EASYJET has warned that it will squeeze its airports and maintenance partners in a bid to rein in annual costs.

At its annual meeting yesterday, chairman Sir Michael Rake outlined plans to take up to £190m of costs out of the business each year by 2012, which is a £65m increase on its 2011 target of £125m.

He told shareholders that it is anticipated that Easyjet’s programme will reduce its cost margins by up to £1 per seat.

The no-frills carrier – which is the biggest operator in terms of passenger numbers at Liverpool John Lennon Airport – expects to grow in size by 10% this year and by 7% in 2011.

And it will use its expansion as a bargaining chip, among an arsenal of other measures, to cut costs, said head of corporate affairs Oliver Aust.

He added: “Because we are growing bigger, we have much more purchasing power, which means that we can renegotiate things like maintenance contracts.

“Also, airports aren’t so full any more and are prepared to give us a better deal.”

Easyjet’s projections estimate that it will save £60m in airport costs by 2012 and £35m through renegotiating and in-sourcing all of its maintenance contracts.

Further cost-cutting measures include changes to crew arrangements which are expected to save £30m and £35m in 2011 and 2012; jettisoning expensive to operate aircraft from its fleet, saving £40m and £30m, respectively; and fuel savings of £30m and £20m through better flight planning and improved pilot technique.