the highest offer (a double-digit million-euro amount). German newspaper Bild put the figure at around EUR40 million/US$48 million).
Niki Lauda, (NKI)'s Founder, was quoted as saying on the website of newspaper "Die Presse" that he was out of the running. A source said Thomas Cook GUE)/(JMA) was also out of the race.
Die Presse also reported, without citing sources, that (IAG) was likely to be the last bidder. (IAG) and Thomas Cook's Condor (CDF) subsidiary declined to comment.
"The provisional creditors' committee for (NKI) decided to continue sales negotiations for the business operations of the company exclusively with one bidder for now," the spokesman of administrator Lucas Floether said. "(The committee) tasked the provisional administrator Floether to conclusively negotiate the purchase contract over the coming days."
Austrian news agency (APA) quoted an internal letter sent by Floether and the Niki (NKI) management to its employees that the new investor would not split up the company's business and would keep most of its employees. The new owner will have to pay (NKI)'s running costs, including salaries for its roughly 1,000 employees in Austria and Germany, from the beginning of January, Floether said.
(NKI) was part of collapsed Air Berlin. (BER) filed for insolvency after Germany's Lufthansa (DLH) dropped a plan to buy the assets of (NKI) on competition concerns, grounding the fleet and stranding thousands of passengers.
The administrators had been racing to find an alternative buyer for its assets before it loses its take-off and landing slots, its most attractive assets.
January 2018: News Item A-1: EasyJet Begins Berlin Tegel Operations, German Domestic Flights" by Kurt Hofmann (ATW) Plus January 5, 2018.
easyJet (EZY) launched its 1st German flights and operations from a new base at Berlin Tegel Airport on January 5. (EZY) previously announced it would open 19 new routes from Tegel as it picks up routes formerly served by bankrupt airberlin (BER). (EZY)’s 1st German domestic flight was from Tegel to Munich. Other domestic routes from Berlin include Dusseldorf, Frankfurt and Stuttgart. Some routes will be operated up to 8x-daily.
News Item A-2: EasyJet (EZY) will launch 2x-weekly Edinburgh, Scotland to Seville, Spain and Jersey, Channel Islands summer service from March 26 and 31, respectively.
Click below for photos:
EZY-A319 - 2012-06
EZY-A320 - 2013-07
EZY-A320 - 2013-07-A
EZY-A320 - 2014-10
EZY-A320 - 2015-09.jpg
EZY-A320 - 250th Family Airplane.jpg
EZY-A320-214 - 6568 -2016-11.jpg
EZY-A320neo - 1st 2017-06.jpg
EZY-A320neo - 2017-10.jpg
EZY-A321-200 - 2013-10
0 737-3L9 (CFM56-3C1) (2787-27336, /94 G-IGOS; 2594-27337, /94 G-IGOT; 1815-24571 G-IGOU) EX-(DBA), (HEF) 6 YR LSD 2001-03, EX-(GFL) 2002-12. 27337; ST (NWG) 2006-01. 148Y.
0 737-3L9 (CFM56-3B2) (1600-24219, /88 G-IGOX), EX-(GFL) 2002-12. RTND (TCI) 2004-09. 149Y.
0 737-3L9 (CFM56-3B2) (2059-25125, /91 D-ADIF), EX-(BZZ), (PEB) LSD 2004-05. 136Y.
0 737-3M8 (CFM56-3B2) (1614-24020, /88 G-EZYB; 1662-24022, /89 G-EZYD; 1689-24024, G-OGVA), EX-(TEA), 24024 RTND (GEF) 2004-04. 24020 RTND (BBB) 2004-10. 149Y.
0 737-3M8 (CFM56-3B2) (2005-25017, /91 G-IGOV), EX-(BUL), (GUI) LSD 2001-08, EX-(GFL) 2002-12. 149Y.
0 737-3Q8 (CFM56-3C1) (2664-26307, /94 G-EZYT), RF (TEB) 2000-07. 149Y.
0 737-3Q8 (CFM56-3B1) (1846-24698, /98 G-IGOF AQUA GREEN "GO NOW" & "ALL GO;" 1886-24699, /90 G-IGOZ), EX-(PAL), EX-(GFL) 2002-12. 24698 RTND. 24699; WFU IN STORAGE 2005-02. 149Y.
0 737-3YO (CFM56-3B2) (1691-24462, /89 G-EZYC), (GEH) LSD. RTND 2004-09. 149Y.
0 737-3YO (CFM56-3B1), EX-(PAL), (1852-24678, /90 G-IGOA TURQUOISE "GO AGAIN" & LET'S GO" 1998-07; 1811-24546, /89 G-IGOC PURPLE "GO TODAY" & "JUST GO" 1998-05; 1813-24547, /89 G-IGOE PINK "GO TOGETHER" & "READY TO GO" 1998-05), EX-(GFL) 2002-12. 24546 RTND 2003-09. 24678 RTND (OXA) 2004-05. 24547 RTND. 149Y.
0 737-3Y0 (CFM56-3B2) (1580-23927, /88 G-IGOG RED "GO OFTEN" & "COME AND GO" 1998-09; 1562-23926, /88 G-IGOH OLIVE GREEN "GO FOR IT" & "DONT WAIT GO" 1998-11 EX-(ALB), (BBB) LSD, EX-(GFL) 2002-12. 23926; & 23927 RTND 2005-07, LST (KGD). 149Y.
0 737-3YO (CFM56-3B2) (1540-23923, /88 G-IGOW), EX-(BUL), (GUI) 5 YR LSD 2001-08, EX-(GFL) 2002-12. 149Y.
0 737-33A (CFM56-3) (1669-24092, /89 G-IGOI YELLOW GREEN "GO ENJOY" & "AWAY WE GO" 1998-11), EX-(BMA), EX-(GFL) 2002-12. RTND (BBB), LST (KGD) 2005-11. 149Y.
0 737-33V (CFM56-3B1) (3062-29331, /98 G-EZYG; 3072-29332, /98 G-EZYH, 3084-29333, /98 G-EZYI, 3089-29334, /98 G-EZYJ; 3094-29335, /99 G-EZYK; 3102-29336, /99 G-EZYL; 3113-29337, /99 G-EZYM) (3114-29338, /99 G-EZYN; 10 YR LST (TEB) 1999-08) (3119-29339, /99 G-EZYO; 3121-29340, /99 G-EZYP; 3125-29341, /99 G-EZTY; 3127-29342, /99 G-EZYS; 29343), (GEH) 10 YR LSD 1999-11; 3113-29337, HB-IIK, RF (TEB) 2001-03, 29337 TO (TEB) 2001-10. 29338 RF (TEB) 2003-08. 29337 RF (TEB) 2003-09. 29331 WFU IN STORAGE 2005-01. 29333 TO (SHG) 2005-03. 29332; 29334; 29335; 29336; ST (SKP). 29337; 29338; 29339; 29340; 29341; 29342; ST (VNA) 2006-01. 149Y.
0 737-36N (CFM56-3C1) (3082-28872, /98 G-IGOJ MEDIUM BLUE "GO ANYTIME" & "FREE TO GO;" 3107-28594, /99 G-IGOK PURPLE BLUE; 3112-28596, /99 G-IGOL TERRACOTTA "GO EXPLORING" & LOVE TO GO;" 3115-28599, /99 G-IGOM PURPLE "GO FOR A BREAK" & "OFF WE GO;" 3118-28602, /99 G-IGOP, PINK "GO AHEAD" & "AWAY WE GO;" 3124-28596, G-IGOR, /99 "GO TO WORK") (2862-28557, /97 G-IGOO; 3010-28570, /98 G-IGOY), (GEH) LSD, EX-(GFL) 2002-12. 28557; 28570; 28872; ST (BMI) 2005-10. 149Y.
0 737-36Q (CFM56-3B2) (3035-29141, /98G-OHAJ; 3023-29327, /98 G-OFRA; 3047-29405, /98 G-OMUC), EX-(BAB), (BOU) LSD, EX-(GFL) 2002-12. 29327; RTND, LST (TFY) 2005-05. 29141 RTND 2005-07. 149Y.
0 737-36Q (CFM56-3B2) (2880-28659, /97 G-ODUS; 2883-28660, /97 G-IGOB), EX-(ARE), (BOU) LSD 2001-12. 28659; WFU 2006-01. 149Y.
0 737-375 (CFM56-3B1) (1395-23708, /87 G-EZYF), EX-(TBL). 149Y.
00 737-73V (CFM56-7B20) (672-30235, /00 G-EZJA; 715-30236, /00 G-EZJB; 730-30237, /00 G-EZJC; 890-30242, /01 G-EZJD; 913-30238, /01 G-EZJE; 919-30243, /01 G-EZJF; 944-30239, /01 G-EZJG; 974-30240 /01 G-EZJH; 1058-30245, /02 G-EZJJ; 1064-30246, /02 G-EZJK - - SEE INCDT IN 2009-01; 1066-30247, /02 G-EZJL; 1118-30248 /02 G-EZJM; 1128-30249, /03 G-EZJN; 1148-30244, /02 G-EZJO; 1151-32412, /02 G-EZJP; 1202-32413, /02 G-EZJR; 1214-32414, /02 G-EZJS; 1260-32415, /03 G-EZJT; 1270-32416, /03 G-EZJU; 1321-32419, /03 G-EZJX; 1341-32420, /03 G-EZJY; 1357-32421, /03 G-EZJZ; 1363-32422, /03 G-EZKA; 1433-32423, /04 G-EZKB; 1450-32424, /04 G-EZKC; 1453-32425, /04 G-G-EZKD; 1474-32426, /04 G-EZKE "DANIEL SWADDLE;" 1489-32427, /04 G-EZKF; 1495-32428, /04 G-EZKG). 30246; RTND TO LESSOR 2009-01. 30241; 30245; ST CIT Group (TCI) LST (SCA) 2009-01. 30244; 30249; ST LESSOR, LST (AIR) 2009-07. 30248; 32412; 32413; RTND LESSOR, TO EASTAR JET (EJS) 2009-07 & -09. 149Y.
0 737-76Q (CFM56-7B20) (1156-30283, /02 G-OSLH), (BOU) LSD 2002-06. RTND 2004-11. 149Y.
1 757-2Q8ER (RB211-535E4) (612-26269, /94 OH-AFJ), EX-(AVI), AIR FINLAND (AFZ) WET-LSD 2010-06. (ETOPS) EQ'PD. 219Y.
1 757-23A (RB211-535E4) (24292, G-OJIB), (AUA) LSD 2010-06, EX-(G-OOOG). 148Y.
0 757-256 (29309, G-ZAPX), (TIU) LSD, EX-(EC-HIS). RTND.
1 767-36NER (CF6-80C2B7F) (902-30847, /03 G-POWD), EX-(SKM), (GEF) 8 YR LSD 2010-02. (TIU) LST (EZY) 2010-08. 12C, 297Y.
157 +105/97 ORDERS A319-111 (CFM56-5B5/P) (2037, /03 G-CCKA; 2043, /03 G-EZKB; 2050, /03 HB-JZC; 2053 HB-JZD; 2062, G-EZSM; 2119, G-EZEA, 2004-02; 2120, /04 G-EZEB; 2170, G-EZED, 4/04; 2176, G-EZEF, 2004-03; 2181, G-EZEG, 2004-04; 2184, HB-JZF, 2004-04; 2196, HB-JZG, 2004-04; 2214, G-EZEJ, 2004-05; 2224, G-EZEK, 2004-05; 2230, HB-JZH, 2004-09; 2245, HB-JZI; 2249, G-EZEO; 2251, G-EZEP, 2004-07; 2265, G-EZES, 2004-10; 2271, G-EZET, 2004-08; 2380, 2005-02; 2283, G-EZEU 2004-10; 2289, G-EZEV 2004-09; 2300, G-EZEW, 2004-10; 2319, HB-JZK; 2353, HB-JZL; 2385, /04 G-EXPG; 2387, HB-JZN, 2005-12; 2398, HB-JZO, 2005-12; 2402, 2005-03; 2412, 2005-03; 2420; 2427; 2436; 2442. (2360, G-EZEZ, 2004-12; 2370, HB-JZM, 2005-01; 2378; 2380; 2385, 2005-02; 2387, 2/05; 2398, /05 G-HMCC; 2402, /05 G-EZNM; 2450, HB-JZQ, 2007-06; 2463, G-EZIH, 2005-04; 2471, G-EZII 2005-04; 2477, G-EZIJ, 2005-06; 2481, G-EZIK, 2005-05; 2492, G-EZIL, 2005-06; 2495, G-EZIM, 2005-06; 2503, G-EZIO, 2005-06; 2512, G-EZIO, 2005-07; 2514, G-EZIP, 2005-07; 2527, G-EZIR, 2005-07; 2528, G-EZIS, 2005-08; 2538, G-EXIT, 2005-08; 2548, G-EZIU, 2005-09; 2565, G-EZIV, 2005-10; 2578, G-EZIW, 2005-10; 2605; 2636, G-EZIY, 2005-12; 2646, G-EZIZ, 2006-01; 2677, G-EZAA, 2006-02; 2681, G-EZAB, 2006-02; 2691, G-EZAC, 2006-02; 2702, G-EZAD, 2006-02; 2709, G-EZAE, 2006-03; 2715, G-AZAF, 2006-03; 2727, G-EZAG, 2006-03; 2729, G-EZAH, 2006-03; 2735, G-EZAJ, 2006-04; 2742, G-EZAJ, 2006-04; 2744, G-EZAK, 2006-04; 2754, G-EZAL, 2006-04; 2765, G-EZAN, 2006-05; 2769, G-EZAO, 2006-05; 2777, G-EZAP, 2006-05; 2779, G-EZAS, 2006-05; 2782, G-EZAR, 2006-06; 2795, G-EZAU, 2006-06; 2803, G-EZAV, 2006-06; 2812, G-EZAW, 2006-07; 2818, G-EZAX, 2006-07; 2827, G-EZAY, 2006-07; 2829, G-EZAZ, 2006-07; 2854, G-EXBB, 2006-08; 2860, G-EZBA, 2006-08; 2866, G-EZBC, 2006-09; 2873, G-EZBD, 2006-09; 2884, G-EZBE, 2006-11; 2923, G-EZBF, 2006-11; 2946, G-EZBG, 2006-11; 2959, G-EZBH, 2007-12; 3053, G-EZBL, 2007-03; 3059, G-EZBM, 2007-03; 3061, G-EZBN, 2007-03; 3082, G-EZBO, 2007-04; 3084, G-EZBP, 2007-04; 3088, G-EZBR, 2007-04; 3090, G-EZBT, 2007-04; 3118, G-EZBU, 2007-05; 3122, G-EZBV, 2007-05; 3134, G-EZBW, 2007-06; 3137, G-EXBX, 2007-06; 3176, G-EZBY, 2007-07; 3184, G-EZBZ, 2007-07; 3411, G-EZDB, 2008-02; 3413, G-EZDA, 2008-02; 3426, G-EZDE, 2008-03; 3432, G-EZDF, 2008-03; 3442, G-EZDD, 2008-03; 3466, G-EZDH, 2008-04; 3537, G-EZDI, 2008-05; 3675, G-EZDP, 2008-10; 3683, G-EZDR, 2008-10; 3702, G-EZDS; 2008-11; 3720, G-EZDT; 2008-11; 3735, G-EZDU, 2008-12; 3742, G-EZDV, 2008-12; 3746, G-EZDW, 2008-12; 3754, G-EXDX, 2009-01; 3763, G-EZDY, 2009-01; 3774, G-EZDZ, 2009-01; 3788, G-EZFA, 2009-02; 3799, G-EZFB, 2009-02; 3808, G-EZFC, 2009-02; 3810, G-EZFD, 2009-02; 3824, G-EZFE, 2009-03; 3844, G-EZFF, 2009-03; 3845, G-EZFG, 2009-03; 3854, G-EZFH, 2009-04; 3888, G-EZFI, 2009-05; 3909; 3940; 3951; 3993; 4000; 4004; 4018; 4024; 4034; 4040, G-EZFJ, 2009-09; 4047; 4048, G-EXFK, 2009-10; 4054; 4056, G-EZFL, 2009-10; 4067; 4069, G-EZFM, 2009-10; 4076, G-EZFN, 2009-11; 4080, G-EZFO, 2009-11; 4087, G-EZFP, 2009-11; 4125, G-EZFR, 2009-12; 4129, G-EZFS, 2009-12; 4132, G-EZFT, 2009-12; 4313, G-EZFU, 2010-05; 4327, G-EZFV, 2010-06; 4418, G-EZFY, 2010-08; 4425, G-EZFZ, 2010-08; 4427, G-EZGA, 2010-08; 4437, G-EZGB, 2010-09; 4444, G-EZGC, 2010-09; 4451, G-EZGD, 2010-09; 4554, G-EZTY, 2011-01; 4556, G-EZTZ, 2011-01;
4588, G-EZUA, 2011-01), 156Y.
1 A319-111 (CFM56-5B5/P) (3003, /12 G-EZBI "ROMEO ALPHA JULIET" - - SEE PHOTO - - "EZY-A319-ROMEO-2014-03"), 156Y.
100 ORDERS (2017-06) A320neos (LEAP-1A), 186Y:
41 ORDERS A320ceos (CFM56-5B), 186Y:
35 +22/33 ORDERS A320-214 (3805, G-EZTA, 2009-02; 3843, G-EZTB, 2009-04; 3871; G-EZTC, 2009-04; 3909, G-EZTD, 2009-05; 3913, G-EZTE, 2009-05; 3922, G-EZTF, 2009-06; 3946, G-EZTG, 2009-06; 3953, G-EZTH, 2009-06; 3975, G-EXTI, 2009-07; 3979, G-EZTJ, 2009-07; 3991, G-EZTK, 2009-07; 4006, G-EZTN, 2009-08; 4012, G-EZTL, 2009-08; 4014, G-EZTM, 2009-08; 4034, G-EZFJ, 2009-09; 4157, G-EZTP, 2010-01; 4219, G-EZTT, 2010-03; 4233, G-EZTU, 2010-03; 4234, G-EZTV, 2010-03; 4250, G-EZTW, 2010-04; 4286, G-EZTX, 2010-04; 5236, G-EZWC, 2012-07; 5638, G-EZWJ, 2013-06; 5688, G-EZWK, 2013-07; 5702, G-EZWL, 2013-07; 6416, G-EZOB, 2015-01; 6587, G-EZOM, 2015-05; 6605, G-EZON, 2015-05; 6606, G-EZOO, 2015-05; 7340, G-EXPP, 2016-09; 7549, G-EZPW, 2017-02; 7597, G-EZRA, 2017-02; 7750, G-EZRI, 2017-05; 7762, G-EZRJ, 2017-05). 186Y.
4 A320-232 (V2527-A5) (1687, /02 G-TTOB; 1715, /02 G-TTOC; 1723, /02 G-TTOD; 1754, /02 G-TTOE), EX-(BAB), (RBS) AVIATION CAPITAL LEASED 2008-03. 186Y.
3 A320-232 (V2527-A5) (1918, /03 G-TTOF; 1969, /03 G-TTOG; 1993, /03 G-TTOH), (CGP) LSD 2008-03. IN ALL WHITE COLORS. 186Y.
1 A320-232 (V2527-A5) (2137, /03 G-TTOI), IN ALL WHITE COLORS. 186Y.
1 A320-232 (V2527-A5) (2157, /04 G-TTOJ), RBS AVIATION LSD 2008-03. 186Y.
1 A320-233 (2791, G-POWI), 2015-05. 186Y.
6 +3 ORDERS A321-231 (V2533-A5) (1428, /01 G-TTIA; 1869, /02 G-TTIC; 2462, /05 G-TTID; 2682, /06 G-TTIE; 3106, /07 G-TTIF; 3382, /08 G-TTIG), 2157; WFU 2011-01. 235Y.
30 ORDERS (2018-06) A321neo. 235 PAX:
Click below for photos:
EZY-1-Carolyn McCall - 2017-06-2L.jpg
EZY-1-SIR STELIOS HAJI IOANNOU 2002-01
EZY-2-CAROLYN MCCALL - 2011-06
EZY-2-CAROLYN MCCALL - 2012-10
EZY-2-CAROLYN MCCALL - 2013-03
EZY-2-CAROLYN MCCALL - 2013-09
EZY-2-Carolyn McCall Interview - 2015-10-A.jpg
EZY-2-Carolyn McCall Interview - 2015-10-B.jpg
EZY-3-Chris Browne - Ctr-2017-06.jpg
EZY-3-RAY WEBSTER 2005-06
EZY-4-ANDREW HARRISON CEO-2008-05-A
EZY-5-PETER ELLISON TECH DIR - 2007-10
EZY-6-PAUL MOORE - 2013-03
EZY-7-David O Brien - 2016-10.jpg
EZY-8-GARY SMITH - 2012-10
EZY-9-ALI GAYWARD - 2013-11
EZY-9-JIM PEGRAM - 2013-09
SIR STELIOS HAJI-IOANNOU, FOUNDER.
JOHN BARTON, CHAIRMAN & NON-EXECUTIVE DIRECTOR (2013-05).
CHARLES GURASSA, DEPUTY CHAIRMAN (2011-08).
JOHAN LUNDGREN, CHIEF EXECUTIVE OFFICER (CEO) (2017-12).
Johan has >30 years’ travel sector experience, including 12 years with the (TUI) Group as Group Deputy (CEO) and (CEO) for mainstream markets.
“Johan has proven experience in European travel as (CEO) and in broader group roles. He is strategic, yet operationally focused and has proved himself to be a customer-centric, charismatic and successful leader,” (EZY) Chairman John Barton said.
According to Johan’s profile on (TUI)’s website, the Swedish executive became a board member in 2007 and was appointed as (TUI) Group Deputy (CEO) in October 2011. He has previously been (CEO) of (TUI) Nordic and Managing Director of (TUI) Travel’s northern region.
MRS CAROLYN MCCALL, CHIEF EXECUTIVE OFFICER (CEO) (2010-07), RESIGNED (2017-11).
March 2013: 30-second interview by Paul Hogan, Publisher anna.aero (a.a): The Moscow traffic of the booming Russian capital meant easyJet (EZY)’s (CEO), Carolyn McCall (CM), had to give a little bit longer than the standard 30-second interview:
SEE PHOTO - - "EZY-2-CAROLYN MCCALL - 2013-03."
a.a: “So, with only 8 weeks to sell these flights, how are sales?”
CM: “We normally say that they have exceeded expectations (and they have) so I’ll say that.”
a.a: “This is a regulated route; you can’t link Moscow to your other bases like you do when developing a presence in a promising destination. So what will you do next?”
CM: “Yes it’s true we can’t do everything we normally would, but this route is a self-contained business opportunity, a kind of franchise. London to Moscow does not have much capacity and it serves a lot of commuting traffic (around 45% business) so it should be very profitable.”
a.a: “Was it frustrating for a free marketer to be working with prescriptive rules?”
CM: “It’s true that we are used to working in a deregulated environment. This is not our bread and butter, but we’ll succeed by playing by their rules on the regulations, but by our own rules on the business model: offering affordable prices and much lower costs than our competitors.”
a.a: “Is it true that the regulation governing this route requires you to code share and connect with other Russian carriers at Moscow Domodedovo?”
CM: “We have a commercial agreement with Transaero (TRX), but it’s not a code share. We don’t do code shares or interline agreements and we didn’t have to here. I’m not going to tell you the details about the commercial agreement.”
a.a: “So what about the big picture? Are you optimistic about future Russian liberalization and much bigger opportunities?”
CM: “Yes we are. Expansion in Russia is not a near-term goal, but we think that liberalization will come, and it won’t seem like long when it happens, and when it does, our brand will have been long established in Russia through these profitable experiences.”
a.a: “In the meantime (as this is your 100th route from Gatwick) can there be many more route opportunities from London?”
CM: “Well of course there are, but you don’t expect me to tell you what they are, do you?”
MS CHRIS BROWNE, CHIEF OPERATING OFFICER (COO) (2017-01).
ANDREW FINDLAY, CHIEF FINANCIAL OFFICER (CFO).
DANA DUNNE, CHIEF COMMERCIAL OFFICER (CCO) (2009-09).
TREVOR DIDCOCK, CHIEF INFORMATION OFFICER (CIO) (2010-10).
ANTHONY DRURY, DIRECTOR, HEAD BUSINESS, EX-AMERICAN EXPRESS (2014-01).
IAN DAVIES, ENGINEERING DIRECTOR, HEAD ENGINEERING & MAINTENANCE.
ANDREW BARKER, PLANNING DIRECTOR (2006-02).
Andrew (1965) joined easyJet (EZY) in 2005, as Head of Investor Relations and was appointed Planning Director in February 2006. Andrew is responsible for guiding (EZY)’s network and fleet planning, as well as developing environmental and aero-political policies and interfacing with the relevant regulatory bodies. Prior to joining (EZY), Andrew was a Managing Director at (UBS) Investment Bank, where he worked for 16 years. At (UBS), he was head of the global transport research team for 10 years, during which time he was consistently rated by Institutional Investor Magazine as the number one analyst in the sector in both European and Global surveys. He then went on to head the (UBS) European Equity Strategy Team. Andrew is a UK national.
PETER ELLISON, TECHNICAL DIRECTOR.
DAVE PRIOR, DIRECTOR SAFETY & SECURITY.
TIM NEWING, INFORMATION TECHNOLOGY (IT) DIRECTOR.
ALISTAIR BUCKLE, MARKETING MANAGER.
MIKE CAMPBELL, DIRECTOR PEOPLE (2005-11).
Mike joined easyJet (EZY) in October 2005, as People Director. Before joining (EZY), Mike worked at Wedgwood in a broad role as Director of People & Brands and Managing Director for Canada, Australia & Pan-Asia. Prior to that, Mike worked for 14 years at Fujitsu in a variety of development and personnel roles across Europe, Asia, Africa, and the Middle East, ending up as Chief Personnel Officer. His early career was in education and research. Mike is a UK national.
GRAHAM ABBEY, DIRECTOR HUMAN RESOURCES (HR).
MS CATHERINE LYNN, GROUP COMMERCIAL DIRECTOR.
CAPTAIN BRIAN TYRELL, HEAD FLIGHT OPERATIONS.
JOHN THORPE, HEAD INFORMATION TECHNOLOGY (IT).
GARY SMITH, HEAD POWERPLANT & FLEET TRANSITION.
JIM PEGRAM, HEAD SAFETY PERFORMANCE.
PAUL MOORE, COMMUNICATIONS DIRECTOR.
TOBY NICOL, COMMUNICATIONS DIRECTOR.
Toby (1970) joined easyJet (EZY) in December 1999. He was appointed as Communications Director in September 2005, after 6 years in a range of communication-related roles within the Company. Previously, Toby was employed in senior positions for a leading communications consultancy undertaking work across a range of diverse clients from (IBM) to bmi British Midland (BMA). Toby is a UK national.
TONY ANDERSON, SALES & MARKETING DIRECTOR.
CAPTAIN SIMON SEARLE, MANAGER FLIGHT SAFETY (2002-12).
CAPTAIN MIKE KEANE, CHIEF PILOT (email@example.com)(firstname.lastname@example.org).
CAPTAIN PATRICK GOZENBERG, CHIEF PILOT - GENEVA (SWISS (AOC)).
CAPTAIN PAUL LLEWELLYN-BEARD, CHIEF PILOT (GFL).
CAPTAIN JIM PEGRAM, CHIEF TRAINING CAPTAIN & HEAD SAFETY PERFORMANCE (email@example.com).
CAPTAIN HEINZ MING, CHIEF TRAINING CAPTAIN (SWISS (AOC)).
CAPTAIN CHRIS MARCHANT, SENIOR TRAINING CAPTAIN - CONVERSION.
CAPTAIN JONATHAN HOLLAND, SENIOR TRAINING CAPTAIN - RECURRENT.
KEITH MCMANN, AIRPORTS DIRECTOR.
MS SOPHIE DEKKERS, UK DIRECTOR.
MICHAEL WILLIAMS, CHIEF ENGINEER (firstname.lastname@example.org).
DAVID BAEHLER, CHIEF ENGINEER - GENEVA.
ALLEN MARKING, AIRBUS PROGRAM DIRECTOR, & ENGINEERING MANAGER (email@example.com).
MS CATHERINE LYNN, DIRECTOR CUSTOMER & REVENUE.
CAPTAIN CHRIS FOSTER, FLIGHT OPERATIONS MANAGER.
DAVID STEWART, FLEET PROJECT MANAGER.
DAVID STURGESS, GROUP QUALITY MANAGER.
NEIL CHARTERS, TECHNICAL SERVICES MANAGER (firstname.lastname@example.org).
DENIS CODY, LINE SERVICES MANAGER.
DAVID LOUZADO, BASE MAINTENANCE & STANDARDS MANAGER (2001-10).
BOB BIGGART, GROUND OPERATIONS MANAGER (email@example.com).
MS LISA KING, CABIN SAFETY MANAGER.
MS ROSANA MEDINA, GROUND OPERATIONS MANAGER.
MS LISA ROBLIN, AIRPORT OPERATIONS MANAGER.
GRAEME CLARK, OPERATIONS INFORMATION MANAGER.
TAYLOR BRADBURY, AIRCRAFT OPERATIONS COST MANAGER.
GILL LUCAS, DISRUPTIONS MANAGER.
MS RUTH SPRATT, HEAD EUROPEAN SALES (2014-04).
FRANCOIS BACCHETTA, REGIONAL GENERAL MANAGER, FRANCE & BENELUX.
ARNALDO MUNO, GENERAL MANAGER, COMMERCIAL, SOUTHERN EUROPE.
MS ALI GAYWARD, COMMERCIAL MANAGER, HEAD SCOTLAND SALES.
HUGH AITKEN, COMMERCIAL MANAGER UK.