EasyJet founder vows to sue execs if they ‘invest a cent’ on new planes

Derrick Santistevan

The founder of easyJet has actually alerted he will sue executives at the airline company if they invest a “penny” on a ₤ 4.5 bn order for new planes.

Sir Stelios Haji-Ionnou stated going on with the Airplane offer might result in easyJet stopping working to pay back ₤600 m in federal government loans on time – and explained the purchase as “a misuse of taxpayers’ money”.

He has actually formerly alerted that the business will run out of money by “around August” if the order is not cancelled.

EasyJet premises all flights

On Wednesday, he restored his needs for the airline company to eliminate its chief financing officer Andrew Findlay to “stop him from signing any more billion-pound cheques to Airbus every year”.

Sir Stelios – who holds the greatest stake in the airline company – desires a conference of easyJet investors so they can vote on getting rid of Mr Findlay and Andreas Bierwirth, another director.

In a declaration, he stated: “Unless this vote of all shareholders is called without any further delay, I will request that more directors be removed.”

EasyJet declined his ask for a investor conference on Friday.

The budget airline company has actually grounded all of its 330 planes as need for flights collapsed due to the coronavirus pandemic.

Sir Stelios has actually worried he will not invest any more money into the airline company while the agreement with the aircraft maker remains in location.

His declaration continued: “We need to stop this river of money from the Bank of England through Luton airport to Toulouse where Airplane is based.

” This is a abuse of UK taxpayers’ money.

“If the French government wants to spare Airbus from the cost of aircraft order cancellations, so they can keep French people in jobs, then they must give such support as French state aid and not expect a British airline to foot the bill.”

He alerted he would “personally sue” executives for a “breach of their fiduciary duties” if the company invests “a penny” on the Airplane order while defaulting on other financial responsibilities.

:: Listen to the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker

EasyJet stated in a declaration its board “fully supports” Mr Findlay.

The ₤600 m federal government fund is from the UK’s Covid Corporate Funding Center (CCFF) to aid companies throughout the pandemic, which is due to be paid back in March 2021.

EasyJet is comprehended to think about the federal government loan as the ideal strategy and remains in talks with partners and providers to minimize expenses.

The airline company likewise revealed it will obtain a even more $500 m (₤406 m) from industrial financial institutions as part of its “focus on maximising liquidity”.

An easyJet spokesperson stated: “We stay definitely focused on getting rid of expense from the business, engaging with all of our business providers and partners consisting of Airplane, and on securing tasks and short-term liquidity.

” The board totally supports Andrew Findlay, easyJet’s CFO, and waits its cumulative decision to gain access to the CCFF which was made in the very best interests of the business.”

The spokesperson added that holding a basic conference “would be an unhelpful diversion” from taking on the numerous instant problems the company is dealing with.

The post EasyJet founder vows to sue execs if they ‘invest a cent’ on new planes appeared first on World Weekly News.