easyJet and TBI are pleased to announce that easyJet and London Luton Airport have entered into a new long term airport service agreement at London Luton Airport, with effect retrospectively from 1 October 2001.

The parties have agreed the terms of the airline`s use of London Luton Airport for the next 20 years, including landing charges for existing easyJet traffic volumes at a similar level to those currently enjoyed, for the duration of the new contract. In addition the agreement offers a reduced landing charge for any growth in traffic as a way of incentivising easyJet to increase passenger numbers. Part of the agreement between the parties relates to operational service levels, which the parties believe will enhance the operational effectiveness of London Luton Airport, which, in turn, will lead to an improvement in easyJet`s cost base.

Both parties are continuing negotiations with regard to the level of future growth. These negotiations include improvements to road access and development of airport infrastructure in relation to which easyJet, London Luton Airport and Luton Borough Council are holding continuing discussions. The parties are optimistic that opportunities can be created that provide for significant expansion of London Luton Airport although no announcement is expected for some months.

Ray Webster, easyJet Chief Executive said:

“I am delighted that we have finalised a new long term contract with TBI and London Luton Airport. This announcement gives us certainty over our operations from London Luton Airport.”

Keith Brooks, TBI Chief Executive said:

“We are delighted to have a long term agreement with easyJet at London Luton Airport and all parties continue to work towards a mutually beneficial agreement to build the infrastructure at London Luton Airport to confirm its status as London`s fourth airport.”

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