Sky's the limit for easyJet fly
Sunday 05 October 1997
easyJet would follow successful public offers this year of Ireland's Ryanair Holdings and the UK's Debonair Holdings, two other low-cost carriers founded to take advantage of the decade-long deregulation of the EU's aviation market.
easyJet could be even more attractive, industry analysts said. Known for its garish orange aircraft and a promise of fares "as cheap as a pair of jeans", the carrier plans to expand from Luton airport into new hubs in Liverpool, Amsterdam and Athens.
"You can't miss their aeroplanes," said Chris Partridge of Deutsche Morgan Grenfell. "There is a huge demand for their product. They have a good track record and will have pan-European appeal with their larger market spread."
Speaking in an interview, Mr Haji-Ioannou said the IPO would help fund the airline's purchase of 12 Boeing 737 jetliners worth pounds 350m, which will be delivered between August 1998 and November 1999.
The planes will triple the size of easyJet's fleet to 18 as it expands into new routes, challenging national flag carriers, KLM Royal Dutch Airlines and Greece's Olympic Airways.
"I believe we can successfully tap the capital markets," Mr Haji-Ioannou said, adding that he was speaking with investment bankers interested in preparing the carrier for sale.
easyJet started with two Scottish routes in late 1995 and now flies from London to Scotland, the Netherlands, Spain and France. It charges fares as little as one quarter those of established flag carriers.
Mr Haji-Ioannou has made no secret of his desire to sell his carrier to the public, but he has never set a deadline before.
The success of Ryanair and Debonair has demonstrated that investors are prepared to back low-cost carriers, convinced that they can stand up against powerful national carriers.
The European Commission has shown that is ready to protect low-fare carriers, vigorously pursuing Haji-Ioannou's claim that KLM engaged in predatory pricing on the London-Amsterdam route.
Copyright: IOS & Bloomberg
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...