EasyJet 2013 Annual Report Download - page 10

8easyJet plc Annual report and accounts 2013
Customers
easyJet’s customer proposition consists of a
network of convenient airports, our friendly service,
website and mobile app and industry leading
on-time performance, all of which we have
continued to deliver in the year to a high standard.
We have also improved our proposition by the
addition of 25 new routes and the introduction
of allocated seating. The rollout of this has been
a great success, with good feedback from
customers and achieved without compromising
on-time performance.
Regulation
The regulatory environment continues to have a
significant impact on easyJet and whilst there has
been progress in some areas such as airspace costs
and increased competition on restricted routes,
there continues to be protectionism such as state
subsidy of failing carriers. Thus easyJet continues
to work constructively with governments and
regulators to build a regulatory framework for
aviation which rewards efficient behaviour. In
particular the European Commission needs to
create and enforce a system of legislation that
ensures a full and fair competitive environment
for airports, airlines and ground handlers. easyJet
welcomes the Davies Commission as it is clear
that the UK needs a coherent roadmap for aviation
capacity, however any future investment needs to
be cost effective and not subsidised by passengers.
People
As a frequent traveller on easyJet, I was delighted
to be given the opportunity to become the
Company’s Chairman. The Company’s performance
over the past few years has been remarkable.
For that, we owe much thanks to Mike Rake,
my predecessor, but also Carolyn McCall, her
management team and the hard work, commitment
and loyalty of all the people at easyJet.
Conclusion
easyJet’s leading European network and cost
advantage combined with a disciplined approach
to use of capital means that it is well placed to
continue to make travel easy and affordable for
customers and generate sustainable returns and
growth for shareholders.
John Barton
Non-Executive Chairman
Chairman’s
introduction
Strategic report
Chairman’s statement
John Barton
Non-Executive
Chairman
DEAR SHAREHOLDER
I am pleased to report that your Company
continued to deliver an exceptionally strong
performance with pre-tax profits growing by
50.9% to £478 million.
Platform for future success
The Company’s platform for future success was
also secured as our shareholders approved a ten
year fleet framework arrangement with Airbus.
This deal will enable easyJet to continue to grow
profitably and will be a significant platform of our
ability to continue to be competitive on cost and
therefore fares. As we said in June, when we
announced our fleet decision, the deal will be
funded without recourse to shareholders.
Returns to shareholders
The Board is proposing an ordinary dividend of
33.5 pence per share, due to the strong performance
of the business in the year, and a special dividend of
44.1 pence per share. Thus the Board is proposing to
return £308 million to shareholders, an increase of
262% over the dividend paid last year.