Board Easyjet Wins Over Founder Major Shareholder Stelios Haji-Ioannou

The board of low-cost fighter easyJet has received the support of the shareholders in an argument with founder and major shareholder Stelios Haji-Ioannou.

 

This had prompted the departure of four directors, including CEO Johan Lundgren, financial director Andrew Findlay and chairman John Barton.

Haji-Ioannou, who owns a third of the EasyJet shares, has been fighting plans by successive directors for years, which he believes require too much investment.

He accused the current board that the plans to purchase 100 new Airbus aircraft were too expensive. He wanted that order cancelled.

In addition, easyJet should reduce its fleet from 318 to 250 aircraft.

Lundgren responded by delaying the delivery of 24 aircraft, saving the company £ 1 billion in investment in the short term.

Canceling the order was unwise according to the CEO because easyJet should be able to renew its fleet when air traffic picks up again. Besides, the contract with Airbus was very flexible.