EASYJET AIRBUS FLEET DEVELOPMENT

Acquisition of 42 Airbus A-319-111 aircraft as part of a wider fleet development programme to serve easyJet’s European point-to-point scheduled network.

easyJet carried 24.3 million passengers in the year to September 2004, a 20% increase on the previous year. The company's model is based on a combination of focus on customers, markets and low cost. easyJet offers its customers (a) low cost, value fares; (b) daily scheduled flights to many European business and leisure destinations; (c) fast, convenient and secure Internet booking; and (d) flexibility through one way fares.

easyJet offers 210 routes with multiple frequencies across 63 key European airports. As at 31 March 2005 one third of Europe lived within 1 hour of an easyJet airport. The company keeps costs low through (among others) (a) use of the Internet to reduce distribution costs; (b) maximising the utilisation of aircraft assets; and (c) efficient use of airports.

The project will allow easyJet to meet growth in the European market, including development of new routes and bases in areas currently underserved. Expansion into the Accession countries of Eastern Europe began in 2004, and the project will facilitate this continued development. The emergence of new entrant European carriers such as easyJet has made air travel affordable to more price sensitive segments, including small businesses, and has improved accessibility of many regional destinations. New low-fares air services can have significant economic impacts on peripheral regions through increased inbound tourism, which in turn can stimulate employment in those regions. easyJet's low cost operating model has been reflected in low fares, transferring benefits to users. The company may also have had important secondary effects by encouraging the airline sector as a whole to adopt more efficient practices.

The project includes the phasing out of some older and less fuel-efficient Boeing 737 aircraft. The new aircraft fulfil all current and likely future EU environmental regulations on noise and emissions. Replacement of older aircraft will benefit the environment through energy savings and lower emissions compared to the existing aircraft.

easyJet is a private sector company operating in the competitive air transport market and is thus not bound by EU directives on procurement. It requested proposals from the only two manufacturers, Boeing and Airbus, as is best practice in the profession, and selected Airbus aircraft following extensive evaluation.

Air transport.