EasyJet founder will vote against Airbus purchase

Founder of budget airliner easyJet Stelios Haji-Ioannou has said he will vote against a management plan to buy 135 Airbus SAS jets, valued at $13.2bn, citing a lack of transparency to the transaction.

Haji-Ioannou, who owns just under 37 per cent of the company, said “it is my firm opinion that this is a good deal for Airbus and a bad deal for EasyJet shareholders”. The decision will be put to vote on 11 July 2013.

I am not against replacing aircraft that have reached the end of their economic life. However, I am against buying aircraft that are three times more expensive than the ones I bought with my own money in the early 2000s.

Meanwhile, easyJet is also planning to cut passenger cabin luggage entitlement by 36 per cent to a maximum size of 50x40x20cm. This is slightly lower than the current size restriction of 56x45x25cm. Passengers will still be able to take on bags of this size, but they may have to go in hold on a busy flight.

A Which? magazine survey found that 40 per cent of easyJet passengers will still fly with the maximum weight bag and risk having to pay to put their luggage in the hold.