Luton is a government regeneration area. They were paid money to expand easyland at LTN which was one reason why they rejected STN last year.
Source: Airwise
EasyJet is expected to wind back its capacity growth targets when it
updates investors on its performance on Thursday as stiff
competition and high fuel prices continue to bite.
EasyJet is expected to announce a slowing of planned capacity growth
to between 15 and 20 percent, from 25 percent, as pricing pressure
in the crowded European short-haul market takes its toll.
EasyJet has been reviewing operations at its airports which analysts
expect will lead to the sale of some older aircraft, although any
announcement on changes to its fleet may not be made until later in
the year.
Analysts expect the company to sell six of its Boeing 737-300
aircraft which are older and have been identified by the company as
being possible targets for retirement.
"You would imagine they are probably going to pull those six
airplanes out and achieve the capacity slowdown that way and we will
have to see how the winter progresses," JP Morgan analyst Chris
Avery said. "It is a sensible and helpful move in front of a sticky
winter."
Rival Ryanair's growth rate has also slowed after an explosion in
the size of low-cost airlines in recent years, although both
airlines continue to add new routes and put pressure on smaller
low-cost rivals in Europe.
EasyJet said last week it expected a tough 6 to 18 months. The
airline recently announced it would withdraw services from Zurich
Airport because airport charges were too expensive.
Analysts said a slowdown in capacity would help offset falling fares
although some warned it could give struggling smaller rivals an
edge.
"While it should take the short-term pressure off yields it will
also give the second tier low-cost carriers some breathing space
just at the time when easyJet and Ryanair are trying to drive them
out of business," according to UBS.