Easyjet - 3
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(today announced) - the full year pretax profit fell 35 percent to 123 million pounds, while first quarter winter bookings are ahead of last year.
It's in line with expectations and indeed, not a bad result in the current economical situation (my opinion).
It's in line with expectations and indeed, not a bad result in the current economical situation (my opinion).
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Sir Stelios refuses to sign off easyJet's accounts - Times Online
To quote from above link
Sir Stelios Haji-Ioannou, the founder of easyJet, has ramped up his dispute with the low-cost airline's board by refusing to approve the company's annual accounts.
In a formal statement attached to easyJet's final results, the entrepreneur, who owns more than a quarter of the company, sets out his reasons for his concern over accounting policies adopted by the rest of the board, which he believes do not reflect "current commercial realities and the macro-economic climate".
This coupled with Ryanair launching 2 spanish destinations from LGW means interesting times for the low cost sector IMHO.
To quote from above link
Sir Stelios Haji-Ioannou, the founder of easyJet, has ramped up his dispute with the low-cost airline's board by refusing to approve the company's annual accounts.
In a formal statement attached to easyJet's final results, the entrepreneur, who owns more than a quarter of the company, sets out his reasons for his concern over accounting policies adopted by the rest of the board, which he believes do not reflect "current commercial realities and the macro-economic climate".
This coupled with Ryanair launching 2 spanish destinations from LGW means interesting times for the low cost sector IMHO.
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eu01,
Based on your figures and the stepping in of the main shareholder, I would suggest your conclusion is ill judged.
Stelios is looking for a dividend, suggesting a need to protect working capital and cash and play it safe. On that basis and the fact that costs are variable at best and on the increase at worst, revenue streams won't matter a jot.
Orders for vanity, profits for sanity. Cash is King. etc etc.
If working capital is being eroded at EJ, then things are bad. Snippets in the media (BBC) suggest the Board are ambitious and are looking at new routes and customers as well as cost control / cutting to give a better return. Is this is the best use of the hard earn't cash over the years ? Stelios doesn't think so and neither would many of the staff I would suggest (let alone the company FD).
Watch the share price. That will tell you who is going to win this battle. If there were multiple shareholders out their, things would be very interesting indeed.
Based on your figures and the stepping in of the main shareholder, I would suggest your conclusion is ill judged.
Stelios is looking for a dividend, suggesting a need to protect working capital and cash and play it safe. On that basis and the fact that costs are variable at best and on the increase at worst, revenue streams won't matter a jot.
Orders for vanity, profits for sanity. Cash is King. etc etc.
If working capital is being eroded at EJ, then things are bad. Snippets in the media (BBC) suggest the Board are ambitious and are looking at new routes and customers as well as cost control / cutting to give a better return. Is this is the best use of the hard earn't cash over the years ? Stelios doesn't think so and neither would many of the staff I would suggest (let alone the company FD).
Watch the share price. That will tell you who is going to win this battle. If there were multiple shareholders out their, things would be very interesting indeed.
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The FT's Andrew Hill has just published the following opinion:
Sir Stelios's public interventions at EasyJet are ill-judged. As a director, he has a right to make specific points about the airline's strategy and accounting in private. But there's a reason why cases where non-executives append dissenting opinions to listed company results statement are few and far between: going public with complaints can only make matters worse. It's particularly odd in Sir Stelios's case, as the value of his shareholding can only be damaged by further open sparring.
Meanwhile, if there are other investors out there who believe Sir Stelios is right to call for even greater prudence, they are unlikely to lend public support, lest they inflict greater damage on the share price.(...)
Wisely, EasyJet management let the airline's results speak for themselves. The message to Sir Stelios is clear: the captain has illuminated the Fasten Seatbelts sign; please return to your seat.
Meanwhile, if there are other investors out there who believe Sir Stelios is right to call for even greater prudence, they are unlikely to lend public support, lest they inflict greater damage on the share price.(...)
Wisely, EasyJet management let the airline's results speak for themselves. The message to Sir Stelios is clear: the captain has illuminated the Fasten Seatbelts sign; please return to your seat.
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Stelios contra EZY
Uneasy relationship - that's a title of a new article in The Economist, certainly worth reading. Just a short excerpt here:
Whatever the reasons [of Stelios's disapproval are], they spell trouble for easyJet. The airline’s expansion plans for the coming year are modest: capacity is planned to grow by 5% compared with the 15% that is easyJet’s norm. Given the desperate state of Alitalia and the difficulties of Iberia, easyJet, which has hubs at Milan Malpensa and Madrid Barajas, is in a strong position to benefit. Mr van Klaveren [an analyst at Exane BNP Paribas] fears that the ultra-cautious approach Sir Stelios is advocating, combined with talk of dividends, could result in the stock going “ex-growth” and losing the premium it shares with its rival, Ryanair. It is hard to see how that is in anyone’s interests.
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EasyJet: The budget airline said it has sold two A321 aircraft for about $84 million (£57 million). Analysts said this could ease the concerns of Sir Stelios Haji-Inoannou, the airline’s founder, about its approach to valuing assets.
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I was wondering: did they consider placing these spare aircraft in Italy instead of selling them? I suppose it would have been quite expensive as it was was outside their plans but with alitalia cancelling 100 flights per day, which is just the beginning of a major shrink for them, this is probably the best opportunity ever to get a consistent slice of a very important market, even if the cost of a big sudden and unplanned expansion is probably very high wasn't it worth trying?
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According to FT (today) "Sir Stelios Haji-Ioannou will step up his campaign this week to persuade EasyJet to adopt an ultra-cautious approach to growth as the recession deepens."
And indeed, the campaign has already taken its toll. The summer schedules' release for Basel, Geneva, Berlin, Madrid and Milan planned for today has been postponed at least until 26th of November. Selling more planes?
And indeed, the campaign has already taken its toll. The summer schedules' release for Basel, Geneva, Berlin, Madrid and Milan planned for today has been postponed at least until 26th of November. Selling more planes?
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Hello,
Not sure if this has been covered or not yet in the post but i see they have released the schedule from LGW to most destination but the CFU / DLM flights etc are not on sale yet.
Anyone know why as hopinh to pick up some cheap seats as an early booker if i can.
Thanks
Not sure if this has been covered or not yet in the post but i see they have released the schedule from LGW to most destination but the CFU / DLM flights etc are not on sale yet.
Anyone know why as hopinh to pick up some cheap seats as an early booker if i can.
Thanks
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Easyjet LGW
As far as I can see the Gatwick summer routes have not been released yet. Supposed to happen on 26 November now. I doubt the delay from 24 November to 26 November has anything to do with Stelios or cut-backs. The previous tranche was also delayed by a day or two.
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BSL, GVA and MAD: 27th Nov, the others: 5th Dec
Hope they wait to see what will happen with the financial/economy crisis and also what will happen to other airlines like AZ.
Hope they wait to see what will happen with the financial/economy crisis and also what will happen to other airlines like AZ.
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any ideas about MAN new routes.
They said a 3rd aircraft would be based at MAN for summer 09, but no sign of it yet.
They said a 3rd aircraft would be based at MAN for summer 09, but no sign of it yet.
Last edited by virgin_cc_wannabe; 29th Nov 2008 at 22:58. Reason: mistake
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Big drop in November capacity
Easyjet have just announced a 3.4% rise in pax and a 3.1% rise in load factor.
This rise includes the seats added when they took on GB. In reality the old easyjet routes are carrying less pax than last year. They are also flying less sectors than last year.
Unlike ryanair they seem to be trying to remain profitable by cutting capacity to demand. What happens to all the planes on order? Best option it to takeover another airline with leased planes that can be swapped out.
This rise includes the seats added when they took on GB. In reality the old easyjet routes are carrying less pax than last year. They are also flying less sectors than last year.
Unlike ryanair they seem to be trying to remain profitable by cutting capacity to demand. What happens to all the planes on order? Best option it to takeover another airline with leased planes that can be swapped out.