EASYJET founder Sir Stelios Haji-Ioannou has reopened hostilities with the airline over orders for new Airbus aircraft.
The former airline head has called on Easyjet’s current board to cease its “incestuous relationship” with Airbus, stop any payments for its latest order and he has demanded deputy chairman David Michels steps down earlier than planned later this year.
Haji-Ioannou, who with his family owns about 38% of easyJet, said the airline should have obtained shareholder approval when it exercised options for 15 A320 aircraft and converted 20 A319 orders with Airbus to A320 aircraft on January 4 this year.
Airbus employs more than 6,000 staff at its Broughton plant, near Chester, making wings for its aircraft.
In a letter to Easyjet he says: “The board should stop pursuing a strategy of increasing the size of the fleet that has led to a halving of the profits after tax of each aircraft and the doubling of first half losses until the shareholders have approved the purchase of any new aircraft.”
He said Easyjet should consider other plane makers, such as Boeing and Bombardier which, he said, were less expensive.
And he warned if Easyjet refused to agree to seeking shareholder approval he will call for a general meeting where he would demand the removal of a non-executive director to signal shareholder disapproval with the board.
He wrote: “This is the only way we have to demonstrate to this board that they no longer enjoy the trust of the holders of the majority of the shares in this company.”
In response, Easyjet issued a statement today saying it met all relevant regulations and that the value of the Airbus deal is “substantially less” than current list prices.
It also said it fell under agreed levels requiring shareholder approval.
The company, which is one of the biggest operators at Liverpool John Lennon airport, said it will hold the size of its fleet to 204 aircraft up to next winter due to the fragile nature of the travel industry.
Easyjet’s shares have fallen 27% over the past 12 months.
Sir Stelios has been at odds with the Easyjet board for the past couple of years, claiming it was spending too much on expanding too fast in an industry facing commercial turbulence.
Recent Comments