easyJet Shareholders Approve Aircraft Purchase -- Update
July 20 2022 - 7:26AM
Dow Jones News
By Anthony O. Goriainoff and Ian Walker
EasyJet PLC said Wednesday that the planned purchase of more
than 50 Airbus SE aircraft announced last month was approved by
shareholders at its general meeting, with 99.95% of votes cast
supporting the deal.
On June 21, the budget airline said it was buying 56 Airbus
A320neo family aircraft from Airbus SE and converting 18 A320neo
family aircraft into 18 A321neo aircraft. Based on average 2018
list prices, the total value of the new aircraft would be $6.5
billion, but easyJet said at the time that it will pay a "very
substantially lower" price due to certain concessions granted under
the original 2013 agreement with Airbus.
The new aircraft are due for delivery between 2026 and 2029,
while the conversions are due for delivery between 2024 and
2027.
"The board believes the aircraft purchase will support positive
returns for the business and the delivery of our strategic
objectives. We're pleased with the strong support that shareholders
have shown today by approving the resolution," Chairman Stephen
Hester said Wednesday.
The company's founder and largest shareholder, Stelios
Haji-Ioannou, had previously called on easyJet's board to cancel
the 4.5 billion-euro ($4.6 billion) order, arguing that the company
couldn't afford the aircraft as the payment dwarfed easyJet's
market capitalization.
Since then he had tried, and failed, to remove key members of
the board over the issue.
The Haji-Ioannou family concert party shareholding, which
includes easyGroup Holdings Ltd. and Polys Haji-Ioannou, own 15.27%
of the company's issued share capital, according to its 2021 report
and accounts.
Haji-Ioannou founded easyJet in 1995 and listed the airline on
the London Stock Exchange in 2000. Through easyGroup, he is the
creator and owner of the easy family of brands, which includes
easyHotel PLC, easyCar and easyGym.
Shares at 1044 GMT down 8.90 pence, or 2.3%, at 384.70
pence.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com and Ian Walker
@ian.walker@wsj.com
(END) Dow Jones Newswires
July 20, 2022 07:11 ET (11:11 GMT)
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