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Old 6th Apr 2020, 10:58
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Originally Posted by Curious Pax
Probably later then, as he certainly isnít going to err on the side of caution when trying to prove his point!
True but it's not exactly a statement that'll help with consumer confidence when the airline needs as much cash as possible.
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Old 6th Apr 2020, 11:16
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Am I right that the other Easy companies belong entirely to Stelios, and are any of them profitable in normal times. Or is he dependant of dividends from Easy to keep the others afloat?
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Old 6th Apr 2020, 11:23
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EasyHotels must be struggling now!
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Old 6th Apr 2020, 11:32
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Originally Posted by pabely
EasyHotels must be struggling now!
Hotels typically pay a 20 year franchise fee. The hotels are independently owned
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Old 6th Apr 2020, 11:54
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Originally Posted by davidjohnson6
How long could Easyjet really last under a pan-Europe lockdown without a Govt bailout ?
Without any insider financing info, I would suggest longer than most!

Last edited by stewyb; 6th Apr 2020 at 12:08.
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Old 6th Apr 2020, 12:07
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How long could Easyjet really last under a pan-Europe lockdown without a Govt bailout ?
And which Govt?
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Old 6th Apr 2020, 12:24
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Originally Posted by lfc84
Hotels typically pay a 20 year franchise fee. The hotels are independently owned
Not true. As someone that owns franchise rights to eH for a particular region... let me assure you most of their hotels are directly owned and operated.
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Old 6th Apr 2020, 17:33
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Readers will be interested in the following

Covid Corporate Financing Facility & RCF drawdown

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Old 6th Apr 2020, 18:21
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Originally Posted by lfc84
Readers will be interested in the following

Covid Corporate Financing Facility & RCF drawdown
It's certainly demonstrating that they're exhausting every avenue, as the GOV has asked.
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Old 6th Apr 2020, 22:24
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JSCL

The CCFF is the government - it's a state fund run by the Bank of England.

https://www.bankofengland.co.uk/news...ncing-facility
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Old 6th Apr 2020, 22:38
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Originally Posted by ETOPS
JSCL

The CCFF is the government - it's a state fund run by the Bank of England.

https://www.bankofengland.co.uk/news...ncing-facility
Iím fully aware, but it isnít a an airline bailout and is fully commercial and only for those with exceptional credit ratings by the major agencies, thatís how commercial paper works. Iím not sure if the BoE scheme offers them interest but commercial paper issuances generally would. The RCF too is pure debt.

This is 100% demonstrating every avenue other than a bailout of any description.
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Old 8th Apr 2020, 14:15
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Another day and Sir Stelios continues along the warpath against the rest of the board, now threatening legal action if they continue to pay Airbus whilst defaulting on other obligations...

https://www.edinburghnews.scotsman.c...ounded-2533129
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Old 9th Apr 2020, 09:59
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Originally Posted by 116d
Another day and Sir Stelios continues along the warpath against the rest of the board, now threatening legal action if they continue to pay Airbus whilst defaulting on other obligations...

https://www.edinburghnews.scotsman.c...ounded-2533129
He’s a monster to work with. This is why entrepreneurs need to move on. He founded so many easy companies, all of which failed with the exception of easyJet which he sold off and got in a proper management team to run. It’s not his own personal plaything anymore. He continues to behave like a giant hairy baby, it’s sub optimal for sure.
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Old 9th Apr 2020, 10:21
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Originally Posted by Skipness One Foxtrot
Heís a monster to work with. This is why entrepreneurs need to move on. He founded so many easy companies, all of which failed with the exception of easyJet which he sold off and got in a proper management team to run. Itís not his own personal plaything anymore. He continues to behave like a giant hairy baby, itís sub optimal for sure.
Perhaps he is bored as he cannot swan around the Med in a yacht as everything is closed!
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Old 9th Apr 2020, 12:02
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Originally Posted by Skipness One Foxtrot
Heís a monster to work with. This is why entrepreneurs need to move on. He founded so many easy companies, all of which failed with the exception of easyJet which he sold off and got in a proper management team to run. Itís not his own personal plaything anymore. He continues to behave like a giant hairy baby, itís sub optimal for sure.
Whilst youíre not wrong in what youíre 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 theyíve 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 theyíve 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.
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Old 9th Apr 2020, 12:52
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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.
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Old 9th Apr 2020, 13:58
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Can easyJet simply walk away from the contract without penalties as Stelios insinuates? From what I gather, we are talking about orders, not options or purchase rights.
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Old 9th Apr 2020, 14:41
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Originally Posted by 116d
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...
easyJet and all other major airlines will be reviewing their fleet requirements in light of the current situation. No one knows just how long this will go on for, or what form the recovery will take. We cannot be sure that even if the economy makes a full recovery that air travel will have the same levels of demand. My personal opinion is that people have changed the way they work and work-related travel will reduce, across all modes of transport. That is not to say that demand will evaporate, but that forced working from home and reduced commuting will have shown people another way to conduct their business.

Stelios' temper tantrums are a distraction for the management right now, where survival is everything. He is doing more harm than good. easyJet are doing everything they can to conserve cash and the order will have been on their minds. Its worth remembering that they have already paid deposits for their slots and progress payments on aircraft under construction. That's money they would have to walk away from. Aircraft are not a discretionary purchase like a Bentley or a Yacht, they are absolutely fundamental to the production of product, they are a capital expense, financed over the long term. Airline fleets are planned years in advance, not days and weeks. Their old aircraft have agreements to return to lessors and onward airlines - things are not as straightforward as he is making out. It would be foolish not to have a little more information about the recovery before they make major strategic decisions which will effect the trajectory of the airline for five years or more.
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Old 9th Apr 2020, 14:49
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easyJet aren't the only airline to have major orders for aircraft. Nobody is suggesting that IAG should cancel its aircraft orders, instead they are speeding up their fleet renewal programmes by getting rid of older, less efficient aircraft.

There will be some failures as a result of all this, that is inevitable. With that though will come some winners. As a business a balance sheet among the strongest of any airline in the world, easyJet needs to be in a position to capitalise on opportunities going forward. The options that new aircraft will bring will be necessary. That doesn't mean there shouldn't be the option also to reduce the fleet if required. Indeed, that option has been in place within easyJet for some years now.

No one knows the true extent that the industry will be damaged and it would be foolish of easyJet to cancel the order at this moment in time. Stelios wants the airline to focus on profits but that requires increasing yield and if the rest of the market isn't focussing on that as much then market share becomes crucial.
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Old 9th Apr 2020, 17:16
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Looks like Stelios got a little bit of what he wanted, deferred orders rather than cancelled.
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