Rus News Journal

Budgetary expansion EasyJet

will direct to Diskaunter EasyJet record profit on business expansion

Profit of British budgetary air carrier EasyJet in 2006 financial year has grown more than in one and a half time. It has allowed the company to order at Airbus fifty two planes A319. Expansion EasyJet threatens first of all to traditional airlines.

second-large in Europe (after Ryanair) budgetary air carrier EasyJet has informed yesterday that its profit to the taxation for the 2006 which has ended on September, 30th, “ has flied up “ on 56 %, to 190,8 million euro. According to the general director of the company Andy Harrisona, company indicators could not spoil even the expenses which have increased by a third on fuel. This negative tendency growth of additional incomes (compensated commission gathering for booking of hotels, rent of cars and incomes of the insurance) on 34 %, to 1,27 euros from the person. The basic incomes of the company have grown less, on 5,9 %, - transportation of one passenger has brought the companies 3,15 euros. Thus the annual passenger turnover of the company at the expense of a great demand has increased by 11,5 %, to 33 million persons in the past summer. EasyJet also could lower the specific cost price of transportations (except for fuel) on 1,5 %.

the Record profit of the company has allowed to continue to increase the aircraft depot. EasyJet has informed that realised an option for delivery of fifty two planes A319 estimated in 1,8 mlrd euro. These planes will be put in 2008 - 2012. The general quantity of the planes ordered by budget airline has reached 104, and their cost - 3,1 mlrd euro. Also the company has confirmed an option for purchase of 75 more planes A320. In 2007 EasyJet plans to increase number of the clients by 15 %.

Experts notice that the company will continue the expansion as it directly is connected with increase of profitability of business. “ EasyJet tries to increase profit from each new client by the minimum sum, but, considering total number of passengers of airline, the cumulative profit turns out very high. As we see from the reporting, this business - model well works. Thus they manage to supervise the costs that allows the company not to rise in the price for tickets “ - the expert on aviabusiness consulting Arran Aerospace has noticed in conversation with daily Dag Makviti.

As he said, successful expansion EasyJet was promoted by the expansion of EU which has simplified development of business in Southern both the Eastern Europe. And the company will continue this strategy in the future. For this purpose it should realise an option for purchase of seventy five ΐ320 the next five years. “ strategy of growth EasyJet helps to support cost of flights at very competitive level. To it also promotes favorable for airline - diskauntera a price level in the European market of air flights “ - the analyst of Dublin broker company Merrion Stockbrokers John Mattimo has added daily.

Thus experts notice that, expanding the business, EasyJet does not aspire to catch up with the largest European budgetary carrier Ryanair. “ Airlines do not compete with each other. Ryΰnair tries to fly on the additional airports, it is far from the city centres while EasyJet usually flies to airport terminals, therefore in the company it is a little price for tickets above. The market space quite suffices for both carriers. They compete a maximum on 5 % of the market, and in the rest vzaimodopolnjajut each other “ - Dag Makviti is assured. And John Mattimo specifies that expansion EasyJet is directed first of all on, that “ to delay “ passengers at traditional European airlines, such as Air France and Lufthansa.

ANDREY of CATS

the INQUIRY

EasyJet belongs Now 122 planes. They carry out an aircraft service on 282 routes between 21 country. Company planes are served at 74 European airports. In 2006 the company has opened 58 new routes in 11 directions. Cost of tickets for planes EasyJet several times more low, than at traditional airlines.

Air France will be rescued Alitalia

Yesterday by the Dutch newspaper De Telegraaf has informed that ex - the Dutch airline of Air France - KLM carries on active negotiations for merge to the Italian state air carrier Alitalia. “ the Government of Italy develops the plan of rescue of the company, and merge to Air France - KLM looks unique real possibility it to carry out “ the newspaper has quoted anonymous sources in airlines. The situation in unprofitable Italian airline remains sad, despite re-structuring. On Monday Alitalia has informed that its losses in the third quarter of this year have reached 41 million euro.