Easy / Stelios trying to cancel Airbus order
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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.
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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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.
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.
[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.
yet an independent company hired by easyJet to investigate this found no wrong doing in airplane purchases with Airbus.
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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.
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?
[QUOTE=The Flying Cokeman;10781493]
That's about how I feel when buying a used car. I know I have been screwed but haven't yet figured out how
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.
yet an independent company hired by easyJet to investigate this found no wrong doing in airplane purchases with Airbus.
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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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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.
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.
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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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.
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.
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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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.
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.
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.
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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A resounding no from the other shareholders https://www.theguardian.com/business...airman-and-ceo
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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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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...”
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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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).
