Easyjet’s founder Sir Stelios Haji-Ioannou is to vote against the airline’s proposed purchase of 135 new aircraft from Airbus, which was announced last month.
The entrepreneur, who remains Easyjet’s largest shareholder, has issued an open letter today (July 1) to other shareholders explaining why he objects to the Airbus order, which is due to be voted on at a general meeting on July 11.
“Whilst urging you to join me in opposing the directors' decision, I do not expect that the vote will go any other way than the way the directors want it to,” writes Haji-Ioannou. “I believe these decisions have already been made behind closed doors mostly by City insiders playing with other people's money.
“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.”
He added that he was “not against replacing aircraft that have reached the end of their economic life” but said he objected to buying aircraft which were “three times more expensive than the ones I bought with my own money in the early 2000s”.
Haji-Ioannou also warned Easyjet’s directors that he would he hold them to account “if at some point in the future it turns out that their decision to overcommit the company today was wrong”.
“I strongly believe public company directors should be legally held to account for their decisions,” he added.
Haji-Ioannou owns a 26 per cent stake in Easyjet through his holding company Easygroup while his brother Polys Haji-Ioannou has an 11 per cent shareholding in the airline.
Easyjet has yet to comment on the letter issued by Haji-Ioannou.
The general meeting to vote on the Airbus order will be held at Easyjet’s headquarters at Luton airport on July 11.