By Scott Kanowsky
The budget carrier also said it will change a separate order of 18 A320neo planes to Airbus' popular A321neo.
EasyJet said these moves would reduce costs by boosting fuel efficiency and increasing the average seat count on its airplanes. It described these new aircraft as essential to its operations, adding that using older planes may increase costs and potentially threaten the current scale of the business.
"We believe this will support positive returns for the business and the delivery of our strategic objectives," EasyJet CEO Johan Lundgren said in a statement.
According to the airline, the total cost of the purchase will be "very substantially below" the average listing price of $6.5B, due to a prior agreement between EasyJet and Airbus made in 2013. EasyJet said it will pay for the purchase using internal resources, cash flow, sale and leaseback transactions, and debt.
"While the board will regularly review optimal sources of financing, there is currently no expectation that shareholders will be asked to fund any aspect of the proposed purchase," the company said.
The deal, which still requires shareholder approval, also firms up EasyJet's new aircraft orders from Airbus until 2028. But the company warned that it would not have a "secure supply" of planes between 2026 to 2029 if the purchase does not proceed.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.