easyJet reaches agreement with Airbus about A320neo order

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On 9 April, easyJet said it had reached an agreement with Airbus for 2020, 2021 and 2022 about its A320neo order.

easyJet founder, Stelios Haji-Ioannou might be happier now. His airline, easyJet, reached an agreement with Airbus on A320neo deliveries for the 2 years to come.

24 A320neo deliveries out of 107 (10 in 2020, 12 in 2021 and 2 in 2022) will be postponed until a further date, and no delivery is expected for 2021; 5 other deliveries for 2022 might be postponed. Furthermore, during the next 16 months, leasing contracts of 24 aircraft which had to be renewed, could be postponed or cancelled. More info about will be given on 16 April.

The recent displeasure of Haji-Ioannou came from the £4.5 billion Airbus A320neo order that he said to be “useless” in view of the current crisis. He warned that the airline could run out of money by August if no agreement with Airbus was found, and threatened the chief financial officer (CFO), Andrew Findlay, to be fired, as it “is the only way of preventing him writing billion-pound cheques to Airbus every year.” 

He added: “If Easyjet terminates the Airbus contract, then it does not need loans from the UK taxpayer and it has the best chance to survive and thrive in the future with some injection of additional equity provided for by the markets,”

An easyJet spokesperson said: “The board is managing the unprecedented challenges facing the airline and the aviation sector as a whole. We remain absolutely focused on short term liquidity, removing expenditure from the business alongside safeguarding jobs and ensuring the long-term future of the airline. We believe that holding a general meeting would be an unhelpful distraction from tackling the many immediate issues our business faces.”

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