EasyGroup's Haji-Ioannou Demands EasyJet, Airbus Deal Transparency -- Update
April 09 2020 - 2:51PM
Dow Jones News
By Adriano Marchese and Ian Walker
-- Stelios Haji-Ioannou says easyJet and Airbus have a lack of
transparency regarding the 107 aircraft order.
-- A deferral, he said, isn't acceptable for a company which
will have zero revenue over the next six months.
-- The Greek-Cypriot entrepreneur said he would write the U.K.'s
market watchdog to force easyJet to disclose the details of the
deal with Airbus.
Stelios Haji-Ioannou, founder and owner of the easyGroup
Holdings, said Thursday that he would seek to force easyJet PLC to
disclose dealings with, and payments to, Airbus SE.
Mr. Haji-Ioannou also accused easyJet and Airbus of issuing a
statement to "puff up the share price for the short-term" on the
eve of Good Friday's four-day weekend.
Earlier Thursday, easyJet said it had reached an agreement with
Airbus for the net deferral of 24 aircraft deliveries from years
2020, 2021 and 2022.
EasyGroup Holdings Ltd., the private investment vehicle of Mr.
Haji-Ioannou, wants easyJet to cancel the 4.5 billion euro ($4.89
billion) Airbus aircraft order, saying the company couldn't afford
the 107 aircraft as the payment dwarfed easyJet's 2.4 billion pound
($2.96 billion) market capitalization.
"They are not being transparent with their investors and they
are putting at risk GBP600 million pounds of U.K. taxpayers' money
by paying Airbus during the next six months of zero revenues," Mr.
Haji-Ioannou said.
Mr. Haji-Ioannou added that the deferral was for only a portion
of the new aircraft orders, and the deferral was "the same as
kicking the can down the road."
He also said the companies of didn't tell investors the number
of Airbus aircraft that easyJet is set to purchase and how much the
company will pay per aircraft during the next six months "using
U.K. taxpayers money."
Mr. Haji-Ioannou said he would write to the U.K.'s Financial
Conduct Authority to force easyJet to disclose the details of its
payments to Airbus in the name of transparency with their
investors.
Earlier Thursday, easyJet said it will call a general meeting as
requested by easyGroup, but advised shareholders to take no action
at this time.
EasyGroup has twice written to the easyJet board seeking the
removal first of nonexecutive director Andreas Bierwirth and most
recently the removal of Chief Financial Officer Andrew Findlay.
The letters followed threats to remove one nonexecutive director
every seven weeks until easyGroup finds "directors willing and able
to carry out their duties to protect the company by terminating and
if necessary renegotiating the Airbus contract."
The airline has already said that it fully supports Mr. Findlay
and disputed the Airbus aircraft order figures, saying it would be
"significantly less" than EUR4.5 billion.
"I strongly believe the directors of easyJet are in breach of
the market abuse regulations by not disclosing the payments made
and to be made from easyJet to Airbus this year," Mr. Haji-Ioannou
said.
"I consider this to [be] scandalous," he added.
Write to Adriano Marchese at adriano.marchese@wsj.com and Ian
Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
April 09, 2020 14:36 ET (18:36 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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