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Military

EasyJet Sets $11.5 Billion Deal to Buy Airbus A320, Crushing Boeing

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By Douglas A. McIntyre Updated Published
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A380
courtesy Airbus S.A.
EasyJet will buy a number of planes from Airbus in a setback to rival Boeing Co. (NYSE: BA), which has had a share of setbacks due to problems with batteries on its 787 Dreamliner. The battery problem took the Dreamliner out of service for months.

EasyJet announced:

After a thorough technical evaluation, easyJet has earmarked the Airbus A320neo for its future fleet requirements.

Based on the company’s growth forecasts, the A320 was selected for offering the best productivity, lowest operating cost and best fuel efficiency of any single aisle aircraft in the 180 seat sector. Currently easyJet operates a fleet largely based on the smaller A319 seating 156 passengers.

Subject to shareholder approval, easyJet has identified a future need for 100 A320neo aircraft. These will be preceded by 35 A320ceo aircraft equipped with Sharklets. Of the 135 aircraft, 85 will be for replacement.

Reuters reported that easyJet paid much less than list price for the planes. The news service added:

Airbus and Boeing have both been pitching commercial terms to Europe’s second-largest budget carrier in recent weeks, with Airbus emerging as the front-runner by last week, sources told Reuters last Thursday.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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