Regions

EasyJet investors consider US$13 billion order

July 11
5:02 AM 2013

Shareholders at EasyJet Plc are poised to back an order for 135 Airbus SAS jets. The deal was valued at US$13 billion according to CEO Carolyn McCall who initiated the move with former flag carriers for short haul routes.

Stelios Haji-Ioannou, founder and top investor at EasyJet opposed the deal for months. However, today's vote at the company's base in Luton, England pushed through. The company's founder and top investor said that the transaction would result to a misguided plan and could be harmful to dividend prospects.

McCall planned to capture market share yielded by network carriers. These included Air France and Deutsche Lufthansa AG. The move would get EasyJet further from the discount focus of its founder while standing no.2 behind Ryanair Holdings Plc.

Investors Standard Life Investments and Prudential Plc's M&G Investments supported the board in its acquisition plans. Standard Life owned 8% stock in the company while EasyJet owned 5% stock in EasyJet Plc.

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