EasyJet puts an end to its Stelios battle

EASY JET'S management hopes to put an end to its board-level dispute over expansion plans on Wednesday after bowing to&nbsp; shareholders&rsquo; calls to scale back expansion.<br /><br />A truce will mean the end of an eight month long public tussle between founder and majority shareholder Stelios Haji-Ioannou and management over the no-frills airline&rsquo;s plans to expand its fleet by 20 per cent over the next three years.<br /><br />EasyJet is now expected to say on Wednesday at the company&rsquo;s third quarter results that it will rein back the rate of its fleet expansion to between five and 10 per cent, a slowdown from the growth it has pioneered in recent years.<br /><br />It is believed that the agreement will centre around exchanging older planes for new aircraft, with new deliveries postponed for at least 18 months.<br /><br />Stelios had voiced concerns that rampant expansion during the downturn could wipe out shareholders&rsquo; payouts and that easyJet could struggle to fill the planes profitably , particularly if governments prove reluctant to let struggling competitors fail.&nbsp; Stelios ratcheted up the pressure further, threatening to exercise his rights to become the airline&rsquo;s chairman again and place his representatives on the board.<br /><br />But the&nbsp; battle has been viewed by other shareholders and analysts as a distraction to running the business, and it is hoped this new deal will put to bed anxieties about the business.