EasyJet's founder and largest shareholder, Stelios Haji-Ioannou, threatens to fire non-executive directors if the low-cost airline does not cancel a € 5 billion order from Airbus, Sky News said on Monday.
The television station cites a letter sent to the management of the company to which it had access.
According to the television station, the airline's founder threatens to fire a non-executive director every seven weeks if easyJet does not cancel the order for 107 new Airbus planes worth five billion euros.
Haji-Ioannou considers that ordering the new aircraft from Airbus is "the main risk for the survival of easyJet". "The commitment to pay five billion euros to Airbus makes easyJet's current market capitalization of 2.7 billion euros ridiculous", he adds, indicating that the low cost company must invoke "force majeure" to cancel the order.
If the company is unable to cancel the deal, the founder indicates that he will call extraordinary general meetings every seven weeks to dismiss non-executive directors.
The company's board of directors responded in a statement saying it is "suppressing non-essential costs and expenses at all levels". "We are working with suppliers to postpone and reduce payments, including aircraft purchases," the statement said.
Haji-Ioannou contradicted the company's CEO, Johan Lundgren, who asked for state support. The company's founder argues that "it would be an abuse of taxpayers' money to obtain loans to pay Airbus for a non-profit investment in 107 planes. We should make a capital increase".
