Stelios and easyJet 'agree truce'
26.07.09
easyJet will signal the cessation of hostilities with founder Sir Stelios Haji-Ioannou this week following an 8 month public battle over its expansion plans, the Telegraph reports. The budget airline, which will update the stock market on its trading performance on Wednesday, will tell investors that it has agreed revised, lower, growth plans with which its major shareholders, including Sir Stelios, are comfortable.
The airline has been in open dispute with its biggest shareholder since last November, when Sir Stelios criticised management's plans to progress an order for 91 Airbus aircraft despite the massive downturn in the aviation industry. The newspaper reports that easyJet will announce plans to expand its fleet by between 5% - 10% annually, a significant reduction on the rate of growth it has achieved recently.
The compromise is reported to focus on exchanging some of the new aircraft for older planes acquired by easyJet when it bought GB Airways last year. A number of aircraft due for delivery in the next 18 months will also be put back, to be handed over to easyJet at a later date. It is not expected that this revised delivery schedule will incur financial penalties from aircraft manufacturer Airbus, who will be happy that the airline to not cancel orders in the current climate.
An 'insider' told the newspaper: ‘The revised agreement will leave nobody in any doubt that easyJet remains a growth company,’ albeit a lower growth strategy, more in line with the current economic environment. easyJet and Sir Stelios declined to comment.
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book a luton airport hotel or luton airport car park at the lowest price, click on these links to two great luton airport car parking and luton airport hotel price comparison pages.
