easyJet lassos London Gatwick and Luton airports with long term deals

easyJet has recently concluded long term deals with Gatwick and Luton airports, its two largest London bases. The Gatwick deal follows a change in economic regulation that encourages a more tailored approach and the Luton agreement follows a change of concession ownership and a commitment to capacity expansion.

Last year, easyJet reached a similar agreement with Stansted, which is no longer subject to economic regulation. easyJet also operates from Southend, the smallest London airport, albeit not under a long term contract.

easyJet's London airport deals give it both a high level of visibility over airport charges and real flexibility about where to deploy its capacity. It has thrown an effective lasso around the UK's capital, and now appears to have tightened its grip on the rope.