EasyJet shareholders approve $20 billion plane order

EasyJet Plc shareholders signed off on an almost $20 billion aircraft order from Airbus SE, making the carrier one of the planemaker’s biggest customers in Europe.

The British low-cost airline held a general meeting with shareholders on Tuesday in Luton, London to get approval for its largest aircraft order yet: the purchase of 157 A320neo family planes with an option to add 100 more. The company first announced the order in October and said deliveries would run through 2034.

The mega-order will pave the way for fleet renewal by replacing the airline’s older A319 aircraft and about half of its A320ceo jets. EasyJet’s fleet is entirely made up of Airbus planes, which keeps maintenance and training costs low compared to operating aircraft from different manufacturers. 

EasyJet is also converting 35 of its A320neos which it previously ordered into the A321neo model for delivery through 2028. The purchase and conversion value is based on the Airbus list prices, though customers typically get steep discounts for major orders.

All eyes were on Stelios Haji-Ioannou, EasyJet’s founder and biggest shareholder with a 15% stake, who at the height of the pandemic engaged in a battle with the carrier’s board seeking a cancellation of the carrier’s Airbus order, citing a lack of demand. In the end, 99.94% of EasyJet’s shareholders voted in favor of the purchase. 

EasyJet is among the many airlines which have placed giant orders for aircraft this year. Market leader Ryanair Holdings Plc, Indigo and United Airlines Holdings Inc. have all announced mega deals from Boeing Co. and Airbus for their workhorse narrowbody jets.

The bigger concern is deliveries of aircraft at a time when airlines are looking to replace older generation planes with more fuel efficient variants, and both Airbus and Boeing are grappling with a backlog in the supply chain that’s hampering their ability to handover planes.