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Easy / Stelios trying to cancel Airbus order

Old 12th May 2020, 16:54
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Easy / Stelios trying to cancel Airbus order

from sky.com:

Sir Stelios Haji-Ioannou will pay the sum for information that leads to a £4.5bn plane order being cancelled, Sky News learns.

The founder of easyJet is offering to dip into his pocket by offering a £5m "reward" for information that triggers the cancellation of a controversial £4.5bn Airbus order.




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Old 12th May 2020, 21:25
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I would appreciate if that "Sir" left easyJet and aviation in peace.
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Old 13th May 2020, 11:39
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There are bound to have been some corporate schmoozing taken place. Some over the top wining and dining ++ Something that in hindsight might look quite damming, The right incentives will bring it to light.
A different question is whether Easyjet is served well by getting on the wrong side of a 30% shareholder in difficult times. Is the continued concentration on growth for the benefit of the shareholders that take all the risk, or for increasing managements incentive packages. There are enough samples of corporate greed where top management walks away with millions even though the results tanks and staff ends up getting laid off.
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Old 13th May 2020, 15:01
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[QUOTE=vikingivesterled;10781312]There are bound to have been some corporate schmoozing taken place. Some over the top wining and dining ++ Something that in hindsight might look quite damming, The right incentives will bring it to light.

yet an independent company hired by easyJet to investigate this found no wrong doing in airplane purchases with Airbus.
The Flying Cokeman is online now  
Old 13th May 2020, 15:16
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Originally Posted by The Flying Cokeman View Post
yet an independent company hired by easyJet to investigate this found no wrong doing in airplane purchases with Airbus.
An independent company is only as independent as the one that pays their bill want them to be. Selfhiring an "independent" is a well known way of getting in ahead of an investigation instigated by somebody else.
I am not saying anything will be hung on the current management of Easyjet, but smaybe something will stick on Airbus that could be used for negating the contract without penalties. Even more likely since they have already settled something similar. Easyjet management's problem will be going forward with a toxic relationship with its biggest shareholder. It's not like Ryanair, or Norwegian up until their last vote, where all shareholders are very small and unconnected leaving it completely up to management to run the show.
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Old 13th May 2020, 16:06
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Why all this drama? If you run out of money there will be more quiet ways to renegotiate a contract. Is he publicly fighting his own management?
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Old 13th May 2020, 17:51
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[QUOTE=The Flying Cokeman;10781493]
Originally Posted by vikingivesterled View Post
There are bound to have been some corporate schmoozing taken place. Some over the top wining and dining ++ Something that in hindsight might look quite damming, The right incentives will bring it to light.

yet an independent company hired by easyJet to investigate this found no wrong doing in airplane purchases with Airbus.
That's about how I feel when buying a used car. I know I have been screwed but haven't yet figured out how
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Old 13th May 2020, 17:55
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Originally Posted by Less Hair View Post
Why all this drama? If you run out of money there will be more quiet ways to renegotiate a contract. Is he publicly fighting his own management?
They're not "his" management. Stelios is a minority shareholder, and he doesn't sit on the board. But yes, he is fighting easyJet management.
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Old 13th May 2020, 19:01
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Stelios was not too successful with other business ventures, which is one reason why he always insisted on a rather large dividend and a very favorable deal for the “Easy” brand. Getting any kind of government help anywhere would most probably mean no further dividend payments. Refinancing on the open market would mean putting more shares out and/or convertible bonds, which waters down his stake in the company and he would risk losing his blocking minority stake in the company.

He does not care at all about the longterm growth of easyJet, but rather about losing control and dividend payments in the short to medium term. Rather a small low marketshare airline where he is still somewhat important than a growing major one.
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Old 13th May 2020, 19:27
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If he doesn’t like the way it’s being run the answer is simple. Cough up enough to buy another 20% of shares (plus one spare) and he is the main man again.


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Old 14th May 2020, 07:34
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Originally Posted by Rt Hon Jim Hacker MP View Post
If he doesn’t like the way it’s being run the answer is simple. Cough up enough to buy another 20% of shares (plus one spare) and he is the main man again.
I'm not even certain if the whole 34% even belongs to him. I'm sure one of the recent Easy threads mentioned that the 34% is spread between two or three family members. It may well be that currently he can vote them but I wonder if that will continue to be the case.
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Old 14th May 2020, 07:56
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Originally Posted by Rt Hon Jim Hacker MP View Post
If he doesn’t like the way it’s being run the answer is simple. Cough up enough to buy another 20% of shares (plus one spare) and he is the main man again.
Not allowed. If he wants more control he has to offer to buy the lot.
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Old 14th May 2020, 09:25
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Originally Posted by vikingivesterled View Post
There are bound to have been some corporate schmoozing taken place. Some over the top wining and dining ++ Something that in hindsight might look quite damming, The right incentives will bring it to light.
A different question is whether Easyjet is served well by getting on the wrong side of a 30% shareholder in difficult times. Is the continued concentration on growth for the benefit of the shareholders that take all the risk, or for increasing managements incentive packages. There are enough samples of corporate greed where top management walks away with millions even though the results tanks and staff ends up getting laid off.
Often times the shareholders aren’t the ones taking most of the risk, that’s the banks and increasingly the supply chain who haven’t the luxury of charges over the (Few) company assets and preferred creditor status

vis VS and the situation where the recent investors secured the loans they offered and stand to get back a significant proportion of their investments while unsecured creditors get ~zilch
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Old 14th May 2020, 10:48
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Originally Posted by Denti View Post
Stelios was not too successful with other business ventures, which is one reason why he always insisted on a rather large dividend and a very favorable deal for the “Easy” brand. Getting any kind of government help anywhere would most probably mean no further dividend payments. Refinancing on the open market would mean putting more shares out and/or convertible bonds, which waters down his stake in the company and he would risk losing his blocking minority stake in the company.

He does not care at all about the longterm growth of easyJet, but rather about losing control and dividend payments in the short to medium term. Rather a small low marketshare airline where he is still somewhat important than a growing major one.
Exactly. Stelios wants Easyjet to be his cash cow and he regularly picks it up and shakes it about to get more cash out of it - "Easy" licensing fees, increased dividends, etc.

The other shareholders should consider him a risk to their investment - he acts like he doesn't care about long term growth or returns, or even survival, only short term cash.
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Old 15th May 2020, 12:09
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Originally Posted by vikingivesterled View Post
yet an independent company hired by easyJet to investigate this found no wrong doing in airplane purchases with Airbus.
I never knew an "independent report" to management that did not deliver them the result they originally wanted. If you don't do that, you never get any repeat business.
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Old 15th May 2020, 19:35
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Originally Posted by WHBM View Post
I never knew an "independent report" to management that did not deliver them the result they originally wanted. If you don't do that, you never get any repeat business.
It couldn't possibly because Stelios is:
  • Wrong
  • and obnoxious with it.
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Old 22nd May 2020, 12:23
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A resounding no from the other shareholders https://www.theguardian.com/business...airman-and-ceo
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Old 22nd May 2020, 12:50
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Any step back now would make easyJet lose market share in a big way. Wizz air are already preparing for a LGW base soon and they certainly do have the orders, capacity and resource to make it happen. The same goes for the Ryanair group, especially if the 737MAX actually gets going this autumn. Norwegian will very soon have nowhere to return after its proposed one-year restructuring, and easyJet might as well follow suit if they decide to axe all deliveries now.
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Old 23rd May 2020, 16:15
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Is Stelios really so bad - or is he simply in the same pillory category as other airline managers and ex-managers these days?
When I flew for easy - quite a while back before the A320 came - he was pleasant and keen and apparently well liked. I had him in the cockpit a couple of times, after he had requested a ride.
”Well it’s your cockpit sir” - “Stelios, not sir...”
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Old 23rd May 2020, 17:37
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I have some sympathy for Stelios. His view is easyjet will be massive when it goes bust. He considers 250 aircraft the "sweet spot" in terms of shareholder reward. I still think there might be a round of redundancy inbound. Based on time flying easyjet registered aircraft (amalgamated Company time to count).
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