Originally Posted by
JonnyH
Whilst you’re not wrong in what you’re saying, because he is a complete pain in the rear and like a dog with a bone, I do think he is correct with the major issue regarding aircraft orders.
The current fleet they’ve got will definitely see them through for the foreseeable future and the sensible, and moral, thing to do would be to cancel the majority, if not all, of this order. The credit facility they’ve gained will need to be paid back and should be their priority. They can and should be working to reduce their order, defer it or whatever else is required. It seems fair to assume they should be focusing on staying in business..
It might well be that someone else comes along and says there is clear logic for maintaining their order with Airbus whilst struggling with their other financial obligations but I cannot see a strong case.
I too think he has a point with respect to splashing out on new planes. Hardly anyone is booking (or I'm assuming that's the case - I for one am not booking anything for anywhere until things improve) and the immediate, short-term focus should be on survival. Some of the aircraft in the fleet at the moment are close to 15 years old, but unless they're already due to go to another airline such as United who are due to take on some of the A319's, then easyJet ought to consider holding on to them or withdrawing them in proportion to any permanent network reductions in response. The collapse in oil price could help the economics of operating older aircraft, though another factor is whether some of the older/oldest aircraft are due heavy checks soon?
Like I said last week, the best Sir Stelios can probably hope for is deferral. Airbus (and Boeing) are no doubt bracing themselves for airlines wanting deferrals, cancellations, order revisions etc., so I wouldn't expect talks to be easy.