What Could Happen To UK Budget Carrier EasyJet?

And today we're going to discuss something that's being carefully watched by the air transport industry in the UK and Europe, and that's the moves by US investment firm Castlelake to purchase UK-based low-cost carrier EasyJet.

So Victoria, let's kick off with the basics.

For listeners who've never flown EasyJet, tell us a bit about that airline and why it's so successful.

Yeah.

Thanks, Karen.

Um, EasyJet really stands out in Europe.

Basically, we've got three very large low-cost carrier players.

They would be EasyJet, Ryanair, those are the two kind of founders of European low-cost, plus Wizz Air, which came along later but has grown very, very significantly.

And what I would say distinguishes EasyJet from the other two is pretty much since the early days, EasyJet focused on primary airports, and they built up slots at primary airports, they focused on the customer experience.

And what that really led to is that EasyJet became kind of the business traveler's low-cost carrier.

Obviously, they've got a lot of leisure activity.

They were also a pioneer in really focusing into the holidays business as well, which I'm sure we'll touch on.

But I would say that if you're a business traveler traveling in Europe looking to fly potentially on an LCC, you'd definitely consider EasyJet as maybe being a preference, and that's where they stand out and they're separate, whereas Wizz and Ryanair are more ultra low-cost carrier style models, um, much, much more focused on we are the cheapest option, whereas obviously you get low prices with EasyJet too, depending on when you book.

But I'd say that's what makes them stand out.

Plus they've got these really strong portfolios of slots at the primary airports, an incredible fleet.

They've got around about 218 Airbus narrow bodies on order, and they've also already got about 356 aircraft in their fleet.

Around about a third of those now are NEOS.

They've still got A319s which are going to be exiting the fleet.

But yeah, they're, they're definitely a stand out performer in Europe, and, uh, their focus on technology and the environment too means that they really do aim to be cutting edge in those areas.

Yeah.

I, you know, I'm based in the US, so I, um, I don't get to, to fly with them very often, but the few times I have, I've, I've been really impressed.

They seem to be more like the closer to Southwest, uh, Airlines in terms of, you, you mentioned it, the friendliness of the, their, uh, people.

And yes, you know, I mean, people call them Squeezy Jet because they pack, pack people in the , uh, like a low-cost carrier has to do for the chasm, but, um, uh, but they do it really well.

They, they are, uh, uh, a, a nice and good airline and very successfully financially.

Yes, Victoria?