easyJet defers A320neo deliveries by up to six years

easyJet (U2, London Luton) has announced the details of an agreement with Airbus concerning deferrals of a total of thirty-two A320neo Family aircraft, initially reached as an in-principle agreement in early April this year.

According to the newly released schedule, the agreement will see the British low-cost carrier deferring some deliveries originally scheduled before December 2021 to as late as 2027.

Eight A320neo Family aircraft originally scheduled for delivery by the end of September 2020 (i.e. by the end of Financial Year 2020) will be delivered in the Financial Year 2022, which extends from October 2021 through September 2022. A further 24 aircraft originally due between October 2020 and December 2021 will be delivered in Financial Years 2025-2027.

The airline said that due to a contractual adjustment for pricing based on inflation, the total cost of the deferred aircraft could increase by up to GBP95 million pounds (USD119.1 million), mostly payable in Financial Years 2025-2027. However, easyJet said that "any increase would be materially offset by the reduced cost of borrowing associated with the significant cashflow benefits in the next 16 months arising from these deferrals (including consequential changes to the schedule of pre-delivery payments)".

"The changes agreed defer capacity in the medium term while continuing our long-term strategy of replacing our older fleet with the advanced and lower fuel-burning A320NEO family," Chief Executive Johan Lundgren said.

The LCC said that it also secured additional flexibility related to further deferrals or cancellations.

easyJet has until December 2020 to defer two aircraft and to exercise the option to not take up to seven aircraft currently scheduled for delivery between Financial Years 2022 and 2026. It also extended the deadline for the exercise of its 13 purchase rights through November 2021 (seven aircraft) and November 2022 (six).

According to the ch-aviation fleets advanced module, the LCC's outstanding firm orderbook with Airbus stands at 114 aircraft, including ninety-five A320-200neo and nineteen A321-200neo.

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Photo:Paul Bannwarth