New easyJet boss plans strategy reivew
11.07.10
easyJet's new chief executive is to review all of the assumptions underpinning the budget airline's business model with plans to update investors at the full-year results in November, the Telegraph reports. Carolyn McCall, who took over as easyJet's chief executive last week, is to consider the key area of the pace of growth and the airline's consequent fleet requirements – an issue that has sparked angry clashes with the company's founder, Sir Stelios Haji-Ioannou, whose family controls 38% of the shares.
Sir Stelios wants to see a slowdown in growth, even if it involves renegotiating a contract with Airbus, and is keen for the airline to be talking to rival plane maker Boeing too. He is also keen for the company to start paying dividends, noting easyJet's main rival Ryanair is planning to pay a one off €500m (£418m) special dividend later this year.
Ms McCall is reported to be planning to re-examine the target of 7.5% annual growth in seats approved by the board – including Sir Stelios when he was a director – in June 2009 in light of the new government's looming public spending cuts, that could affect consumer confidence, the current oil price and exchange rates and the latest plans from competitors.
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