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LONDON (Alliance News) - Low-cost airline easyJet PLC said Thursday that it has agreed a new seven-year deal with London Gatwick Airport to support growth at the airport and improve customer service for its passengers.
The new agreement, which will take affect from April 2014, will "incentivise the airline to grow at the airport and provide the framework for easyJet and GAL to further improve customer experience for easyJetâ??s passengers," said the airline.
â??Gatwick is our largest base so it is of strategic importance to secure this new agreement with Gatwick Airport. easyJet shares the CAAâ??s view that Gatwick has market power but also supports the move towards a more commercial arrangement with the airport within a regulatory framework," said Carolyn McCall, easyJet CEO.
"This agreement gives easyJet certainty on passenger charges over the next seven years and a clear incentive to continue to grow. More importantly, it will create a framework for easyJet and Gatwick to plan and deliver an improved experience for our passengers," she added.
easyJet plans to continue to grow at Gatwick through increasing its slots and by deploying larger aircraft; the firm is set to replace 156 seat A319s with 180 seat A320s and, from 2017, A320Neos. In the coming year to March 2015, the airline will increase capacity and passenger numbers by around 10% compared to the previous year.
The FTSE 100-listed airline said the agreement has been reached within the new â??commitmentsâ?? framework which will replace the current regulatory regime as confirmed by the CAA last yearâ??. easyJet began flying from London Gatwick Airport in 1999 and now has 57 aircraft based there, operating on 108 routes.
Stewart Wingate, CEO of London Gatwick, said, "This partnership with easyJet is a landmark deal in London Gatwickâ??s history. Four years after the end of the BAA monopoly at the airport, this partnership highlights how far we have come to be able to operate within a new framework of commitments and contracts. For passengers travelling with easyJet, they will have more choice, competitive fares and an even better experience. It is positive news for both business and leisure passengers travelling with easyJet from Gatwick.â?
easyJet Tuesday saw its shares soar after the firm revised its expectations for the half-year; the firm said it expects its pretax loss to be significantly narrower than it previously expected, after the mild winter reduced the need for costly de-icing of its planes and reduced disruption. The airline now expects to post a pretax loss of between GBP55 million and GBP65 million in the six months to the end of March, rather than the previously announced GBP70 million to GBP90 million, compared with the GBP61 million loss it recorded a year ago.
Shares in easyJet were trading 0.65% lower at 1,712 shortly after the market open Thursday.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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