easyJet delays delivery of 24 aircraft as demand collapses | News

easyJet has achieved agreement with Airbus for the web deferral of 24 aircraft deliveries from

easyJet has achieved agreement with Airbus for the web deferral of 24 aircraft deliveries from financial decades 2020-2022.

The go will come as the low-value provider seeks to maximise its liquidity placement in the celebration of an prolonged grounding period in the wake of the coronavirus pandemic.

The airline also hopes to make sure it is prepared to respond as European airspace get started to reopen.

The determination is also a victory for easyJet founder Stelios Haji-Ioannou, who has extensive criticised the £4.5 billion buy for 107 aircraft in whole.

The tycoon, who carries on to regulate the premier stake in the airline, has demanded easyJet preserves cash instead than buying new aircraft due to the fact of the collapse in air travel.

In whole, easyJet will defer shipping and delivery of ten planes this yr, twelve up coming yr and two from 2022.

As a result, in financial 2021 the airline will acquire no aircraft deliveries and retains the option to defer a further 5 deliveries in 2022.

Correct dates of potential deliveries of the deferred aircraft are to be agreed in response to the need atmosphere.

Within just the up coming 16 months easyJet also has 24 functioning leases thanks for renewal offering the airline with further overall flexibility, which could consist of deferment and cancellation.

Johan Lundgren, easyJet chief government, said: “Our business is experiencing unprecedented worries which have to have unprecedented action.

“As we have constantly said, we continue to be entirely concentrated on improving upon brief term liquidity and decreasing expenditure across the business. 

“Today, I am delighted to announce that we have agreed with Airbus to amend our shipping and delivery schedule by deferring the invest in of 24 aircraft, offering a significant strengthen to our cash move and a broad reduction to our close to-term capex programme.

“In addition, we have 24 leases up for renewal in excess of the up coming 16 months, which provides us an additional level of overall flexibility to respond to potential need.”

easyJet added it would deliver more information concerning its potential fleet prepare during a buying and selling update up coming 7 days.

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