easyJet Signs $1bn Airbus Maintenance Contract
easyJet has selected SR Technics for the total maintenance support, excluding engines, of the airline’s Airbus A319 fleet for a period of ten years.
The agreement valued at $1bn over the life of the contract is one of the largest contracts ever awarded by an airline for maintenance of a single aircraft type and follows a very robust and highly-competitive global tendering process.
Under the terms of the arrangement, Zurich-based SR Technics, which includes Virgin Atlantic, Cathay Pacific and Swiss amongst over 100 customers, will provide full technical management, excluding engines, for easyJet’s A319 fleet, planned to rise from 54 aircraft today to a total of 120 aircraft by 2008.
SR Technics will continue to provide full support for easyJet’s 55-strong Boeing 737 fleet. The arrangements announced today also include an improvement to the terms of easyJet’s existing contract for the maintenance of its 32 Boeing 737-700s reflecting the synergies now available to SR Technics of the combined operation.
Commenting on the deal, Ray Webster, Chief Executive, easyJet, said:
“SR Technics is a long-established maintenance provider currently with over 100 customers around the world. It has an excellent reputation for a quality service offering in the industry and we are delighted to be continuing our relationship with them.
“This 10 year deal provides easyJet with a reduction in Airbus maintenance costs, excluding engines, of greater than 25% over the life of the contract and a saving of over £10 million on maintenance costs for the coming financial year. Along with our unbeatable A319 aircraft deal this demonstrates our continued commitment to improving our cost base and will help to underpin easyJet’s business and earnings for the coming years.”