SInGAPORE_AIR
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EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 7:13 am

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.
 
777236ER
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 7:18 am

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.
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donder10
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 7:20 am

EZY are using Airbus as leverage against Boeing.
 
Flying-Tiger
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 7:38 am

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
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BFS
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 7:41 am

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

 
777236ER
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 7:54 am

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.
Your bone's got a little machine
 
teahan
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 8:39 am

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
 
Flying-Tiger
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 5:24 pm

If I understand it right there is now a modified A319 with 150 seats, this is the reason why EZY looks on this baby.
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airnewzealand
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 5:56 pm

Great to hear!!

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

Cheers
Mike
 
donder10
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RE: EZY Plans To Buy Up To 75 Jets

Mon Jan 07, 2002 9:23 pm

Ryanair Vs. Easyjet hots up!
 
John Walton
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RE: EZY Plans To Buy Up To 75 Jets

Tue Jan 08, 2002 4:37 am

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.
 
sfointern
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RE: EZY Plans To Buy Up To 75 Jets

Tue Jan 08, 2002 4:56 am

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
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    heavymetal
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 5:04 am

    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...
     
    richardw
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 5:08 am

    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.
     
    teahan
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 6:45 am

    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
     
    richardw
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 7:08 am

    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.
     
    John Walton
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 7:13 am

    Two words:
    jet Blue
     
    John Walton
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 7:15 am

    Just out of interest, wasn't jetBlue's airbus order worth about $4 billion?
     
    richardw
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 7:22 am

    Will JetBlue expand into Europe and Australasia? A leather seat in an A320 is a definitive selling point. Likely?
     
    John Walton
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 7:26 am

    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
     
    Guest

    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 7:57 am

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

    Southwest

    Goodnight, Johnboy
     
    donder10
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 8:02 am

    EZY is trying hard to get slots at LGW.
     
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    RayChuang
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 8:22 am

    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.
     
    donder10
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 8:27 am

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

    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 8:58 am

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

    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 11:58 am

    I think that Boeing will still win the order. You just don't change your entire infastructure.
     
    boeing767-300
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 2:30 pm

    Definately a ploy to drive down the Boeing Price.

    The costs associated with parts inventories/ maintenance/ pilot ratings/conversions etc is insane and is not inline with EZYs basic operating model.

    Besides everybody knows Low cost Airline + Boeing 737 single fleet = SUCCESS.

    You can work the rest out!!!
     
    boeing767-300
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    RayChuang

    Tue Jan 08, 2002 2:33 pm

    Didn't Qantas end up with 15 deffered AA 737-823s on a similar basis (After talking Airbuses).
     
    Flying-Tiger
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    RE: EZY Plans To Buy Up To 75 Jets

    Tue Jan 08, 2002 3:36 pm

    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. Having two same-sized flights is not necessarily too expensive but it offers some potential for future planning: then every additional order will get cheaper as Boeing and Airbus will try then even harder to place their planes.

    Regards
    Flying-Tiger
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    LJ
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    RE: EZY Plans To Buy Up To 75 Jets

    Wed Jan 09, 2002 3:28 am

    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. After this order there is no chance EZY will be able to switch from a 737NG fleet to an Airbus fleet. Thus this is the decisive order for the future of the EZY fleet and EZY would be very stupid not to ask Airbus for a quote.

    Regards
    Laurens


    If they wouldn't let Airbus make an offer than
     
    Flying-Tiger
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    RE: EZY Plans To Buy Up To 75 Jets

    Wed Jan 09, 2002 3:43 am

    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 another point of view: long-term strategy. Having two large same-sized narrow-body fleets naturally drives costs higher - but it limits dependency from one manufacturer. Who knows how the market will look in maybe 10 years? Let´s assume that Boeing´s B737-700 is selling extremly well and their are short of production capacity - and now EasyJet comes and wants another big bunch of -700s - but Boeing isn´t able to deliver, neither direct nor via leasing company. Thing about the situation if Ryanair, Go, Buzz have all orders, introduce new planes and grow - and EZY can´t! Then they still have the option of turning to Airbus for additional A319. The same could work other way around.

    Leads me to a second point: will EasyJet get a better price per -700 compared to Southwest when they publically state that a big A319 isn´t out of question? I think yes, WN has a much larger fleet, yes, but they depend completely on Boeing which can to some extend limit the discount WN can get - how big is the likelyhood that WN would turn to Airbus?"

    Regards
    Flying-Tiger
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    LJ
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    RE: EZY Plans To Buy Up To 75 Jets

    Wed Jan 09, 2002 3:57 am

    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 considered buying Airbus?

    Regards
    Laurens
     
    bapilot2b
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    RE: EZY Plans To Buy Up To 75 Jets

    Wed Jan 09, 2002 4:20 am

    They are rumoured to be starting to SZD/EGSY! Hope this is true!!!
    Jason Nicholls - v1images
     
    MGL243
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    RE: EZY Plans To Buy Up To 75 Jets

    Wed Jan 09, 2002 4:55 am

    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, Nice, Barcelona and possibly Paris. The informaton was from an Easyjet spokesman so presumably it is true. Anyone know when this might happen? If they order new aircraft when will they begin taking deliveries?
     
    LJ
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    RE: EZY Plans To Buy Up To 75 Jets

    Wed Jan 09, 2002 5:12 am

    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. Moreover it has been very quite regarding the possible CPH, BRU and ORY flights.

    Regards
    Laurens