Yahoo Finance EasyJet is ready to seize on BA’s Gatwick landing slots if talks fail
EasyJet is preparing to pounce on British Airways’ Gatwick landing slots if the UK’s flag carrier fails to convince cabin crew to back sweeping short-haul cutbacks.
The budget airline is understood to be eyeing a raft of routes from Britain’s second-biggest airport, as well as French counterpart Paris Orly, after announcing plans to tap investors for cash last week.
Bosses believe they have an opportunity to benefit should BA plans for an overhaul go awry.
BA has set up a new subsidiary to oversee short-distance Gatwick flights. It intends to change contracts and working conditions in order to balance the books at the historically loss- making operation.
However, the proposal has yet to secure the backing of Unite, which represents cabin and ground crew.
BA has warned that it will stop running short-haul flights from Gatwick if the changes are blocked.
If BA does release short-haul slots at Gatwick, this would leave easyJet with an opportunity to consolidate its position as the airport’s biggest customer – strengthening its bargaining power during discussions over landing fees and other commercial terms.
EasyJet unveiled a £1.2bn rights issue last week after fending off a takeover attempt by low-cost rival Wizz Air, and plans to use part of the money as a war chest to strengthen its position at popular airports.
The Luton-based carrier is also eyeing opportunities at Paris Orly, France’s busiest airport until Charles de Gaulle was built on the outskirts of the French capital in the 1970s.
Air France has received €4bn (£3.4bn) from Emmanuel Macron’s government to shore up its finances as it battles the pandemic.
In return, the airline has agreed to a ban on domestic flights where a journey by rail can complete the trip in less than two-a-half hours. Other conditions include a shift to alternative fuels. The changes are expected to free-up slots at Orly airport.
EasyJet has not publicly said which slots it is eyeing. Announcing the £1.2bn fundraise last week, it said: “As the European aviation market recovers post-Covid-19, opportunities will arise at airports within … markets, many of which are slot constrained, as legacy airlines restructure short-haul operations and regulators impose remedies in response to state aid.
“The rights issue will enable the group to capture these investment opportunities, to build on its current position of strength, and to deliver value-accretive growth.”
Unite has refused to comment on the status of discussions with BA over Gatwick, saying a week ago only that they were at an early stage. Sharon Graham, the union’s general secretary, is expected to launch a tirade against companies “firing and rehiring” staff in a speech at the TUC Congress today.
It is understood easyJet will not target slots owned by Germany’s Lufthansa, which has also received billions of euros in state aid. One condition of Lufthansa’s bail-out was to offload 20 slots at Frankfurt and Munich. EasyJet has concentrated its German operations at Berlin Brandenberg airport.
