Easyjet founder steps up dispute with board

The rift between easyJet and Stelios Haji-Ioannou deepened today after the airline’s millionaire founder refused to back the company’s accounts.

Stelios said accounting policies adopted by the board were “at odds with current commercial realities and the macro-economic environment”.

Last week, the non-executive director increased his personal stake in the business to almost 27% amid a row over future dividends. He wants the board to consider making payouts as the company scales back growth plans.

Stelios is currently in discussions with the board about his request to appoint two non-executive directors.

EasyJet said the rest of the board were unanimous in their support of the accounts, while the figures were also approved by auditors PwC.

A 45% drop in profits to £110m (€130m) reflected rising fuel costs and came despite a 31.5% rise in revenues to £2.36bn (€2.8bn) as passenger numbers increased by 17.3% to 43.7 million.

The accounting concerns raised by Stelios stemmed from the company’s acquisition of GB Airways from British Airways earlier this year. In particular, he said the valuation of GB’s Gatwick airport slots was too optimistic given the current economic climate.

Stelios said discussions about the appointment of new directors were planned with the board between now and the company’s annual meeting.

He added: “I would like to place on record that I believe that with careful cash management and in particular more prudent capital expenditure easyJet and its shareholders will be the winners in European short haul aviation.

“We must focus on cash flows forecasts and not on carrying more passengers.”

The Luton-based carrier said the withdrawal of competition on some routes and its decision to restrict growth meant its measure of revenues per seat flown would be slightly ahead in the first half of its new financial year.

Chief executive Andy Harrison described the full-year performance as good and said there was evidence the airline was benefiting in the current economic climate from a “flight to value” for both business and leisure passengers.