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EZY Plans To Buy Up To 75 Jets  
User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13739 posts, RR: 19
Posted (12 years 7 months 2 weeks 4 days 2 hours ago) and read 2227 times:

Financial Times EXTRACT
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3O0AI95WC&live=true&tagid=ZZZYF7I2B0C&subheading=transport

EasyJet plans to buy up to 75 aircraft
By Kevin Done, Aerospace Correspondent
Published: January 6 2002 20:24 | Last Updated: January 6 2002 22:02

EasyJet is planning to purchase up to 75 new aircraft in what would be the largest order ever placed by a low-cost airline in Europe.

The deal pitches Boeing and Airbus, the world's leading aircraft makers, into head-to-head competition for an order which could be worth up to $4bn at list prices.

It will be the first time a European no-frills carrier has considered buying from Airbus rather than its US rival.

The EasyJet order will attract hefty discounts, as the airline takes advantage of the depressed state of the world market for new and second- hand aircraft.

The planned order confirms that EasyJet is maintaining its expansion in spite of the events of September 11.

Ray Webster, EasyJet chief executive, said that discussions had been held with Boeing about placing more orders for the 737-700, while talks with Airbus on purchasing the rival 150-seat A319 had intensified.

Mr Webster said that EasyJet was aiming to expand its fleet to more than 100 aircraft by the end of 2007, to support a growth in capacity of about 25 per cent a year.


Anyone can fly, only the best Soar.
34 replies: All unread, showing first 25:
 
User currently offline777236ER From , joined Dec 1969, posts, RR:
Reply 1, posted (12 years 7 months 2 weeks 4 days 2 hours ago) and read 2107 times:

I think the 737 is a shoe-in. They have a big fleet of them. They have the 737-700. They've had lots of success with them.

The talk of Airbus might just be to scare Boeing. After september 11th, Boeing should be offering BIG discounts.


User currently offlineDonder10 From Canada, joined Oct 2001, 6660 posts, RR: 21
Reply 2, posted (12 years 7 months 2 weeks 4 days 2 hours ago) and read 2098 times:

EZY are using Airbus as leverage against Boeing.

User currently offlineFlying-Tiger From Germany, joined Aug 1999, 4161 posts, RR: 36
Reply 3, posted (12 years 7 months 2 weeks 4 days 1 hour ago) and read 2072 times:

Not necessarily I think. At the time EasyJet placed its first order for the 737-700 they had taken a good look on the A319 bt rejected it because Airbus wasn´t able to deliver as EZY requested. This time it is different, both manufacturers need to fill their lines this and the coming year with new orders - this fight will be really hard. Boeing has an advantage - but who knows how big it is?

Regards
Flying-Tiger
http://fly.to/rorders



Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
User currently offlineBFS From United Kingdom, joined Nov 2001, 738 posts, RR: 2
Reply 4, posted (12 years 7 months 2 weeks 4 days 1 hour ago) and read 2069 times:

I love the A320 family, but in easyJet's colours? Much too classy for all that orange - stick to the Boeings!



User currently offline777236ER From , joined Dec 1969, posts, RR:
Reply 5, posted (12 years 7 months 2 weeks 4 days 1 hour ago) and read 2052 times:

Boeing has an advantage - but who knows how big it is?

Very big. To be effective, EZY would have to COMPLETLY change from a 73X fleet to a A32X fleet. That's VERY expensive/time consuming. Something a low cost airline won't want.

Not to mention the fact that seat/mile for the A319/73G in easyJet's situations actually favours the 73G by about 6%

Expect 73Gs.


User currently offlineTeahan From Germany, joined Nov 1999, 5293 posts, RR: 61
Reply 6, posted (12 years 7 months 2 weeks 4 days ago) and read 2033 times:

Hello,

There is also a second article:

-------------------------------------------

[snip>

EasyJet's decision to pitch Boeing and Airbus into a head-to-head contest for its $4bn worth of new aircraft orders, could mark its most ambitious move away from the tried and tested formula applied by Southwest Airlines of the US, the original low cost scheduled airline.

No-frills carriers have previously insisted that the simplicity of operating a single aircraft type was a key factor for a successful low cost operator.

However, Ray Webster, EasyJet chief executive, says that the airline is ready to move to a mixed fleet of Airbus and Boeing aircraft as long as the price is right.

It could end up as a ploy to force Boeing to lower its prices, but Mr Webster says that "while commonality of fleet is an important component of the EasyJet business model, there may prove to be benefits from having a genuinely competitive market for aircraft in the long-term.

"We feel it is appropriate to consider all options. We would only undertake to operate a mixed fleet if it would produce substantial long-term shareholder benefits."

Mr Webster, a former Air New Zealand executive who joined Stelios Haji-Ioannou, EasyJet's founder and chairman in early 1996, says "there are compelling reasons always to be able to go to two suppliers, always to have a competitive option".

EasyJet is looking at whether it can run a better business model by having a mix of planes, even if this complicates the business with higher operating costs.

"The gain will be lower aircraft acquisition costs," says Mr Webster.


[snip>

--------------------------------------

There are 2 major mistakes in the first article. Firstly I really look forward to seeing a 150 seat A319 with 27inch pitch. *g* Airbus recommend 132 seats in a single class layout with 32inch pitch. Secondly, at one stage Europe's leading low-fares airline Ryanair had
an LOI (and even got one IIRC) Airbus A320. However, back in those days they were not the no-frills airline they are now.

So one could look at this in several ways. Perhaps they are only using to get cheaper aircraft from Boeing or perhaps they are serious. For future growth, the A321 is ideal (220 seats vs 189 on any Boeing B737) Some people could argue that Boeing B737s (internal steps etc..) for low-fares, however Easyjet seem to be instead going towards low-fares but good quality. This trend is clearly demonstrated with them launching flights from LGW (and even claiming they would use LHR if they got the slots) It would be a major step for Airbus to get A320s in a European low fares airline.

Jeremiah



Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
User currently offlineFlying-Tiger From Germany, joined Aug 1999, 4161 posts, RR: 36
Reply 7, posted (12 years 7 months 2 weeks 3 days 16 hours ago) and read 1974 times:

If I understand it right there is now a modified A319 with 150 seats, this is the reason why EZY looks on this baby.


Flown: A319/320/321,A332/3,A380,AT4,AT7,B732/3/4/5/7/8,B742/4,B762/763,B772,CR2,CR7,ER4,E70,E75,F50/70,M11,L15,S20
User currently offlineAirNewZealand From New Zealand, joined Oct 2000, 2542 posts, RR: 6
Reply 8, posted (12 years 7 months 2 weeks 3 days 15 hours ago) and read 1961 times:

Great to hear!!

Cabin crew and pilot positions will be over loaded!! Get yourt Resumes in!!  Big thumbs up

Cheers
Mike


User currently offlineDonder10 From Canada, joined Oct 2001, 6660 posts, RR: 21
Reply 9, posted (12 years 7 months 2 weeks 3 days 12 hours ago) and read 1912 times:

Ryanair Vs. Easyjet hots up!

User currently offlineJohn Walton From United Kingdom, joined Nov 2000, 117 posts, RR: 0
Reply 10, posted (12 years 7 months 2 weeks 3 days 4 hours ago) and read 1847 times:

FYI: Easyjet is expecting to expand its fleet by 25% a year until 2004, not 2007. The fleet will expand 25% per year until 2004 with the current 73G deliveries. This new order would be to take the carries fleet expansion up to 2007 from 2004 when the current 73G deliveries end.

User currently offlineSFOintern From United States of America, joined Oct 2001, 770 posts, RR: 5
Reply 11, posted (12 years 7 months 2 weeks 3 days 4 hours ago) and read 1839 times:

Stelios never ceases to amaze...

If you want to make money, get your hands on some of SJH, stelios' shipping company which is helping to fund EasyGroup...

Just can't wait till EasyGroup goes public... I want me some of that!!!

LATE
  • SFO

  • User currently offlineHeavymetal From , joined Dec 1969, posts, RR:
    Reply 12, posted (12 years 7 months 2 weeks 3 days 4 hours ago) and read 1827 times:

    There is precedent of a low(er) fare airline switching from 737s to Airbus....

    While I'm not sure I'd put Frontier in the same category as easyJet, one could look to Denver to see the possible future of easyJet...


    User currently offlineRichardw From United Kingdom, joined May 2001, 3749 posts, RR: 0
    Reply 13, posted (12 years 7 months 2 weeks 3 days 4 hours ago) and read 1822 times:

    Jeremiah refers to a low cost airline operating the A321 with 220 seats. I think this is highly unlikely due to the extra time in loading and loading the aircraft. 150 passengers is about right, from experience on Ryanair B737 800, 189 passengers is too great.

    User currently offlineTeahan From Germany, joined Nov 1999, 5293 posts, RR: 61
    Reply 14, posted (12 years 7 months 2 weeks 3 days 2 hours ago) and read 1787 times:

    Hello,

    The BBC reports that a 150 seat A319 is realistic (other than the obvious for a lo-co airline such as removing the forward galley, Airbus would have to slightly change the emergency exits. The BBC also reports that Easy favours the A319.

    On a related topic, what happened to the rumoured slightly streched A320 (to seat around the same as the B737-800)

    Richardw, if a current lo-co 150 seater turn-around takes 30 minutes, I honestly think an A321 could do it in very little more. Even Swissair turns around an A321 in 40 minutes. The day will come when FR/EZY will need bigger aircraft, IMHO the A321 will be that aircraft. I am not saying it will be today or tomorow, but I believe it will certainly be a few years down the line.

    Jeremiah



    Goodbye SR-LX MD-11 / 6th of March 1991 to the 31st of October 2004
    User currently offlineRichardw From United Kingdom, joined May 2001, 3749 posts, RR: 0
    Reply 15, posted (12 years 7 months 2 weeks 3 days 2 hours ago) and read 1775 times:

    an extra 70 lo-co passengers taking only an extra 10 minutes to load, is unlikely, lo-co passengers are very different to swissair and behave in a different manner. I have flown as a passenger on a full easyJet B737 700 and a full Ryanair B737 800, the difference being 39 passengers and approximately 20 mins loading time. The turnaround is much better on EZY and is an important factor in their business plan, I'd stick with it if I was Stelios.

    User currently offlineJohn Walton From United Kingdom, joined Nov 2000, 117 posts, RR: 0
    Reply 16, posted (12 years 7 months 2 weeks 3 days 2 hours ago) and read 1768 times:

    Two words:
    jet Blue


    User currently offlineJohn Walton From United Kingdom, joined Nov 2000, 117 posts, RR: 0
    Reply 17, posted (12 years 7 months 2 weeks 3 days 2 hours ago) and read 1764 times:

    Just out of interest, wasn't jetBlue's airbus order worth about $4 billion?

    User currently offlineRichardw From United Kingdom, joined May 2001, 3749 posts, RR: 0
    Reply 18, posted (12 years 7 months 2 weeks 3 days 2 hours ago) and read 1759 times:

    Will JetBlue expand into Europe and Australasia? A leather seat in an A320 is a definitive selling point. Likely?


    User currently offlineJohn Walton From United Kingdom, joined Nov 2000, 117 posts, RR: 0
    Reply 19, posted (12 years 7 months 2 weeks 3 days 2 hours ago) and read 1758 times:

    Doubt it in the current market conditions, but I wouldn't rule out easyjet adopting their business model for the european market -- especially for flights out of LGW.

    regards,
    John


    User currently offlineJonPaulGeoRngo From , joined Dec 1969, posts, RR:
    Reply 20, posted (12 years 7 months 2 weeks 3 days 1 hour ago) and read 1747 times:

    I just cut your costs by 1/2 John Walton. One word:

    Southwest

    Goodnight, Johnboy


    User currently offlineDonder10 From Canada, joined Oct 2001, 6660 posts, RR: 21
    Reply 21, posted (12 years 7 months 2 weeks 3 days 1 hour ago) and read 1746 times:

    EZY is trying hard to get slots at LGW.


    User currently offlineRayChuang From United States of America, joined Jun 2000, 8002 posts, RR: 5
    Reply 22, posted (12 years 7 months 2 weeks 3 days 1 hour ago) and read 1740 times:

    I think the entire EZY order will be for more 737-700's.

    The answer is simple: it's cheaper to standardize on one plane type in terms of crew training and spare parts inventories. Besides, the 73G has a proven record of high-frequency short-hop operations, not to mention standard CFM56 engines that could be ordered in versions with low-NOx engine-exhaust emissions so they could operate out of any major airport in Switzerland (ZRH and GVA) on an umlimited basis.

    Anyway, with CO, DL and WN deferring 73G orders, EZY could get 73G's at a very lucrative price.


    User currently offlineDonder10 From Canada, joined Oct 2001, 6660 posts, RR: 21
    Reply 23, posted (12 years 7 months 2 weeks 3 days 1 hour ago) and read 1729 times:

    The standerdizing reason is why I think EXY are only using Airbus to drive down the price Boeing offer.

    User currently offlineTWAneedsNOhelp From , joined Dec 1969, posts, RR:
    Reply 24, posted (12 years 7 months 2 weeks 3 days ago) and read 1715 times:

    That would be a major coup if Airbus won the order.

    25 Boeing in pdx : I think that Boeing will still win the order. You just don't change your entire infastructure.
    26 Boeing767-300 : Definately a ploy to drive down the Boeing Price. The costs associated with parts inventories/ maintenance/ pilot ratings/conversions etc is insane an
    27 Boeing767-300 : Didn't Qantas end up with 15 deffered AA 737-823s on a similar basis (After talking Airbuses).
    28 Post contains links Flying-Tiger : QF didn´t really care about the type, at the end it came only down to price. Here Boeing won. I think Airbus has a very good position this time. Havi
    29 Lj : It's not odd that Airbus may pitch for this deal. This is the last time EZY can let two airlines compete for an order. An analysts put it correctly. A
    30 Post contains links Flying-Tiger : I´ve written this in another forum, maybe it is worth taking a look into the future to see the (possible) motivation of this move: "Take a look from
    31 Lj : Yes Flying Tiger, WN can't switch to Airbus anymore and after this order neither can EZY. BTW wasn't there also a rumor at PPRUNE that FR also conside
    32 Bapilot2b : They are rumoured to be starting to SZD/EGSY! Hope this is true!!!
    33 MGL243 : I read in the newspapers in Scotland that Easyjet were going to expand their operations in Scotland with flights from Glasgow and Edinburgh to Geneva,
    34 Lj : MGL243, Don't rely too much on EZY spokespersons. AMS was on the list to get more flights/destinations but sofar I haven't heard/seen anything. Moreov
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