easyJet loads up on Airbus A320s

4th Jan 2011 07:04

No frills airline easyJet is to exercise its option to take delivery of 15 Airbus A320 aircraft between 2012 and 2014.The company has agreed new options over a further 33 A320 aircraft, while 20 of the A319 aircraft which easyJet had contracted to acquire from Airbus have been converted into orders for A320 aircraft. easyJet has the right to exercise the additional 33 options up to March 2013.The basic listed price of each A320 aircraft, as at December 2010, was about $73m, but easyJet has been granted substantial confidential price concessions by Airbus and the selected engine manufacturer.The conversion of the 20 A319 aircraft into A320 aircraft will increase the amount payable by easyJet for those aircraft, but the aggregate amount payable for an A320 aircraft is still substantially below the basic price for the A319 aircraft as outlined in previous agreements with Airbus in February 2003 and November 2006.The additional 33 options over A320 aircraft have been granted on the same terms as previously contracted and easyJet has paid a small percentage of the purchase price payable for the underlying aircraft which gives easyJet a price discount on each option on terms consistent with the concessions granted on the firm orders. If easyJet chooses to take advantage of the additional 33 options the price payable for such aircraft and the other terms applicable to such acquisition will be the same as those for the purchase of the other aircraft under the Airbus Contract and the amount paid for the grant of each option is deducted from the purchase price on exercise. "A central feature of the agreement is the flexibility it gives easyJet to vary the growth rate in its capacity to reflect economic conditions and market opportunities," said easyJet chief executive, Carolyn McCall.