Major easyJet news soon?

[Buster the Bear]

Apparently there will be a marquee in easyLand on Sunday, staff will be invited to attend a major announcement by senior easyJet management. No one has any idea of just what this going to be!

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[Doug the Head]

I think the meeting you´re talking about is scheduled for next Thursday.

Maybe a change of strategy? More predictions of future "bloodbaths?" Less expansion? New bases?

I dunno, let´s wait and see...

[Airbrake]

Meeting is indeed scheduled for Thursday. Lots of rumours concerning possible base closures which coincide with a quicker reduction in the 737-300 fleet. 'Ray' has gone on record as saying there will be no compulsory redundancies within the next 12 months.
It is highly relevant that Thursday is the start of the 'closed' period for staff Share dealing......not that our options are worth the paper they're printed on!

[GW76]

Is it not just because Stelios is back as the major shareholder ?

[Buster the Bear]

Rumours eh..must be something substantial to hire a marquee?

My source got the day wrong, but not the seriousness?

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[willywick]

which bases are being rumoured to close??

[DidItMyWay]

Some routes to a now unserved long time EU nation apparently.

I have been hearing about easyJet branded transalantic services to BWI to be operated by a new US startup with the corporate name SkyLine (?) using ex-Qantas 767-200s.

EasyJet is the last company to hire a marquee to announce bad news.

[jabird]

Diditmyway,

Surely an announcement to staff would be more likely to cover an internal issue, whereas a new venture would be something where they'd primarily invite the press. There's been lots of threads here about the difficulties with transatlantic no-frills - and why BWI of all places - how big is the leisure market to the Washington region? Surely New York, or at least PHL, would be the best location to hit the middle of the BOSWASH corridor, otherwise somewhere on the Florida coast, but we haven't heard much from flyblu for a while.

[LTNman]

Anything really big would have to be announced to the Stock Exchange first.

Easyjet are always hiring in marquees to easyland. The last time was to celebrate a new service from Luton to Berlin.

[Doug the Head]

'Ray' has gone on record as saying there will be no compulsory redundancies within the next 12 months. :uhoh: :ooh:

[LTNman]

Can't see why there would be any redundancies from an airline that is growing at the rate easyjet is. I also see that easyland is set to get bigger and that there is a building on the approach road next to the Boeing flight training centre that has become vacant. A new easyland perhaps? This could be easyjet’s only chance to move locations and stay at the airport.

[kick the tires]

perhaps the time has come for easyAtlantic to link up with SouthWest??

[The_Bean_Counter]

Easyjet plan to brief financial analysts on restructuring / eary retirement of the 300 fleet on Thursday and will brief staff on the same day

[Dick_Nice_But_Thick]

But don't worry folks, Ray has reassured eJ staff that there will not be any 'compulsory redundancies' for at least a year . . . three cheers for Ray!

However, your crewroom might move by a couple of hundred miles though. That should naff enough people off to generate sufficient 'natural wastage' to suit eJ's requirements. :ouch:

[Buster the Bear]

I understand that easyJet will announce more route closures on Thursday!

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[ecj]

Local newspapers here in Derry have had the possibility of Easy starting a morning service from I presume Luton.

Ryanair are planning to stop the morning flight from Stansted.

:E

[Powerjet1]

Can't see it myself but who knows. Ryanair seem to be starting to tread on easy's toes lately; take today's announcement by ryan on the Stansted to Almeria & Valencia, routes which were only very recently announced by easy.

If easy did launch a service, ryan would probably ADD two more daily flights from LDY for the sheer hell of it. No way.

[CaptJ]

Don't think Ryanair could retaliate on this accassion. The runway is too short for the new 737-800.
No problem for easy A319 though

[The_Bean_Counter]

May not retaliate into Derry but I reckon Attila the Hun would have a go at 4 STN BIA a day

[Powerjet1]

Take you mean BFS, not Bastia(BIA)

[The_Bean_Counter]

Point Taken BFS it is then

[Doug the Head]

Probably a lot of route closures, camouflaged by some new routes openings. I´m curious to see what the net result (expansion or reduction) will be on EZY´s route network.

[we_never_change]

Isn't East Midlands an EZY B733 base (which they inherited from the GO buyout), there hasn't really been much expansion here, just a swop around of various routes.

WNC

[HotAir]

All 737 to go and one base to close also expansion of route network.

[ralphy83]

All 737's to go full stop, or just the 300's?

[LoGo]

Are you prepared to speculate on which base HotAir?

[bacardi walla]

Surely if the 737 fleet went, it would be ALL marks, i.e. -300 + -700's. How can a loco run 2 types side by side without losing money ? I'd say it makes sense to focus on the A329 fleet and move up to A320 or A321 as routes demand it in the future.

With Buzz closing on 31st October, the STN-LDY-STN route can only be sustained for a short period of time, i.e. until the -200's are removed. EZY on the other hand can safely run an A319 through LDY with no performance limits.

[Flypuppy]

Have heard that EZY are not very happy with BAA charging twice as much at Scottish airports than what they are charged at English airports.

Is it possible that EZY will be looking to retreat from north of 55°N?

[almost professional]

Is NEMA the last 737/300 base in UK?
does the fact that Easy have done no expansion here mean we are candidates?

[The Greaser]

I think GLA is an all -300 base as well. I dont think easy would consider moving out of Scotland, despite the high costs they are very profitable routes.

[LTNman]

This info is a little out of date but the top three destinations from Luton are

1. Glasgow
2. Edinburgh
3. Amsterdam

All easy routes and all destinations rumoured here for possible closure. Can't see it some how.

[Buster the Bear]

Staff meeting in the marquee sited close to easyLand @ 15:00 Thursday 23rd.

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[bacardi walla]

I reckon LGW will become the new HQ, more expansion out of LGW and the opening of new bases in Europe.

[brabazon]

Luton to remain HQ of easyJet, perhaps one UK base to close, 737-300s to be retired early?!

What is truth and what is rumour? We'll find out tomorrow......

[LTNman]

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.

[sugarbird]

Despite the wind being taken out of Ray's sails by Ryanair's IFE announcement at the lo-co congress in London no indication was given of doom and gloom in the easy camp.
Ray praised the hairbrush as being troublefree and said expansion in Germany would continue with new routes being opened up regularly - I've not go my notes but Ray was pretty upbeat in both the sessions he attended before going off to a business lunch to pick up an award.

[bacardi walla]

Whatever is announced, lets wait for MOL to shoot EZY down in flames in "most flambouyant" way :yuk:

Why is MOL giving away millions of seats ? Cos nobody wants them........

[Doug the Head]

Why is MOL giving away millions of seats ? Cos nobody wants them........ I think that the reason why MOL is giving away free seats is because he can afford to do so. Ryanair has a lot of cash and can probably outlast EZY in a price war if push comes to shove. 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. Very good point indeed. EZY has IMHO been too careless/laid back about European expansion and has put most eggs into the (mostly LoCo saturated) UK basket. Slower EU expansion will open the door even wider for upcoming LoCo rivals.

[dwlpl]

By hiring a marquee it is not likely to be anything confrontational.

Tomorrow (Thursday), I believe they are to announce to the stock market late in the late afternoon its 'Pre-close Trading Statement'.

I would think this is more likely to be the reason behind the marquee.

I am also lead to believe they are to bring forward the retirement of the more expensive-to-run 737's.

[Powerjet1]

Easy seem to have announced flights from LGW to Cork, Knock & Shannon from January, and Almeria & Valencia from 1 March 05.

[fimbles]

" announcements to the City this morning:

1. New routes to Eire
2. Fairly upbeat trading statement




23 September 2004

EASYJET ANNOUNCES FIRST ROUTES TO REPUBLIC OF IRELAND
Additional services to Almeria and Valencia from Gatwick

easyJet announces today five new routes from London Gatwick to three new
destinations in the Republic of Ireland as well as increased services to Almeria
and Valencia in Spain.

The new Irish destinations - which are a first for easyJet - are to Cork, Knock
and Shannon.

easyJet is also adding services to Valencia and Almeria in Spain from Gatwick.
This brings to 29 the number of routes easyJet flies from Gatwick - more than
from any of its other airports, including London Luton and Stansted.

Frequencies are as follows:

Cork twice daily
Knock daily
Shannon daily, rising to twice daily in Summer 2005
Almeria daily
Valencia daily

The three Irish services will commence on 28 January 2005 and the Spanish
services on 01 March 2005.

Ray Webster, easyJet Chief Executive, said:

'These are our first services to the Republic of Ireland, where air fares, in
many cases, have remained stubbornly high and have generated consistently strong
year-round returns for the incumbent airline. We are bringing easyJet's
well-established brand to Ireland and will be flying to the right places at the
right prices for hundreds of thousands of passengers.

'The great news for consumers is that all of these routes will be offered from
Gatwick Airport in south London which will attract thousands of new passengers
and give a new low-cost option for those who prefer to fly from Gatwick.

ENDS

UPDATE ON TRADING AND CAPACITY GROWTH REVIEW

easyJet, the leading European low cost airline, is providing the following
routine statement on trading prior to entering its close period ahead of its
2004 preliminary results and announcing the planned capacity growth rate for
2005.

Ray Webster, Chief Executive of easyJet said:

'easyJet has enjoyed improved trading during the final quarter of 2004. I'm
pleased to report that the actions we are taking to strengthen our competitive
position have begun to pay off.'

Trading update

Since the beginning of August, easyJet has announced 16 new routes and 9 new
destinations, cut Zurich and reduced capacity to Copenhagen and Amsterdam as
part of an ongoing programme to drive down costs. Changes were made to
approximately 10% of the network during fiscal 2004.

As anticipated, load factors have remained in the high 80s during the summer.
For the whole of the 2004 financial year passengers should exceed 24.2 million
and revenue growth, including ancillary activities, is likely to be
approximately 16%.

Despite continuing volatility in fuel prices, pre-tax profit is now expected to
exceed £60 million, at least 16% higher than 2003.

Yields are expected to remain under pressure during 2005. easyJet will continue
to make optimum use of its scale of operations, working in partnership with
suppliers particularly airports, to cut costs.


Update on capacity growth review

easyJet's fleet today consists of 93 aircraft. While the capacity growth review
is ongoing, easyJet is currently planning to increase the number of aircraft in
its fleet by approximately 16% in 2005, less than the 24% rise previously
planned. Further details will be given when easyJet reports its preliminary
results for the 12 months to September 2004 on the 23 November 2004.


END

[Powerjet1]

Trading statement has not done much for the share price, still languishing around the 135/136p mark. Investors probably not too keen to see easy's first foray into the irish republic. No doubt ryan will provide a sharp response as a result.

[Buster the Bear]

Commercial Director Mike Cooper has decided to resign from the board of easyJet.

Chief Executive Ray Webster said, "I am saddened to communicate the following:

easyJet announces the resignation of Mike Cooper, Commercial Director since April 2000. He had previously resigned early in 2003 but agreed to remain to deliver strategies for easyJet profitable growth. These have now been fulfilled. He has agreed to remain in the role while a suitable successor is found.

Mike has made a remarkable difference to easyJet over the last five years and we will be celebrating his achievements in due course, a little nearer his leaving date.

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[LTNman]

So where is the doom and gloom that was rumoured here then?

[brabazon]

I thought the easyLand meet was at 1500 - so there's still maybe more to come on this......

Meanwhile who came up with the Irish routes idea? and will it be Bye Bye Bmi Baby at LGW soon?

[Powerjet1]

Matters closer to home ???

[thegoaf]

It appears that bmibaby are leaving LGW at the end of October. Bookings are not being taken for flights after that date. It always was rather a silly idea to operate form there and they have paid the price.

[no, no, no]

what are you on about thegoaf??? I've just gone on and been able to make a booking for November.......

baby pulling off soo soon after announcement from easy would have suggested that they knew - and the stories I've been hearing suggest that this was actually a very late decision which was aimed primarily at ryanair - not because they have an interest in those airports!!! Why else have they chosen the 3 airports they fly to - they only missed off Kery (which is still Cork really) and Dubli - but even they aren't that stupid.

Looks like baby have been caught in the middle of the start of a turf war!!!!!

[thegoaf]

no,no.no
I have just checked again. They are giving up PRG but continuing with ORK. Previously I had only checked about PRG.
I think they will find it to be tough aainst EZY on ORK.

[Powerjet1]

Easy shares closed nearly 8% down @ 128.30. City still not impressed despite slightly upbeat trading update. Must be close to their all time low.

[Buster the Bear]

No wonder the media were invited to the easyMarquee, trying to ensure investors still have faith in the management of the company?

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[Powerjet1]

no,no,no

Think you may be right about easy's decision to start flights to Cork, Knock & Shannon, being a late decision. The 'Independent' is reporting that the slots being used for these flights came from Ryanair, which handed them back last week. Cheeky or what !!!

[jabird]

Easy announced LGW to CGN today, joining up more dots on the network & giving Germanwings a run on their home base.

[CaptJ]

I just don't believe this nonsense about easyJet moving into Ryanair's turf. The targets are clearly bmibaby and Aer Lingus.

Of course Ryanair is making a pretty penny out of its Irish Routes, Aer Lingus being little competition.

Aer Lingus is now trying to turn itself into a LoCo, with potentially disastrous consequences, esp when they finally lose that bane of travellers and obstacle to competition, the SNN stopover.

[Buster the Bear]

Luton based low fares airline easyJet saw its shares nosedive to a record low – another 8.5 per cent down to 121.5p – after warning that fares would stay under pressure in 2005.

It’s only two years since the airline was on cloud nine with an all-time share price high of 504p.

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[runawayedge]

CaptJ
I have to disagree totally. This is as direct an attack on FR as possible without starting EIDW. Easyjet are not competing against EI, they have said to FR we will take you on in your Irish outstations, from Gatwick. EI do not operate from Knock, they do from EINN and EICK. On your other point I believe WW would only be delighted to see then end of the Shannon stopover. I don not see two locos staying at EIKN competing for London traffic. I can't understand why they did not target Kerry and Derry as well. I think Kerry would have been a better option to Knock. FR get a real high volumes and yields out of there. Speaking of yields, if the Irish yield is low now what is it going to be like come January. You wont see WW reacting but wait and see what MOL does.

[CaptJ]

Runwayedge, you may well be correct in your analysis, you are certainly more sure of it than I am of mine.

My reasoning is along the lines of -
bmibaby was a potential thorn in easyJets side at Gatwick. This pretty much disposes of that issue.
easy could have taken a stand elsewhere, (CIA) they chose not to.
Precisely because Kerry and Derry are not included. Derry has been handed them on a plate by Ryanairs ridiculous demand for an unecessary £20M runway extension, can't understand the logic there at all.
EI's LoCo ambitions are an issue for both easyJet and Ryanair.
easyJet are quite clear as to where they are positioning themselves, in both word and deed. Cost-concious business, low hassle, low seasonality, convenient airports.
MOL has been very quiet, most unlike him.
Ray Webster will certainly be aware that blood is thicker than water in Ireland and some of his staff came from GO and will remember the Dublin-Scotland debacle.
MOL may be smart and noisy and ruthless, but Webster is smart and quiet and ruthless.

So interesting times ahead in any case ...

[Tom the Tenor]

Yield has been good at Cork during the summer. EI and FR have had less flights compared to summer 2003 and the flghts have been well subscribed. bmi baby have done well too on their new flight to LGW and by operating their older 737-300s their costs have been kept to a minimum? I wonder if baby had gone twice daily to LGW would Easyjet joined battle at Cork?

You could argue that EZY should have gone for it with Kerry and Derry as well and by going to Gatwick there was the added attraction of long haul connections something that Stansted has a little less of at present.

Ryanair downsized Shannon STN from three to two flights a day so what is the most they can do to counter Easyjet? Add a third flight again? If it was summertime yes, maybe but hardly so in the winter? Yield will be grim for both FR and EZY at SNN between Jan and May 2005?

May be more of an option to add a fourth flight again on FR STN-ORK but again hardly the wisest option over a winter season? Ryanair in the guise of Mr Cawley have a wish list for Cork in today's, Irish Examiner, mentioning such exotic destinations as Paris, Brussels, Milan, Rome, Stockholm, Liverpool, Birmingham and Glasgow. Mr Cawley also goes on about Ryanair's better timekeeping and better fares and to counter Easyjet go on about going to better airports! Wonder if this is the height of Ryanair's response to Easyjet's arrival at Cork? Better for them to base maybe two ex Buzz 737-300s at Cork and work from there to STN and some of the other exotics mentioned above!?

EI will continue to do well regardless at LHR. The only upset to that would be if BMI took over the London flight to Cork from WW and operate from LHR. BMI have never had much of a presence at Cork so they would have to do some serious marketing for Cork. Playing the Star Alliance card and offering biz class seats would be the least of it. The Cork and Irish pax is undoubtedly a clannish breed and likes to remain loyal to the EI ideal which is probably now going but the likes of Easyjet and BMI if they were to join the Cork market would have to factor in something here, something like maybe hiring Cork cabin crew would be a good start raising their profile among the locals.

Remember, it is all about perception. ;)

[jabird]

EZ added LGW to BUD yesterday