EasyJet Airbus A320
Taken by @frenchspotter06 on Instagram
Initially, EasyJet reported that they have grounded all their fleet due to the reduce in the travel demands and restrictions at the start of the month. They have grounded 344 aircraft for a period of two months or until the pandemic is over.
Due to national lockdowns and government restrictions across the continent it had become a cost burden to the airline and they began struggling to regenerate money. Therefore, EasyJet decided to park up their planes.
As well as grounding their entire fleet, they will be furloughing 4000 of their cabin crew for two months. The UK’s Government Job Retention Scheme will make sure that staff who aren’t working will get paid 80% of their average salary. They have also been offered to volunteer in the new Nightingale Hospitals around the UK which were created to deal with anticipating high numbers of Coronavirus patients.
EasyJet have performed over 650 repatriation flights with the UK Government and returned 4,500 passengers as a result. The airline stated that:“Over recent days EasyJet has been helping to repatriate customers, having operated more than 650 rescue flights to date, returning home more than 45,000 customers. The last of these rescue flights were operated on Sunday March 29. We will continue to work with government bodies to operate additional rescue flights as requested.”
EasyJet became concerned that they would run out of money by the end of August. However after founder Stelios Haji-Ioanna expressed his frustrations about the finances of the airline, EasyJet secured a £600 million pound loan. The money will be given by the Treasury and Bank of England emergency coronavirus fund. This will save the airline while their fleet is grounded until June. They are also seeking a further $500 million dollars from commercial creditors to make sure that their liquidity goals are met. This will be very difficult and the airline will need to act efficiently in order to receive such a large loan.
Their hopes are to be in service again once the pandemic is over. However, EasyJet’s main priority right now is safeguard their short term liquidity in case the pandemic continues for longer than expected.
The airline have also taken measured to delay the arrival of 24 Airbus aircraft they were due to receive between 2020 and 2022. Stelios has been pressuring leadership to cancel these orders. The airline was expecting to see 107 new Airbus A320neos to arrive over the next few years. However, Stelios believes it is in the airline‘s best interest to cancel these orders. He expressed his frustration by also criticising his fellow partners at his firm whoquestioned if their contract is even valid. He has threatened the members of board that he will take legal action and remove them from the board.
It is impossible to see what will happen to the airline. However, the situation will reveal itself within the next couple of weeks. Lets hope that the low-cost airline will remain above water after this Covid-19 pandemic.
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