20 year LTN deal for easyjet

[LTN man]

Message from easyland:

easyJet and TBI are pleased to announce that easyJet and London Luton Airport have entered into a new long term airport service agreement at London Luton Airport, with effect retrospectively from 1 October 2001.

The parties have agreed the terms of the airline's use of London Luton Airport for the next 20 years, including landing charges for existing easyJet traffic volumes at a similar level to those currently enjoyed, for the duration of the new contract. In addition the agreement offers a reduced landing charge for any growth in traffic as a way of incentivising easyJet to increase passenger numbers. Part of the agreement between the parties relates to operational service levels, which the parties believe will enhance the operational effectiveness of London Luton Airport, which, in turn, will lead to an improvement in easyJet's cost base.

Both parties are continuing negotiations with regard to the level of future growth. These negotiations include improvements to road access and development of airport infrastructure in relation to which easyJet, London Luton Airport and Luton Borough Council are holding continuing discussions. The parties are optimistic that opportunities can be created that provide for significant expansion of London Luton Airport although no announcement is expected for some months.

Ray Webster, easyJet Chief Executive said:

"I am delighted that we have finalised a new long term contract with TBI and London Luton Airport. This announcement gives us certainty over our operations from London Luton Airport."

Keith Brooks, TBI Chief Executive said:

"We are delighted to have a long term agreement with easyJet at London Luton Airport and all parties continue to work towards a mutually beneficial agreement to build the infrastructure at London Luton Airport to confirm its status as London’s fourth airport."

[Luke Mc]

Do you think with this annoncement will EZY reinstate the LPL-LTN route? I have heared they where planning to do so in March providing they can get the slots. Also heared rumours elesewhere of an BFS-LPL-LHR operation providing EZY gets BAs old slots. Any more newson that?
Luke

[Alloy]

How will a twenty year contract affect Luton's other operators?

I understand Euroceltic Airways is operating F27's twice a day between Luton and Liverpool.

[dwlpl]

EZY would not operate a one stop (into LPL) on a BFS/LHR route. They would do two seperate sectors, ie BFS/LPL and LPL/LHR. The BFS/LPL sector already exists and is one of its highest passenger carrying routes on its network.

EZY has had a twenty year deal with LPL for some months as you may already know. Are there many differences between the LPL and the new LTN deal?

The new terminal at LPL is due to be phased into use from around Christmas time this year and may bring with it the next tranche of new EZY routes. But the more likely time would be from the start of the summer timetable in late March 2002.

[PAXboy]

I cannot see that they would want to restore LPL-LTN, particularly if another carrier is now established.

I was told that the reason for discontinuing it was the cost per revenue miles. The machines working this route could make more money for the line by doing longer sectors - either from LTN or other bases.

[ 29 October 2001: Message edited by: PAXboy ]

[dwlpl]

If EZY wants to serve London from LPL a LPL/GAT may be more appealing to them given that the national flag carrier has upped and all but gone, leaving large holes at Gatwick.

[ 29 October 2001: Message edited by: dwlpl ]

[OLNEY 1 BRAVO]

Just one more piece to add to the original post by LTN MAN.

The piece in today's Financial Times is pretty much along the lines of the Press Release however it adds .....

"despite the agreement reached with Luton airport over landing charges, Mr Webster said the airport was "still not attractive for future growth". Significant further investment was needed in airport infrastructure and approach roads."

So it looks as if EZY expansion in the near future will be out of LGW GVA and, if they get the slots, ORY.

In the meantime, let's hope TBI put their hands in their pockets and start investing in infrastructure. A few more stands over and above the extension to the Eastern Apron would not come amiss. They could even repair the run-up bay!!!! :)

[dwlpl]

On the EZY site the following is quoted and goes some way to recognise the problems LTn may have.

"We are delighted to have a long term agreement with easyJet at London Luton Airport and all parties continue to work towards a mutually beneficial agreement to build the infrastructure at London Luton Airport to confirm its status as London’s fourth airport."

(Keith Brooks, TBI Chief Executive)

[LTN man]

The following was posted to free.uk.airports-luton.

TBI have confirmed to the London Luton Airport Consultative Committee that
there are no plans now or in the foreseeable future to expand the airport.
They have also stated that there are no plans for other work that would need
planning permission. TBI have already stated that the existing terminal
will handle 10 million passengers.

[nice_beaver]

I wouldn't say EuroCeltic are exactly established on the LPL-LTN vv route just yet. In the present climate you've got to hope they will do well but with a day return costing from 98 to 180 quid it's hardly suprising they are flogging up and down with pretty poor loads!!

[dwlpl]

Euroceltic have only been on the route for 13 days.

They had less than a week lead-time before the route was started and even less time that anyone was allowed to book on-line.

Someone will correct me if I am wrong but the train fare is well over £200 between Liverpool and London, so the air fare looks good in comparison!!!!

[LTN man]

The problem for Euroceltic is that they have not advertised their new service. How they expect potential passengers to know about their service is beyond me.

Return rail fares for travelling next week range from £40 to £221

[OrsonCart]

The ref to infrastructure is aim by TBI, easy and LBC directly at HMG.

A replacement link road from the M1 to the terminal is on the cards, but needs finance from the government. I understand this decision is to be made in December, this would account for all the posturing from all sides post TBI/easy tie up at Luton.

I suppose a deal for easy must be available to ALL other carriers so will the flying harp increase its operation?

[OLNEY 1 BRAVO]

LTN man - the statement about not needing to apply for planning permission may be a bit of "smoke and mirrors" by TBI. I understand that a lot of planning permissions are already held so some work could go ahead in any case. I've also got a feeling the Borough Council waived the requirement for planning permission to be obtained for new apron space before they signed the original franchise deal.

OrsonCart - the new deal might be available to all carriers into Luton - but it will still be too expensive for the "Harps"! I seem to recall somebody (close to you?) posting that RYR had offered to move business to Luton - as long as the passenger charge was only 50p per passenger!!!!!

Edited for dreadful spelling!

[ 01 November 2001: Message edited by: OLNEY 1 BRAVO ]

[Oshkosh]

Will easyJet now take their ridiculous "Barclays Fat Cat Charge" statement off all their quoted fares on the webpage???

[LTN man]

Planning permission has been granted for 3 additional stands together with 2 piers and 9 airbridges that was part of the original submission for the new terminal but never built.

[machone]

Well done for easy jet. Since thay have got such a good deal it is a pitty that everybody else has to pay the price. Costs of using Ltn have gone up by over 50% for some operators, but someone wins. lets hope that nat all follow Ltn airports example in charging
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