Stelios spat with easyJet board
15.11.08
A major row has broken out between easyJet founder Stelios Haji-Iannou and other directors over how the budget airline should cope with the current economic difficulties. Stephen Furlong, airlines analyst at stockbroker Davy, said: 'This appears to be open warfare.'
Stelios, a non-executive director of easyJet, has lifted his stake in the airline by about 11% to 26.9% and asked for the appointment of two new directors as he pushes for the airline to adopt a more cautious approach. He wants easyJet to reduce an order for new aircraft, amid falling consumer demand and rising running costs, using funds to pay shareholders dividends instead. He also threatened to reinstall himself as chairman of easyJet.
Over the next three years, easyJet is set to expand its fleet by 35 aircraft and has committed to buying 80 planes, which analysts estimate will cost it £2.4bn. Sir Colin Chandler, easyJet’s current chairman, said he and the other non-executive directors fully support the airline’s executive management.
Stelios expressed his intentions in a letter to the airline's management on Thursday after a board meeting. He told easyJet that his sister had transferred her 11% interest in the airline to him, giving him a shareholding of nearly 27% and the power to name two new non-executives to the board. If they are not appointed, he has reserved the right to install himself as chairman. He said in a statement: ‘I am merely applying my rights ... to protect my investment in easyJet.’
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