Easy Airbus or Boeing?
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Easy Airbus or Boeing?
Airbus ups ante in battle for easyJet order
Airbus has offered easyJet a range of price concessions in a bid to beat Boeing to the airline’s £4bn aircraft order, reports the Times.
easyJet has asked both Airbus and Boeing to tender for 120 firm aircraft orders plus a further 120 options. To date easyJet, in common with many budget carriers, has chosen to use a single aircraft type, the Boeing 737, to keep costs down.
However, in an attempt to persuade easyJet to operate a mixed fleet, Airbus has told the airline it will cover the cost of some spares, training and other charges associated with duplicating operations.
easyJet CE, Ray Webster, said the concessions made the Airbus A319 package cheaper than Boeing’s 737-700. ‘The equation is, Boeing at a higher price versus Airbus for a better price and a higher risk,’ the Times quotes him.
The list price of 120 Boeing 737s is around $6.6bn, but given current market conditions airlines have recently been able to negotiate discounts with the US manufacturer.
According to the Times, many industry observers believe Boeing will be the likely winner because easyJet does not at the moment need the added complications of operating a mixed fleet.
In the summer, the airline was forced to cancel a number of flights following the introduction of an unsatisfactory new roster system, which resulted in crews being in the wrong place.
easyJet is also currently in negotiations with British Airways to buy its German low-cost arm, Deutsche BA, itself an all-Boeing 737 operator. ‘easyJet has enough on its plate at the moment,’ one analyst told the Times.
Airbus has offered easyJet a range of price concessions in a bid to beat Boeing to the airline’s £4bn aircraft order, reports the Times.
easyJet has asked both Airbus and Boeing to tender for 120 firm aircraft orders plus a further 120 options. To date easyJet, in common with many budget carriers, has chosen to use a single aircraft type, the Boeing 737, to keep costs down.
However, in an attempt to persuade easyJet to operate a mixed fleet, Airbus has told the airline it will cover the cost of some spares, training and other charges associated with duplicating operations.
easyJet CE, Ray Webster, said the concessions made the Airbus A319 package cheaper than Boeing’s 737-700. ‘The equation is, Boeing at a higher price versus Airbus for a better price and a higher risk,’ the Times quotes him.
The list price of 120 Boeing 737s is around $6.6bn, but given current market conditions airlines have recently been able to negotiate discounts with the US manufacturer.
According to the Times, many industry observers believe Boeing will be the likely winner because easyJet does not at the moment need the added complications of operating a mixed fleet.
In the summer, the airline was forced to cancel a number of flights following the introduction of an unsatisfactory new roster system, which resulted in crews being in the wrong place.
easyJet is also currently in negotiations with British Airways to buy its German low-cost arm, Deutsche BA, itself an all-Boeing 737 operator. ‘easyJet has enough on its plate at the moment,’ one analyst told the Times.
PPRuNe Secret Agent!
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I agree with the "analyst".....
I'm amazed they are even thinking about a different aircraft type on their AOC at the moment....
While trying to absorb Go into the equasion by December, move property and still going ahead with easyJet Germany...
It'll be years before things settle down....
I'm amazed they are even thinking about a different aircraft type on their AOC at the moment....
While trying to absorb Go into the equasion by December, move property and still going ahead with easyJet Germany...
It'll be years before things settle down....
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I reckon w.d.t.b.d. has it in one!
But Airbus cant afford to let this one pass, and I'll put money on it that there is an Airbus order soon. Deliveries wont be for a month or 12, so the Go aquisition will be history by then.
And rumour has it that type change will commence with GVA base which isnt involved in aquisition anyway.
But Airbus cant afford to let this one pass, and I'll put money on it that there is an Airbus order soon. Deliveries wont be for a month or 12, so the Go aquisition will be history by then.
And rumour has it that type change will commence with GVA base which isnt involved in aquisition anyway.
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Easyjet only asked Airbus to quote,in order to get a better deal from Boeing.
Airbus knows that Boeing is struggling for orders at any price, due to stagnation in US airlines in particular. If Airbus keep lowering the price( because they know easyjet will eventually choose boeing for all the obvious commonality/transition reasons), then boeing will lose serious money over the next 10 years on this order. This will put Airbus at a long term financial(and therefore ultimately a competetive) advantage against its rival.
Easy.
The breakneck speed of easyjet expansion might well end in tears (remember Air Europe and others). Boeing will be left with the residual order on its books. Another win for Airbus.
Easy again.
Airbus knows that Boeing is struggling for orders at any price, due to stagnation in US airlines in particular. If Airbus keep lowering the price( because they know easyjet will eventually choose boeing for all the obvious commonality/transition reasons), then boeing will lose serious money over the next 10 years on this order. This will put Airbus at a long term financial(and therefore ultimately a competetive) advantage against its rival.
Easy.
The breakneck speed of easyjet expansion might well end in tears (remember Air Europe and others). Boeing will be left with the residual order on its books. Another win for Airbus.
Easy again.
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What would be quite amusing is for Airbus to make a low quote and promise what they do and then Boeing tell Easy that they're walking away from the table and thus leaving Airbus holding the baby that won't yeald any profit whatsoever and leave them up the creek without the paddle.
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But then Airbus would simply cover the loss by hiking up prices on the A330/340/380, just like Boeing used to do on the 744. Problem now is there aren't many people ordering 744s anymore, especially as it's been eclipsed by the A380.
Easy Airbus or Boeing?
Some companies like to have one major and one minor supplier. They used the second one to obtain better deals from the first but also they like to have some alternates available.
Easy might earn some advantage from developing a second base, Airbus only, at AI expenses. In that way EZ have a second type in its fleet and is not overdependent on a grounding of the 737. Remember the rudder problems..(Please no A vs B war)
Additionnaly it accumulates Airbus experience and would be more able to take additonal Airbus at a later time if the 737NG fails to perform in the future.
AI wins because it buys a foothold on the low cost segments.
Rwy in Sight
Easy might earn some advantage from developing a second base, Airbus only, at AI expenses. In that way EZ have a second type in its fleet and is not overdependent on a grounding of the 737. Remember the rudder problems..(Please no A vs B war)
Additionnaly it accumulates Airbus experience and would be more able to take additonal Airbus at a later time if the 737NG fails to perform in the future.
AI wins because it buys a foothold on the low cost segments.
Rwy in Sight
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The debate and negotiations are genuine.....not simply driving the Boeing price down.
With the size of the fleet, both aircraft types (if eJ go for Airbus) would easily be big enough to offer many of the economies of scale. Once a crew / aircraft base is 'mature' then the loss of flexibility is not huge, especially when compared with the extremely competitive quotes from both suppliers for any future orders as well.
And has anyone ever considered that eJ have done a very comprehensive study.....what if they have identified the Airbus as the better of the two? Now's the time to start dealing with Airbus.
It's an open contest.
With the size of the fleet, both aircraft types (if eJ go for Airbus) would easily be big enough to offer many of the economies of scale. Once a crew / aircraft base is 'mature' then the loss of flexibility is not huge, especially when compared with the extremely competitive quotes from both suppliers for any future orders as well.
And has anyone ever considered that eJ have done a very comprehensive study.....what if they have identified the Airbus as the better of the two? Now's the time to start dealing with Airbus.
It's an open contest.
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Airbus already has a toe-hold in the low-cost sector - Jetblue in the States. Jetblue has 150+ orders for the A320 and has done exceedingly well. I am sure Stelios and Webster have taken notice of Jetblue and their positive customer experience. Given the choice, most customers would prefer flying on an A320 vs. a cramped 737NG.
As for the pilots, the Airbus has a more ergonomic flight deck - it is more advanced and more comfortable. Plus, the side-stick reminds one of flying the F-18 Hornet - it's more advanced than the rebuilt 737.
I hope you Easy/Go pilots get the chance to fly the Airbus - you'll never want to go back to the traditional yoke...
Cheers
As for the pilots, the Airbus has a more ergonomic flight deck - it is more advanced and more comfortable. Plus, the side-stick reminds one of flying the F-18 Hornet - it's more advanced than the rebuilt 737.
I hope you Easy/Go pilots get the chance to fly the Airbus - you'll never want to go back to the traditional yoke...
Cheers
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Airbus and Longhaul
It has been said before and denied by Easy but if they do have aspirations to some form of longer haul then the A320 makes sense in that the crews could operate an A330 on routes like Gatwick or Stansted to Orlando etc.
I fly the A320 and consider it a good tool for the job but can't see the logic of splitting fleets just to remain in shorthaul around Europe. Either Easy has a strategy for something or it is a ploy to get a better deal from Boeing.
I fly the A320 and consider it a good tool for the job but can't see the logic of splitting fleets just to remain in shorthaul around Europe. Either Easy has a strategy for something or it is a ploy to get a better deal from Boeing.
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Hugely over-rated sell off on the stock market, hugely ambitious take over of main rival, CEO clears off and crewing department in meltdown........Mmmmmmmm
I sincerely hope it dosen't happen, history would tell a different story.
I sincerely hope it dosen't happen, history would tell a different story.
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Can't see easyJet going down the Airbus route. I know the chief pilot is very pro Boeing. They seem to think that the 737 is better for quick turnrounds with little ground support. They point to the lower cargo hold for easier access if loading equipment is not available and the airstairs if pax steps are not available, amongst others.
Having several thousand hours on 737's and A320's I don't agree. The A320 is great for quick turnrounds.
As far as Stelios leaving that has something to do with his shipping company having legal problems with Italy. With Go flying to Italy (easyJet do not) they may get future legal problems if Stelios stays too close to the company.
Having several thousand hours on 737's and A320's I don't agree. The A320 is great for quick turnrounds.
As far as Stelios leaving that has something to do with his shipping company having legal problems with Italy. With Go flying to Italy (easyJet do not) they may get future legal problems if Stelios stays too close to the company.
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Hugh
'hugely ambitious take over of main rival' ? clearly you aren't very close to these matters with a statement like that . As mergers go its as straight forward as it gets.
'hugely ambitious take over of main rival' ? clearly you aren't very close to these matters with a statement like that . As mergers go its as straight forward as it gets.
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How does a £374(?) k buy-out get re-invented as a 'merger?'
I am happy to integrate fully with go colleagues but I feel we are in the presence of new-labour style spin!
Airbus or Boeing?(the original question) Does anyone know when or where ?
b/rgds
How does a £374(?) k buy-out get re-invented as a 'merger?'
I am happy to integrate fully with go colleagues but I feel we are in the presence of new-labour style spin!
Airbus or Boeing?(the original question) Does anyone know when or where ?
b/rgds
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no sig,
If its straight forward.Please explain why the managers got 10 million for this process ,and also why BALPA and management have taken months of discussions.
Finally why Go sops are being incorporated when EASYJET has bought Go.
Hardly straight forward.
If its straight forward.Please explain why the managers got 10 million for this process ,and also why BALPA and management have taken months of discussions.
Finally why Go sops are being incorporated when EASYJET has bought Go.
Hardly straight forward.