REG - easyJet PLC - Selection of Engine Supplier <Origin Href="QuoteRef">EZJ.L</Origin>

easyJetAnnouncement

06/09/2014 16:25

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RNS Number : 1888M
easyJet PLC
14 July 2014 
 
easyJet plc (the "Company") 
 
Selection of Engine Supplier 
 
14 July 2014 
 
easyJet announces that it has selected CFM International S.A. ("CFM") as its
engine supplier to provide 270 engines to power its firm order of 35 Airbus
current generation A320 aircraft ("Current Generation Aircraft") and 100
Airbus new generation A320neo aircraft ("New Generation Aircraft").  CFM will
also provide engines for any future exercise of the 100 purchase rights over
New Generation Aircraft.  The Current Generation Aircraft are planned for
delivery between 2015 and 2017 and the New Generation Aircraft are planned for
delivery from 2017 until 2022 under the framework arrangements with Airbus
S.A.S. which were announced on 18 June 2013 and further details of which were
set out in a circular to shareholders published on that date (the "Circular").
 The Current Generation Aircraft will be powered by CFM56-5B engines and the
New Generation Aircraft will be powered by CFM LEAP-1A engines. 
 
The framework arrangements relating to firm orders for 35 Current Generation
Aircraft and 100 New Generation Aircraft, purchase rights over 100 New
Generation Aircraft and their related engines received shareholder approval on
11 July 2013. 
 
Following extensive negotiations with CFM, easyJet has achieved a modest
improvement in pricing of the overall framework arrangements.  The terms of
the framework arrangements are subject to confidentiality restrictions and do
not materially differ from the arrangements described in the Circular. 
 
Carolyn McCall, easyJet Chief Executive, said: 
 
"Both engine manufacturers wanted to win our business and competed hard during
a thorough selection process.  Ultimately CFM offered us the best overall
deal. 
 
"We are pleased to have signed a deal with CFM - a company with which we have
a long history and a great working relationship - and look forward to
introducing the new LEAP-1A engine into our fleet. 
 
"The engines will help easyJet to maintain its low cost base and the new
generation A320neo is expected to deliver a cost per seat saving of between
11% and 12% compared to the current generation A319.  They will also provide
important environmental benefits through a significant improvement in fuel
efficiency and a reduction in noise." 
 
For further details, please contact: 
 
 Investor:                                                 
 Will MacLaren, Investor Relations   +44 (0) 7961 763 879  
 Michael Barker, Investor Relations  +44 (0) 7985 890 939  
 Media:                                                    
 Paul Moore, Communications          +44 (0) 7860 794 444  
 Anna Knowles, Communications        +44 (0) 7985 873 313  
 
 
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The company news service from the London Stock Exchange