Sir Stelios announces opposition to easyJet order

TD Guest Writer

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easyjet
easyJet is looking to buy the planes to replace ageing aircraft

The founder of easyJet, Sir Stelios Haji-Ioannou has written an open letter opposing the company’s planned purchase of 135 new Airbus aircraft.

The deal, which is said to be worth somewhere in the region of GBP8 billion, is expected to be voted through by shareholders at the 11 July investor meeting.

According to British newspaper the Independent, the company has said the new aircraft will replace ageing jets and lead to significant cost savings.

However Sir Stelios, who has a 37% stake in easyJet has said he believes the decision is a bad one.

In an open letter yesterday, he said: “As the person with the most to gain if this company increases profitability and the most to lose if the outcome from this order is not as promised by the board, it is my firm opinion that this is a good deal for Airbus and a bad deal for easyJet shareholders.

“I am not against replacing aircraft that have reached the end of their economic life. However I am against buying aircraft that are three times more expensive than the ones I bought with my own money in the early 2000s.”

Klook.com

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