EasyJet's fleet expansion get shareholders’ nod

By IVCPOST Staff Reporter

Jul 11, 2013 09:40 AM EDT

EasyJet's shareholders voted in favor of the airline company's bid to purchase 135 new Airbus planes, overthrowing its estranged founder's move to block it.

The deal, which was so large, it required a shareholder vote where investors representing above 50% of the company's shares had to approve.

During a meeting held in Luton, north of London, investors representing 57% of the company's shares favored the purchase of 100 new A320 neo jets and 35 A320 aircraft. It was also resolved that there is an option to buy 100 more.

"The vote in favor of our new fleet arrangements will allow easyJet to continue its successful strategy of modest, profitable growth and sustainable returns for our shareholders," the group's Chairman John Barton said.

Stelios Haji-Ioannou, easyJet's estranged founder, previously expressed his opposition about the fleet expansion stating that the purchase price would be better spent on developing returns to investors via share buybacks and dividends. Haji-Ioannou, who founded the airline company in 1995, also said that the deal would only damage shareholder value.

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