Budget airline easyJet is purchasing 100 new generation A320neo aircraft for delivery between 2017 and 2022. This is in addition to an existing agreement to buy 35 current generation A320 aircraft from Airbus for delivery between 2015 and 2017.
Some 85 of the 135 ordered aircraft will be used to replace aging models, and total expected fleet acquisition and overhaul expenditure as a percentage of revenue is expected to fall from 18 per cent in the period 2005 to 2012 to 10 to 12 per cent in the period 2018 to 2022.
John Barton, easyJet Chairman, said,
We have planned that the new fleet arrangements will be financed without recourse to shareholders and believe that the arrangements will enhance returns and dividends to shareholders.
The new fleet arrangements will enable easyJet to continue its successful strategy of offering customers low fares to convenient airports and efficient and friendly service.
Airbus has been flying ahead of the competition at the Paris Air Show, the largest air show in the world, where rivals traditionally compete for orders. Airbus has secured at least £11.6bn worth of orders. Its biggest rival Boeing, by comparison, has three times less at £3.87bn.