DeeDee Doke/LUTON Chris Jasper/LONDON
Low-cost UK carrier easyJet, which has valued itself at more than £500 million ($726 million) ahead of an initial public offering (IPO) later this month, is to follow the flotation by adding Amsterdam as its fourth hub, its second in mainland Europe. The London Luton-based airline will begin services from the Dutch city to Edinburgh (twice daily), Nice and Belfast (both daily) from 5 January, using a single aircraft.
EasyJet will be floated on the London Stock Exchange on 22 November via a placement of 63 million shares amounting to 25% of its enlarged share capital. Offer price has been set at £2.50 to £3.50 per share, valuing the airline at £564 million (taking the midpoint of the range).
A further 11% of shares will be offered to staff in options and giveaways, but easyJet founder and chairman Stelios Haji-Ioannou will retain control - he and his family will keep a 64% holding.
The IPO will help finance the carrier's order for 32 Boeing 737-700s (the first of which was delivered last month), allowing easyJet to raise its deposit on the aircraft to 30% of purchase price, and secure better credit terms from Boeing. EasyJet will have a fleet of 44 aircraft by 2004, with the carrier retaining 12 of its 18 737-300s. It also has "price protection" on a further 30 737s until 2007.
EasyJet's Amsterdam hub will complement secondary hubs at Liverpool and Geneva, the latter home to easyJet Switzerland, which has a dedicated fleet of four aircraft. The carrier's chief executive, Ray Webster, says it would like more slots at London Gatwick - which it will serve twice daily from Geneva during the winter - but that this will "take a long time to evolve".
Source: Flight International
