November 30, 2021

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EasyJet creator Stelios fails in effort to oust chairman and CEO

EasyJet creator Stelios fails in effort to oust chairman and CEO
Haji-Ioannou wants cancellation of £4.5bn Airbus order for more than 100 aircraft Sir Stelios Haji-Ioannou is easyJet’s largest shareholder. Photograph: Anna Branthwaite/PA The easyJet founder, Sir Stelios Haji-Ioannou, has failed in his attempt to oust the chairman and chief executive of the low-cost airline in a shareholder vote on Friday. Haji-Ioannou, the airline’s largest shareholder,…

Haji-Ioannou wants cancellation of ₤ 4.5 bn Jet order for more than 100 airplane





Sir Stelios Haji-Ioannou is easyJet’s largest shareholder.







Sir Stelios Haji-Ioannou is easyJet’s largest shareholder.
Photo: Anna Branthwaite/PA.

The easyJet founder, Sir Stelios Haji-Ioannou, has failed in his effort to oust the chairman and chief executive of the affordable airline in an investor vote on Friday.

Haji-Ioannou, the airline’s biggest shareholder, had been looking for to oust 4 directors in an unique shareholder vote as he looks for the cancellation of a ₤ 4.5 bn order for more than 100 brand-new aircraft that he thinks will put the future of the airline in jeopardy.

Haji-Ioannou was hoping to oust the president, Johan Lundgren, the chairman, John Barton, the finance chief, Andrew Findlay, and the non-executive director Andreas Bierwirth over the board’s refusal to cancel the airplane order, positioned with Plane in 2013.

While the final figures on the vote will be launched later Friday, Barton said that it was clear from votes cast prior to the conference that the resolutions to get rid of each director would be defeated.

” Based on the proxy votes lodged with our registrars prior to the conference we expect all four resolutions put to the conference to be defeated,” he said.

The odds were stacked against Haji-Ioannou’s success, with Barton saying at the conference that he had actually been provided the right as a proxy to cast 180 m votes for investors, representing about 45%of easyJet’s overall shares. The resolution to remove a director requires assistance of more than 50%of votes. Haji-Ioannou and his household control about 34%of easyJet’s shares.

Earlier this month Haji-Ioannou provided ₤ 5m for a whistleblower to come forward with details that could thwart the airline company’s 107- airplane order from Plane

” Over the last couple of months the unfavorable headlines and publicity has actually put unnecessary pressure on a dedicated management team and negatively impacted the credibility of this excellent British and European brand name,” Barton stated.

Haji-Ioannou had put forward a number of concerns to management at the meeting relating to the Airplane offer.

Responding to whether Jet owned a stake in easyJet, either directly or indirectly, Barton said he understood all shareholders who owned a minimum of 1%of the company and “Airplane is not among them”.

The directors were also asked if they thought that, given the huge effect the Covid-19 crisis has actually had on the aviation industry, easyJet stays a going concern.

” Since today and based on existing most likely circumstances and the existing schedule of financing, we believe we are a going issue,” Barton stated, on behalf of all the directors. “EasyJet preserves and has constantly had a strong balance sheet.” The airline has taken ₤600 m in tax-payer financed loans

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EasyJet has actually been able to defer the shipment of 24 Plane airplanes to give it more financial versatility and Barton said the general deal is “essential to the business’s future success”.

Haji-Ioannou likewise asked about the monetary expense of breaking the agreement with Airbus. Barton stated the contract did not supply a stipulation to allow it to exit the offer due to the fact that of the coronavirus crisis.

” The business has no right to unilaterally end the agreement,” he said. “The one-off costs related to termination would be extremely material and taken with the future value of contract, termination would be hugely destructive and seriously impact the company’s capability to run as an affordable airline company.”

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