Easyjet, the UK low-cost operator, has placed a major follow-on order with Boeing for at least 15 Next Generation 737s, which will boost its fleet to over 30 aircraft within five years.
The deal includes firm orders for 15 737-700s worth some $650 million, with options for a similar number. Deliveries are scheduled to begin in October 2000, with the last firmly ordered aircraft arriving in February 2003. The London Luton-based low-fare airline operates six 737-300s and is poised to receive the first of 12 new 737-300s which it ordered last year. Deliveries of these aircraft will extend through to the end of 1999, enabling an expansion of routes which cover destinations in France, Greece, the Netherlands, Spain and the UK.
The move to grow its fleet rapidly signals a decision by the airline to take head-on the threat from other low-fare airlines such as Go and Ryanair, combined with a possible economic slow-down in the UK.
EasyJet says that it will fund the acquisition with loans secured against the aircraft themselves, and claims that it is generating sufficient profit to finance the deposits from cashflow.
The new 737s will be used for expansion, with the airline saying that its aim is "-to take market share from expensive airlines and surface transport". Some of the aircraft could be destined for TEA Switzerland, in which easyJet acquired a 40% stake in March, to pursue expansion as a "Swiss easyJet" franchise.
Source: Flight International
