EasyJet 2014 Annual Report Download - page 10

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8 easyJet plc Annual report and accounts 2014
Customers
easyJet continues to be focused on primary airports in our
core markets and our low cost base enables us to offer low
fares to our customers. During the year we have continued
to expand and make improvements to our network, making
travel easy and affordable for our customers. This makes
our business model uniquely positioned to deliver what
customers look for when choosing an airline.
Opportunities
We continue to see profitable and time-sensitive
opportunities for growth in our core markets. The Board
therefore decided to exercise the remaining 35 options and
purchase rights over current generation aircraft for delivery
between 2015 and 2018. These aircraft will augment
easyJet’s highly cash generative model. The Board will
continue to keep the balance sheet under review and
intends to make further returns of capital to shareholders
in the coming years as surplus funds accumulate.
Returns to shareholders
In light of the continued strong financial performance
of the Company and confidence in the future, the Board
has decided to increase the payout ratio for the ordinary
dividend from one-third of profit after tax to 40% of profit
after tax. The Board is therefore proposing an ordinary
dividend of 45.4 pence per share, an increase of 35.5%
over the ordinary dividend paid last year.
Regulatory environment
The regulatory environment continues to have a significant
impact on easyJet. However, this year we have seen
progress at Gatwick, where we have reached a long-term
agreement with the airport that provides a good base for
growth and savings over the next seven years. We have
also seen governments start to reconsider how airports
are regulated in France and Switzerland.
Chairman’s statement
Continuing to deliver
We have continued to work with the Airports Commission
on future runway capacity in the UK, and have focused
on assessing which of the options it has put forward will
deliver the best outcome for easyJet and our passengers.
In particular, we are looking closely at the proposal for
further runway capacity at Heathrow, which we believe
could potentially offer an attractive proposition for us to
bring our operating model to the airport.
People
I would like to thank all our people for their continued hard
work, passion and focus on customer service which has
driven the strong performance in the year. Operationally
we have had a very busy summer and I would like to thank
our pilots, cabin crew and ground staff for continuing to
deliver the friendly and efficient service our customers have
come to expect.
During the year, Dr. Andreas Bierwirth and François
Rubichon joined the Board. They are both experienced in
the aviation industry and bring a welcome European view
to the Board. Just after the year end David Bennett and
Professor Rigas Doganis will retire from the Board having
both served nine years. They have seen many changes in
their time and have played a full part in making easyJet
the success it is today. Many thanks to both of them.
Conclusion
easyJet has built the leading business model in European
short-haul aviation. The Company’s pan-European network,
cost advantage at the primary airports it flies from, focus
on customer service and capital allocation mean that
easyJet is well placed to continue to deliver sustainable
growth and returns for shareholders.
John Barton
Non-Executive Chairman
John Barton
Non-Executive Chairman
DEAR SHAREHOLDER
I am pleased to report that your
Company has delivered record
profits for the fourth year in a row
with profit before tax growing by
21.5% to £581 million.