EasyJet 2013 Annual Report Download - page 17

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15
www.easyJet.com
Strategic report
New fleet arrangements
In July 2013 easyJet’s shareholders approved new
framework arrangements with Airbus, under which
Airbus will supply 35 current generation A320
aircraft for delivery between 2015 and 2017 and 100
new generation A320neo aircraft which are planned
for delivery from 2017 to 2022. Airbus also granted
easyJet additional purchase rights to acquire up to
100 further new generation A320neo family aircraft.
The 180 seat new generation A320neo aircraft is
expected to deliver a cost per seat saving of around
11% to 12% compared to the 156 seat current
generation A319 aircraft, comprising the 7% to 8%
saving from up-gauging from the A319 aircraft to
the A320 aircraft and a further 4% to 5% from
moving from a current generation A320 aircraft
to a new generation A320neo aircraft.
easyJet targets an owned: leased split of aircraft
of 70:30 but expects the mix to fluctuate as it
takes delivery of aircraft under the new
framework arrangements.
Fleet
easyJet has built flexibility into its fleet planning
arrangements such that it can increase or decrease
capacity deployed, subject to the opportunities
available and prevailing economic conditions.
easyJet also has the flexibility to move aircraft
between routes and markets to improve returns.
easyJet’s total fleet as at 30 September 2013
comprised 217 aircraft, split between 156 seat Airbus
A319s and 180 seat A320s. During the year, easyJet
took delivery of ten A320 aircraft under the terms
of the current generation Airbus agreement and
seven A319 aircraft exited the fleet.
The larger A320 aircraft have been introduced
over the last few years with minimal reduction in
yields, and they deliver a per seat cost saving of
approximately 7% to 8% over the A319 aircraft
through economies of scale, efficiencies in crew,
ownership, fuel and maintenance. The modest
increase in the proportion of A320s this year
delivered a 31 pence per seat cost saving in 2013.
Fleet as at 30 September 2013:
Owned
Operating
leases
Finance
leases Total % of fleet
Changes in
year
Future
committed
deliveries(5)
Unexercised
purchase
rights and
options(6)
easyJet
A319 93 54 6 153 71% -7 – –
easyJet
A320 41 18 5 64 29% 10 144 135
134 72 11 217 3 144 135
Following on from the acquisition of Flybe’s slots at Gatwick airport easyJet exercised the six remaining
aircraft options under the current generation Airbus agreement on 31 October 2013. These aircraft will be
delivered in spring 2015.
easyJet’s latest fleet plan:
2014
Financial
Year
2015
Financial
Year
2016
Financial
Year
2017
Financial
Year
2018
Financial
Year
2019
Financial
Year
Maximum fleet(7) 226 237 247 262 279 300
Minimum fleet(7) 226 220 220 229 187 173
Fleet plan — base case(7) 226 237 247 262 267 270
(3) Source: on-time performance as measured by internal easyJet system.
(4) Source: on-time performance as measured by flightstats.com (external definition).
(5) Future committed deliveries through to 2022 including 9 aircraft ordered before July 2013.
(6) Purchase rights and options may be taken on any A320 family aircraft and are valid until 2022. 35 of these relate to prior
years. 6 options were exercised on 31 October 2013.
(7) Maximum, minimum and base fleet show the fleet position at the end of the relevant financial year. Base case reflects exercise
of 6 options.